The Department of Banking News Bulletin
Bulletin # 2894 - Week Ending August 9, 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.
CREDIT UNION ACTIVITY
CONSUMER CREDIT DIVISION ACTIVITY
Mortgage Lender License and Notice of Right to Hearing
On August 1, 2019, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke Mortgage Lender License and Notice of Right to Hearing (“Notice)” In the matter of: 1st Alliance Lending, LLC (NMLS # 2819) (“Respondent”), East Hartford, Connecticut. The Notice states that Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage lender license for its main office located at 111 Founders Plaza, Suite 1300, East Hartford, Connecticut, constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a)(1)(D) of the Connecticut General Statutes and constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to engage in the business of a mortgage lender in Connecticut from its main office pursuant to Section 36a‑494(a)(1) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. As a result of not maintaining a surety bond, the Notice provides that Respondent’s mortgage lender license in Connecticut was automatically suspended effective July 31, 2019, and as a result of such suspension, Respondent no longer qualifies for an exemption from licensure as a mortgage servicer in Connecticut. 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
Fastsigns International, Inc.
On August 5, 2019, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-19-894-B) with Fastsigns International, Inc., a franchisor of business opportunities located at 2542 Highlander Way, Carrollton, Texas 75006. Prior to January 31, 2000, Fastsigns International, Inc. was known as American Fastsigns, Inc. The Stipulation and Agreement alleged that, prior to its qualifying for an exclusion under Section 36b-61(2)(D) of the Connecticut Business Opportunity Investment Act, the corporation sold an unregistered business opportunity to a Connecticut resident in contravention of Sections 36b-67(1) and 36b-62(a) of the Act.
In resolution of the matter, Fastsigns International, Inc. agreed to refrain from regulatory violations and to pay $2,500 to the department. Of that amount, $2,100 constituted an administrative fine and $400 represented past due business opportunity registration fees.
TAM Capital Management Inc.
On August 6, 2019, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-19-8527-S) with TAM Capital Management Inc., an investment adviser located at 63 Crane Road North, Stamford, Connecticut 06902. The firm, which moved to Connecticut from Brooklyn, New York in 2014, was registered as an investment adviser with the Securities and Exchange Commission from 2011 to April, 2019. The Stipulation and Agreement alleged that, from September 15, 2014 until March 25, 2019 when a notice was filed, the firm failed to make the investment advisory notice filing required of SEC-registered advisers by Section 36b-6(e) of the Connecticut Uniform Securities Act and failed to pay the fees required by that section. Anticipating that its assets under management would no longer qualify it for federal investment adviser registration, TAM Capital Management Inc. has since applied for state registration as an investment adviser in Connecticut.
In resolution of the matter, the firm agreed to refrain from engaging in violative conduct and to pay $1,875 to the agency. Of that amount, $1,000 constituted an administrative penalty and $875 represented reimbursement for past due investment advisory notice filing fees.
TAM Capital Management Inc. became registered as an investment adviser under the Connecticut Uniform Securities Act on August 6, 2019.