The Department of Banking News Bulletin 

 Bulletin # 1963
Week Ending October 5, 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.

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

On October 4, 2001, pursuant to Section 36a-470 of the Connecticut General Statutes, as amended by P.A. 01-9, Coca-Cola of Hartford Employees Credit Union, Inc., East Hartford, filed a notice and ballot to merge with and into Community Healthcare Credit Union, Inc., Manchester.

    NEW BANK ACTIVITY

On October 1, 2001, pursuant to Section 36a-70 of the Connecticut General Statutes, a Final Certificate of Authority was issued to The Bank of Southern Connecticut, 215 Church Street, New Haven, Connecticut. The bank opened for business on October 1, 2001.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Pennsylvania Firm Fined $7,500 for Business Opportunity Violations;
Ordered to Repay Purchaser-investor in Full;
Order to Cease and Desist Made Permanent

On October 2, 2001, the Commissioner entered a Consent Order with respect to Child Care Choices, Inc. of 15050 Carter Road, Philadelphia, Pennsylvania. The Consent Order contained findings that the respondent (1) offered and sold an unregistered child care provider network business opportunity in violation of Section 36b-67(1) of the Connecticut Business Opportunity Investment Act; (2) failed to provide a disclosure statement prior to the signing of the business opportunity contract or the receipt of money in violation of Section 36b-63(a) of the Act; and (3) failed to provide a disclosure statement that complied with Section 36b-63 of the Act. Child Care Choices, Inc. had been the subject of a May 8, 2001 Order to Cease and Desist and Notice of Intent to Fine based upon the same conduct.

The Consent Order rendered permanent the May 8, 2001 Order to Cease and Desist, and fined the respondent $7,500. In addition, the Consent Order prohibited the respondent from offering or selling business opportunities in or from Connecticut for twenty-four months and from seeking to register its business opportunity during that time period. After 24 months, the respondent was required to seek the advice of experienced legal counsel prior to offering or selling a business opportunity in or from Connecticut, and, if relying on a statutory exclusion or exemption, to obtain a written advisory interpretation from the department beforehand. The Order also required that the respondent provide a full refund to the affected purchaser-investor, and furnish proof within 30 days following entry of the Consent Order that it had paid the refund balance due.

Westport Man Fined $10,000; Ordered to Make Restitution;
Order to Cease and Desist Made Permanent

On September 25, 2001, the Commissioner entered a Consent Order with respect to W. Peter Massmann of Westport, Connecticut. The respondent had been the subject of a May 10, 2001 Order to Cease and Desist and Notice of Intent to Fine alleging that respondent, formerly a broker-dealer agent of Nutmeg Securities, Ltd. from June 30, 1994 to March 31, 1997, sold unregistered promissory notes of Lighthouse Two Corporation, Prime Time Investments, Inc. and Prime Time Leasing & Financial Services Corporation during and after his association with the Nutmeg Securities, Ltd.

The Consent Order contained findings that the respondent violated (1) Section 36b-31-6e of the Regulations under the Connecticut Uniform Securities Act by engaging in private securities transactions absent notice to his employing broker-dealer; (2) Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer in making the note sales; and (3) Section 36b-16 of the Act by selling unregistered non-exempt securities to Connecticut customers.

The Consent Order fined the respondent $10,000 and rendered the May 10, 2001 Order to Cease and Desist permanent as of September 25, 2001. In addition, the Consent Order required that, within 30 days, the respondent provide the department with detailed information concerning note sales made from July 18, 1996 forward, including an itemized accounting of consideration paid, amounts received to date by each Connecticut investor and interest due, such amounts being used to calculate a restitutionary figure for each investor. The Consent Order also mandated that the respondent make restitution to affected Connecticut investors no later than 180 days following entry of the Consent Order.