Bulletin # 2334
Week Ending November 14, 2008

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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail. Written comments will be considered only if they are received within ten days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY Check Cashing Service License Activity

On November 5, 2008, the Commissioner entered an Order Imposing Fine against Vision Travel, Inc. a/k/a Global Vision Travel of First Street, Suite 304, Metro Office Park #7, Guaynabo, Puerto Rico.  The Order Imposing Fine had been preceded by an August 15, 2008 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that, from at least August 16, 2006 to November 3, 2006, the respondent sold unregistered multi-level marketing virtual travel agency business opportunities to at least eight Connecticut purchasers in violation of the Connecticut Business Opportunity Investment Act.  Since the respondent had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist had become permanent on September 23, 2008.

After finding that the respondent violated Section 36b-67(1) of the Connecticut Business Opportunity Investment Act, the Commissioner fined the respondent $115,000.  The Order Imposing Fine stated that there was no evidence in the record that the respondent had offered or provided restitution to the Connecticut purchaser-investors.  The respondent did not appear or contest the imposition of the fine.  Section 36a-1-31(b) of the Regulations of Connecticut State Agencies provides that the allegations against a party may be deemed admitted where the party fails to appear at a scheduled hearing.

On November 5, 2008, the Commissioner issued a Notice of Intent to issue a stop order denying the business opportunity registration of Blue Coast Financial Group, Inc.  The corporation, located at 2929 North Power Road, Suite C100, Mesa, Arizona, offers an arrangement whereby purchasers can start a business facilitating audits of workers compensation insurance premiums for the purpose of uncovering errors and overcharges.  A previous registration filed by Blue Coast Financial Group, Inc. had been denied by the Commissioner on May 5, 2008 following a hearing.  Blue Coast Financial Group, Inc. subsequently reapplied for registration under the Connecticut Business Opportunity Investment Act.

The November 5, 2008 action alleged that the second application and disclosure document failed to adequately disclose 1) the backgrounds of Shawn Hull, Director and CEO of the corporation; Lindsay Hull, President and Director of Blue Coast Financial Group, Inc.; Shelee Loughmiller, Blue Coast Financial Group, Inc.’s Vice President of Training; and Brian Felderstein, Vice President of Broker Development for the corporation; 2) the business experience of Blue Coast Financial Group, Inc.’s predecessor; 3) whether and under what circumstances the initial payment made by the purchaser-investor was returnable;  4) key terms of the business opportunity agreement; and 5) the employment of Brian Felderstein with FOS, LLC.   The November 5, 2008 action also alleged  that the second application and disclosure document misstated the facts surrounding 1) the Commissioner’s January 10, 2005 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Taxback, LLC; 2) the Commissioner’s January 10, 2005 Notice of Intent to Issue Stop Order Revoking Effectiveness of a Business Opportunity Registration, Notice of Intent to Fine and Notice of Right to Hearing against Taxback Opportunities, LLC; and 3) the Commissioner’s June 7, 2005 Consent Order with respect to Taxback, LLC and Taxback Opportunities, LLC.  In addition, the November 5, 2008 action alleged that the second application and disclosure document failed to provide the financial statement required by law and failed to adequately summarize the principal factors that made the business opportunity one or high risk or of a speculative nature.

The November 5, 2008 action further alleged that, in offering unregistered business opportunities, respondents Blue Coast Financial Group, Inc., Shawn Hull and Lindsay Hull violated Section 36b-67(1) of the Connecticut Business Opportunity Investment Act.  Such conduct would, if proven, support the entry the entry of a stop order against Blue Coast Financial Group, Inc. and the entry of an order imposing fine and a cease and desist order against all respondents.

Respondent Blue Coast Financial Group, Inc. was afforded an opportunity to request a hearing on the Notice of Intent to Issue Stop Order Denying Effectiveness to a Business Opportunity Registration.  Respondents Blue Coast Financial Group, Inc., Shawn Hull and Lindsay Hull were also afforded an opportunity to request a hearing on the Order to Cease and Desist.  A hearing on the Notice of Intent to Fine has been scheduled for January 8, 2009.

       Dated:  Tuesday, November 18, 2008