The Department of Banking News Bulletin
Bulletin # 1843
Week Ending June 18, 1999
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 John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to firstname.lastname@example.org. 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 that each application 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 Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.
FROM: 635 South Main Street
Middletown, CT 06457
TO: 460 South Main Street
Middletown, CT 06457
*Stop & Shop
200 New Hartford Road
Winsted, CT 06098
|100 West Lancaster Avenue
*333 East River Drive, Suite 305
East Hartford, CT 06108
|* Limited Branch|
INTERSTATE DE NOVO BRANCH ACTIVITY
On June 18, 1999, approval was granted, pursuant to Sections 36a-145 and 36a-412(a)(2) of the Connecticut General Statutes, to Westminster Development Bank to establish a de novo branch at 333 East River Drive, Suite 305, East Hartford, Connecticut.
CREDIT UNION ACTIVITY
Field of Membership
Pursuant to the provisions of subsections (g) and (h) of Section 36a-437 of the Connecticut General Statutes, on June 14, 1999, approval was granted to CHH Credit Union, Inc. to amend its certificate of organization and bylaws to expand its field of membership to include employees of healthcare facilities in the northwest corner of Connecticut.
Pursuant to the provisions of subsections (g) and (h) of Section 36a-437 of the Connecticut General Statutes, on June 14, 1999, approval was granted to The Norwalk Hospital Credit Union, Inc. to amend its certificate of organization and bylaws to expand its field of membership to include employees of healthcare related employers in the towns of Westport, Weston, Wilton, Redding, Ridgefield, New Canaan and Darien.
CREDIT UNION ACTIVITY
Pursuant to Section 36a-470(a)(4) of the Connecticut General Statutes, on June 14, 1999, the West Indian Credit Union, Inc., Hartford, submitted a proposition for merger to merge with and into the Hartford Healthcare Credit Union, Inc., Hartford.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Investment Adviser Registration Denied
Order to Cease and Desist Becomes Permanent
On June 14, 1999, the Banking Commissioner entered an Order denying the investment adviser registration of LRT Enterprises, LLC of 230 Forest Ridge Road, Waterbury, Connecticut.
The Order denying registration found that LRT Enterprises, LLC filed a materially incomplete registration; failed to remit an application fee; failed to register an investment adviser agent; and did not fulfill its duty to file a correcting amendment to its registration. The matter was uncontested by the firm.
Also uncontested was an Order to Cease and Desist against Ronald Ceccherini, the firm's principal, which became permanent on May 27, 1999. That Order to Cease and Desist had alleged that, while registered as an investment adviser, Ceccherini did not honor Securities Division requests to correct inaccuracies in his registration; failed to file financial reports or maintain required books and records; and did not keep his records open to reasonable examination by the Division.
Broker-Dealer Fined $25,000; Ordered to Pay
Restitution to Defrauded Clients
On June 18, 1999, the Banking Commissioner entered a Consent Order with respect to Primex a/k/a Primex Prime Electronic Execution, Inc., an applicant for broker-dealer registration having its principal office at 150 North Michigan Avenue, Suite 690, Chicago, Illinois. An investigation uncovered evidence that, from at least September, 1996 through August, 1997, the firm 1) transacted business as a broker-dealer while unregistered; 2) employed James A. Pabilonia, Sr. as an agent while Pabilonia was unregistered; 3) transacted business from an unregistered branch office in Willimantic, Connecticut; 4) filed a misleading statement concerning its Connecticut broker-dealer activities; and 5) failed to establish, enforce and maintain an adequate supervisory system.
The Consent Order 1) directed the firm to cease and desist from regulatory violations; 2) mandated that, by August 15, 1999, the firm provide restitution to investors defrauded by James Pabilonia; 3) fined the firm $25,000; and 4) required that the firm implement revised supervisory procedures designed to improve regulatory compliance. The Consent Order also provided that a failure to abide by its terms would result in the immediate revocation of the firm's broker-dealer registration and the immediate imposition of a $25,000 fine.
John P. Burke