The Department of Banking News Bulletin

Bulletin # 1949
Week Ending June 29, 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.

RECEIVE THE NEWS BULLETIN BY E-MAIL

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 #1948, for the week ending June 22, 2001, incorrectly indicated that the application filed on June 18, 2001 by Sovereign Trust Company, Lakehurst, New Jersey, was for the establishment of a limited branch at 100 Pearl Street, Hartford, Connecticut. The Bulletin should have indicated that the application was filed pursuant to Section 36a-434a of the Connecticut General Statutes, to establish and maintain an office at that address to act as a fiduciary or to engage in a trust business in this state.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Agent Suspended from Effecting Securities Transactions for 45 Days; Fined $15,000

On June 27, 2001, the Commissioner entered a Consent Order with respect to Vincent J. Esposito, Jr., a broker-dealer agent of Jefferson Pilot Securities Corporation. Esposito had been the subject of a March 15, 2001, Notice of Intent to Revoke Registration as Agent, Order to Cease and Desist and Notice of Intent to Fine. The March 15, 2001 action had alleged that Esposito violated the antifraud provisions of the Connecticut Uniform Securities Act and engaged in dishonest or unethical practices by misleading a brokerage customer on multiple occasions as to the value of the customer's account. The claimed misconduct occurred in 1999 when Esposito was associated with Legg Mason Wood Walker, Incorporated, a broker-dealer. In addition, the Department had alleged that Esposito engaged in dishonest or unethical practices by intercepting and destroying faxed customer complaints and failing to bring them to the attention of the branch manager at Legg Mason Wood Walker, Incorporated in violation of that firm's procedures.

In resolution of the March 15, 2001 action, Esposito agreed to the entry of a Consent Order suspending him for 45 days from effecting securities transactions in or from Connecticut. The suspension would run from August 17, 2001 to September 30, 2001. Following the expiration of the suspension, Esposito's Connecticut registration would be reinstated. The Consent Order also fined Esposito $15,000 and required that he complete the Regulatory Element of the Securities Industry Continuing Education Program within 120 days. In addition, the Consent Order vacated the March 15, 2001 Order to Cease and Desist.