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 above address.  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.

CREDIT UNION ACTIVITY
Merger

On October 2, 2014, CONNEX Credit Union, Inc., a Connecticut credit union, and Sargent & Company Employees Federal Credit Union, a federally chartered credit union, filed an application pursuant to Section 36a-468a of the Connecticut General Statutes seeking approval for the merger of Sargent & Company Employees Federal Credit Union, with its main office located at 100 Sargent Drive, New Haven, Connecticut, with and into CONNEX Credit Union, Inc., with its main office located at 412 Washington Avenue, North Haven, Connecticut.

CONSUMER CREDIT DIVISION ACTIVITY
Consent Order

On September 25, 2014, the Commissioner entered into a Consent Order with Approved Funding Corp. (NMLS # 5411) (“Approved Funding”), River Edge, New Jersey.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 14, 2014, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Approved Funding.  The Commissioner alleged that Approved Funding failed to timely file certain quarterly information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  As part of the Consent Order, Approved Funding paid $1,000 as a civil penalty.

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On September 25, 2014, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  LOCN Inc. d/b/a United Relief Services (“Respondent”), Newport Beach, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a 671(b) of the Connecticut General Statutes, as amended by Public Act 14-7.  As part of the Order to Make Restitution, Respondent was ordered to repay fees to identified Connecticut residents in amounts identified plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

On September 25, 2014, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  Mario G. Najarro d/b/a Nationwide Loan Services d/b/a Nationwide Services LLC d/b/a H.R.S. Home Retention Support (“Respondent”), Santa Ana, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671 of the Connecticut General Statutes, as amended by Public Act 14-7.  As part of the Order to Make Restitution, Respondent was ordered to repay $10,174.43 to identified Connecticut residents plus interest, and to repay to any other Connecticut resident who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut resident to Respondent plus interest.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order

On September 30, 2014, the Banking Commissioner entered a Consent Order (No. CO-14-8041-S) with respect to The Right Mortgage Co., Inc. of Milford, Connecticut.  Edmund J. Ramos, president of The Right Mortgage Co., Inc., was also a party to the Consent Order.  The Right Mortgage Co., Inc. (NMLS number 59983) was previously licensed with the department as a mortgage correspondent lender.  The Consent Order alleged that, from approximately August 8, 2007 to August 12, 2011, respondents Ramos and The Right Mortgage Co., Inc. violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered notes issued by The Right Mortgage Co., Inc.; that Ramos transacted business as an unregistered agent of issuer; and that Ramos violated Section 36b-23 of the Act by providing false or misleading information in connection with an agency investigation.  The Consent Order acknowledged that the respondents had provided documentation evidencing their inability to pay the fine that otherwise would have been assessed against them.

The Consent Order directed The Right Mortgage Co., Inc. and Edmund J. Ramos to cease and desist from regulatory violations.   In addition, the Consent Order barred Ramos for seven years from 1) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; 2) soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut; 3) engaging in any activity that would require licensure under Chapters 668 (Nondepository Financial Institutions) or 669 (Regulated Activities) of the Connecticut General Statutes; and 4) serving as a control person, qualified individual or branch manager for any entity regulated by the Commissioner under Chapter 668 of the Connecticut General Statutes.



 Dated:  Tuesday, October 7, 2014

 Howard F. Pitkin
 Banking Commissioner