Bulletin # 2337
Week Ending December 5, 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 December 1, 2008, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: James Rollin Powers (“Respondent”).  The basis of the Order was that the Respondent filed a Renewal Addendum with the Department for the renewal of his loan originator license, which contained a material misstatement regarding his criminal history, in violation of Section 36a-53a of the Connecticut General Statutes (“General Statutes”).  Respondent was ordered to cease and desist from violating Section 36a-53a of the General Statutes and to pay a civil penalty in the amount of $100,000.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order.  A copy of the Order can be obtained from the Department's website.

On December 1, 2008, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Jesse John Hinkley of New Fairfield, Connecticut.  The respondent was formerly associated with New Castle Financial Services LLC, a securities brokerage firm.  The action alleged that, between November 8, 2006 and July 16, 2007 and in violation of Section 36b-6(a) of the Connecticut Uniform Securities Act, the respondent transacted business as an agent of New Castle Financial Services LLC while unregistered.  In addition, the action alleged that the respondent violated the antifraud provisions in Section 36b-4 of the Act by representing to at least one potential investor that the respondent would pay the investor $13,000 in six weeks if the investor paid the respondent $8,500; representing that the respondent’s other clients were achieving a 40% investment return when, in reality, the respondent had no other clients; and failing to disclose any investment risks to potential investors.  The respondent was 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 22, 2009.

On December 2, 2008, the Commissioner entered an Order Imposing Fine against Markland Technologies, Inc. of 222 Metro Center Boulevard, Warwick, Rhode Island and formerly of 90 Grove Street, Ridgefield, Connecticut.  The respondent had been the subject of an August 15, 2008 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that the respondent employed one Chad A. Verdi as an agent at a time when Verdi was not registered as such under the Connecticut Uniform Securities Act.  The Order to Cease and Desist, being uncontested, had become permanent on September 23, 2008.

In fining Markland Technologies, Inc. $100,000, the Commissioner found that the respondent violated Section 36b-6(b) of the Connecticut Uniform Securities Act by employing an unregistered agent of issuer.   The respondent did not appear or contest the imposition of the fine.

       Dated:  Tuesday, December 9, 2008