State of Connecticut Department of Banking

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The Department of Banking News Bulletin 

Bulletin # 2504
Week Ending February 17, 2012

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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. 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 certain applications 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 Financial Institutions Division, (860) 240-8180.

Date Bank Location Activity
02/10/12
Naugatuck Savings Bank
Naugatuck
*3670 East Main Street
  Waterbury, CT  06705
Building address
changed
02/14/12
Liberty Bank
Middletown
**626 East Main Street
    Meriden, CT  06450
Notice of intent
not to disapprove
02/14/12
Rockville Bank
Rockville
67 Prospect Hill Road (Big Y)
East Windsor, CT  06088
        Into
39 Prospect Hill Road
East Windsor, CT  06088
Filed to
consolidate
* Notified by City of Waterbury, Department of Public Works - address changed
    from 3580 to 3670.
**Limited Branch

CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity

Date Check Casher Location Activity
2/14/12
A1 Check Cashing, LLC
d/b/a A1 Check Cashing
476 Main Street
New Britain, CT  06051
Approved
 
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Ridgefield Broker-dealer Fined $250,000, Broker-dealer Registration Revoked

On February 9, 2012, the Banking Commissioner issued an Order to Cease and Desist, Order to Revoke Registration as Broker-dealer and Order Imposing Fine against Southridge Investment Group, a broker-dealer located at 90 Grove Street, 2nd Floor, Ridgefield, Connecticut.  The firm did not appear or contest the Commissioner’s action which followed an October 20, 2009 Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer, Notice of Intent to Fine and Notice of Right to Hearing.

In revoking the firm’s registration, rendering the October 20, 2009 Order to Cease and Desist permanent and fining the firm $250,000, the Commissioner adopted the conclusions reached in the October 20, 2009 Notice.  The Commissioner determined that the firm violated Sections 36b-14, 36b-16 and 36b-23 of the Connecticut Uniform Securities Act as well as Sections 36b-31-6f and 36b-31-15e of the Regulations.  In particular, the Commissioner noted that the firm:  1) violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities; 2) violated National Association of Securities Dealers’ Registration Rule 1021 by allowing one Stephen Murray Hicks (CRD No. 1248222) to act as an unregistered principal of the firm; 3) failed to protect material, non-public information and therefore failed to establish a system for applying written supervisory procedures that would reasonably be expected to prevent and detect regulatory violations; 4) failed to maintain business-related e-mails in contradiction of the firm’s Supervisory Manual; and 5) failed to submit fingerprints to the Attorney General of the United States for identification and processing in contradiction of the firm’s Supervisory Manual.

Registered Broker-dealer Fined $2,500 for Alleged Ethical Irregularities

On February 17, 2012, the Banking Commissioner entered a Consent Order with respect to Attilio Anthony Foschini, a registered broker-dealer agent and investment adviser agent under the Connecticut Uniform Securities Act.  The Consent Order alleged that three former clients contacted Attilio Foschini to sell securities in their accounts at Foschini’s previous broker-dealer; that Foschini, acting on behalf of those clients, placed calls on three occasions to his former firm and identified himself as the former clients in order to execute securities sales in the former clients’ accounts at the former firm; and that, at the time such conduct occurred, Foschini was not registered as a broker-dealer agent or an investment adviser agent under the Act.  The Consent Order stated that Foschini did not derive any financial gain from the transactions and believed that he had the clients’ consent to place the calls.  The Consent Order directed Foschini to cease and desist from regulatory violations and fined him $2,500.

       Dated:  Wednesday, February 22, 2012
       Howard F. Pitkin
       Banking Commissioner