On July 20, 2011, the Banking Commissioner issued a Consent Order with respect to Philip Mongillo.  The Consent Order alleged that Philip Mongillo was charged in an information with, and pled guilty to, one count of embezzlement and willfully misapplying the moneys and funds of Dime Bank, a crime that is punishable with imprisonment for a term exceeding one year.  The Consent Order prohibited Philip Mongillo from holding any position with any bank, Connecticut credit union or federal credit union, as defined in Section 36a-2 of the Connecticut General Statues, or with a holding company that holds a subsidiary that is a bank, as defined in Section 36a-2; or as licensee or registrant under Titles 36a or 36b of the Connecticut General Statutes, while the Consent Order is in effect, without the consent of the Commissioner.

On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to Daniel Dvorznak, a registered broker-dealer agent of A&F Financial Securities, Inc.  The Consent Order alleged that, in violation of Section 36b-23 of the Connecticut Uniform Securities Act, Daniel Dvorznak caused certain documents that were materially false or misleading to be filed with the Commissioner.  The Consent Order censured Daniel Dvorznak and directed him to cease and desist from regulatory violations.

On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to Nicholas George Tsikitas, a registered broker-dealer agent of A&F Financial Securities, Inc.  The Consent Order alleged that, in violation of Section 36b-23 of the Connecticut Uniform Securities Act, Nicholas Tsikitas caused certain documents that were materially false or misleading to be filed with the Commissioner.  The Consent Order censured Nicholas Tsikitas and directed him to cease and desist from regulatory violations.

On July 18, 2011, the Banking Commissioner entered a Consent Order with respect to A&F Financial Securities, Inc., a registered broker-dealer located at 6901 Jericho Turnpike, Suite 217, Syosset, New York.  The Consent Order alleged that the firm engaged in dishonest and unethical practices by failing to disclose to Connecticut customers that transactional “Postage and Handling Charges” charged to those customers included a profit to the firm, and that the fee was not based on the costs of handling a particular transaction.  The Consent Order fined the firm $20,000 and directed that it cease and desist from regulatory violations.  In addition, the Consent Order required that the firm reimburse affected Connecticut customers the difference between the “Postage and Handling Charges” they paid for each transaction and the actual amount of the firm’s ticket and clearing charge and the postage fee assessed by the firm’s clearing broker.

On June 27, 2011, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of:  American Mortgage Auditors, Inc. (“Respondent”).  The basis of the Order was the Respondent offered to engage and engaged in debt negotiation in this state without obtaining the required license, in violation of 36a-671(b) of the Connecticut General Statutes, and collected fees which did not comply with Section 36a-671b(b) of the Connecticut General Statutes and the schedule of maximum fees established by the Commissioner.  Respondent was ordered to cease and desist from violating Sections 36a 671(b) and 36a-671b(b) of the Connecticut General Statutes, to pay a civil penalty in the amount of $30,000, and to repay fees in the amount of $5,800 to a Connecticut resident.

On June 29, 2011, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Strategic Recovery Systems, Inc (“Respondent”).  The Notice alleged that Respondent failed to maintain a surety bond that ran concurrent with its license for 421 North 7th Street, Suite 701, Philadelphia, Pennsylvania, in violation of Section 36a 802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

       Dated:  Tuesday, July 26, 2011