The Department of Banking News Bulletin
 Bulletin # 2160 
Week Ending July 15, 2005

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, Banking Commissioner, 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.

ACQUISITION STATEMENT

On July 13, 2005, pursuant to Section 36a-184 of the Connecticut General Statutes, an acquisition statement was filed on behalf of American Capital Management Services, LLC, whose principals are Najib Choufani, William B. Barnett, and David W. Brown, for the acquisition of 94% of the voting securities of Circle Trust Company, a Connecticut trust bank.

NEW BANK ACTIVITY

On July 15, 2005, pursuant to the provisions of Section 36a-70 of the Connecticut General Statutes as amended by Public Acts 05-39 and 05 288, an application was filed by the organizers of Quinnipiac Bank and Trust Company for the establishment of a bank and trust company to be located in Hamden, Connecticut. The organizers are Richard R. Barredo, Mark A. Candido, Richard K. Ciardiello, Carl Davia, Sallie A. DeMarsilis, Stephen J. DiCapua, Richard H. Fitzpatrick, Jr., Paul A. Gustafson, Timothy J. Hayes, Joseph D. Lion, Brian P. McArdle, Raymond W. Palumbo, Pasquale Salvatore, Richard C. Simione and Richard Spero. Spokesperson: Mark A. Candido, (203) 624-6726.

CONSUMER CREDIT DIVISION ACTIVITY
Settlement Agreement

On June 23, 2005, the Commissioner entered into a Settlement Agreement with Ameriquest Mortgage Company, Town & Country Credit Corporation, Argent Mortgage Company, Argent Funding Corporation f/k/a Olympus Mortgage Company and AMC Mortgage Services, Inc. f/k/a Bedford Home Loans, Inc. ("Ameriquest"). The Settlement Agreement was based on an investigation by the Consumer Credit Division. As a result of the investigation, on January 10, 2005, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Refuse to Renew First Mortgage Lender/Broker and Secondary Mortgage Lender/Broker Licenses, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing. Pursuant to the terms of the Settlement Agreement, Ameriquest agreed to pay $6,000,000 to establish and fund over a six year period, the Connecticut Housing Assistance Fund, to an affordable housing/down payment assistance initiative for the benefit of Connecticut consumers; to cease and desist from engaging in acts in violation of Sections 36a-486(b) and 36a-498a of the General Statutes; and, to take or undertake, as applicable, additional compliance procedures with respect to its Connecticut loans as set forth in the Settlement Agreement. In addition, Ameriquest agreed to remit to the department $1,000,000 as a civil penalty and to pay $250,000 as reimbursement for Department costs. A copy of the Settlement Agreement can be obtained from the Department's website, www.state.ct.us/dob or by contacting the department's Legal Division.

Settlement Agreement

On July 11, 2005, the Commissioner entered into a Settlement Agreement with American Home Mortgage Corp. of New York d/b/a American Home Mortgage ("AHM"). The Settlement Agreement was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that AHM operated a first and secondary mortgage lender/broker office without the required first and secondary mortgage licenses. Pursuant to the Settlement Agreement, AHM agreed not to engage in the business of making first or secondary mortgage loans or act as a first and secondary mortgage broker in Connecticut without the required licenses for each location where the business is to be conducted and not to employ or retain an originator without first registering the originator. In addition, AHM agreed to remit to the Department of Banking $9,000 as a civil penalty.