Bulletin # 2656 - Week Ending January 16, 2015

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 Bruce H. Adams, Acting Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  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.

CONSUMER CREDIT DIVISION ACTIVITY

Order to Cease and Desist and Order Imposing Civil Penalty

On December 31, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Transfer Services Inc. d/b/a Resolution Center d/b/a United Law Center d/b/a Trustee Services (“Transfer Services”), Salt Lake City, Utah, Irvine, California, and Costa Mesa, California; Lawson Financial LLC d/b/a Hamp Services (“Lawson Financial“),Salt Lake City, Utah, Irvine, California, and Fountain Valley, California; Brian C. Solomon (“Solomon“); and John Ortega (“Ortega”) (collectively “Respondents”).  The basis of the Order was that Respondents 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.  The Respondents were ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, as amended, and each to pay a civil penalty in the amount of $100,000.  In addition, an Order of Restitution previously issued against the remaining Respondents on October 16, 2014, remains in effect and became permanent on November 6, 2014.

Temporary Order to Cease and Desist and Notice of Intent to Issue Order to Cease and Desist

On January 2, 2015, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) in the Matter of:  Rivercrest Credit Services (“Respondent”), Middletown, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that the Respondent, among other things, engaged in the business of making residential mortgage loans without a license by advertising, soliciting or offering to make residential mortgage loans via its website, in violation of Section 36a-486(a) of the Connecticut General Statutes.  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 allegations set forth in the Notice.

Consent Orders

On January 9, 2015 the Commissioner entered into a Consent Order with Classic Mortgage LLC (NMLS # 31149) (“Classic Mortgage”), Maywood, New Jersey.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on October 21, 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 Classic Mortgage.  The Commissioner alleged that Classic Mortgage 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, Classic Mortgage paid $2,500 as a civil penalty.

On January 12, 2015, the Commissioner entered into a Consent Order with G.N.P.K. of Rockville LLC d/b/a Rockville Corner Market a/k/a Rockville Convenience Store (“Rockville Corner Market”),Vernon, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged in a Notice of Intent to Issue Order to Cease and Desist, Notice to Impose Civil Penalty and Notice of Right to Hearing issued on December 2, 2014, that Rockville Corner Market, among other things, engaged in the business of cashing checks, drafts or money orders for consideration without licensure for a general facility or limited facility at 20 East Main Street, Vernon, Connecticut, in violation of Section 36a-581(a) of the Connecticut General Statutes.  As part of the Consent Order, Rockville Corner Market paid $1,000 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Consent Order Entered

On January 16, 2015, the Banking Commissioner entered a Consent Order (Docket No. CO-14-8081-S) with respect to Andre Paul Young, a former broker-dealer agent and investment adviser agent of MetLife Securities Inc.  The respondent had been the subject of a November 26, 2014 Order to Cease and Desist and Notice of Right to Hearing (Docket No. CD-14-8081-S) alleging that respondent Young engaged in dishonest or unethical business practices by lending money to an investment advisory client of MetLife Securities Inc.  The November 26, 2014 action had also alleged that, while registered as a broker-dealer agent of MetLife Securities Inc., the respondent made improper use of two customers’ monies by not investing those monies in a stock fund but rather depositing customer monies into respondent’s personal bank account.  According to the Order to Cease and Desist, the respondent had admitted on the record that he had used the customers’ funds to pay his mortgage.  Ultimately, the respondent repaid the clients $45,000 of the $208,400 that the clients had tendered to the respondent.  On April 22, 2013, MetLife Securities Inc. entered into a settlement with the affected clients and reimbursed them $163,400 representing the unpaid balance of the funds they had tendered to respondent Young.

In lieu of an administrative hearing on the allegations in the Order to Cease and Desist, the respondent agreed to the entry of a Consent Order resolving the issues.  The Consent Order directed the respondent to cease and desist from regulatory violations.  In addition, the Consent Order barred the respondent for five years from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent.  The respondent was provided with an opportunity to request relief from the bar upon a showing of good cause once three years had elapsed from the entry of the Consent Order.

Dated:  Wednesday, January 21, 2015

Bruce H. Adams
Acting Banking Commissioner