The Department of Banking News Bulletin
Bulletin # 1989
Week Ending April 5, 2002
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, Commissioner of Banking, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to email@example.com. 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.
|90 Danbury Road
Ridgefield, CT 06877
|*100 Redding Road, Meadow
Ridge Retirement Community
Redding, CT 06875
|* Limited Branch - Special Needs|
CHECK CASHING SERVICE LICENSE ACTIVITY
On April 5, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, SDM Check Cashing of CT II, LLC filed an application to operate check cashing service general facilities at 2960 Fairfield Avenue, Bridgeport, 425 Kings Highway East, Fairfield, 298 Main Street, New Britain, 2524 Main Street, Stratford, 353 East Main Street, Waterbury, and 481 Wolcott Street, Waterbury, all in Connecticut.
CREDIT UNION DIVISION ACTIVITY
Federal Credit Union Liquidation
On April 2, 2002, the National Credit Union Administration announced that Pirelli Federal Credit Union, New Haven, was placed into liquidation and all member share accounts were transferred to Southern New England Federal Credit Union, also of New Haven.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Investment Adviser Assessed $2,100 for
Delinquent Investment Advisory Notice Filing
On April 2, 2002, the Commissioner entered into a Stipulation and Agreement with Stephen Harrison Hogan d/b/a Harrison Management of 30 Maplecrest Drive, Danbury, Connecticut. Harrison Management is an investment adviser regulated by the Securities and Exchange Commission. The Stipulation and Agreement alleged that, from 1997 until April 24, 2001, when a notice was filed, Harrison Management failed to make the notice filing required of SEC-regulated investment advisers by Section 36b-6(e) of the Connecticut Uniform Securities Act. In entering into the Stipulation and Agreement, the Commissioner acknowledged Stephen Hogan's representations that since moving to Connecticut from New York in 1991, 1) he had relied upon the exclusion from the definition of "investment adviser" then contained in Section 36b-3(6)(G) of the Connecticut Uniform Securities Act for investment advisers rendering advice to no more than five non-institutional clients in Connecticut during the preceding twelve month period; 2) he had not been aware of changes in state law repealing the exclusion and requiring that a notice be filed and a fee remitted; and 3) since 1991, he had not rendered any investment advisory services directly to any Connecticut clients but only to clients and client representatives located out-of-state.
Pursuant to the Stipulation and Agreement, Harrison Management agreed to pay $2,100 to the department. Of that amount, $1,500 constituted an administrative fine and $600 represented reimbursement for past due notice filing fees.
Investment Advisers Assessed $3,400 in Total for
Investment Advisory Notice Filing and Registration Lapses
On April 2, 2002, the Commissioner entered into a Stipulation and Agreement with Fairview Capital Partners LP and Fairview Venture Management LLC, both of 10 Stanford Drive, Farmington, Connecticut. The two entities are affiliated investment advisers regulated by the Securities and Exchange Commission.
The Stipulation and Agreement alleged that Fairview Capital Partners LP 1) transacted business as an investment adviser absent registration under Section 36b-6(c) of the Connecticut Uniform Securities Act from January 31, 1994 to 1997; and 2) from 1997 to October 4, 2001, when a notice filing was made, failed to file the notice and pay the fees required by Section 36b-6(e) of the Act. The Stipulation and Agreement also claimed that, from October 18, 1999 to October 4, 2001, when a notice filing was made, Fairview Venture Management LLC failed to make the investment advisory notice filing and pay the annual fees required by Section 36b-6(e) of the Act.
The Stipulation and Agreement required that Fairview Capital Partners LP pay $2,100 to the department. Of that amount, $1,500 constituted an administrative fine, and $600 represented reimbursement for past due notice filing fees. In addition, the Stipulation and Agreement required that Fairview Venture Management LLC remit $1,300 to the department; of that amount $1,000 constituted an administrative fine and $300 represented reimbursement for past due notice filing fees.
Broker-dealer Agent Fined $5,000 for Unregistered Agent Activity
On April 5, 2002, the Commissioner executed a Stipulation and Agreement with respect to Matthew Maounis, currently a registered broker-dealer agent of Jesup & Lamont Securities Corp. f/k/a Broadmark Capital Corp. The Stipulation and Agreement alleged that between June 1998 and March 2001, respondent Maounis transacted business as an agent of Southport Securities, LLC absent registration under Section 36b-6 of the Connecticut Uniform Securities Act. Matthew Maounis had been associated with Southport Securities LLC as its managing director and as an agent from June 1998 to March 2001.
The Stipulation and Agreement acknowledged the respondent's claim that he relied upon the compliance officer of Southport Securities LLC to file for agent registration on his behalf, and that the respondent only became aware of his unregistered status as an agent of Southport Securities LLC in 2001.
Pursuant to the Stipulation and Agreement, respondent Maounis agreed to pay a $5000 fine to the department and to complete the Regulatory Element of the Securities Industry Continuing Education Program within ninety days.
John P. Burke