The Department of Banking News Bulletin 

Bulletin # 2024
Week Ending December 6, 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 December 4, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, James H. Summerville, III received approval to operate a check cashing service general facility at 341 West Main Street, Stamford, Connecticut.

On December 5, 2002, pursuant to Section 36a-581(d) of the Connecticut General Statutes, X-Bankers Money & Mortgages, Inc. filed an application to relocate its licensed check cashing service general facility from 983 Main Street, Bridgeport, Connecticut, to 1021 Main Street, Bridgeport, Connecticut.

On December 6, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, First Check Cashing LLC received approval to operate a check cashing service general facility at 961 First Avenue, West Haven, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Application Withdrawal

On December 2, 2002, Middlesex Federal Credit Union withdrew its application to convert from a federal credit union to a Connecticut credit union.

INTEREST RATE TO BE PAID ON MORTGAGE ESCROW ACCOUNTS,
PUBLIC SERVICE COMPANY AND ELECTRIC SUPPLIER
CUSTOMER SECURITY DEPOSITS AND TENANT SECURITY DEPOSITS

In accordance with Sections 49-2a, 16-262j and 47a-21(i) of the Connecticut General Statutes, the interest rate to be paid on mortgage escrow accounts, public service company and electric supplier customer security deposits and tenant security deposits is 1.00% for the period commencing January 1, 2003 and ending December 31, 2003.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Fined $3,000 for Unregistered Branch Office Activity

On December 4, 2002, the Commissioner entered into a Stipulation and Agreement with Commonwealth Equity Services, Inc., a Connecticut-registered broker-dealer having its principal office at 29 Sawyer Road, Waltham, Massachusetts. The Stipulation and Agreement alleged that, at various times between August 2000 and October 2002, the firm transacted business from three unregistered branch offices in contravention of Section 36b-6(d) of the Connecticut Uniform Securities Act. The offices were located at 310 Hartford Turnpike, Vernon, Connecticut; 35 Woodside Terrace, Stratford, Connecticut; and 33 High Street, Bristol, Connecticut. The firm applied to register the sites on September 12, 2002 and October 22, 2002.

Pursuant to the Stipulation and Agreement, the firm agreed to pay a $3,000 fine to the department and to implement revised supervisory and compliance procedures designed to prevent and detect violations of Connecticut branch office registration requirements.

Investment Adviser Registration Revoked; $5,000 Fine Imposed

On December 5, 2002, the Commissioner entered an Order Revoking Registration as Investment Adviser and Order Imposing Fine against Charles Edward Dear of 35 Boston Street, #6, Guilford, Connecticut. Respondent Dear, who does business under the name "Soundview Financial Management", had been the subject of a June 3, 2002 Consent Order conditioning registration as an investment adviser. The Consent Order conditioning registration as an investment adviser included claims that respondent Dear had transacted business as an investment adviser while unregistered. Respondent Dear had also been the subject of a June 7, 1993 Stipulation and Agreement with the department based on allegations of unregistered investment advisory activity.

The December 5, 2002 revocation order stated that respondent Dear had violated the terms of the June 3, 2002 Consent Order conditioning registration as an investment adviser by altering the contents of an agency-approved notice to clients. The June 3, 2002 Consent Order had required respondent Dear to use an agreed-upon format in apprising clients of the Consent Order. In fining respondent Dear $5,000, the Commissioner took into consideration the fact that Dear had sought legal advice and incurred legal fees in an effort to prevent future violations of the Connecticut Uniform Securities Act.