The Department of Banking News Bulletin
Bulletin # 2779
Week Ending May 26, 2017
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.
The Milford Bank
2366 Main Street
Stratford, CT 06615
Effective Date of Closing
Full Service Branch
On May 22, 2017, Donald J. Vaccaro filed an acquisition statement pursuant to Section 36a-184 of the Connecticut General Statutes to acquire between 25% to 49.9% of the voting securities of Prime Bank, a Connecticut bank and trust company headquartered in Orange, Connecticut.
Order for Hearing
A hearing will be held at the Department of Banking, 260 Constitution Plaza, Room 50, Hartford, Connecticut, on June 22, 2017 at 10:00 a.m. on the application of James McAndrews, Eugene Park and James Calcagno to organize, pursuant to Section 36a-70 of the Connecticut General Statutes, TNB, Norwalk, Connecticut, as an uninsured bank.
STATE CREDIT UNION ACTIVITY
Nutmeg State Financial Credit Union
325 Oakland Street
Bristol, CT 06010
Effective Date of Closing
Full Service Branch
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Entered
On May 15, 2017, the Banking Commissioner entered a Consent Order (No. CO-17-8342-S) with respect to Meyers Associates, L.P.
now known as Windsor Street Capital, LP
. The action had been preceded by a December 5, 2016 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 the firm. Meyers Associates, L.P., a broker-dealer, maintains its principal office at 45 Broadway, New York, New York.
The firm had also 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 December 5, 2016 administrative action 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.
The May 15, 2017 Consent Order resolved the matters alleged in the December 5, 2016 administrative action without the need for a hearing. In addition to directing the firm to cease and desist from regulatory violations, the Consent Order fined the firm $25,000. The Consent Order reflected the firmís representation that, in light of over $1 million in fines potentially owed to FINRA and the SEC in conjunction with pending proceedings before those bodies, the firm was financially unable to pay the maximum fine that otherwise would have been ordered as a term of the Consent Order.
Meyers Associates, L.P. filed to withdraw its broker-dealer registration under the Connecticut Uniform Securities Act on February 10, 2017. Pursuant to the Consent Order, the withdrawal became effective on May 15, 2017.
Dated: Wednesday, May 31, 2017
Jorge L. Perez