The Department of Banking News Bulletin 

Bulletin # 2507
Week Ending March 9, 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.

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.

CONSUMER CREDIT DIVISION ACTIVITY
Consent Orders

On February 14, 2012, the Commissioner entered into a Consent Order with Shamrock Financial Corporation (“Shamrock Financial”), East Providence, Rhode Island.  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Shamrock Financial employed or retained, during the period of November 28, 2007 through July 31, 2009, seven (7) individuals as originators or mortgage loan originators without first registering them, or without such individuals being licensed, in violation of Sections 36a-486(b) and 36a 511(b) of the then applicable Connecticut General Statutes  As part of the Consent Order, Shamrock Financial was ordered to pay $7,000 as a civil penalty.

On February 21, 2012, the Commissioner entered into a Consent Order with Luna’s Pay A Bill, LLC (“Luna’s”), Hartford, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Luna’s, during the period of May through October 2008, engaged in the business of cashing checks, drafts and money orders for consideration without licensure for a general facility or limited facility at 582 Park Street, Hartford, Connecticut, in violation of Section 36a-581(a) of the then applicable Connecticut General Statutes.  As part of the Consent Order, Luna’s was ordered to pay $1,500 as a civil penalty.

On February 14, 2012, the Commissioner issued an Order Revoking and Refusing to Renew Mortgage Broker License, Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of:  Mortgage Store of Connecticut, LLC, (“Respondent”), Hamden, Connecticut.  The basis of the Order was that Respondent:  (1) employed or retained three (3) individuals who were not registered as originators or licensed as mortgage loan originators, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes; (2) failed to have at its main office a qualified individual as required by Section 36a-488(a)(1)(B) of the Connecticut General Statutes; and (3) answered “no” to Question 29 of its Uniform Manager’s Questionnaire dated August 22, 2011, which response constitutes the making or causing to be made in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstance under which it is made, false and misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes.  The Order (1) revokes and refuses to renew Respondent’s license to act as a mortgage broker in Connecticut; (2) orders Respondent to cease and desist from violating Section 36a-486(b) of the then applicable Connecticut General Statutes and Section 36a-53a of the Connecticut General Statutes, and (3) imposes a civil penalty of $10,000 against Respondent.

On March 7, 2012, the Commissioner entered an Order Imposing Fine against Point Stratford Development, LLC f/k/a Hollywood East/Area 51, LLC of Stratford, Connecticut.  The company was a purported digital media and real estate development firm that sought investment capital to acquire a former military aircraft assembly plant in Stratford that was being auctioned off by the U.S. General Services Administration.  The action had been preceded by a December 12, 2011 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that respondent Point Stratford Development, LLC sold unregistered Hollywood East securities to investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act.  The December 12, 2011 action had also alleged that Point Stratford Development, LLC violated the antifraud provisions in Section 36b-4(a) of the Act by failing to provide investors with any financial information concerning the respondent; failing to disclose the unregistered status of Hollywood East’s agents; failing to disclose that the Hollywood East securities would be sold to individuals who were not accredited investors; and failing to disclose the estimated cash proceeds of the securities offering.  The December 12, 2012 action had further alleged that respondent Point Stratford Development, LLC failed to disclose specific risks to investors, including risks related to the investment and acquisition of the proposed site from the federal government, including remediation costs; the risk that an economic development bond to fund the project might not be procured; the risk that Hollywood East’s property bid and deposit would be submitted in the name of an unrelated entity; and the risk that Hollywood East, if successful on the bid, would be unable to secure funds for the full purchase price, leading to a default and the forfeiture of Hollywood East’s $1 million deposit.

Order to Cease and Desist Made Permanent

Since respondent Natera did not request a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent on February 2, 2012.  In fining respondent Natera $100,000, the Commissioner incorporated as findings the facts set forth in the December 12, 2011 action.  Hector Natera  did not appear or contest the imposition of the fine.

On March 7, 2012, the Commissioner entered an Order Imposing Fine against Yvette Cuccaro of North Haven, Connecticut.  The action had been preceded by a December 12, 2011 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against respondents Cuccaro, Point Stratford Development, LLC f/k/a Hollywood East/Area 51, LLC and Hector Natera.  Hollywood East/Area 51, LLC was a purported digital media and real estate development company that sought investment capital to acquire a former military aircraft assembly plant in Stratford, Connecticut that was being auctioned off by the U.S. General Services Administration.  The December 12, 2011 action had alleged that, during 2007 and 2008, the respondents sold unregistered Hollywood East securities to investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act, and that respondent Cuccaro transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.

Order to Make Restitution and Order to Cease and Desist Become Permanent

On March 7, 2012, the Commissioner entered an Order Imposing Fine against Movies for a Better World, LLC.  Incorporating as findings the facts set forth in the October 28, 2011 action, the Commissioner fined the firm $50,000.  Movies for a Better World, LLC did not appear or contest the imposition of the fine.

On March 5, 2012, the Banking Commissioner issued a Certification rendering permanent an October 28, 2011 Order to Cease and Desist and Order to Make Restitution issued against Michael J. Martineau, president of Movies for a Better World, LLC.  The October 28, 2011 action had also included a Notice of Intent to Fine.  Movies for a Better World, LLC is a purported film, music and literary development company of Greenwich, Connecticut.  The October 28, 2011 action had alleged that, in 2009, the Movies for a Better World, LLC and its president, Michael J. Martineau, offered and sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act, and that Michael J. Martineau transacted business as an unregistered agent of issuer.  In addition, the action had alleged that the respondents violated the antifraud provisions of the Act by failing to disclose to investors any risk factors related to the investment; financial information relating to the issuer or the performance of its prior development projects; financial or background information on the issuer’s principals; compensation paid to the issuer’s principals and affiliates; the estimated cash proceeds of the offering; how the offering proceeds would be applied; and material litigation involving the principals of the issuer.

Connecticut-Registered Investment Adviser Assessed $2,050
for Engaging Two Unregistered Investment Adviser Agents