The Department of Banking News Bulletin
Bulletin # 3005 - Week Ending September 24, 2021
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 directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Richard Louis Bonnanzio and NorthOne Capital Partners, LLC
On September 20, 2021, the Banking Commissioner entered a Consent Order (No. CO-21-10632-S) with respect to Richard Louis Bonnanzio of Madison, Connecticut. Also named in the Consent Order was NorthOne Capital Partners, LLC, a now defunct commercial lending company formerly located at 224 Cornfield Road, Milford, Connecticut, and co-founded by Bonnanzio. The Consent Order alleged that the Respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities that were structured as a “General Services Agreement” and purportedly accompanied by standby letters of credit. The securities were sold from Connecticut to a resident of Canada who invested $125,000 with the Respondents with the expectation that he would receive two standby letters of credit in the amount of $50 million. The Consent Order also alleged that the Respondents violated the antifraud provisions in Section 36b-4 of the Act by falsely representing to the affected investor that his $125,000 investment would be returned if the letters of credit were not procured. In addition, the Consent Order alleged that Bonnanzio violated Section 36b-23 of the Act by making materially false or misleading statements to the Commissioner during an investigation.
The Consent Order directed the Respondents to cease and desist from regulatory violations. In addition, the Consent Order barred Respondents from (1) offering or selling securities in or from Connecticut; (2) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; and (3) acting in any other capacity requiring a license or registration from the Commissioner.
Based on Respondents’ documented inability to pay the $100,000 fine and $125,000 in restitution that otherwise would have been imposed against them, the Commissioner temporarily stayed enforcement of those penalties for three years. After three years, if Respondents were still unable to make payment, the fine would be waived but the obligation to pay restitution would remain in force.
Dated: Tuesday, September 28, 2021
Jorge L. Perez