In accordance with Governor Lamont's emergency declaration, employees and the public are asked to observe social distancing measures to ensure communal safety and to slow the spread of the novel coronavirus (COVID-19). People are asked to work from home and telecommute wherever possible. Adhering to these instructions, the Department of Banking has closed its offices to the public. However, agency staff will continue to provide services to consumers and industry through telework. When contacting the Department, please use electronic communication whenever possible. Agency staff will continue to check voicemails during this time. Consumers are encouraged to use our online form for complaints. If you are unsure where to send an inquiry, you may send it to Department.Banking@ct.gov and it will be routed appropriately. Thank you for your patience during this time.

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IN THE MATTER OF:


JOHN CALASH
("J. Calash")

SUSAN CALASH
("S. Calash")


(Collectively "Respondents")




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DECISION ON PETITION
FOR RECONSIDERATION

                   AND

ORDER TO MODIFY DECEMBER 17, 2012
ORDER TO CEASE AND DESIST,
ORDER TO MAKE RESTITUTION,
NOTICE OF INTENT TO FINE, AND
NOTICE OF RIGHT TO HEARING

DOCKET NO. CRF-12-7892-S

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the General Statutes of Connecticut, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;

WHEREAS, on December 17, 2012, the Commissioner, acting pursuant to Sections 36b-27(a), 36b-27(b) and 36b-27(d) of the Act, issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (collectively “Notice”) against Respondents, which Notice is incorporated by reference herein;

WHEREAS, the Notice provided that it would remain in effect and become permanent against Respondents if a hearing was not requested within 14 days of its receipt;

WHEREAS, on December 17, 2012, the Notice was sent by certified mail, return receipt requested, to Respondents to their address last known to the Commissioner at 33 Blueberry Hill Road, Madison, Connecticut 06443;

WHEREAS, on January 14, 2013, the Notices that were mailed to Respondents on December 17, 2012, were returned to the Department of Banking marked “Return to Sender – Unclaimed – Unable to Forward”;

WHEREAS, on January 15, 2013, in accordance with Section 36b-33(h) of the Act, the Notice was served on the Commissioner, and on January 17, 2013, Notice of Service on the Banking Commissioner In the Matter of: John Calash dated January 17, 2013, and Notice of Service on the Banking Commissioner In the Matter of: Susan Calash dated January 17, 2013 (collectively “Notices of Service”), were sent by registered mail, return receipt requested, to Respondents at 33 Blueberry Hill Road, Madison, Connecticut 06443, which Notices of Service are incorporated by reference herein.  The Notices of Service were unclaimed by Respondents;

WHEREAS, Respondents failed to request a hearing on the matters set forth in the Notice within 14 days of the date of the Notices of Service;

WHEREAS, on February 19, 2013, Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent as of February 1, 2013, were sent to Respondents at 33 Blueberry Hill Drive, Madison, Connecticut 06443, which Certifications are incorporated by reference herein;

WHEREAS, on March 19, 2013, Orders Imposing Fine were issued to Respondents imposing a fine of One Hundred Thousand Dollars ($100,000) against J. Calash and a fine of Thirty Thousand Dollars ($30,000) against S. Calash.  On March 19, 2013, the Orders Imposing Fine were sent by certified mail, return receipt requested, to Respondents at 33 Blueberry Hill Road, Madison, Connecticut 06443, which Orders Imposing Fine are incorporated by reference herein;

WHEREAS, on April 5, 2013, Respondents, through their legal counsel, filed with the Commissioner a Petition for Reconsideration and/or Motion to Open Judgment (“Petition”) pursuant to Connecticut General Statutes Section 4-181a(b);

WHEREAS, Respondents’ Petition stated that Respondents vacated 33 Blueberry Hill Drive, Madison, Connecticut 06443 on or about June 28, 2012, due to a bank foreclosure; that Respondents moved to 131 Hillside Avenue, Milford, Connecticut 06460 on or about June 28, 2012; that Respondents’ Milford home was destroyed by Hurricane Sandy on October 29, 2012; and that Respondents are now temporarily residing at 69 Hines Street, Apt. B, West Haven, Connecticut 06516;

WHEREAS, Respondents’ Petition set forth that Respondents did not become aware of the Notice, the Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent or the Orders Imposing Fine until March 25, 2013, when J. Calash conducted an internet search and learned of these documents;

WHEREAS, based upon the additional information provided by Respondents’ counsel, the Commissioner has determined that when the Notice, the Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent and the Orders Imposing Fine were sent by registered mail, return receipt requested to Respondents at 33 Blueberry Hill Drive, Madison, Connecticut 06443, Respondents were no longer residing at that address, and therefore Respondents did not receive actual notice of the Notice, the Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent and the Orders Imposing Fine;

WHEREAS, pursuant to Section 4-181a(b) of the General Statutes of Connecticut “[o]n a showing of changed conditions, the . . . [Commissioner] may . . . modify the final decision, at any time, at the request of any person”;

WHEREAS, the Commissioner has determined that Respondents have demonstrated a showing of changed conditions due to the fact that Respondents did not receive actual notice of the Notice, the Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent and the Orders Imposing Fine;

WHEREAS, the Commissioner has determined that the Notice should be modified to reflect Respondents’ current address and to ensure actual notice to Respondents of the Notice pursuant to Section 36b-27 of the Act;

NOW THEREFORE, the Commissioner enters the following:

1.    Respondents’ Petition for Reconsideration is granted.
 
2.     Pursuant to Section 4-181a(b) of the General Statutes of Connecticut, Paragraph 9 of the Notice is hereby modified to read as follows:
  
9.    J. Calash and Susan Calash (“S. Calash”) (collectively “the Calashes”) are a married couple whose address last known to the Commissioner is 69 Hines Street, Apt. B, West Haven, Connecticut 06516.
   
3.     Pursuant to Section 36b-27 of the Act, each Respondent will be afforded an opportunity for a hearing on the allegations set forth in the Notice if a written request for a hearing is received by the Department of Banking, Securities and Business Investments Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following the Respondents’ receipt of this Decision on Petition For Reconsideration and Order to Modify December 17, 2012 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If any Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the General Statutes of Connecticut and Section 36a-1-21 of the Regulations.  If a hearing is requested, the hearing will be held on May 21, 2013, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
    
4.     The March 19, 2013 Orders Imposing Fine issued to Respondents imposing a fine of One Hundred Thousand Dollars ($100,000) against J. Calash and a fine of Thirty Thousand Dollars ($30,000) against S. Calash are hereby vacated effective upon the entry of this Order to Modify December 17, 2012 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing.
   
5.     The February 19, 2013 Certifications rendering the Order to Cease and Desist and Order to Make Restitution permanent are hereby rescinded effective upon the entry of this Order to Modify December 17, 2012 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing.
   
6.     This Order shall become final when entered. 
 

So ordered at Hartford, Connecticut,       ________/s/________ 
this 25th day of April 2013. Howard F. Pitkin 
Banking Commissioner 



CERTIFICATION

I hereby certify that on this 25th day of April 2013, the foregoing Decision on Petition For Reconsideration and Order to Modify December 17, 2012 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing was sent by certified mail, return receipt requested, to:  John Calash, 69 Hines Street, Apt. B, West Haven, Connecticut 06516, certified mail no. 7012 1010 0001 7317 4001; Susan Calash, 69 Hines Street, Apt. B, West Haven, Connecticut 06516, certified mail no. 7012 1010 0001 7317 4018; and John and Susan Calash, c/o Austin J. McGuigan, Esq., Rome McGuigan, P.C., One State Street, Hartford, Connecticut 06103, certified mail no. 7012 1010 0001 7317 4025.


                                                    _____/s/___________  
                                                    Elena Zweifler  
                                                    Prosecuting Attorney


Administrative Orders and Settlements