DOB: Bulletin 2787 - July 21, 2017

The Department of Banking News Bulletin 

Bulletin # 2787
Week Ending July 21, 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
Branch Activity
 
Section 361-145 of the Connecticut General Statutes requires certain applications for a branch, of 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.
 
DATE:  June 26, 2017
BANK:  Savings Institute Bank & Trust Company, Willimantic
LOCATION:  FROM:  971 Poquonnock Road, Groton, CT  06340
                  TO:  996 Poquonnock Road, Groton, CT  06347
ACTIVITY-BRANCH TYPE:  Effective Date of Branch Relocation - Full Service
 
DATE:  July 13, 2017
BANK:  United Bank, Rockville
LOCATION:  151 Asylum Street, Hartford, CT  06106
ACTIVITY-BRANCH TYPE:  Approval - Full Service Branch

 
CONSUMER CREDIT DIVISION ACTIVITY
Consent Order

On July 18, 2017, the Commissioner entered into a Consent Order with American Bancshares Mortgage, LLC (NMLS # 217378), Miami Lakes, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that American Bancshares Mortgage failed to file with the Nationwide Multistate Licensing System and Registry a change of address for its main office at least 30 calendar days prior to such change and failed to provide 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, American Bancshares Mortgage paid $500 as a civil penalty.
 
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Stipulation and Agreement
 
On July 18, 2017, the Commissioner entered into a Stipulation and Agreement (No. ST-17-8211-S) with Sovereign State Depository, Inc., a now defunct Delaware corporation located at 1201 North Orange Street, Suite 7016, Wilmington, Delaware 19801, and Walter B. Reddy, III of Weston, Connecticut.  Reddy was the Chief Executive Officer and President of Sovereign State Depository Inc.  The corporation was formed to develop a new monetary and depository system using gold and silver as a medium of exchange as opposed to the monetary system facilitated by the Federal Reserve System.
 
The Stipulation and Agreement alleged that, at various times in 2010, the corporation and Reddy as its agent offered and sold unregistered promissory note securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act.  Pursuant to the Stipulation and Agreement, Sovereign State Depository, Inc. and Reddy agreed to pay a $500 fine to the department and to refrain from selling securities absent compliance with the state's securities laws.  In addition, both the corporation and Reddy agreed, for three years, to retain a securities attorney to advise them on Connecticut requirements and submit necessary regulatory filings.
 

 
 
Dated: Tuesday, July 25, 2017


Jorge L. Perez
Banking Commissioner