The Department of Banking News Bulletin

Bulletin # 2053
Week Ending June 27, 2003

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) 240-8185.
Note: dates are listed in month/day/year format.

MONEY TRANSMITTER LICENSE ACTIVITY

On June 6, 2003, pursuant to Section 36a-600 of the Connecticut General Statutes, Servicio UniTeller, Inc., Bergen County, New Jersey, filed an application to engage in the business of money transmission.

INTERSTATE DE NOVO BRANCH

On June 27, 2003, pursuant to Sections 36a-412(a)(2) and 36a-145(b)(1) of the Connecticut General Statutes, the Commissioner granted approval to Charter One Bank, National Association, Cleveland, Ohio, to establish a de novo branch at 943 Wolcott Street, Waterbury, Connecticut.

CREDIT UNION DIVISION ACTIVITY
Merger

On June 30, 2003, pursuant to Section 36a-468a of the Connecticut General Statutes, approval was granted to B.M.G. Credit Union, Inc., New Milford, a Connecticut credit union, to merge with and into McKesson Federal Credit Union, Stratford, a federal credit union.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Karl Ramonas Fined $30,000 in Conjunction With
Sale of Unregistered Partnership Interests

On June 26, 2003, the Banking Commissioner entered an Order Imposing Fine against Karl Ramonas, now or formerly of 69 Morris Street, Naugatuck, Connecticut and 23 Schroback Road, Plymouth, Connecticut. The respondent had been the subject of a March 18, 2003 Order to Cease and Desist and Notice of Intent to Fine. The Order to Cease and Desist, being uncontested, became permanent on April 9, 2003. Respondent Ramonas was the sole general partner of The Marketrack Investment Club, a partnership whose last known address is P.O. Box 11303, Waterbury, Connecticut. The Order to Cease and Desist and Notice of Intent to Fine had alleged that from at least November 2000 forward, respondent Ramonas sold unregistered non- exempt partnership units in The Marketrack Investment Club to at least 86 investors through the issuer's Internet website in violation of Section 36b-16 of the Connecticut Uniform Securities Act. The Order to Cease and Desist and Notice of Intent to Fine had also alleged that respondent Ramonas violated Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer, and that the respondent had violated the antifraud provisions of the Act by 1) falsely representing to investors that their funds would be invested in securities for the benefit of the partners when, in reality, such funds were never so invested, and at least $94,500 in investor monies were used by respondent Ramonas to cover his personal expenses; and 2) failing to disclose that there had been a material change in the number of partnership units available to the investing public and the maximum number of partners allowable under the partnership agreements. In fining the respondent $30,000, the Commissioner found that respondent Ramonas had violated Sections 36b-6(b) and 36b-16 of the Act as well as the antifraud provisions in Section 36b-4 of the Act.

Waterbury Partnership Fined $30,000

On June 26, 2003, the Banking Commissioner entered an Order Imposing Fine against The Marketrack Investment Club, a partnership whose last known address is P.O. Box 11303, Waterbury, Connecticut. The respondent had been the subject of a March 18, 2003 Order to Cease and Desist and Notice of Intent to Fine. The Order to Cease and Desist, being uncontested, had become permanent on April 9, 2003. The Order to Cease and Desist and Notice of Intent to Fine had alleged that from at least November 2000 forward, The Marketrack Investment Club sold unregistered, non-exempt partnership units to at least 86 investors through its Internet website in violation of Section 36b-16 of the Connecticut Uniform Securities Act. The action had also alleged that The Marketrack Investment Club violated Section 36b-6(b) of the Act by employing one Karl Ramonas, its general partner, as an unregistered agent of issuer. The action had also claimed that the respondent violated the antifraud provisions of the Act by 1) falsely representing to investors that their funds would be invested in securities for the benefit of the partners when, in reality, such funds were never so invested, and at least $94,500 in investor monies were used by Karl Ramonas to cover his personal expenses; and 2) failing to disclose that there had been a material change in the number of partnership units available to the investing public and the maximum number of partners allowable under the partnership agreements. In fining the respondent $30,000, the Commissioner found that the respondent had violated Sections 36b-6(b) and 36b-16 of the Act as well as the antifraud provisions in Section 36b-4 of the Act.

Broker-dealer Fined $7,500 for Unregistered Branch Office Activity

On June 25, 2003, the Banking Commissioner entered into a Stipulation and Agreement with Hornor, Townsend & Kent, Inc., a broker-dealer having its principal office at 600 Dresher Road, Suite C1C, Horsham, Pennsylvania. The Stipulation and Agreement alleged that the firm transacted business from five Connecticut locations at a time when those sites were not registered as branch offices under the Connecticut Uniform Securities Act. Pursuant to the Stipulation and Agreement, the firm agreed to revise and implement supervisory and compliance procedures reasonably designed to prevent and detect violations of Connecticut law governing branch office registration. In addition, the firm agreed to pay a $7,500 fine to the agency.