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Section 36a-145 of the Connecticut General Statutes requires certain applications 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.

On October 15, 2009, the Banking Commissioner entered into a Stipulation and Agreement with Tix Corporation, an issuer of securities located at 12001 Ventura Place, Studio City, California, and Alan R. Davidson, of 36 Candlewyck Drive, Henderson, Nevada.  Davidson is the manager of ARD Partners, LLC, a Florida limited liability company.  The Stipulation and Agreement alleged, in conjunction with a prior private placement, Tix Corporation had paid a 12% finder’s fee to ARD Partners, LLC, on behalf of Davidson; and that Davidson was not registered as either an agent of issuer or as a broker-dealer under the Connecticut Uniform Securities Act.  Pursuant to the Stipulation and Agreement, Tix Corporation agreed to refrain from engaging an unregistered broker-dealer or an unregistered agent of issuer in connection with future securities sales and to pay a $1,500 fine.  Davidson agreed to refrain from transacting business as an agent or a broker-dealer absent registration and to remit $1,500 to the department as a fine.

On October 20, 2009, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer, Notice of Intent to Fine and Notice of Right to Hearing against Southridge Investment Group, a Connecticut-registered broker-dealer located at 90 Grove Street, 2nd Floor, Ridgefield, Connecticut.   The firm, whose president is Michael Byl, is beneficially owned by Stephen Murray Hicks.  Hicks also maintains a beneficial ownership interest in Southridge Capital Management LLC and Southridge Asset Management LLC.

The action alleged that, in 2005, the respondent firm violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered, nonexempt common stock issued by Markland Technologies, Inc.  The action also alleged that, in contravention of Section 36b-31-6f of the Regulations under the Act, the respondent failed to maintain and enforce adequate supervisory procedures relating to Hicks’ supervisory role; the protection of material, non-public information; the preservation of electronic communications and other business records; and the processing of fingerprint data.  In addition, the action alleged that 1) the firm engaged in dishonest and unethical business practices by allowing Hicks to operate as an unregistered principal; and by failing to maintain business electronic communications as required by the firm’s Supervisory Manual as well as by failing to follow procedures governing the processing of fingerprints; 2) the firm failed to maintain the books and records required by Section 36b-14 of the Act; 3) the firm wilfully violated Section 36b-14 of the Act by failing to provide copies or computer printouts of records when requested by the department; and 4) the firm violated Section 36b-31-15e of the Regulations by allowing Hicks to act as a manager when he had not passed the appropriate principal’s examination.  Finally, the action alleged that the respondent violated Section 36b-23 of the Act by filing Form U-4 amendments that were materially false or misleading.

The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist, Notice of Intent to Revoke Registration as Broker-dealer and Notice of Intent to Fine.  If requested, the hearing will be held on December 8, 2009.