The Department of Banking News Bulletin

Bulletin # 2096
Week Ending April 23, 2004

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

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 Financial Institutions Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

MONEY TRANSMITTER LICENSE ACTIVITY

On April 19, 2004, Socatransfer New York Inc. d/b/a Socatransfer, Brooklyn, New York, withdrew its money transmitter application.

On April 23, 2004, the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke License to Engage in the Business of Money Transmission and Notice of Right to Hearing against CashPoint Network Services, Inc.,143 West 72nd Street, New York, New York. The agency’s action was based on allegations that on April 17, 2004, the surety bond that the entity was required to maintain pursuant to Section 36a-602 of the Connecticut General Statutes, as amended by Public Acts 03-61 and 04-14, expired and the entity has failed to provide proof of renewal or substitution of such surety bond and the entity failed to pay certain financial obligations. The actions of this entity constitute reason to believe that the entity’s financial condition is not sound. The entity has been afforded the opportunity to request a hearing which, if requested, is scheduled to be held on June 3, 2004.

MONEY ORDER AND TRAVELERS CHECKS LICENSE ACTIVITY

On March 25, 2004, Thomas Cook Travellers Cheques Ltd. surrendered its license to issue Connecticut Instruments, which are Travelers Checks.

CONSUMER CREDIT DIVISION ACTIVITY

On March 18, 2004, the Commissioner denied the application for a Consumer Collection Agency License filed by JBC & Associates, PC, 2 Broad Street, 6^th Floor, Bloomfield, New Jersey. The action was based upon the Department’s investigation which revealed the following: (1) the Applicant has been acting as a consumer collection agency in Connecticut without a license in violation of Section 36a-801(a) of the Connecticut General Statutes; (2) 126 complaints had been filed against the Applicant with the New Jersey Attorney General’s Office in 2003; and (3) 14 lawsuits have been filed against the Applicant alleging violations of the Fair Debt Collection Practices Act and various state laws. The aforementioned resulted in the Commissioner not being able to find that the Applicant is properly qualified and trustworthy and that the granting of such license would be in the public interest consistent with the purposes of Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes.

On March 18, 2004 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, against JBC & Associates, PC, 2 Broad Street, 6^th Floor, Bloomfield, New Jersey. The agency’s action was based on allegations that the Respondent acted as a consumer collection agency without a license as required by Section 36a-801(a) of the Connecticut General Statutes. The entity has been afforded the opportunity to request a hearing which, if requested, is scheduled to be held on May 13, 2004.

On April 19, 2004, the Commissioner issued a Notice of Intent to Revoke the broker-dealer registration of Triumph Corporate Finance Group, Inc. and an Order Denying Withdrawal of Registration as Broker-dealer. The firm maintains its principal office at 186 Lincoln Street, 4^th Floor, Boston, Massachusetts. The Commissioner’s action was based on allegations that the firm’s 75% owner, Frederick William McCarthy, had been convicted on February 26, 2004 of one count of theft/bribery concerning programs receiving federal funds, specifically, wilfully and corruptly giving, offering, and agreeing to give consulting contracts valued at approximately $2 million to two persons with the intent to influence and reward an agent of state government, in connection with any business, transaction or series of such transactions of the State of Connecticut Office of State Treasurer involving an increased investment of state pension assets with the firm between 1990 and 2000. The Commissioner further alleged that the conduct underlying Frederick William McCarthy’s felony conviction constituted a dishonest or unethical practice in the securities business and a basis for revoking the firm’s registration.

Triumph Corporate Finance Group, Inc. was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Broker-dealer. Pending resolution of the matters alleged in the Notice of Intent to Revoke Registration as Broker-dealer, the firm’s request for a withdrawal of its registration was denied.

Agent Registration Revoked

On April 23, 2004, the Commissioner entered an order revoking the broker-dealer agent registration of Ari Dinov of 1918 East 9^th Street, Brooklyn, New York. The respondent had last been associated with the securities brokerage firm of Indianapolis Securities, Inc. prior to his September 4, 2003 request to withdraw his Connecticut agent registration. Section 36b-15(e)(1) of the Connecticut Uniform Securities Act permits the initiation of revocation proceedings within one year after a withdrawal. In revoking the respondent’s registration, the Commissioner found that, on July 30, 2003, the United States District Court for the District of Columbia had entered a preliminary injunction by consent against the respondent prohibiting him from violating the antifraud provisions of the federal securities laws. The entry of the preliminary injunction formed a basis for the revocation of the respondent’s registration. The respondent did not appear or contest the revocation action.