The Department of Banking News Bulletin
Bulletin # 2922 - Week Ending February 21, 2020
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: February 21, 2020
BANK: Northwest Community Bank, Winsted
LOCATION: 741 Hopmeadow Street, Simsbury, CT 06070
ACTIVITY-BRANCH TYPE: Approved to Establish Full Service Branch
DATE: February 20, 2020
BANK: Savings Bank of Danbury, Danbury
LOCATION: 2777 Summer Street, Suite 700, Stamford, CT 06905
ACTIVITY-BRANCH TYPE: Filed Notice of Closing Loan Production Office
DATE: February 20, 2020
BANK: Savings Bank of Danbury, Danbury
LOCATION: 29 South Main Street, West Hartford, CT 06107
ACTIVITY-BRANCH TYPE: Filed Notice of Closing Loan Production Office
DATE: February 20, 2020
BANK: Savings Bank of Danbury, Danbury
LOCATION: 524 Hopmeadow Street, Simsbury, CT 06070
ACTIVITY-BRANCH TYPE: Filed Notice of Closing Loan Production Office
DATE: February 20, 2020
BANK: Savings Bank of Danbury, Danbury
LOCATION: 358 Scott Swamp Road, Farmington, CT 06032
ACTIVITY-BRANCH TYPE: Filed Notice of Closing Loan Production Office
DATE: February 20, 2020
BANK: Savings Bank of Danbury, Danbury
LOCATION: 821 N. Main Street Ext., Wallingford, CT 06492
ACTIVITY-BRANCH TYPE: Filed Notice of Closing Loan Production Office
Reorganization into a Mutual Holding Company
On February 19, 2020, The Savings Bank of Danbury, a Connecticut-chartered mutual savings bank, filed a notice and application to reorganize as a mutual holding company to be known as SBD Bancorp, Inc. pursuant to Section 36a-192 of the Connecticut General Statutes and an application to form a reorganized savings institution to be known as The Savings Bank of Danbury pursuant to Section 36a-193 of the Connecticut General Statutes.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
NYPPEX, LLC (CRD No. 47654) and Laurence Geoffrey Allen (CRD No. 1063970)On February 21, 2020, the Banking Commissioner issued a Notice of Intent to Deny Registration as Broker-dealer, Notice of Intent to Revoke Registration as a Broker-dealer Agent and Notice of Right to Hearing (Docket No. NDR-20-14445-S) with respect to NYPPEX, LLC, an applicant for broker-dealer registration, and Laurence Geoffrey Allen, managing member of the firm. The firm, formerly located at 55 Old Field Point Road, Greenwich, Connecticut, is now based at 800 Westchester Avenue, Rye Brook, New York 10573. Laurence Allen had previously been registered as a broker-dealer agent in Connecticut, but that registration expired on December 31, 2019 for failure to renew. Under Connecticut law, the Commissioner has the authority to initiate revocation proceedings within one year following a registration's expiration for nonrenewal.
The action alleged that on February 4, 2020, in a proceeding brought by the Attorney General of the State of New York, the Supreme Court of the State of New York entered a preliminary injunction enjoining NYPPEX, LLC, Allen and others from, inter alia, engaging in fraudulent, deceptive and illegal acts in conjunction with limited partnership investments (People v. Allen, Laurence G., No. 2378/2019 (Supreme Ct. N.Y. Cnty. 2019). The Connecticut action further alleged that the preliminary injunction supported the initiation of Connecticut proceedings to deny the firm's broker-dealer registration and revoke Allen's agent registration under the Connecticut Uniform Securities Act.
Both respondents were afforded an opportunity to request a hearing on the Notice of Intent to Deny Registration as Broker-dealer and Notice of Intent to Revoke Registration as a Broker-dealer Agent.
Solium Financial Services LLC (CRD No. 147933)
On February 21, 2020, the Banking Commissioner entered a Consent Order (No. CO-20-14428-S) with respect to Solium Financial Services LLC, an applicant for broker-dealer registration having its principal office at 50 Tice Boulevard, Suite A-18, Woodcliff Lake, New Jersey 07677. Morgan Stanley had acquired the firm’s affiliate on May 1, 2019. Solium Financial Services LLC’s business focuses on providing equity plan administration software to employers and facilitating employees’ exercise or liquidation of securities for which the firm receives a portion of the commissions.
The Consent Order followed a North American Securities Administrators Association, Inc. multistate investigation into unregistered broker-dealer activity by the firm. The firm had self-reported to the states that it had transmitted orders for employee-participants at a time when it was not registered in various jurisdictions. The Consent Order alleged that the firm violated Section 36b-6(a) of the Connecticut Uniform Securities Act by transacting business as a broker-dealer in Connecticut while unregistered.
In resolution of the matter, the firm agreed to cease and desist from regulatory violations and to remit $51,136 to the state. Of that amount, $49,296 constituted an administrative fine and $1,840 represented reimbursement for past due registration fees.
Dated: Tuesday, February 25, 2020
Banking Commissioner