The Department of Banking News Bulletin
Bulletin # 3070 - Week Ending December 23, 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.
Interstate Loan Production Office
On December 20, 2022, the Commissioner approved the application of Evolve Bank and Trust, an Arkansas state-chartered bank, to establish a loan production office in Connecticut pursuant to Section 36a-412(d) of the Connecticut General Statutes. The office will be located at 2488 Boston Post Road in Guilford, Connecticut. The anticipated opening date is January 2023.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
The Hop Knot Franchising Corp. and Michael T. Boney
On December 20, 2022, the Banking Commissioner entered a Consent Order (No. CSF-22-14433B) with respect to The Hop Knot Franchising Corp., formerly of 170 Main Street, #6, Middletown, Connecticut and 505 Main Street, Middletown, Connecticut, and Michael T. Boney, president of the corporation. The Hop Knot Franchising Corp., since dissolved, was in the business of offering beer and gourmet pretzel franchises. The Respondents had been the subject of an April 1, 2022 Notice of Intent to Issue Stop Order Denying Effectiveness to a Business Opportunity Registration, Order to Cease and Desist and Notice of Intent to Fine. The April 1, 2022 action alleged that 1) at various times in 2018 and 2019, respondents sold unregistered business opportunities in violation of Sections 36b-62(a) and 36b-67(1) of the Connecticut Business Opportunity Investment Act; 2) the corporation's subsequently filed registration application misrepresented the extent of the company’s prior unregistered activity in violation of Section 36b-80 of the Act; and 3) the respondents violated Section 36b-66(a) of the Act by failing to provide a purchaser-investor with a signed copy of the business opportunity contract.
The Consent Order barred Boney for three years from associating in any proprietary or supervisory capacity with any business opportunity seller and from offering or selling business opportunities. The Consent Order also directed the Respondents to cease and desist from regulatory violations, and denied effectiveness to The Hop Knot Franchising Corp.'s pending business opportunity registration. Acknowledging that the Respondents had provided documentation demonstrating their inability to pay the $50,000 fine that otherwise would have been imposed against them, the Commissioner stayed imposition of the fine for three years following which it would be waived if Respondents remained unable to pay.
Jorge L. Perez