The Department of Banking News Bulletin
Bulletin # 2713
Week Ending February 19, 2016
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
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, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage. 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.
First County Bank
FROM: 1260 Post Road East
Westport, CT 06880
TO: 1135 Post Road East
Westport, CT 06880
Applied to Relocate -
Full Service Branch
CONSUMER CREDIT DIVISION ACTIVITY
On February 10, 2016, the Commissioner entered into a Consent Order with Renew Financial Corp. II f/k/a AFC First Financial Corporation (“Renew Financial Corp. II”) (NMLS # 138968), Allentown, Pennsylvania. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Renew Financial Corp. II failed to file a name change with the Nationwide Mortgage Licensing System and Registry at least 30 calendar days prior to such change and failed to file a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner, in violation of Section 36a-490(b) of the Connecticut General Statutes. As part of the Consent Order, Renew Financial Corp. II paid $500 as a civil penalty.
On February 10, 2016, the Commissioner entered into a Consent Order with Stonegate Mortgage Associates, Inc. (“Stonegate”) (NMLS # 1223), South Dartmouth, Massachusetts. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Stonegate changed the address of its main office specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such address change, failed to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects the address of the main office, in violation of Section 36a-490(b) of the Connecticut General Statutes. As part of the Consent Order, Stonegate paid $500 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Notice of Intent to Revoke Broker-dealer Registration Issued
On February 16, 2016, the Banking Commissioner issued a Notice of Intent to revoke the Connecticut broker-dealer registration of Halcyon Cabot Partners, Ltd. (Docket No. NR-16-8261-S). The firm is located in New York, New York. The action was based on several sanctions imposed by the Financial Industry Regulatory Authority (“FINRA”) on July 16, 2014, October 6, 2015 and December 16, 2015, including an expulsion from FINRA membership. In expelling the firm from membership, FINRA alleged, among other things, that the firm wilfully violated the antifraud provisions in Section 10(b) of the Securities Exchange Act of 1934 as well as Rule 10b-5 thereunder in conjunction with a sham placement agent agreement and deceptive commission sharing arrangement. Halcyon Cabot Partners, Ltd. was afforded an opportunity to request a hearing on the allegations in the Notice of Intent to Revoke Registration as a Broker-dealer.
Broker-dealer Registration Revoked
On February 18, 2016, the Banking Commissioner entered an Order revoking the broker-dealer registration of Martinez-Ayme Financial Group Incorporated d/b/a Martinez-Ayme Securities (Docket No. NR-15-8244-S). The firm is located in Miami, Florida. The revocation order had been preceded by a November 23, 2015 Notice of Intent to Revoke Registration as a Broker-dealer that was based on a series of sanctions entered by the Financial Industry Regulatory Authority (FINRA), including 1) a September 19, 2013 Acceptance, Waiver and Consent (Case No. 2013037419101) censuring the firm and fining it $25,000 for placing market maker bid quotations and making securities purchases during restricted periods; 2) a March 9, 2015 Acceptance, Waiver and Consent (Case No. 2013035307701) censuring the firm and fining it $25,000 for net capital and related issues; 3) a June 10, 2015 FINRA expulsion based on the firm’s failure to pay the fine imposed by Case No. 2013035307701); and 4) a September 14, 2015 additional FINRA expulsion based on the firm's failure to pay the fine imposed in Case No. 2013037419101.
The Notice was returned to the department as undeliverable, and constructive service was made on the Banking Commissioner pursuant to Section 36b-33(g) of the Connecticut Uniform Securities Act. Since the firm did not request a hearing on the Notice, a revocation order was entered by default. Adopting as findings of fact and conclusions of law the allegations set forth in the Notice, the Commissioner revoked the firm’s broker-dealer registration effective February 19, 2016.
Dated: Tuesday, February 23, 2016
Jorge L. Perez