The Department of Banking News Bulletin
Bulletin # 1845
Week Ending July 2, 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.
On July 1, 1999, pursuant to Section 36a-137 of the Connecticut General Statutes, approval was granted to First International Bank, N.A., Hartford, Connecticut, to convert from a national banking association to a state chartered bank and trust company to be named First International Bank.
MONEY ORDER AND TRAVELERS CHECK LICENSE ACTIVITY
On June 24, 1999, pursuant to the provisions of Section 36a-600 of the Connecticut General Statutes, approval was granted to I.P.P., L.P. to engage in the business of receiving money for transmitting the same.
SECTION 36a-425 APPLICATION
On July 2, 1999, an application was filed by The Industrial Bank of Japan, Limited, a Japanese corporation, to establish an office of its subsidiary, Atlantic Asset Management Partners, L.L.C., a Delaware limited liability company, at Clearwater House, 2187 Atlantic Street, Stamford, Connecticut.
BROKER-DEALER/INVESTMENT ADVISER FINED
On June 30, 1999, the Banking Commissioner entered a Consent Order (File No. 99-5118-S) with respect to American Express Financial Advisors, Inc., a broker-dealer and investment adviser having its principal office at IDS Tower, Minneapolis, Minnesota. The Commissioner's action followed a Securities and Business Investments Division investigation which alleged that the firm 1) employed an unregistered investment adviser agent from 1992 to March 1999; 2) failed to supervise Vincent M. Giaquinto who, from approximately December 1989 to February 1998, attempted to misappropriate customer funds earmarked for investment in mutual funds and insurance products by creating fictitious customer statements; and 3) failed to oversee the activities of two other agents who engaged in private securities transactions involving sales of North American Broadcasting securities.
Acknowledging that the firm had repaid affected Connecticut investors, the Consent Order required that American Express Financial Advisors, Inc. remit $35,000 to the department, $15,000 of which constituted an administrative fine, $10,000 of which would be allocated to the department's Investor Protection Fund, and $10,000 of which represented reimbursement for agency investigative costs. The Consent Order also required that the firm refrain from engaging in violative conduct; submit quarterly reports for two years concerning any securities-related complaints, actions or proceedings involving Connecticut residents; and conduct a review of its internal supervisory and compliance procedures.
CREDIT UNION ACTIVITY
On June 30, 1999, pursuant to Section 36a-470(c) of the Connecticut General Statutes, approval was granted to the West Indian Credit Union, Inc., Hartford, to merge with and into the Hartford Healthcare Credit Union, Inc., Hartford. The effective date of the merger was June 30, 1999.
John P. Burke