The Department of Banking News Bulletin
Bulletin # 1995
Week Ending May 17, 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 john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.
BRANCH ACTIVITY
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.
| Date | Bank | Location | Activity |
|---|---|---|---|
| 5/16/02 | Valley Bank Bristol |
8 South Main Street Terryville, CT 06786 |
filed |
| 5/17/02 | Farmington Savings Bank Farmington |
*The Gables at Farmington 20 Devonwood Drive Farmington, CT 06032 |
filed |
| * Limited Branch - Special Needs | |||
SECURITIES AND BUSINESS INVESTMENTS DIVISION
Broker-dealer Assessed $5,000 for Unregistered Branch Office Activity
On May 14, 2002, the Commissioner entered into a Stipulation and Agreement with Park Avenue Securities, L.L.C., a broker-dealer having its principal office at 7 Hanover Square, New York, New York. The Stipulation and Agreement alleged that from approximately March 1999 to December 2001, the firm transacted business from two Connecticut locations at a time when those sites were not registered as branch offices under the Connecticut Uniform Securities Act.
Pursuant to the Stipulation and Agreement, the firm agreed to revise and implement supervisory and compliance procedures designed to prevent and detect violations of Connecticut law governing branch office registration. In addition, the firm agreed to pay $5,000 to the agency. Of that amount, $3,500 constituted an administrative fine and $1,500 represented reimbursement for agency investigative costs.
New York Man Ordered to Cease and Desist from Unregistered Activity
in Connection With FOREX Investments; Notice of Intent to Fine Issued
On May 14, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Greg W. Botte of 987 Steele Boulevard, Baldwin, New York. The action alleged that, from at least March 2001 forward, the respondent transacted business as an unregistered broker-dealer agent of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation, both of 59 Broad Street, Stamford, Connecticut. The action also claimed that the respondent sold unregistered non-exempt investments involving contracts on foreign currencies (also known as FOREX investments) in Connecticut in violation of Section 36b-16 of the Connecticut Uniform Securities Act.
The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for July 9, 2002.
New York Man Ordered to Cease and Desist from Unregistered Activity
Related to FOREX Investment Sales; Notice of Intent to Fine Issued
On May 14, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against William M. Cutrone of 4 Village Lane, Woodbury, New York. The action alleged that, from at least January 2000 forward, the respondent effected at least 20 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation are both located at 59 Broad Street, Stamford, Connecticut. The action also claimed that the respondent sold unregistered non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act.
The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for July 9, 2002.
New York Man Ordered to Cease and Desist from Unregistered Activity
Related to FOREX Investment Sales; Notice of Intent to Fine Issued
On May 14, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Derek M. Lofton of 34 Brown Avenue, Hempstead, New York. The action claimed that, from at least September 2000 forward, the respondent effected at least 26 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. The action also alleged that the respondent sold unregistered non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act.
The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for July 9, 2002.
New York Man Ordered to Cease and Desist from Unregistered Activity
Related to FOREX Investment Sales; Notice of Intent to Fine Issued
On May 14, 2002, the Commissioner entered an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Thomas W. Qualls of 111 Cleveland Avenue, Long Beach, New York. The action alleged that, from at least February 2000 forward, the respondent effected at least 94 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. The action also claimed that the respondent sold unregistered non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act.
The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for July 9, 2002.
CONSUMER CREDIT DIVISION ACTIVITY
Administrative Orders
On May 16, 2002, the Commissioner entered into a Stipulation and Agreement and Order Withdrawing Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing, issued March 26, 2002, against CitiMortgage, Inc., of 12855 North Outer Forty Drive, St. Louis, Missouri 63141. In the Stipulation and Agreement, the Respondent admitted that it engaged in the business of making first mortgage loans in Connecticut without a first mortgage lender license; it neither admitted nor denied that it engaged in the secondary mortgage loan business in Connecticut without a secondary mortgage lender license; and it neither admitted nor denied that such activities constituted violations of Sections 36a-485 to 36a-524, inclusive, of the Connecticut General Statutes. The Respondent agreed to file promptly an application for a first mortgage lender license for each location from which it makes first mortgage loans in Connecticut, and to file promptly an application for a secondary mortgage lender license for each location from which it engages in the secondary mortgage loan business in Connecticut.
On May 16, 2002, the Commissioner entered into a Stipulation and Agreement and Order Withdrawing Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing, issued March 26, 2002, against EAB Mortgage Company, Inc., of 400 Oak Street, Garden City, New York 11530. In the Stipulation and Agreement, the Respondent neither admitted nor denied that it engaged in the business of making first mortgage loans in Connecticut without a first mortgage lender license, that it engaged in the secondary mortgage loan business in Connecticut without a secondary mortgage lender license, and that such activities constituted violations of Sections 36a-485 to 36a-524, inclusive, of the Connecticut General Statutes. The Respondent agreed to seek licensing as a first or secondary mortgage lender, or both, prior to its engaging in the business of making first mortgage loans in Connecticut, or engaging in the secondary mortgage loan business in Connecticut.
John P. Burke
Commissioner