Bulletin # 2697
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 Jorge L. Perez, Banking Commissioner, with the exception of comments pertaining to Liberty Bank which should be sent to Mary Ellen O'Neill, Director, Financial Institutions Division, 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.
CREDIT UNION ACTIVITY
On October 26, 2015, the Department issued a notice of intent not to disapprove the acquisition by Liberty Bank of 100 percent of the voting securities of Naugatuck Valley Financial Corporation and, indirectly, Naugatuck Valley Savings and Loan pursuant to Section 36a-185 of the Connecticut General Statutes. Also on October 26, 2015, approval was granted for the merger of Naugatuck Valley Savings and Loan with and into Liberty Bank pursuant to Section 36a-126(a) of the Connecticut General Statutes.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Entered
On October 26, 2015, the Banking Commissioner entered a Consent Order (No. CO-15-8252-S) with respect to Acerbus, LLC, Red Advisors LLC, Domum Equity 1, Ltd and Domum Equity 2, Ltd., all of Stamford, Connecticut. Also named in the Consent Order was Andres Dario Rojo, executive officer of Domum Equity 2, Ltd and manager of Acerbus, LLC, Red Advisors LLC and Domum Equity 1, Ltd. Domum Equity 1, Ltd and Domum Equity 2, Ltd were real estate partnerships. Red Advisors LLC was an applicant for investment adviser registration under the Connecticut Uniform Securities Act.
The Consent Order alleged that 1) from at least 2007 forward, Acerbus, LLC transacted business as an unregistered investment adviser in violation of Section 36b-6(c)(1) of the Act; 2) from at least 2007 forward, Rojo transacted business as an unregistered investment adviser agent of Acerbus, LLC in contravention of Section 36b-6(c)(2) of the Act; 3) Domum Equity 1, Ltd and Domum Equity 2, Ltd violated Section 36b-16 of the Act by failing to timely file an exemptive claim or a claim of covered security status under Section 36b-21 of the Act; and 4) grounds existed for denying the Connecticut registrations of Red Advisors LLC and Rojo as an investment adviser and investment adviser agent, respectively.
The Consent Order directed Andres Dario Rojo, Acerbus, LLC, Domum Equity 1, Ltd, Domum Equity 2, Ltd, their representatives, agents, employees, affiliates (including, without limitation, Red Advisors LLC), assigns, subsidiaries and successors in interest to cease and desist from regulatory violations. In addition, the Consent Order required that Rojo and Acerbus, LLC jointly and severally remit $4,700 to the department. Of that amount, $2,500 constituted an administrative fine and $2,200 represented reimbursement for past due investment adviser and investment adviser agent registration fees. The Consent Order also required that Rojo, Domum Equity 1, Ltd and Domum Equity 2, Ltd jointly and severally remit $1,250 to the department as an administrative fine.
Red Advisors LLC became registered as an investment adviser in Connecticut on October 26, 2015. On the same date, Andres Dario Rojo became registered as an investment adviser agent of the firm in Connecticut.
Jorge L. Perez