The Department of Banking News Bulletin

Bulletin # 2006
Week Ending August 2, 2002

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.

BRANCH ACTIVITY
State Bank 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.

On July 30, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, Suresh Shah was granted approval to operate a check cashing service general facility at 522 Pequonnock Street, Bridgeport, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Conversion

On July 30, 2002, pursuant to Section 36a-469 of the Connecticut General Statutes, Southern New England Federal Credit Union, North Haven, filed an amendment to its application originally filed on May 10, 2002, to change the proposed field of membership to include persons who live, work, attend school, or worship in Hartford, New Haven, and Middlesex Counties, as well as any and all businesses, corporations, organizations, or associations located within such counties.

CONSUMER CREDIT DIVISION ACTIVITY
Administrative Order

On August 1, 2002, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing, in the matter of Berkshire Financial Solutions, Inc. The respondent is located at 23116A Sandalfoot Plaza Drive, Boca Raton, Florida. The agency's action was based on the allegation that the respondent engaged in the business of debt adjustment in this state without a license, in violation of Section 36a-656 of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
New York Man Fined $20,000 for
Unregistered Activity Related to FOREX Investment Sales

On July 30, 2002, the Commissioner entered an Order Imposing Fine against Thomas W. Qualls of 111 Cleveland Avenue, Long Beach, New York. The respondent had been the subject of a May 14, 2002, Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing. The Order to Cease and Desist and Notice of Intent to Fine had claimed that, from at least February 2000 forward, the respondent effected at least 94 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. The action had also claimed that the respondent sold unregistered, non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act. The Order to Cease and Desist, being uncontested, had become permanent on June 5, 2002. Although a hearing was scheduled on the Notice of Intent to Fine, the respondent failed to appear.

In fining the respondent $20,000, the Commissioner found that the respondent had committed one violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and one violation of Section 36b-16 of the Act.

New York Man Fined $20,000 for
Unregistered Activity Related to FOREX Investment Sales

On July 30, 2002, the Commissioner entered an Order Imposing Fine against Derek M. Lofton of 34 Brown Avenue, Hempstead, New York. The respondent had been the subject of a May 14, 2002, Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing. The Order to Cease and Desist and Notice of Intent to Fine had alleged that, from at least September 2000 forward, the respondent effected at least 26 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. The Order to Cease and Desist and Notice of Intent to Fine had also alleged that the respondent sold unregistered, non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act. The Order to Cease and Desist, being uncontested, had become permanent on June 27, 2002. Although a hearing was scheduled on the Notice of Intent to Fine, the respondent failed to appear.

In fining the respondent $20,000, the Commissioner found that the respondent had committed one violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and one violation of Section 36b-16 of the Act.

New York Man Fined $20,000 for
Unregistered Activity Related to FOREX Investment Sales

On July 30, 2002, the Commissioner entered an Order Imposing Fine against William M. Cutrone of 4 Village Lane, Woodbury, New York. The respondent had been the subject of a May 14, 2002, Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing. The Order to Cease and Desist and Notice of Intent to Fine had alleged that, from at least January 2000 forward, the respondent effected at least 20 transactions in securities involving contracts on foreign currencies (also known as FOREX investments) on behalf of Oxford-Dundee, Inc. and East Norwich Foreign Holding Corporation absent registration as a broker-dealer agent under Section 36b-6(a) of the Connecticut Uniform Securities Act. The Order to Cease and Desist and Notice of Intent to Fine had also claimed that the respondent sold unregistered, non-exempt FOREX investments in Connecticut in violation of Section 36b-16 of the Act. The Order to Cease and Desist, being uncontested, had become permanent on June 19, 2002. Although a hearing had been scheduled on the Notice of Intent to Fine, the respondent failed to appear.

In fining the respondent $20,000, the Commissioner found that the respondent had committed one violation of Section 36b-6(a) of the Connecticut Uniform Securities Act and one violation of Section 36b-16 of the Act.

International Market Consultants, LLC Fined $40,000 for
Fraudulent Conduct in Connection With
Unregistered FOREX Investments

On July 30, 2002, the Commissioner entered an Order Imposing Fine against International Market Consultants, LLC of 2001 West Main Street, Suite 205, Stamford, Connecticut. The respondent had been the subject of a May 22, 2002, Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing. The Order to Cease and Desist and Notice of Intent to Fine had alleged that, from at least November 2000 forward, the respondent, through its agents, transacted business as a broker-dealer absent registration under Section 36b-6(a) of the Connecticut Uniform Securities Act by effecting at least 12 transactions in securities involving contracts on foreign currencies (also known as FOREX investments). The Order to Cease and Desist and Notice of Intent to Fine had also claimed that the FOREX investments were not registered as required by Section 36b-16 of the Act, and that the respondent employed unregistered agents in contravention of Section 36b-6(b) of the Act. In addition, the Order to Cease and Desist and Notice of Intent to Fine had alleged that the respondent violated statutory antifraud provisions by spending almost $41,000 of the $89,692 collected from investors for the FOREX investments on office expenses, personal expenses of the respondent's managers and agents, and fees to an international global events planner. The Order to Cease and Desist, being uncontested, had become permanent on July 9, 2002. Although a hearing had been scheduled on the Notice of Intent to Fine, the respondent failed to appear.

In fining the respondent $40,000, the Commissioner found that the respondent committed one violation of the antifraud provisions in Section 36b-4 of the Connecticut Uniform Securities Act; one violation of Section 36b-6(a) of the Act; one violation of Section 36b-6(b) of the Act; and one violation of Section 36b-16 of the Act.

Broker-dealer Agent Precluded from Transacting
Securities Business in Connecticut for 24 Months

On July 30, 2002, the Commissioner entered a Consent Order with respect to Eugene Arnold Chapman, a broker-dealer agent of Lincoln Investment Planning, Inc. Respondent Chapman had been the subject of a May 28, 2002, Notice of Intent to Revoke Registration as Agent alleging that on September 20, 2001, the NASD had suspended the respondent for three months from associating with any NASD member in any capacity and had fined the respondent $5,000 based on claims that the respondent engaged in private securities transactions absent notice to, and approval from, his employing broker-dealer. Both the respondent and Lincoln Investment Planning, Inc. are located in New Jersey. The Consent Order resolved the allegations in the Notice of Intent to Revoke Registration.

The Consent Order required that respondent Chapman withdraw his registration in Connecticut as an agent of Lincoln Investment Planning, Inc. In addition, the Consent Order required that the respondent not apply or reapply for registration in Connecticut as an agent, broker-dealer, investment adviser or investment adviser agent for 24 months following the entry of the Consent Order. The Consent Order provided that, at the conclusion of such 24 month period, the respondent could apply or reapply for registration provided, among other things, that he procure from his employing firm a written undertaking to exercise heightened supervision over the respondent's activities.

Broker-dealer Registration Cancelled

On July 31, 2002, the Commissioner entered an Order canceling the broker-dealer registration of Ameritrust Securities, Inc. The firm, which has its principal office at 76 Blinkoff Court, Torrington, Connecticut, had been the subject of a June 7, 2002, Notice of Intent to Cancel Registration as Broker-dealer claiming that the firm had ceased doing securities business inasmuch as (1) the registration of the respondent's sole agent, Seong Y. Lee, had been declared inactive by the NASD on January 10, 2001; (2) an examination of respondent conducted on December 20, 2001, revealed no securities business being conducted from respondent's address; (3) the NASD had suspended the respondent on January 4, 2002, for failing to file an annual audit report; and (4) the NASD had no record of the respondent having retained a clearing broker for transacting brokerage business. The firm did not contest the cancellation of its broker-dealer registration.

Agent Registration Cancelled

On July 31, 2002, the Commissioner issued an order canceling the registration of Seong Y. Lee as an agent of Ameritrust Securities, Inc. The respondent had been the subject of a June 7, 2002, Notice of Intent to Cancel Registration as Agent alleging that the respondent's securities-related activities had ceased since the NASD had declared the registration of respondent Lee inactive on January 10, 2001. The Commissioner's cancellation order was uncontested by the respondent.