The Department of Banking News Bulletin 

Bulletin # 1948
Week Ending June 22, 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, Commissioner of Banking, 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.

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The Department of Banking now offers a free service to deliver the News Bulletin directly to you by E-mail on the day that it is issued. To subscribe to this new service, please visit the Department's Web site. If you no longer wish to receive a printed copy of the News Bulletin by postal mail, please contact jeanne.charbonneau@ct.gov.

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.

CORRECTION

Bulletin #1947, for the week ending June 15, 2001, incorrectly indicated that the application filed on June 11, 2001 by Cornerstone Bank, Stamford, was for the establishment of a mobile branch at 1071 Post Road East, Westport. The bulletin should have indicated that the application was a request for approval of a branch at that address.

ACQUISITION AND MERGER

On June 19, 2001, pursuant to Section 36a-70(p) of the Connecticut General Statutes, a temporary certificate of authority was issued to Liberty Bank for the establishment of Liberty Interim Bank as an interim Connecticut bank, and pursuant to Section 36a-125 of the Connecticut General Statutes, the Commissioner approved the merger of Hometown Bank with and into Liberty Bank. The Commissioner, pursuant to Section 36a-185 of the Connecticut General Statutes, also issued a notice of intent not to disapprove the acquisition by Liberty Bank of 100 percent of the voting securities of Hometown Bank.

On June 13, 2001, pursuant to Section 36a-437 of the Connecticut General Statutes, CenConn Healthcare Credit Union, Inc., Meriden, requested approval to amend its bylaws and certificate of organization to change its name to CenConn Credit Union, Inc.

On June 22, 2001, pursuant to Section 36a-437 of the Connecticut General Statutes, approval was granted to St. Raphael Healthcare Credit Union, Inc., New Haven, to amend its bylaws and certificate of organization to change its field of membership to consist of all persons who live or work in New Haven County in the State of Connecticut and to change its name to New Haven County Credit Union, Inc.

Merger

On June 21, 2001, pursuant to Section 36a-470 of the Connecticut General Statutes, approval was granted to CenConn Healthcare Credit Union, Inc., Meriden, to merge EdConn Federal Credit Union, New Britain, with and into CenConn Healthcare Credit Union, Inc.

On June 22, 2001, pursuant to Section 36a-470 of the Connecticut General Statutes, approval was granted to The Barden Employees Credit Union, Inc., Danbury, to merge with and into Duracell Industrial Federal Credit Union, Bethel.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Maryland Firm Fined for Failing to Open Records to the Agency

On June 19, 2001, the Commissioner entered a Consent Order with respect to Legg Mason Wood Walker, Inc. of 100 Light Street, Baltimore, Maryland. The Consent Order claimed that, at various times between August 1999 and February 2001, the firm violated Section 36b-31-14f(b)(3) of the Regulations under the Connecticut Uniform Securities Act by failing to make its records available to the Commissioner in a timely manner. The Consent Order directed the firm to cease and desist from violating those provisions of the Act and the Regulations governing agency examinations and to pay $20,000 to the department, $15,000 of which constituted an administrative fine and $5,000 of which represented reimbursement for agency investigative costs.

Broker-dealer Censured and Fined for
Failing to Open Records to the Agency

On June 19, 2001, the Commissioner entered a Consent Order with respect to Charles Joseph Nobel III, a registered broker-dealer agent of Legg Mason Wood Walker, Inc. employed at the New Haven branch office of the firm. The Consent Order alleged that, at various times between August 1999 and February 2001, Charles Noble violated Section 36b-31-14f(b)(3) of the Regulations under the Connecticut Uniform Securities Act by failing to make firm records available to the Commissioner in a timely manner. The Consent Order censured Noble, directed him to cease and desist from violating those provisions of the Act and the Regulations governing agency examinations and fined him $10,000.

Unregistered Agent Fined, Subject to Five-Year Bar in
Connection With Unregistered Promissory Note Sales

On June 19, 2001, the Commissioner entered a Consent Order with respect to Michael C. Dailey of Trumbull, Connecticut. The Consent Order alleged that Michael Dailey violated Section 36b-6(a) of the Connecticut Uniform Securities Act by transacting business as an unregistered agent of issuer in selling promissory notes of Ameritech Petroleum, Inc., Sebastian International Enterprises, Inc., South Mountain Resort & Spa, Inc. and Tri-National Development Corporation. The sales were purportedly made from August 1997 to October 1998. The Consent Order also claimed that the notes were not registered or exempt from registration under the Act.

The Consent Order barred the respondent for five years from acting as a broker-dealer agent, agent of issuer, broker-dealer, investment adviser, investment adviser agent or business opportunity seller. In addition, the Consent Order directed that the respondent cease and desist from regulatory violations and pay $2,000 to the department, $1,500 of which constituted an administrative fine and $500 of which represented reimbursement for investigative costs.

Broker-dealer Agent Sanctioned for Unregistered Activity

On June 22, 2001, the Commissioner executed a Stipulation and Agreement with respect to John Charles Keating, Jr., currently a registered broker-dealer agent of Bengal Partners, LLC. The Stipulation and Agreement alleged that between June 1999 and approximately April 2001, respondent Keating transacted business as an agent of Southport Securities, LLC absent registration under Section 36b-6 of the Connecticut Uniform Securities Act.

Pursuant to the Stipulation and Agreement, respondent Keating agreed to pay a $500 fine and to complete the Regulatory Element of the Securities Industry Continuing Education Program within ninety days.