The Department of Banking News Bulletin
Bulletin # 2951 - Week Ending September 11, 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
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: September 8, 2020
BANK: Torrington Savings Bank, Torrington
LOCATION: 888 Farmington Ave., Bristol, CT
ACTIVITY-BRANCH TYPE: Filed to Establish – Full Service Branch
CREDIT UNION ACTIVITY
On September 11, 2020, America’s First Network Credit Union (“AFNCU”), a Connecticut credit union, and Groton Municipal Employees Federal Credit Union (“Groton Municipal”), a federal credit union, filed an application pursuant to Section 36a-468a of the Connecticut General Statutes seeking approval for the merger of Groton Municipal with and into AFNCU. In connection with the application, AFNCU is proposing to expand its field of membership to include the select employee group that makes up Groton Municipal’s field of membership.
CONSUMER CREDIT DIVISION ACTIVITY
On September 2, 2020, the Commissioner entered into a Consent Order with Rex Home Loans, LLC (NMLS # 1698411) (“RHL”), Naperville, Illinois. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that RHL failed to file with the Nationwide Multistate Licensing System and Registry a change of the address of its main office, and failed to provide a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner, at least thirty (30) calendar days prior to such change, in violation of Section 36a-490(b)(2) of the Connecticut General Statutes. As part of the Consent Order, RHL paid $500 as a civil penalty.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
On September 10, 2020, the Banking Commissioner entered a Consent Order (Docket No. CO-20-8480A-S) with respect to J.R. Bautista, Jr. Bautista had been the subject of 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). Also named in the January 28, 2020 action were Native American Energy Group, Inc., Raj S. Nanvaan and Joseph Gatano D'Arrigo. Bautista was a consultant to Native American Energy Group, Inc. Native American Energy Group, Inc. was a purported development stage company specializing in oil, natural gas and alternative energy systems. 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 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.
The September 10, 2020 Consent Order acknowledged that Bautista had provided documentation to the agency indicating that Bautista had reimbursed the affected investor $5,000, which represented the investment amount attributable to Bautista's involvement in the offering. The Consent Order directed Bautista to cease and desist from regulatory violations and fined him $10,000.
Dated: Tuesday, September 15, 2020