Bulletin # 2787
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, 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.
On July 18, 2017, the Commissioner entered into a Consent Order with American Bancshares Mortgage, LLC (NMLS # 217378), Miami Lakes, Florida. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that American Bancshares Mortgage failed to file with the Nationwide Multistate Licensing System and Registry a change of address for its main office at least 30 calendar days prior to such change and failed to provide a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner, in violation of Section 36a-490(b) of the Connecticut General Statutes. As part of the Consent Order, American Bancshares Mortgage paid $500 as a civil penalty.
The Stipulation and Agreement alleged that, at various times in 2010, the corporation and Reddy as its agent offered and sold unregistered promissory note securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act. Pursuant to the Stipulation and Agreement, Sovereign State Depository, Inc. and Reddy agreed to pay a $500 fine to the department and to refrain from selling securities absent compliance with the state's securities laws. In addition, both the corporation and Reddy agreed, for three years, to retain a securities attorney to advise them on Connecticut requirements and submit necessary regulatory filings.
Jorge L. Perez