Bulletin # 2582 - Week Ending August 16, 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 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.

Interstate Loan Production Office

On August 12, 2013, pursuant to Sections 36a-412(d) of the Connecticut General Statutes, Bank of England, an Arkansas banking corporation with its main office in England, Arkansas, filed an application to establish a loan production office at 232 Greenmanville Avenue, Ste. 2-1, Mystic, Connecticut. 

CONSUMER CREDIT DIVISION ACTIVITY

Order Accepting Surrender

On July 8, 2013, the Commissioner, acting pursuant to Section 36a-51(c) of the Connecticut General Statutes, issued an Order Accepting Surrender (“Order”) of the license of The Receivable Management Services Corporation d/b/a RMS to act as a consumer collection agency in Connecticut from 1000 Circle 75 Parkway, Suite 2000, Atlanta, Georgia, following the issuance by the Commissioner of a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing issued on June 19, 2013.  As part of the Order, the Commissioner accepted the surrender of the license effective as of June 18, 2013 and imposed no additional terms and conditions.

Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On July 10, 2013, the Commissioner issued an Order to Make Restitution, 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:  G. Darrell Rigley (“Rigley”), The Rigley Group, Inc. (“Rigley Group”), Boca Raton, Florida, and TriMark Financial Solutions (“TriMark”), Columbus, Ohio (“Respondents").  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Rigley and Rigley Group engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, and that TriMark offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Rigley and Rigley Group were ordered to repay fees to an identified Connecticut resident plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Rigley and Rigley Group on and after October 1, 2009, any fees paid by such Connecticut residents to Rigley and Rigley Group plus interest.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

On July 10, 2013, the Commissioner issued an Order to Make Restitution, 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:  Integrity Modification Co. d/b/a Integrity Mortgage Modification (“Integrity”), Plaistow, New Hampshire, Todd Haggerty (NMLS # 171598) (“Haggerty”) and Barry C. Vigoda (“Vigoda”) (“Respondents").  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Integrity and Vigoda engaged in debt negotiation in this state without the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and that Integrity and Haggerty offered to engage in debt negotiation in this state without 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 Order to Make Restitution, Integrity and Vigoda were ordered to repay fees to identified Connecticut residents plus interest, and to repay any other Connecticut resident who entered into an agreement for debt negotiation services with Integrity and Vigoda on and after October 1, 2009, any fees paid by such Connecticut residents to Integrity and Vigoda plus interest.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Consent Order

On July 17, 2013, the Commissioner entered into a Consent Order with Classic Mortgage LLC (NMLS # 31149) (“Classic Mortgage”), Maywood, New Jersey.  The Consent Order was based on an examination and an investigation by the Consumer Credit Division.  As a result of such examination and investigation, the Commissioner alleged that Classic Mortgage failed to timely file certain annual information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes, and alleged that during the period of February 1 through February 21, 2012, it employed or retained one individual as a mortgage loan originator who was not licensed, in violation of Section 36a 486(b) of the 2012 Supplement to the General Statutes.  As part of the Consent Order, Classic Mortgage paid $6,000 as a civil penalty.

On July 8, 2013, the Commissioner entered into a Consent Order with Skyline Mortgage, LLC (NMLS # 129130) (“Skyline Mortgage”), Morristown, New Jersey.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Skyline Mortgage failed to timely file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Skyline Mortgage paid $2,500 as a civil penalty.

On July 17, 2013, the Commissioner entered into a Consent Order with O’Connor Music Company, Inc. d/b/a Stephens Mortgage (NMLS # 140611) (“Stephens Mortgage”), Brooklyn, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Stephens Mortgage failed to timely file certain annual and quarterly information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Stephens Mortgage paid $2,500 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Orders Imposing Fines Issued

On August 13, 2013, the Banking Commissioner entered two separate Orders Imposing Fine (Docket No. CF-13-7795-S) against 1) Terra Energy Resources, Ltd. (“Terra Delaware”), a Delaware entity whose main office addresses included Gibraltar; West Hartford, Connecticut; Hawthorne, New Jersey; Hartford, Connecticut; and, most recently, Brooklyn, New York; and 2) Anthony Charles Vassallo whose last known address is in Smithtown, New York.  Both Terra Delaware and respondent Vassallo had been the subject of a July 12, 2013 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-13-7795-S).  Since respondents Terra Delaware and Vassallo had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist became permanent as to them on July 31, 2013 and August 2, 2013, respectively. 

Also named in the July 12, 2013 action were  Terra Energy, LLC (“Terra Connecticut”), a Connecticut limited liability company controlled by Vassallo; and Christian Meissenn a/k/a Christian Nigohossian (CRD No. 2212929) of 2618 Corbyton Court, Orlando, Florida.

The July 12, 2013 action had alleged that, starting in February 2010 and following Vassallo’s formation of Terra Connecticut, Vassallo and Terra Delaware offered and/or sold unregistered Terra Delaware common stock in violation of Section 36b-16 of the Connecticut Uniform Securities Act; Vassallo transacted business as an unregistered agent of issuer and as an unregistered broker-dealer in violation of Section 36b-6(a) of the Act; and Terra Delaware employed Vassallo as an unregistered agent of issuer.  The action had further alleged that, while investors expected their stock purchase monies to be forwarded to Terra Delaware, in reality, Vassallo deposited those funds into his Terra Connecticut account as well as his personal account and then made multiple cash withdrawals to pay for personal expenses such as Costco purchases and veterinary bills.  Consequently, Vassallo, through the instrumentality of Terra Connecticut, allegedly violated the antifraud provisions in Section 36b-4(a) of the Act.  With respect to respondent Meissenn, the action alleged that Meissenn and Vassallo were business associates and that Meissenn violated Section 36b-23 of the Act by making a materially false or misleading statement to Division staff during an investigation.

In fining respondent Vassallo $100,000, the Commissioner found that respondent Vassallo violated Sections 36b-16, 36b-6(a) and 36b-4(a) of the Act.  In imposing a $100,000 fine against Terra Delaware, the Commissioner found that Terra Delaware violated Sections 36b-16 and 36b-6(b) of the Act.  Neither respondent Vassallo nor respondent Terra Delaware appeared or contested the imposition of the fine.