The Department of Banking News Bulletin
Bulletin # 1869
Week Ending December 17, 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.
|12/13/99||The Dime Savings Bank
of Norwich, Norwich
|14-18 Chesterfield Rd.
East Lyme, CT 06333
FROM: 670 Tolland Stage Road
Tolland, CT 06084
TO: 215 Merrow Road
Tolland, CT 06084
|12/16/99||First International Bank
*100 Brickell Bay Drive
Miami, FL 33131
|* Limited Branch|
CHECK CASHING SERVICE LICENSE ACTIVITY
Pursuant to the provisions of Section 36a-581 of the Connecticut General Statutes, on December 13, 1999, X-Bankers Money & Mortgages, Inc. received approval to operate check cashing service general facilities at 135 Connecticut Avenue, Norwalk, Connecticut and 15 West Street, Danbury, Connecticut.
Pursuant to the provisions of Section 36a-581(d) of the Connecticut General Statutes, on December 16, 1999, Connecticut Finance Corp. applied to relocate its licensed check cashing service general facility from 96 Golden Hill Street, Bridgeport, to 2336-2338 Fairfield Avenue, Bridgeport.
CREDIT UNION DIVISION ACTIVITY
Pursuant to the provisions of Section 36a-470 of the Connecticut General Statutes, on December 15, 1999, approval was granted to Universal Wire Division Employees Credit Union, Inc., Clinton, to merge with and into Stanley Works Employees Federal Credit Union, New Britain.
On December 16, 1999, pursuant to Section 36a-185 of the Connecticut General Statutes, the Banking Commissioner issued a Notice of Intent Not to Disapprove the acquisition by Orbitex Acquisition Holdings Corporation, and indirectly by Orbitex Management Limited, of all of the outstanding voting securities of Circle Trust Company.
On December 16, 1999, pursuant to Section 36a-185 of the Connecticut General Statutes, the Banking Commissioner issued a Notice of Intent Not to Disapprove the acquisition by Louis P. Celentano and Michele Montano of more than 10% but less than 25% of the outstanding voting securities of Circle Trust Company.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Registration Summarily Suspended;
Notice of Intent to Revoke Registration and to Fine Issued
On December 14, 1999, an Order was entered summarily suspending the broker-dealer registration of First Providence Financial Group, LLC of 90 Broad Street, 10th Floor, New York, New York. On the same day, the Commissioner issued a Notice of Intent to Revoke the firm's broker-dealer registration and a Notice of Intent to Fine. It was alleged that during the course of an agency examination and investigation, the firm, through its Chief Executive Officer Kenneth Klein, concealed material information from department staff by deleting approximately 20 files from its computer system after receiving a request to maintain the integrity of the information. It was also claimed that the firm had engaged in dishonest or unethical practices by employing "cold callers" who were not registered with the National Association of Securities Dealers. In addition, it was maintained that the firm had employed unregistered agents in violation of Section 36b-6(b) of the Connecticut Uniform Securities Act.
A hearing on the Notice of Intent to Fine was scheduled for February 3, 2000. The firm was also afforded an opportunity to request a hearing on the summary suspension order and the Notice of Intent to Revoke registration.
Broker-dealer Fined $50,000;
Order to Cease and Desist from Regulatory Violations
On December 13, 1999, a Consent Order was entered with respect to Miller, Johnson & Kuehn, Incorporated, a registered broker-dealer having its principal office at 5500 Wayzata Boulevard, Suite 800, Minneapolis, Minnesota. The Commissioner's action was based on allegations that 1) from at least July, 1996 through June, 1998, the firm had employed unregistered agents; 2) from at least September 1997 through March 1998, the firm had failed to institute adequate procedures for identifying its customers before effecting transactions in their accounts; and 3) the firm had not established, enforced and maintained an adequate system for supervising its agents.
The Consent Order fined Miller, Johnson & Kuehn $50,000 and directed it to cease and desist from regulatory violations. Half of the penalty amount (or $25,000) was payable upon entry of the Consent Order. The Consent Order permitted the firm to obtain a credit for the remaining $25,000 penalty amount if it provided an itemized accounting demonstrating that, over the ensuing twelve months, $25,000 had been expended on internal improvements to its compliance, operational and supervisory structure. The Consent Order authorized the Commissioner to immediately impose a $25,000 fine on the firm if the firm failed to abide by the terms of the Consent Order. The Consent Order also required that, for two years, the firm provide the agency with quarterly reports concerning complaints, actions or proceedings involving Connecticut residents.
SECTION 36a-425 APPLICATION
On December 17, 1999, an application was filed by Citigroup Inc., a Delaware corporation, to establish an office of its subsidiaries, CitiFinancial, Inc., a Maryland corporation, and CitiFinancial Services, Inc., a Delaware corporation, at Freshwater Commons, 51 Palomba Drive, Enfield, Connecticut.
John P. Burke