The Department of Banking News Bulletin
Bulletin # 3050 - Week Ending August 5, 2022
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 that 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 may be submitted when such applications are filed and any plans that are filed will be made 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 at (860) 240-8180.
DATE: August 2, 2022
BANK: Northwest Community Bank, Winsted
LOCATION: 11 Bryan Plaza, Washington Depot, CT 06794
ACTIVITY-BRANCH TYPE: Filed Notice of Branch Closing
PROPOSED CLOSING DATE: October 31, 2022
Withdrawal of Acquisition Statement
In addition to the notice of withdrawal previously reported in Bulletin #3049, on August 2, 2022, Oaktree Opportunities Fund XI Holdings (Delaware), L.P. and Oaktree Opportunities Fund Xb Holdings (Delaware), L.P., each a limited partnership organized under the laws of Delaware, withdrew their acquisition statement to acquire more than 10% of the voting securities of Patriot Bank, N.A., a national bank headquartered in Stamford, Connecticut.
CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist and Order Imposing Civil Penalty
On July 27, 2022, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: Sixela LLC d/b/a CNAC (NMLS # 1389504) (“Sixela”), Cranston, Rhode Island. The basis of the Order was that: (1) Sixela’s acting within this state as a sales finance company without a license constitutes a violation of Section 36a-536 of the Connecticut General Statutes; and (2) Sixela’s failure to file advance notice of its change in location on the Nationwide Multistate Licensing System and Registry constitutes a violation of Section 36a-540(b) of the Connecticut General Statutes in effect at such time. The Commissioner ordered that Sixela cease and desist from violating Section 36a-536 of the Connecticut General Statutes and Section 36a-540(b) of the 2022 Supplement to the General Statutes, and imposed a civil penalty in the amount of $100,000 upon Sixela. In addition, the Order to Make Restitution issued against Sixela on June 17, 2022 remains in effect and became permanent on July 12, 2022.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Clipper Capital Group LLC, T&T Capital Partners LLC and Steven Alan Tavares (CRD No. 3102434)
On August 3, 2022, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (No. CRF-22-202022-S) against Clipper Capital Group LLC of 6 Williams Street, Mystic, Connecticut 06355, T&T Capital Partners LLC of 735 Broad Street Extension, Waterford, Connecticut 06385, and Steven Alan Tavares, managing member and control person of Clipper Capital Group LLC and managing partner of T&T Capital Partners LLC. Clipper Capital Group LLC was first formed for the purpose of buying, refurbishing and selling properties, and later transitioned into a lending business. T&T Capital Partners LLC was in the business of commercial lending, and Tavares was involved in “flipping” real estate and engaging in commercial lending.
The action alleged that Respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities in the form of promissory notes to investors. In addition, the action alleged that the Respondents violated the antifraud provisions in Section 36b-4(a) of the Act by, among other things, 1) failing to disclose that the terms of the promissory notes could be unilaterally extended by Respondents without the affected investor's approval or consent; and 2) participating in a course of conduct resulting in the affected investors receiving inflated and misleading account statements concerning the value of the securities. The action also alleged that Tavares violated Section 36b-23 of the Act by making materially misleading statements or omissions to the agency in connection with a Division investigation.
The Respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.
Jorge L. Perez