The Department of Banking News Bulletin
Bulletin # 1886
Week Ending April 14, 2000
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 john.burke@ct.gov. 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 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.
| Date | Bank | Location | Activity |
|---|---|---|---|
| 4/13/00 | American Bank of Connecticut Waterbury |
FROM: 400 Middlebury Road
Middlebury, CT 06762
TO: 503 Middlebury Road
Middlebury, CT 06762 |
approved to relocate |
| 4/14/00 | The Glastonbury Bank & Trust Company Glastonbury |
*105 Welles Street Glastonbury, CT 06033 |
approved |
| 4/14/00 | Union Savings Bank Danbury |
27 Main Street New Milford, CT 06776 |
approved |
| * Limited Branch | |||
SECTION 36a-425 APPLICATION
On April 10, 2000, Citigroup Inc., a Delaware corporation, filed an application to establish an office of its subsidiaries, Phibro Inc. and Phibro Energy Clearing Inc., both Delaware corporations, at 500 Nyala Farms, Westport, Connecticut.
SECTION 36a-425 APPROVAL
On April 11, 2000, approval was granted to Mellon Financial Corporation, a Pennsylvania corporation, to establish the following offices of its subsidiaries: Prime Advisors, Inc., a Washington corporation, at 693 Bloomfield Avenue, Bloomfield; and Buck Consultants, Inc., a Delaware corporation, at 301 Tresser Boulevard, Suite 1110, Stamford, and 55 Corporate Drive, Trumbull, Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-Dealer Fined $25,000 for Unregistered Activity
On April 13, 2000, a Consent Order was entered Conditioning Registration as a Broker-dealer with respect to Track Securities Corporation of 1800 Corporate Boulevard, Suite 303, Boca Raton, Florida. The Consent Order was based on allegations that 1) from at least March 1999, the firm had transacted business as a broker-dealer absent registration under the Connecticut Uniform Securities Act and had employed unregistered agents; and 2) on two occasions the firm had provided inaccurate information to the department concerning its prior securities activity in the state.
The Consent Order fined the firm $25,000 and directed it to cease and desist from regulatory violations. In addition, the Consent Order restricted the firm's Connecticut business to government issued securities; investment company offerings; exchange listed securities; securities listed on the National Market System of NASDAQ; and NASDAQ Small Cap Market or OTC Bulletin Board securities only where the transactions were for "accredited investors" or unsolicited in nature. The Consent Order also required that the firm retain an independent consultant to review its supervisory and compliance procedures and that the firm report back to the division concerning its implementation of the consultant's recommendations. Other provisions in the Consent Order mandated that the firm submit quarterly reports to the division for two years describing any complaints, actions or proceedings involving Connecticut customers, and that the firm reimburse the agency for up to $2,500 in expenses associated with an examination of the firm or its affiliated broker-dealer(s) conducted within 18 months.
Track Securities Corporation became registered as a broker-dealer in Connecticut on April 13, 2000.
Consent Order
On April 13, 2000, a Consent Order was entered with respect to Wall Street Management Corporation, an applicant for broker-dealer registration located at 230 Park Avenue, Suite 1635, New York, New York. The Consent Order claimed that from approximately May, 1997 through 1999, the firm transacted business for clients of an affiliated investment adviser while unregistered and that the firm employed unregistered agents in purported violation of Section 36b-6(b) of the Connecticut Uniform Securities Act.
The Consent Order assessed the firm $6,400. Of that amount, $5,000 constituted an administrative fine, $400 represented reimbursement of past due registration fees; and $1,000 constituted reimbursement for division investigative costs. In addition, the Consent Order required that the firm offer to credit affected customers for the amount of commissions earned during the period of unregistered activity. The Consent Order also required that the firm submit quarterly reports to the division for two years describing any complaints, actions or proceedings involving Connecticut residents and that it take steps to improve its compliance procedures, particularly in the area of state licensing.
CREDIT UNION DIVISION ACTIVITY
Field of Membership
Pursuant to Sections 36a-437(g) and (h) of the Connecticut General Statutes, as amended by Public Act 99-36, on March 24, 2000, CenConn Healthcare Credit Union, Inc., Meriden, requested approval to amend its certificate of organization and bylaws to expand its field of membership to include all employees of Hampton Inn and Atlas Aero.
Dated: Tuesday, April 18, 2000John P. Burke
Banking Commissioner