The Department of Banking News Bulletin
Bulletin # 2516 - Week Ending May 11, 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.
CREDIT UNION ACTIVITY
Merger
On May 8, 2012, pursuant to Section 36a-468a of the Connecticut General Statutes, Hartford Postal Employees Credit Union, Inc., Wethersfield, Connecticut, a Connecticut credit union and American Eagle Federal Credit Union, East Hartford, Connecticut, a federally-chartered credit union, filed an application for the merger of Hartford Postal Employees Credit Union, Inc., with and into American Eagle Federal Credit Union.
CONSUMER CREDIT DIVISION ACTIVITY
Order Revoking and Refusing to Renew Consumer Collection Agency License, Order to Cease and Desist and Order Imposing Civil Penalty
On April 24, 2012, the Commissioner issued an Order Revoking and Refusing to Renew Consumer Collection Agency License, Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: Inchek, LLC (“Respondent”), New Haven, Connecticut. The Order was based on Respondent’s failure to provide information requested by the Consumer Credit Division to complete an examination of Respondent, in violation of Section 36a-17(d) of the 2012 Supplement to the General Statutes. The Order revokes and refuses to renew Respondent’s license to act as a consumer collection agency in this state; orders Respondent to cease and desist from violating Section 36a-17(d) of the 2012 Supplement to the General Statutes, and imposes a civil penalty of $10,000 against Respondent.
Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On April 24, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of: Frank Albanese a/k/a C.A. Financial Group and Jeffrey Clark a/k/a C.A. Financial Group (collectively, “Respondents”), Stamford, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effective prior to October 1, 2011. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
On April 24, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of: The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns and Attorney Processing Solutions, LLC (collectively, “Respondents”), of Scottsdale, Arizona and Juno Beach, Florida, respectively. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effective prior to October 1, 2011. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
Consent Order
Order to Cease and Desist and Order Imposing Civil Penalty
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist from Regulatory Violations Issued; Notice of Intent to Fine Issued
On May 9, 2012, the Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing against Ronald Marvin, a former broker-dealer agent of Sloan Securities Corp. Also named in the action were RMV Holding Company, LLC and RMV Investments, LLC, both of Norwalk, Connecticut. Ronald Marvin was the principal of RMV Holding Company, LLC and RMV Investments, LLC. RMV Holding Company, LLC, in turn, was the general partner of RMV Partners, L.P., an investment fund also based in Norwalk.
The action alleged that Marvin and RMV Holding Company, LLC transacted business as unregistered investment advisers in providing RMV Partners, L.P. with securities-related investment management services. The action also alleged that Marvin transacted business as an unregistered investment adviser agent.
In addition, the Order to Cease and Desist and Notice of Intent to Fine alleged that Marvin, acting through intermediaries RMV Holding Company, LLC and RMV Investments, LLC, wired approximately $703,000 from the partnership's account at Sloan Securities Corp. and ultimately used the funds for his personal use. The limited partners of RMV Partners, L.P. were not told that the funds were being diverted to Marvin's personal use. Such conduct allegedly constituted a dishonest or unethical practice by participants Marvin, RMV Holding Company, LLC and RMV Investments, LLC.
The action also alleged that, while registered as a broker-dealer agent of Sloan Securities Corp. under the Connecticut Uniform Securities Act, Marvin wired approximately $145,000 from the partnership's brokerage account to RMV Holding as a purported loan. Respondent Marvin allegedly failed to apprise the limited partners that the funds transfers were occurring, and failed to disclose to the brokerage firm and the limited partners that the wired amounts were partnership loans. Borrowing money from a customer's account without the customer's prior consent and absent notice to the broker-dealer is a dishonest or unethical business by broker-dealer agents under Section 36b-31-15b(a)(1) of the Regulations.
The action further alleged that Marvin engaged in dishonest or unethical business practices by not disclosing the conflicts of interest that resulted from his acting in multiple capacities.
Each of the respondents was afforded an opportunity to request a hearing on the matters alleged.
Stipulation and Agreement
On May 9, 2012, the Commissioner entered into a Stipulation and Agreement with IHS Herold Inc., a Connecticut-registered investment adviser located in Norwalk, Connecticut. The Stipulation and Agreement alleged that, from at least 2006, the firm had engaged investment adviser agents who were not registered under the Connecticut Uniform Securities Act. In resolution of the matter, the firm agreed to refrain from violative conduct and to pay $8,050 to the department. Of that amount, $5,000 constituted an administrative fine and $3,050 would be applied to reimburse the agency for past due registration fees.
Dated: Tuesday, May 15, 2012