The Department of Banking News Bulletin
Bulletin # 2585
Bulletin # 2585
Week Ending September 6, 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
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.
| Date | Bank | Location | Activity |
|---|---|---|---|
| 09/03/13 |
Jewett City Savings Bank
Jewett City
|
FROM: 32 Norwich Road
Central Village, CT 06332
TO: 48 Norwich Road
Central Village, CT 06332 |
Filed to
Relocate |
|
09/05/13
|
Rockville Bank
Rockville |
2638 & 2670 Main Street
Glastonbury, CT 06033 |
Filed
|
Interstate Loan Production Office
On September 4, 2013, pursuant to Sections 36a-412(d) of the Connecticut General Statutes, the Commissioner granted approval to Bank of England, an Arkansas banking corporation with its main office in England, Arkansas, to establish a loan production office at 232 Greenmanville Avenue, Ste. 2-1, Mystic, Connecticut.
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
| Date | Check Casher | Location | Activity |
|---|---|---|---|
| 08/07/13 |
Mega Express
Multi-Services, LLC |
341 West Main Street
Stamford, CT 06902 |
Filed
|
Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On August 13, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“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 (collectively “Notice”) in the Matter of: Sentry Legal, PLLC a/k/a Sentry Law Firm (“Respondent”), located in Sandy, East Draper and Cottonwood Heights, Utah. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that the 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. As part of the Order to Make Restitution, Respondent was ordered to repay fees to an identified Connecticut resident plus interest, and to repay any other Connecticut residents who entered into an agreement for debt negotiation services with Respondent on and after October 1, 2009, any fees paid by such Connecticut residents to Respondent plus interest. 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.
Consent Orders
On August 13, 2013, the Commissioner entered into a Consent Order with Irmscher, Dennis Donald d/b/a Irmscher Mortgage Services (NMLS # 112054) (“Irmscher Mortgage Services”), Clinton, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on December 14, 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. The Commissioner alleged that Irmscher Mortgage Services failed to 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 and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96. As part of the Consent Order, lrmscher Mortgage Services requested surrender of its mortgage broker license.
On August 15, 2013, the Commissioner entered into a Consent Order with Debt Settlement Solutions, Inc. (“Debt Settlement Solutions”), West Palm Beach, Florida. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on June 25, 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 against Debt Settlement Solutions (“Notice”). The Commissioner alleged that Debt Settlement Solutions 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, Debt Settlement Solutions represented that prior to the issuance of the Notice, it had refunded fees to 10 of 16 Connecticut residents identified in the Notice; one Connecticut resident never paid a fee; another Connecticut resident could not be located; and that 4 Connecticut residents had opted to remain in Debt Settlement Solutions’ program at no cost to such residents. Debt Settlement Solutions was ordered to immediately cease and desist from engaging or offering to engage in unlicensed debt negotiation activity in Connecticut, in violation of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011.
On August 15, 2013, the Commissioner entered into a Consent Order with S.L. Brooke & Company Inc. (NMLS # 192652) (“S.L. Brooke & Company”), White Plains, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that S.L. Brooke & Company failed to timely file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes. S.L. Brooke & Company’s license to act as a mortgage broker was effectively surrendered on July 9, 2013. As part of the Consent Order, S.L. Brooke & Company shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before January 15, 2014.
On August 15, 2013, the Commissioner entered into a Consent Order with Tek-Collect Incorporated d/b/a TekCollect (NMLS #1012712) (“Tek-Collect”), Columbus, Ohio. The Consent Order was based on examination by the Consumer Credit Division. As a result of such examination, on May 1, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”). The Consent Order settled the allegations made in the Notice and required that Tek-Collect: (1) surrender its license to act as a consumer collection agency in this state; (2) be barred from acting as a consumer collection agency in this state for a period of three years; (3) submit audited financial statements in connection with any future application to act as a consumer collection agency in this state for a period of ten years from the date of the Consent Order; and (4) pay $35,000 as a civil penalty.
On August 16, 2013, the Commissioner entered into a Consent Order with Mortgage World Bankers, Inc. (NMLS # 7116) (“Mortgage World Bankers”), Long Island City, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on June 24, 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 Mortgage World Bankers failed to file certain annual information and failed to timely file certain quarterly information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes. As part of the Consent Order, Mortgage World Bankers paid $2,500 as a civil penalty.
On August 20, 2013, the Commissioner entered into a Consent Order with AmerAssist A/R Solutions, Inc. (“AmerAssist”), Columbus, Ohio. The Consent Order was based on examination by the Consumer Credit Division. As a result of such examination, on May 1, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Order to Make Restitution, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”). The Consent Order settled the allegations made in the Notice and ordered, among other things, that AmerAssist: (1) remit to its clients all monies erroneously withheld for Connecticut sales tax purposes, plus interest; (2) be barred from acting as a consumer collection agency in this state for a period of three years; (3) submit audited financial statements in connection with any future application to act as a consumer collection agency in this state for a period of ten years from the date of the Consent Order; and (4) pay $40,000 as a civil penalty.
On August 20, 2013, the Commissioner entered into a Consent Order with AmerAssist A/R Solutions, Inc. (“AmerAssist”), Columbus, Ohio. The Consent Order was based on examination by the Consumer Credit Division. As a result of such examination, on May 1, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Order to Make Restitution, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”). The Consent Order settled the allegations made in the Notice and ordered, among other things, that AmerAssist: (1) remit to its clients all monies erroneously withheld for Connecticut sales tax purposes, plus interest; (2) be barred from acting as a consumer collection agency in this state for a period of three years; (3) submit audited financial statements in connection with any future application to act as a consumer collection agency in this state for a period of ten years from the date of the Consent Order; and (4) pay $40,000 as a civil penalty.
Notice of Intent to Revoke Check Cashing Service License, Notice of Intent
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty
On August 15, 2013, the Commissioner issued a Notice of Intent to Revoke Check Cashing Service License, 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: Post Road Deli, LLC d/b/a Post Road Deli (“Respondent”), West Haven, Connecticut. The Notice alleges that Respondent’s failure to timely provide the Commissioner with a detailed report of corrective action taken as a result of a September 12, 2012, Report of Examination (“Report of Examination”): (1) renders the Commissioner unable to determine that Respondent is in all respects properly qualified and of good character and that the granting such license would not be against the public interest; (2) causes Respondent to demonstrate incompetency or untrustworthiness to act as a licensed check cashing service; and (3) constitutes a failure by Respondent to fully cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. The Notice also alleges that the failure of Respondent’s Member/Owner and authorized agent to timely provide the Commissioner with a detailed report of the corrective action taken as a result of the Report of Examination renders the Commissioner unable to determine that a member of Respondent is in all respects properly qualified and of good character and that the granting of such license would not be against the public interest. Such allegations either constitute grounds to revoke Respondent’s check cashing service license pursuant to Sections 36a-581 and 36a-51 of the Connecticut General Statutes or form a basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
On August 19, 2013, the Commissioner issued a Notice of Intent to Revoke Check Cashing Service License, 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: Ganesh Associates, LLC (“Respondent”), Hartford, Connecticut. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent’s failure to timely provide the Commissioner with a detailed report of corrective action taken as a result of a Report of Examination: (1) renders the Commissioner unable to determine that Respondent is in all respects properly qualified and of good character and that the granting such license would not be against the public interest; (2) causes Respondent to demonstrate incompetency or untrustworthiness to act as a licensed check cashing service; and (3) constitutes a failure by Respondent to fully cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. The Notice also alleges that the failure of Respondent’s Member to timely provide the Commissioner with a complete report of the corrective action taken as a result of the Report of Examination renders the Commissioner unable to determine that a member of Respondent is in all respects properly qualified and of good character and that the granting of such license would not be against the public interest. Such allegations either constitute grounds to revoke Respondent’s check cashing service license pursuant to Sections 36a-581 and 36a-51 of the Connecticut General Statutes or form a basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
Order Revoking Consumer Collection Agency License and Order to Cease and Desist
On August 19, 2013, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of: Global Management Legal Group, LLC d/b/a GMLG, LLC (“Respondent”), Louisville, Kentucky. The basis of the Order was that Respondent failed to maintain a surety bond that ran concurrently with the period of its consumer collection agency license. In the Order, the Commissioner revoked Respondent’s license to act as a consumer collection agency in this state from 2401 Stanley Gault Parkway, Suite 104, Louisville, Kentucky, and ordered Respondent to cease and desist from violation Section 36a-802(a) of the Connecticut General Statutes.
Order to Cease and Desist and Order Imposing Civil Penalty
On August 20, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: American Trust Counsel LLC a/k/a American Trust Counsel, P.A. (“Respondent”), of Sunrise and Ft. Lauderdale, Florida. The basis of the Order was that 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. Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and to pay a civil penalty in the amount of $100,000. In addition, an Order of Restitution previously issued against Respondent on June 25, 2013, remains in effect and became permanent on July 18, 2013.
On August 20, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: Diversified Processing Center (“Respondent”), Murrieta, California. The basis of the Order was that 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. Respondent was ordered to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and to pay a civil penalty in the amount of $100,000. In addition, an Order of Restitution previously issued against Respondent on July 2, 2013, remains in effect and became permanent on July 24, 2013.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Bristol Man Fined $300,000 for Securities Fraud, Registration Violations
Bristol Man Fined $300,000 for Securities Fraud, Registration Violations
On September 3, 2013, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-13-8085-S) against Stephen Goodrich a/k/a Stephen W. Goodrich a/k/a Stephen Western Goodrich d/b/a Goodrich Financial of Bristol, Connecticut. The Order Imposing Fine had been preceded by a July 23, 2013 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-13-8085-S) alleging that, from at least March 2006 forward, respondent Goodrich pooled approximately $1.9 million in investor funds from at least 23 investors primarily located in Connecticut; commingled investor funds and used the monies to pay off earlier investors and to cover his personal expenses such as liquor purchases and online gambling; provided investors with fictitious account statements containing falsely inflated account balances; falsely held himself out as a licensed investment professional; sold unregistered securities; and failed to provide investors with critical information concerning their investment. The July 23, 2013 action had further alleged that respondent Goodrich 1) violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities; 2) violated the antifraud provisions of Section 36b-4(a) of the Act; 3) transacted business as an unregistered investment adviser in contravention of Section 36b-6(c)(1) of the Act; 4) violated Section 36b-5(a) of the Act by engaging in fraudulent practices in connection with investment advisory activity; and 5) transacted business as an unregistered broker-dealer in violation of Section 36b-6(a) of the Act.
In fining Respondent Goodrich $300,000, the Commissioner found that the respondent had violated Sections 36b-16, 36b-4(a), 36b-6(c)(1), 36b-5(a) and 36b-6(a) of the Act. Although the respondent initially requested a hearing on the allegations, the hearing request was later withdrawn. Similarly uncontested were the Order to Cease and Desist and Order to Make Restitution each of which became permanent by default on August 19, 2013.
Bloomfield Firm Fined $50,000 for Securities Fraud Violations
On September 3, 2013, the Banking Commissioner entered an Order Imposing Fine (Docket No. CF-13-7795-S) against Terra Energy, LLC of Bloomfield, Connecticut. The entity, controlled by Anthony Charles Vassallo (CRD number 1833409), 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) alleging that Vassallo, through the instrumentality of Terra Energy, LLC, violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act.
In fining Terra Energy, LLC $50,000, the Commissioner found that Terra Energy, LLC violated the antifraud provisions in Section 36b-4(a) of the Act. Terra Energy, LLC did not appear or contest the imposition of the fine. Similarly uncontested was the Order to Cease and Desist which became permanent as to Terra Energy, LLC on August 21, 2013.
Agent Registration Revoked
On September 6, 2013, the Banking Commissioner entered an Order revoking the broker-dealer agent registration of David Miller of Rockville Centre, New York. Respondent Miller had formerly been associated with Rochdale Securities LLC, a securities brokerage firm located in Stamford, Connecticut. Although Respondent Miller’s agent registration was withdrawn in November 2012, Connecticut law permits the Commissioner to initiate revocation proceedings within one year after a registration withdrawal becomes effective. The revocation order had been preceded by a July 8, 2013 Notice of Intent to Revoke Registration as an Agent (Docket No. NR-13-8093-S) which alleged that 1) on April 15, 2013, Respondent Miller pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud, both felonies (United State of America v. David Miller, Case No. 3:13CR-00075-RNC (D. Conn.) in conjunction with unauthorized purchases of Apple, Inc. securities, and was awaiting sentencing; 2) on April 18, 2013, the United States District Court for the District of Connecticut permanently enjoined Respondent Miller from violating the antifraud provisions in Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933 (Securities and Exchange Commission v. David Miller, C.A. No. 13-522 JBA (D. Conn.); and 3) Respondent Miller was the subject of an April 25, 2013 bar imposed by the SEC (Release No. 69460; Administrative Proceeding File No. 3-15-303). Like the April 15, 2013 criminal proceeding, the civil injunctive action and the administrative bar were based on Respondent Miller’s transactions in securities of Apple, Inc.
Respondent Miller did not appear or contest the revocation of his agent registration. Finding that a basis for revocation existed under Sections 36b-15(a)(2)(C), 36b-15(a)(2)(D) and 36b-15(a)(2)(F)(ii) of the Connecticut Uniform Securities Act, the Commissioner entered a revocation order by default against Respondent Miller.
Dated: Tuesday, September 10, 2013
Howard F. Pitkin
Banking Commissioner