The Department of Banking News Bulletin 

Bulletin # 2504 - Week Ending February 17, 2012

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.

STATE BANK ACTIVITY

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.

CONSUMER CREDIT DIVISION ACTIVITY

Check Cashing Service License Activity

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Ridgefield Broker-dealer Fined $250,000, Broker-dealer Registration Revoked

On February 9, 2012, the Banking Commissioner issued an Order to Cease and Desist, Order to Revoke Registration as Broker-dealer and Order Imposing Fine against Southridge Investment Group, a broker-dealer located at 90 Grove Street, 2nd Floor, Ridgefield, Connecticut.  The firm did not appear or contest the Commissioner’s action which followed an October 20, 2009 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.

In revoking the firm’s registration, rendering the October 20, 2009 Order to Cease and Desist permanent and fining the firm $250,000, the Commissioner adopted the conclusions reached in the October 20, 2009 Notice.  The Commissioner determined that the firm violated Sections 36b-14, 36b-16 and 36b-23 of the Connecticut Uniform Securities Act as well as Sections 36b-31-6f and 36b-31-15e of the Regulations.  In particular, the Commissioner noted that the firm:  1) violated Section 36b-16 of the Connecticut Uniform Securities Act by selling unregistered securities; 2) violated National Association of Securities Dealers’ Registration Rule 1021 by allowing one Stephen Murray Hicks (CRD No. 1248222) to act as an unregistered principal of the firm; 3) failed to protect material, non-public information and therefore failed to establish a system for applying written supervisory procedures that would reasonably be expected to prevent and detect regulatory violations; 4) failed to maintain business-related e-mails in contradiction of the firm’s Supervisory Manual; and 5) failed to submit fingerprints to the Attorney General of the United States for identification and processing in contradiction of the firm’s Supervisory Manual.

Registered Broker-dealer Fined $2,500 for Alleged Ethical Irregularities

On February 17, 2012, the Banking Commissioner entered a Consent Order with respect to Attilio Anthony Foschini, a registered broker-dealer agent and investment adviser agent under the Connecticut Uniform Securities Act.  The Consent Order alleged that three former clients contacted Attilio Foschini to sell securities in their accounts at Foschini’s previous broker-dealer; that Foschini, acting on behalf of those clients, placed calls on three occasions to his former firm and identified himself as the former clients in order to execute securities sales in the former clients’ accounts at the former firm; and that, at the time such conduct occurred, Foschini was not registered as a broker-dealer agent or an investment adviser agent under the Act.  The Consent Order stated that Foschini did not derive any financial gain from the transactions and believed that he had the clients’ consent to place the calls.  The Consent Order directed Foschini to cease and desist from regulatory violations and fined him $2,500.