DOB: Bulletin 2691 - September 18, 2015

The Department of Banking News Bulletin 

Bulletin # 2691
Week Ending September 18, 2015

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications.  Any observations you may have are solicited.  Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  Written comments will be considered only if they are received within ten days from the date of this bulletin.


STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

Date
Bank 
Location 
Activity 
09/18/15
United Bank
Rockville
55 Greens Farms Road
Westport, CT  06880
Filed

Acquisition Statement

 

On September 14, 2015, pursuant to Section 36a-184 of the Connecticut General Statutes, PB Bancorp, Inc., a newly organized Maryland corporation headquartered in Putnam, Connecticut, filed an acquisition statement for the acquisition of Putnam Bank, a Connecticut-chartered stock savings bank and wholly-owned subsidiary of PSB Holdings, Inc., a federal stock corporation and majority-owned subsidiary of Putnam Bancorp, MHC, a federal mutual holding company.  PSB Holdings, Inc. and Putnam Bancorp, MHC are both headquartered in Putnam, Connecticut.  The acquisition statement was filed in connection with Putnam Bank’s reorganization from the mutual holding company form of organization into the holding company form of organization with PB Bancorp, Inc., a federal bank holding company, as Putnam Bank’s sole holding company. 


CONSUMER CREDIT DIVISION ACTIVITY
Notice of Intent to Issue Order to Cease and Desist and

Notice of Intent to Impose Civil Penalty

 

On September 4, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Americay Mortgage Corporation (NMLS # 1155) (“Respondent”), Vernon, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent failed to timely file certain quarterly information and failed to file certain other quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

 

On September 4, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Portfolio Recovery Management Inc. (“Respondent”), Amherst, New York.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.
 

On September 8, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  LMB Mortgage Services, Inc. d/b/a lowermybills.com (NMLS # 167283) (“Respondent”), Playa Vista, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

 

On September 8, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Miller Mortgage, LLC (NMLS # 2513) (“Respondent”), Peabody, Massachusetts.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

 

On September 8, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Omega Financial Services, Inc. d/b/a Omega Funding Capital Corporation (NMLS # 20169) (“Respondent”), Union, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent failed to timely file certain annual and certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a 534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

 

Consent Order

 

On September 4, 2015 the Commissioner entered into a Consent Order with Great Western Financial Services, Inc. (NMLS # 82156) (“Great Western Financial Services”), Plano, Texas.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on May 29, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Great Western Financial Services.  The Commissioner alleged that Great Western Financial Services failed to file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of multiple orders of the Commissioner.  As part of the Consent Order, Great Western Financial Services requested surrender of its Connecticut mortgage lender license and paid $5,000 as a civil penalty.

 


SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Entered

 

On September 16, 2015, the Banking Commissioner entered a Consent Order (Docket No. CO-15-8110-S) with respect to Overtime Marketing, LLC and Overtime Sports Southeast, LLC, both of Dallas, Texas; and Overtime Sports Southwest, LLC, and Kenneth Hansmire both of Comanche, Texas.  Hansmire, the control person of Overtime Marketing, LLC, Overtime Sports Southeast, LLC and Overtime Sports Southwest, LLC was in the business of promoting an all-star football game for college athletes.  The settling respondents had been the subject of a June 22, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-15-8110-S) alleging that 1) from approximately February 2009 to May 2012, the settling respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by participating in the sale of approximately $1.9 million of unregistered notes issued by the Overtime entities; 2) that the Overtime entities employed one Dale Quesnel, Sr. as an unregistered agent of issuer in violation of Section 36b-6(b) of the Act; and 3) the settling respondents failed to provide investors with any offering document or other written disclosure describing the risks associated with the note investment and, in so doing, violated the antifraud provisions of the Act.

 

The Consent Order directed the settling respondents to cease and desist from regulatory violations.  In addition, the Consent Order permanently barred respondent Hansmire and any entity under his control from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut; and acting as a finder for compensation or receiving referral fees or other remuneration for soliciting or otherwise procuring securities investors, customers or clients for any issuer, broker-dealer or investment adviser.  Acknowledging the settling respondents' demonstrated inability to currently pay any restitutionary amounts, the Consent Order temporarily stayed for three years the June 22, 2015 Order to Make Restitution, subject to the settling respondents providing updated financial information at least annually reflecting their most current financial status.


 

    Dated: Tuesday, September 22, 2015


    Jorge L. Perez
    Banking Commissioner