The Department of Banking News Bulletin 

Bulletin # 1927
Week Ending January 26, 2001

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 John P. Burke, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov. Written comments will be considered only if they are received within ten days from the date of this bulletin.

STATE BANK ACTIVITY
Branch Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days. Questions concerning branch activity should be directed to the Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

CREDIT UNION DIVISION ACTIVITY
Merger

Pursuant to Section 36a-470 of the Connecticut General Statutes, on January 25, 2001, Sikorsky Financial Credit Union, Inc., Stratford, filed an application to merge Danbury Municipal Federal Credit Union, Danbury, with and into Sikorsky Financial Credit Union, Inc.

NEW BANK ACTIVITY
Application Amended to Change Name

On January 25, 2001, the application filed on September 1, 2000 by the organizer of The Manhattan Trust Company for the establishment of a bank and trust company in Hartford, Connecticut, which will function solely in a fiduciary capacity, was amended to change the name of the proposed bank from "The Manhattan Trust Company" to "International Trust Company of the Americas".

SECTION 36a-425 APPROVAL

On January 24, 2001, approval was granted to Royal Bank of Canada, a corporation organized under the laws of Canada, to maintain an office of its newly acquired subsidiary, Pacific Guarantee Mortgage Corporation, a California corporation, at 162 Sunset Hill Road, Redding, Connecticut.

SECTION 36a-425 APPLICATION

On January 22, 2001, Principal Holding Company, an Iowa corporation, filed an application to establish an office of its subsidiary, Principal Residential Mortgage, Inc., an Iowa corporation, at 500 Boston Post Road, Milford, Connecticut.

ACQUISITION

On January 24, 2001, in connection with the acquisition statement filed by Angelo DeCaro on December 15, 2000, pursuant to Section 36a-184 of the Connecticut General Statutes, to increase his current ownership of 24.9 percent to 25 percent or more of the common stock of Patriot National Bancorp, Inc., and indirectly of Patriot National Bank, Angelo DeCaro caused to be filed a community reinvestment plan for Patriot National Bank which is available for public inspection and comment at the Department of Banking for a period of 30 days.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Canadian Firm Fined $20,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against Canko Environmental Technologies, Inc. of 10458 Mayfield Road, #206, Edmonton, Alberta, Canada. In fining the corporation $20,000 the Commissioner found that, from at least November 1997, Canko Environmental Technologies, Inc. sold unregistered non-exempt notes to Connecticut investors through at least two unregistered agents of issuer in violation of Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. Respondent had been the subject of an uncontested Order to Cease and Desist issued on November 7, 2000. The Order to Cease and Desist became permanent on December 2, 2000.

North Carolina Firm Fined $20,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against South Mountain Resort and Spa, Inc. of 930 Queens Road, Charlotte, North Carolina. The Order Imposing Fine found that from at least November 1997, the respondent sold unregistered non-exempt notes to Connecticut investors through at least two unregistered agents of issuer in violation of Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. The respondent had been the subject of an uncontested Order to Cease and Desist issued on November 7, 2000. The Order to Cease and Desist became permanent on December 7, 2000.

Delaware Firm Fined $20,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against Sweetwater Development Corporation of 5001 Silverside Road, Suite 113, Wilmington, Delaware. The Order Imposing Fine found that from at least November 1998, the respondent sold unregistered non-exempt notes to Connecticut investors through at least two unregistered agents of issuer in violation Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. The respondent had been the subject of an uncontested Order to Cease and Desist issued on November 7, 2000. The Order to Cease and Desist became permanent on November 29, 2000.

Indiana Firm Fined $20,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against Yucatan Investment Corp. of 711 South Michigan Street, LaPaz, Indiana. The Order Imposing Fine, which assessed the corporation $20,000, found that from at least August 1998, the respondent sold unregistered non-exempt notes to Connecticut investors through at least one unregistered agent of issuer in violation of Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. The respondent had also been the subject of a November 7, 2000 Order to Cease and Desist which became permanent on December 21, 2000 since the respondent withdrew its request for a hearing on that order.

Florida Firm Fined $20,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against Lifeblood Biomedical, Inc. of 101 Southhall Lane, Suite 400, Maitland, Florida. In fining the firm $20,000, the Commissioner found that from at least March 1997, the corporation sold unregistered, non-exempt promissory notes to the Connecticut public through unregistered agents of issuer in violation of Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. The respondent had been the subject of an October 13, 2000 Order to Cease and Desist which became permanent on November 21, 2000 since the respondent failed to request a hearing.

Florida Firm Fined $30,000

On January 24, 2001, the Banking Commissioner entered an Order Imposing Fine against Palm Beach Investment Group, Inc., now or formerly of 12765 West Forest Hills Boulevard, Suite 1313, Wellington, Florida, 12765 West Forest Hills Boulevard, Suite 1313, West Palm Beach, Florida and 1395 Woodrow Way, Wellington, Florida. The Commissioner's action was based on findings that, from at least November 1998, the respondent sold unregistered stock to Connecticut residents through at least five unregistered agents in violation of Sections 36b-6(b) and 36b-16 of the Connecticut Uniform Securities Act. The Commissioner also found that the respondent violated the antifraud prohibition in Section 36b-4(a)(2) of the Act through representations made by its co-chairman and president, Michael Shuda, and in brochures circulated to investors. Those representations were false in that they claimed the stock of Palm Beach Investment Group, Inc. was FDIC-insured and that the corporation was capitalized in the amount of $19 million.

The respondent had also been the subject of an uncontested October 10, 2000 Order to Cease and Desist that became permanent on November 28, 2000.

Florida Firm President Fined $10,000

On January 24, 2001, the Banking Commissioner issued an Order Imposing Fine against Michael Shuda, co-chairman and president of Palm Beach Investment Group, Inc. In assessing a $10,000 penalty against Shuda, the Commissioner found that, from at least November 1998, Shuda violated the antifraud prohibition in Section 36b-4(a)(2) of the Connecticut Uniform Securities Act by making, or causing to be made, false statements to the effect that the stock of Palm Beach Investment Group, Inc. was FDIC-insured and that the corporation was capitalized in the amount of $19 million.

The respondent had been the subject of an uncontested October 10, 2000 Order to Cease and Desist which became permanent on November 28, 2000.