In accordance with Governor Lamont's emergency declaration, employees and the public are asked to observe social distancing measures to ensure communal safety and to slow the spread of the novel coronavirus (COVID-19). People are asked to work from home and telecommute wherever possible. Adhering to these instructions, the Department of Banking has closed its offices to the public. However, agency staff will continue to provide services to consumers and industry through telework. When contacting the Department, please use electronic communication whenever possible. Agency staff will continue to check voicemails during this time. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

The Department of Banking News Bulletin 

Bulletin # 2875 - Week Ending March 29, 2019

 

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 business 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 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 the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.
 
DATE: March 25, 2019 
BANK: United Bank, Hartford
LOCATION: 31 Main Street, East Hartford, CT into
2670 Main Street, East Hartford, CT
ACTIVITY-BRANCH TYPE: Filed to Consolidate Effective 6/30/2019

 

DATE: March 28, 2019 
BANK: Jewett City Savings Bank, Jewett City
LOCATION: 46 West Broad Street, Stonington, CT  06378
ACTIVITY-BRANCH TYPE: Approved to Establish Full Service Branch 

 

 

Acquisition

 

On March 29, 2019, pursuant to Sections 36a-412(a)(1) and 36a-210(a) of the Connecticut General Statutes, the Commissioner approved the application of KeyBank National Association, a national bank, to acquire a significant part of the assets of Laurel Road Bank, a Connecticut bank.

 

Change of Name

 

On March 29, 2019, the Commissioner approved the application of Laurel Road Bank, Darien, Connecticut, to change its name to DR Bank pursuant to Section 36a-82 of the Connecticut General Statutes. 

 

CONSUMER CREDIT DIVISION ACTIVITY

 

Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

 

On March 18, 2019, 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 (collectively “Notice”) in the Matter of: The Hamilton Law Association, P.A., Coral Springs, Florida (“Respondent”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that the Respondent acted as a consumer collection agency without obtaining a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes. 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

 

Vaughn Lee Andrews-McKay (CRD No. 6491985) - Consent Order Entered

 

On March 25, 2019, the Banking Commissioner entered a Consent Order (No. CO-18-8450-S) with respect to Vaughn Lee Andrews-McKay of Enfield, Connecticut. Andrews-McKay was previously registered as a broker-dealer agent of PruCo Securities, LLC under the Connecticut Uniform Securities Act. The Consent Order alleged that from approximately January 2017 to October 2017, Andrews-McKay engaged in dishonest or unethical practices by misappropriating approximately $48,000 from two of his clients at PruCo Securities, LLC and diverting those funds for his personal use. In 2018, FINRA sanctioned Andrews-McKay for the foregoing misconduct, barring him from associating with any FINRA member in any capacity (AWC No. 2018058343001).

 

The Consent Order acknowledged that PruCo Securities, LLC had remitted $49,097.87 (including interest) to the affected clients as full restitution for the monies misappropriated by Andrews-McKay.

 

The Consent Order permanently barred Andrews-McKay from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent and from acting in any other capacity that required a license or registration from the Commissioner. The Consent Order also directed Andrews-McKay to cease and desist from regulatory violations. Based on financial documentation provided by the respondent, the Commissioner stayed the imposition of a $50,000 fine for three years. If the respondent became able to pay the fine or failed to disclose material financial information in his financial affidavit, the fine would immediately become due. At the conclusion of the three year period, if Andrews-McKay still was unable to pay the fine, the fine would be waived.

 

 

North American Drilling Corporation, Brown Well 1 Joint Venture, Brown Well 1A Joint Venture, Brazelton Well 2A Joint Venture and Larry Michael Koonce (CRD No. 4603240) - Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued

 

On March 27, 2019, the Banking Commissioner entered an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-19-8287-S) against North American Drilling Corporation of 1417 Gables Court, Suite 101, Plano, Texas 75075. North American Drilling Corporation was the manager of corespondents Brown Well 1 Joint Venture, Brown Well 1A Joint Venture and Brazelton Well 2A Joint Venture, all three of which were Texas joint ventures engaged in the oil and gas business. Also named in the action was Larry Michael Koonce of Plano, Texas. Koonce was the president of North American Drilling Corporation and a control person of the joint ventures. According to the action, at least three Connecticut individuals invested in the joint ventures.

 

The action alleged that the respondents violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act by representing to investors that the investment had little risk and by channeling investment proceeds to Wildcat Resources, LC, an affiliated entity, in contravention of statements made in the offering materials. In addition, investors were not apprised that at least a portion of the monies transferred to the Wildcat Resources, LC account were used to benefit Koonce and/or his relatives. The action also alleged that respondents Koonce and North American Drilling Corporation violated Section 36b-23 of the Act by making a misleading statement to the Commissioner concerning the source of Koonce's compensation in connection with the joint ventures.

 

Each of the respondents was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.

 

      Dated: Tuesday, April 2, 2019

 

      Jorge L. Perez
      Banking Commissioner