The Department of Banking News Bulletin

Bulletin # 2510 - Week Ending March 30, 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.

CREDIT UNION ACTIVITY

Merger

On March 26, 2012, pursuant to Section 36a-468a of the Connecticut General Statutes, Mutual Security Credit Union, Inc., Shelton, Connecticut, and Connecticut Energy Employees Credit Union, Inc., Bridgeport, Connecticut, both Connecticut credit unions, filed an application for the merger of Connecticut Energy Employees Credit Union, Inc., with and into Mutual Security Credit Union, Inc.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Order to Cease and Desist and Notice of Intent to Fine Issued

On March 27, 2012, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Stephen P. Pazdar of Glastonbury, Connecticut.  The action alleged that 1) in April or May 2008, Stephen Pazdar approached two Connecticut residents to invest with Michael S. Goldberg, member of Michael S. Goldberg, LLC d/b/a Acquisitions Unlimited Group; and 2) Goldberg told investors that Acquisitions Unlimited Group liquidated distressed assets obtained from JP Morgan Chase Bank, thus enabling Goldberg to pay investors returns of up to 20% over the short term.  The two Connecticut residents ultimately invested $400,000 in total with Goldberg, and Stephen P. Pazdar received a $25,000 referral fee in connection with their investments.  Goldberg was ultimately charged with allegedly devising and executing a scheme to defraud investors of over $100 million over a 12 year period.  Goldberg pleaded guilty to three counts of wire fraud and was sentenced on May 16, 2011 to 120 months in prison on each count, the sentence to be served concurrently (United States v. Michael S. Goldberg, D. Conn., Criminal No. 3:10 CR192 (JCH)).

The action also alleged that Stephen Pazdar offered and/or sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act and transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.

Stephen Pazdar was provided with an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.

Broker-dealer Agent Fined $2,500 for Prior Unregistered Agent Activity

On March 27, 2012, the Commissioner entered a Consent Order with respect to Tatyana Andreyeva, a New York resident.  The Consent Order alleged that Tatyana Andreyeva violated Section 36b-6(a) of the Connecticut Uniform Securities Act by transacting business as an unregistered broker-dealer agent of Westrock Advisors, Inc. in February 2008 and as an unregistered broker-dealer agent of Aegis Capital Corp. in October 2010.  Tatyana Andreyeva is currently registered as a broker-dealer agent of John Carris Investments LLC in Connecticut.

The Consent Order fined Tatyana Andreyeva $2,500 in resolution of the matter.