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.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order

On August 21, 2012, the Banking Commissioner entered a Consent Order with respect to Paul Anthony Mozicato, a former broker-dealer agent and investment adviser agent of Equity Services, Inc.  The Consent Order alleged that, while associated with Equity Services, Inc., Paul Mozicato violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act and engaged in dishonest or unethical practices within the meaning of Section 36b-4(b) of the Act.  Specifically, Paul Mozicato allegedly 1) procured $15,000 from an elderly Connecticut resident for the purported purpose of investing in a higher yielding investment for which the individual was not suitable; 2) failed to ensure that the investor’s name and transactional information were recorded on the books and records of Equity Services, Inc.; and 3) converted the investor’s money to his own use rather than investing it as represented.

The Consent Order acknowledged that the Connecticut investor had since been made whole by Equity Services, Inc., and that Paul Mozicato had repaid Equity Services, Inc. the $15,000 that Mozicato had obtained from the investor.

The Consent Order permanently barred Paul Mozicato from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, notwithstanding any otherwise available definitional exclusions, and from soliciting or accepting funds for investment purposes from public or private investors in or from the state.

CONSUMER CREDIT DIVISION ACTIVITY
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 July 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:  D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d/b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc. (“D & K Holdings”) of St. Louis, Missouri, Overland Park, Kansas, and Creve Coeur, Missouri; SKD Holdings, Inc. d/b/a Arize Home Financial Group, Incorporated (“SKD Holdings”) of St. Louis, Missouri, and Prairie Village, Kansas; and The Arize Group, Incorporated (“Arize Group”) of Overland Park and Shawnee, Kansas (collectively, “Respondents”).  The Notice alleges that D & K Holdings’ offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  The Notice also alleges that SKD Holdings’ offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a 671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a 671(b) of the 2012 Supplement to the General Statutes.  Further, the Notice alleges that Arize Group’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a 671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  The Commissioner also found that public welfare requires 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 July 30, 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:  State Law Group (“State Law Group”) and Haben Habte Tesfai, Attorney at Law (“Tesfai”) (collectively, “Respondents”).  The Notice alleged that: (1) State Law Group’s offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes; (2) State Law Group’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes; and (3) Tesfai’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect 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 August 10, 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:  Creative Media Consulting, Inc. d/b/a Debt Resolution Bailout / Plan B Consulting Group / Creative Media Consulting Inc. (“Creative Media Consulting”), American Fork, Utah, and Law Offices of Herbert Davis, A Professional Law Corporation d/b/a Performance Debt Resolution (“Herbert Davis”), Los Angeles and Tarzana, California (collectively, “Respondents”).  The Notice alleged that:  (1) Creative Media Consulting’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and (2) Herbert Davis’ engaging in debt negotiation in this state without obtaining the required license a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011.  Such violations form the basis to issue an order to cease and desist against each Respondent pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty against each of the Respondents pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  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 August 10, 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:  Rose Marie Hollander, Attorney at Law d/b/a Consult Law Group (“Respondent”), Fountain Valley and Newport Beach, California.  The Notice alleged that Respondent’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011.  Such violation forms the basis to issue an order to cease and desist against Respondent pursuant to Section 36a 671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty against Respondent pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Order to Cease and Desist, Order of Repayment of Fees
and Order Imposing Civil Penalty

On July 30, 2012, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) 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 basis of the Order was that each Respondent 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 effect prior to October 1, 2011, and that the fees charged by Respondents for debt negotiation services were excessive.  Each Respondent was ordered to cease and desist from violating Section 36a 671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, to each pay a civil penalty in the amount of $10,000, and to repay fees to an identified resident.

Consent Orders

On August 2, 2012, the Commissioner entered into a Consent Order with Weststar Mortgage, Inc. (NMLS # 2925) (“Weststar Mortgage”), Woodbridge, Virginia.  The Consent Order was based on an examination by the Consumer Credit Division.  As a result of such examination, the Commissioner alleged that Weststar Mortgage employed or retained, during the period of January 17, 2008 through January 29, 2010, six (6) individuals as originators or mortgage loan originators without first registering them or without such individuals being licensed, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes.  As part of the Consent Order, Weststar Mortgage was ordered to pay $6,000 as a civil penalty.

On August 16, 2012, the Commissioner entered into a Consent Order with Americay Mortgage Corporation (NMLS # 1155) (“Americay Mortgage”), Vernon, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Americay Mortgage failed to timely file on the Nationwide Mortgage Licensing System & Registry (“NMLS”) its second, third and fourth quarterly mortgage call reports for 2011 and its first quarterly mortgage call report for 2012, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes.  As part of the Consent Order, Americay Mortgage was ordered to pay $2,500 as a civil penalty; to satisfactorily file on NMLS such reports; and to timely and accurately file all required reports on NMLS or as otherwise permitted under Part I of Chapter 668 of the Connecticut General Statutes in connection with its current and any future license issued to Americay Mortgage.