The Department of Banking News Bulletin
Bulletin # 2553 - Week Ending January 25, 2013
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 Acquisition
On January 25, 2013, pursuant to Sections 36a-145(b)(1) and 36a-250(33)(A) of the Connecticut General Statutes, Darien Rowayton Bank, a Connecticut bank, requested approval to purchase certain assets and assume certain deposit liabilities of the branch office of Patriot National Bank located at 3695 Post Road, Southport, Connecticut.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order
On January 11, 2013, the Banking Commissioner entered a Consent Order (No. CO-12-8053-S) with respect to Obsidian Financial Group, LLC, a Connecticut-registered broker-dealer having its main office in Woodbury, New York. The Consent Order alleged that the firm 1) violated Section 36b-31-6f(b) of the Regulations under the Connecticut Uniform Securities Act by failing to implement an adequate supervisory system with respect to agents who engaged in inaccurate disclosure practices concerning the characterization of certain “handling fees” charged to customers; 2) violated Section 36b-31-9b of the Regulations by failing to abide by requirements concerning the maintenance of minimum net capital; and 3) violated Section 36b-14(d) of the Act and Section 36b-31-14f of the Regulations by failing to provide Division staff with requested records in a timely manner. The Consent Order fined the firm $7,500 and directed it to cease and desist from regulatory violations.
CONSUMER CREDIT DIVISION ACTIVITY
Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On December 10, 2012, the Commissioner issued a 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: Alfano Wealth Advisors, LLC (NMLS # 93435) (“Respondent”), Old Greenwich, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to timely file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12 96. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
On December 11, 2012, the Commissioner issued a 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: Gen2 Mortgage Services LLC d/b/a Generation2 Mortgage Services, LLC (NMLS # 142998) (“Respondent”), South Windsor, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to file certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a 534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
On December 11, 2012, the Commissioner issued a 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: Lightning Mortgage Inc. (NMLS # 111621) (“Respondent”), Jersey City, New Jersey. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a 534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
On December 11, 2012, the Commissioner issued a 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: 1st American Home Loans, LLC (NMLS # 2960) (“Respondent”), Danielson, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to timely file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
On December 11, 2012, the Commissioner issued a 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: Fairfield County Mortgage Company (NMLS # 1116804) (“Respondent”), Fairfield, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96. Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.
Consent Order
On December 17, 2012, the Commissioner entered into a Consent Order with CareOne Services, Inc. d/b/a CareOne (“CareOne”), Columbia, Maryland. The Consent Order was based on an examination by the Consumer Credit Division. As a result of such examination, the Commissioner alleged that CareOne engaged and offered to engage in debt negotiation in this state without the required license, in violation of Section 36a-671 of the Connecticut General Statutes and Section 36a-671 of the 2012 Supplement to the General Statutes. Pursuant to the Consent Order, CareOne was ordered to pay $300,000 as a civil penalty and to cease and desist from engaging and offering to engage in debt negotiation in this state in violation of Section 36a 671 of the Connecticut General Statutes and Section 36a-671 of the 2012 Supplement to the General Statutes.