DOB: Bulletin 2694 - October 9, 2015

The Department of Banking News Bulletin 

Bulletin # 2694
Week Ending October 9, 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 
10/07/15
Thomaston Savings Bank
Thomaston
471 Main Street
Oakville, CT  06779
Filed


CONSUMER CREDIT DIVISION ACTIVITY
Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to
Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

 

On September 29, 2015, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  Lamont G. Karriem d/b/a Hope for Home (“Respondent”), Mira Loma, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to repay ten identified Connecticut debtors plus interest, and to repay any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondent on or after October 1, 2009, any fees paid by such Connecticut debtor to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.
 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist, Order to Make Restitution Made Permanent;

$5,000 Fine Imposed

 

On October 6, 2015, the Banking Commissioner issued Findings of Fact, Conclusions of Law and an Order (Docket No. CRF-15-8179-S) with respect to Rosemarie Pokorski who did business under the name Second Impression.  The action had been preceded by a February 26, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleging that 1) from approximately February 1, 2012 to February 1, 2013, the respondent offered and sold unregistered securities in the form of investment agreements to at least four Connecticut residents; 2) respondent Pokorski allegedly told investors that she was in the business of buying antiques and collectibles in bulk, and that she would use the invested funds to purchase the goods, sell them and divide the profits with each investor on a percentage basis; and 3) in reality, respondent Pokorski spent most, if not all, of the investment proceeds on personal expenses and, in so doing, violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act.  Although respondent Pokorski requested a hearing on the allegations, she did not appear at the resulting proceeding.  Noting that the respondent had admitted to taking investor monies and not using the funds properly, the Commissioner adopted as findings the allegations in the February 26, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.  The Commissioner also rendered permanent the February 26, 2015 Order to Cease and Desist and Order to Make Restitution and fined the respondent $5,000.


Connecticut-registered broker-dealer Fined $35,000 For Supervisory Lapse Involving
Unregistered Sales Assistants

 

On October 8, 2015, the Banking Commissioner entered a Consent Order (No. CO-15-8239-S) with respect to Citigroup Global Markets Inc., a Connecticut-registered broker-dealer.  The Consent Order was the result of a multi-state investigation and global settlement involving firm sales assistants who allegedly accepted customer orders at a time when the sales assistants were not registered under state securities laws. The conduct allegedly occurred between 2007 and 2014.  The Consent Order alleged that the firm failed to establish an adequate supervisory system in contravention of Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act and that, in employing unregistered agents, the firm violated Section 36b-6(b) of the Act.  In resolution of the matter, the firm agreed to pay a $35,000 fine to the state.



 

    Dated: Wednesday, October 14, 2015


    Jorge L. Perez
    Banking Commissioner