The Department of Banking News Bulletin
Bulletin # 2800
Week Ending October 20, 2017
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.
STATE BANK ACTIVITY
Section 361-145 of the Connecticut General Statutes requires certain applications for a branch, of for a limited branch at which loans will be made, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage. 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.
DATE: October 19, 2017
BANK: Savings Bank of Danbury, Danbury
LOCATION: 2586 Summer Street, Stamford, CT 06905
ACTIVITY-BRANCH TYPE: Withdrew application - Loan Production Office
CONSUMER CREDIT DIVISION ACTIVITY
On October 10, 2017, the Commissioner entered into a Consent Order with United Guaranty Commercial Insurance Company of North Carolina
(NMLS # 1662323) (“Respondent”), Greensboro, North Carolina. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on June 8, 2017, 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 (“Notice”) against Respondent. The Commissioner alleged that Respondent acted within this state as a consumer collection agency without the requisite consumer collection agency license, in violation of Section 36a 801(a) of the Connecticut General Statutes. As part of the Consent Order, Respondent paid $10,000 as a civil penalty. Respondent has since become licensed as a consumer collection agency.
On October 11, 2017, the Commissioner entered into a Consent Order with licensed consumer collection agency Transworld Systems Inc.
(NMLS # 950422) (“TSI”), Fort Washington, Pennsylvania. The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that TSI: failed to produce complete, accurate and timely responses to Department requests for information, in violation of Section 36a-17 of the Connecticut General Statutes; engaged in unfair or deceptive acts or practices in connection with its execution of affidavits in collection proceedings in Connecticut, in violation of Sections 36a-806 and 36a-808 of the Connecticut General Statutes; and made false or misleading statements in such affidavits, in violation of Section 36a-53b(2) of the Connecticut General Statutes. To resolve the matter, TSI agreed, among other things, to pay a civil penalty of $200,000, to comply with Sections 36a-17, 36a-53b(2), 36a-806 and 36a 808 of the Connecticut General Statutes, and to implement various policies and procedures pertaining to its consumer collection operations in Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Findings of Fact, Conclusions of Law and an Order Issued
On October 13, 2017, following an administrative hearing, the Banking Commissioner issued Findings of Fact, Conclusions of Law and an Order (Docket No. CRF-16-8169-S) in the matter of Omniview Capital Advisors, LLC, Omni View Capital LLC and Abraxas J. Discala, Chief Executive Officer of both entities
. Respondents Omniview Capital Advisors, LLC and Omni View Capital LLC were both located at 140 Rowayton Avenue, Norwalk, Connecticut.
The decision had been preceded by a February 17, 2017 Amended and Restated Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing which had been previously issued on August 17, 2016.
The hearing decision concluded that respondent Omni View Capital LLC, through its involvement in the sale of Crackpot, Inc. stock and participation interests in Scanbuy, Inc., had transacted business as an unregistered broker-dealer in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act, and that respondent Discala had transacted business as an unregistered broker-dealer agent in violation of Section 36b-6(a) of the Act. The decision also determined that respondents Omni View Capital LLC and Discala violated Section 36b-16 of the Act by selling unregistered securities issued by Crackpot, Inc. and Scanbuy, Inc. to investors. In addition, the decision found that respondents Omni View Capital LLC and Discala violated Section 36b-4(a)(3) of the Act by engaging in an act, practice or course of business which operates as a fraud or deceit. More specifically, Discala and Omni View Capital LLC failed to ensure full disclosure of potentially adverse information to potential investors, including, without limitation, the fact that Discala and Omni View Capital LLC were unregistered and that no filings had been made with the department for the securities involved.
The decision found that there was insufficient evidence to establish that Omniview Capital Advisors, LLC transacted business as an unregistered broker-dealer, that it offered or sold unregistered securities in violation of Section 36b-16 of the Act or that it violated the antifraud provisions in Section 36b-4(a) of the Act.
The action rendered permanent the Amended and Restated Order to Cease and Desist and Order to Make Restitution issued against Omni View Capital LLC and Discala. The Order also directed Omni View Capital LLC and Discala to reimburse the affected Connecticut investors $47,500 plus interest no later than 30 days following the mailing of the Order. The original reimbursement amount of $55,000 was reduced by a partial refund of $7,500 previously remitted to the Connecticut investors. In addition, the action levied a $150,000 fine against Omni View Capital LLC and a $150,000 fine against Discala, payable no later than 30 days following the mailing of the Order.
Dated: Wednesday, October 25, 2017
Jorge L. Perez