The Department of Banking News Bulletin
Bulletin # 2470
Bulletin # 2470
Week Ending June 24, 2011
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.
Branch Activity
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.
| Date | Bank | Location | Activity |
|---|---|---|---|
|
6/21/11
|
Torrington Savings Bank
Torrington |
518 Main Street
New Hartford, CT 06057 |
notice of intent
not to disapprove |
| 6/22/11 |
Bank of England
England, AR |
*44 Pond Road
Old Saybrook, CT 06475 |
approved |
| *Limited Branch-LPO | |||
De Novo Branch
On June 22, 2011, pursuant to Sections 36a-412(a)(2) and 36a-145(c)(1) of the Connecticut General Statutes, the Commissioner granted approval to Bank of England, an Arkansas-chartered bank, to establish a de novo limited branch to operate under the name New England Alliance Mortgage, a Division of Bank of England, at 44 Pond Road, Old Saybrook, Connecticut, to engage solely in loan production.
Acquisition Statement
On June 24, 2011, in connection with the second step conversion of Naugatuck Valley Mutual Holding Company, a federally-chartered holding company from a mutual to stock form of organization, the Commissioner issued a notice of intent not to disapprove the acquisition statement filed on March 15, 2011, pursuant to Section 36a-184 of the Connecticut General Statutes, by Naugatuck Valley Financial Corporation, a newly formed Maryland corporation, to acquire 100% of the issued and outstanding common stock of Naugatuck Valley Savings and Loan, a federal stock savings association headquartered in Naugatuck, Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order
Consent Order
On June 22, 2011, the Banking Commissioner entered a Consent Order with respect to Mortgage and Credit Solutions, LLC of 155 North College Avenue, Suite 220, Fort Collins, Colorado, and Sean Patrick Moriarty, its sole owner and managing member. The action had been preceded by a January 11, 2011 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-2010-870-B) alleging that, from at least June 2008 forward, the respondents offered and sold unregistered business opportunities to Connecticut purchaser-investors in violation of the Connecticut Business Opportunity Investment Act. The business opportunity in question would enable purchasers to start a mortgage and credit counseling business. In addition, the January 11, 2011 action had alleged that the respondents represented that they would provide marketing support to purchaser-investors as well as an income guarantee. The Consent Order acknowledged that the respondents had submitted evidence demonstrating economic hardship such that they were incapable of paying any fine that otherwise would have been assessed against them.
The Consent Order rendered the Order to Cease and Desist permanent as of June 22, 2011, and barred the respondents from selling business opportunities in or from Connecticut for seven years. The Consent Order also directed the respondents to retain legal counsel following the expiration of the seven year bar if the respondents planned to offer or sell business opportunities in or from Connecticut at that time.
The Consent Order rendered the Order to Cease and Desist permanent as of June 22, 2011, and barred the respondents from selling business opportunities in or from Connecticut for seven years. The Consent Order also directed the respondents to retain legal counsel following the expiration of the seven year bar if the respondents planned to offer or sell business opportunities in or from Connecticut at that time.
Agent Registration Denied
On June 24, 2011, the Banking Commissioner entered an Order denying the agent registration of Phil Eckstein of Wilton, Connecticut. Respondent Eckstein had sought registration as a broker-dealer agent of Park Avenue Securities LLC. Although that application was withdrawn, Connecticut laws permits the Commissioner to initiate denial proceedings within one year after a withdrawal becomes effective. The denial order had been preceded by an April 20, 2011 Notice of Intent to Deny Registration as an Agent and Notice of Right to Hearing alleging that respondent Eckstein had been the subject of a February 8, 2011 Complaint, Stipulation and Final Order by the State of Connecticut Insurance Department. The February 8, 2011 Insurance Department action superseded an earlier Insurance Department Order dated July 26, 2010. The Insurance Department action fined respondent Eckstein $8,000 and placed his insurance licenses on a probationary status for one year following allegations that 1) respondent Eckstein sold a non-existent annuity to a customer; and 2) an investigation by respondent Eckstein’s former employer concluded that the respondent deposited the customer’s funds into respondent Eckstein’s own bank account rather than applying them to an annuity purchase. Under the Connecticut Uniform Securities Act, a sanction issued by a state financial services regulator based upon nonsecurities violations of state law under which a business involving insurance is regulated would support proceedings to deny a broker-dealer agent registration.
In denying respondent Eckstein’s agent registration, the Commissioner adopted as findings the factual statements and legal basis set forth in the April 20, 2011 Notice of Intent to Deny Registration as an Agent. Respondent Eckstein did not appear or contest the denial of his agent registration.
Dated: Tuesday, June 28, 2011
Howard F. Pitkin
Banking Commissioner