The Department of Banking News Bulletin
Bulletin # 2755
Week Ending December 9, 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.
Savings Institute Bank
& Trust, Willimantic
80 Stonington Road
Mystic, CT 06355
Notice of proposed
closing date - Full Service
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 November 30, 2016, 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: Leonardi Ortiz d/b/a Student Reform Associates
(“Respondent”), La Jolla, California. The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondent engaged in debt negotiation in Connecticut 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 $2,805 to identified Connecticut debtors 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.
On November 28, 2016, the Commissioner entered into a Consent Order with Landmark Financial Services, LLC d/b/a Landmark Home Loans
(NMLS # 120296) (“Landmark Home Loans”), Stamford, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on September 26, 2016, 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. The Commissioner alleged that Landmark Home Loans failed to timely file certain quarterly information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes. As part of the Consent Order, Landmark Home Loans paid $500 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Meyers Associates, L.P. Directed to Cease and Desist from Regulatory Violations; Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Intent to Fine Issued
On December 5, 2016, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Revoke Registration as a Broker-dealer, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-16-8342-S) against Meyers Associates, L.P.
The firm is registered as a broker-dealer under the Connecticut Uniform Securities Act and has its principal office at 45 Broadway, New York, New York.
The firm had been the subject of two prior revocation proceedings, each of which was informally resolved by Consent Order, the first Consent Order being entered on June 14, 2011 (Docket No. RCF-10-7817-S) and the second on March 24, 2015. Both Consent Orders contemplated that the firm would implement remedial measures to prevent future regulatory violations.
The current matter, which was the outgrowth of a follow-up investigation and examination by the department, alleged that the firm failed to adhere to fundamental compliance principles. More specifically, the action alleged that Meyers Associates, L.P. 1) violated Section 36b-14(d) of the Connecticut Uniform Securities Act and Section 36b-31-14f of the Regulations thereunder by failing to make required books and records available to agency staff; 2) failed to maintain true, accurate and current books and records; 3) violated the 2015 Consent Order by selling securities listed on the OTCQB; 4) failed to establish, enforce and maintain adequate supervisory procedures; 5) violated Section 36b-16 of the Act by offering and selling unregistered securities; and 6) made materially misleading statements to the Division. Meyers Associates, L.P. as afforded an opportunity to request a hearing on the allegations.
Dated: Tuesday, December 13, 2016
Jorge L. Perez