Bulletin # 2925 - Week Ending March 13, 2020

 

 

COMMISSIONER ISSUES GUIDANCE

 

COVID-19 Guidance to State-Chartered Banks and Credit Unions

Banking Commissioner Jorge Perez issued guidance to Connecticut state-chartered financial institutions on ways to provide relief to assist Connecticut consumers and small businesses in response to COVID-19. The guidance issued urges Connecticut state-chartered banks and credit unions to work with borrowers consistent with safe and sound banking practices. These efforts can include easing credit terms for new loans, waiving overdraft fees, waiving late fees for loan balances, increasing the number of allowed money market withdrawals, waiving CD early withdrawal penalties, and offering payment accommodations such as allowing borrowers to defer some payments or extending the payment due dates. The Department also asks institutions to communicate with their partner companies, like servicers and collection agencies, so consumers and small businesses know all possible accommodations. Any modifications to existing loans that are deemed prudent by financial institutions in light of the circumstances will not be subject to regulatory criticism.

The guidance also urges financial institutions to make themselves available to answer customer questions and make reasonable accommodations during the outbreak. Financial institutions should continue to be sure that consumers have access to banking services by continuing to provide drive-up windows, night deposits, ATMs and online banking.

You can read the full issued guidance at www.ct.gov/dob.

 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Native American Energy Group, Inc. and Raj S. Nanvaan f/k/a Tejbir Singh (CRD No. 2801400) Each Fined $100,000

On March 13, 2020, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-20-8480-S) against Native American Energy Group, Inc. of 61-43 186th Street, Suite 507, Fresh Meadows, New York 11365. The corporation is a purported development stage company specializing in oil, natural gas and alternative energy systems.

Also on March 13, 2020, the Commissioner entered a separate Order Imposing Fine against Raj S. Nanvaan, the company’s Chief Financial Officer.

The Orders Imposing Fine had been preceded by a January 28, 2020 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-20-8480-S) which, in addition to naming Native American Energy Group, Inc. and Raj S. Nanvaan as respondents, also named Joseph Gatano D’Arrigo, Co-Founder and Chief Executive Officer of the company, and J.R. Bautista, Jr., a company consultant. Bautista had been the subject of a January 17, 1990, agency Consent Order based on allegations of unregistered agent activity. That Consent Order resulted in an 18 month bar being imposed against Bautista.

The January 28, 2020 action had alleged that respondents Native American Energy Group, Inc. and Bautista violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered common shares of the company to at least one Connecticut investor. The action had also alleged that all the respondents violated the antifraud provisions in Section 36b-4(a) of the Act by failing to disclose to the affected investor that the investment proceeds were actually being wired out to respondents D’Arrigo, Nanvaan and Bautista rather than being used to invest in oil or gas investments.

Each of the respondents was afforded an opportunity to request a hearing on the allegations in the January 28, 2020 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine. Since respondents Native American Energy Group, Inc. and Nanvaan failed to request a hearing, the Order to Cease and Desist and Order to Make Restitution became permanent as to them on February 16, 2020 and February 23, 2020, respectively.

Similarly, respondents Native American Energy Group, Inc. and Nanvaan did not request a hearing on the Notice of Intent to Fine, and the March 13, 2020 Orders Imposing Fine were therefore entered by default. Finding that Native American Energy Group, Inc., violated Sections 36b-16 and 36b-4(a) of the Connecticut Uniform Securities Act, the Commissioner fined the company $100,000. Likewise, finding that Nanvaan violated the antifraud provisions in Section 36b-4(a) of the Act, the Commissioner imposed a $100,000 fine against Nanvaan.

The matters involving respondents D’Arrigo and Bautista remain pending.

 

      Dated: Tuesday, March 17, 2020