The Department of Banking News 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.

Merger

On May 7, 2013, The Bank of New Canaan and The Bank of Fairfield, both Connecticut-chartered bank and trust companies and wholly-owned subsidiaries of BNC Financial Group, Inc., a Connecticut corporation, filed an application pursuant to Section 36a-125 of the Connecticut General Statutes for the merger of The Bank of Fairfield, with its main office located at 2150 Post Road, Fairfield, Connecticut, with and into The Bank of New Canaan, with its main office located at 208 Elm Street, New Canaan, Connecticut.

Community Reinvestment Plan

Liberty Bank, a Connecticut-chartered mutual savings bank, filed a community reinvestment plan that is available for public inspection and comment at the Department of Banking for a period of 30 days.  The filing was made in connection with an acquisition statement and application for merger filed on March 13, 2013. The acquisition statement was filed by Liberty Bank pursuant to Section 36a-184 of the Connecticut General Statutes to acquire 100% of the voting securities of Southern Connecticut Bancorp, Inc., a Connecticut holding company, and indirectly The Bank of Southern Connecticut, a Connecticut bank and trust company. The application for merger was filed by Liberty Bank and The Bank of Southern Connecticut pursuant to Section 36a-125 of the Connecticut General Statutes for the merger of The Bank of Southern Connecticut with and into Liberty Bank.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On April 5, 2013, the Commissioner entered into a Consent Order with El Paisa Multiservices LLC (“El Paisa”), Hartford, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that El Paisa, during the period of February 2 through February 23, 2013, engaged in the business of cashing checks, drafts or money orders for consideration without licensure for a general facility or limited facility at 689 Park Street, Hartford, Connecticut, in violation of Section 36a-581(a) of the Connecticut General Statutes.  As part of the Consent Order, El Paisa was ordered to pay $10,000 as a civil penalty.

On April 5, 2013, the Commissioner entered into a Consent Order with Madison, Monroe & Associates, P.A. (“Madison Monroe”), Miami Gardens, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on June 5, 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 against Madison Monroe.  The Commissioner alleged that Madison Monroe 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.  As part of the Consent Order, Madison Monroe was ordered to refund a total of $10,000 to certain identified Connecticut residents and was permanently barred from engaging or offering to engage in debt negotiation in this state in a manner requiring licensure pursuant to Sections 36a-671 to 36a 671e, inclusive, of the Connecticut General Statutes.

On April 5, 2013, the Commissioner entered into a Consent Order with McGuigan Law Office, LLC (“McGuigan Law”), Levittown, Pennsylvania.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that McGuigan Law acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes.  As part of the Consent Order, McGuigan Law paid $3,500 as a civil penalty and was ordered to immediately cease and desist from acting as a consumer collection agency in Connecticut without a license.

On April 12, 2013, the Commissioner entered into a Consent Order with Compass Mortgage, LLC (NMLS # 517460) (“Compass Mortgage”), Clinton, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 2013, 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.  The Commissioner alleged that Compass Mortgage failed to timely file certain annual and quarterly information required by standard mortgage call reports, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96.  Among other things, the Consent Order required Compass Mortgage to request surrender of its mortgage broker license and provided that Compass Mortgage shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before November 1, 2013.

Decision and Order on Reconsideration

On April 5, 2013, the Commissioner entered a Decision and Order on Reconsideration (“Order”) In the Matter of:  Madison, Monroe & Associates P.A. (“Respondent”), Miami Gardens, Florida.  Pursuant to Section 4-181a(b) of the Connecticut General Statutes and on a showing of changed conditions, the Order reverses the Commissioner’s Order to Cease and Desist and Order Imposing Civil Penalty issued against Respondent on August 21, 2012.

Order Revoking Consumer Collection Agency License and Order to Cease and Desist

On April 10, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Butler, Robbins & White, LLC (“Respondent”), Fort Lauderdale, Florida.  The basis of the Order was that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for 110 East Broward Boulevard, Suite 1890, Fort Lauderdale, Florida, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from such location and orders Respondent to cease and desist from violating Section 36a-802(a) of the Connecticut General Statutes.

Order to Cease and Desist and Order Imposing Civil Penalty

On April 10, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Claremont Funding, LLC (“Respondent”), Baldwin, New York.  The basis of the Order was that the Respondent engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2012 Supplement to the General Statutes.  Respondent was ordered to cease and desist from violating Section 36a-671(b) of the 2012 Supplement to the General Statutes and to pay a civil penalty in the amount of $100,000.  In addition, the Order of Restitution previously issued against Respondent on February 5, 2013, remains in effect and became permanent on March 6, 2013.

Dated:  Tuesday, May 14, 2013