Bulletin # 2591 - Week Ending October 18, 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.

CONSUMER CREDIT DIVISION ACTIVITY

Check Cashing Service License Activity

Consent Orders

On September 13, 2013, the Commissioner entered into a Consent Order with Platinum Mortgage, LLC (NMLS # 114810) (“Platinum Mortgage”), Shelton, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Platinum 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 Connecticut General Statutes.  As part of the Consent Order, Platinum Mortgage paid $2,500 as a civil penalty.

Order Accepting Surrender

On October 7, 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 Post Road Deli, LLC d/b/a Post Road Deli, West Haven, Connecticut, to engage in the business of cashing checks, drafts or money orders for consideration in Connecticut following the issuance by the Commissioner of 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 issued on August 15, 2013.  As part of the Order, the Commissioner accepted the surrender of the license effective as of October 7, 2013 and imposed no additional terms and conditions.

Order to Cease and Desist and Order Imposing Civil Penalty

On October 7, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Mortgage Counseling Center a/k/a Mortgage Counseling Center of America, Inc., Lake Forest, California, and Edward Albert Bauman, Jr. (collectively, “Respondents”).  The basis of the Order was that the Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  Each 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 each Respondent on August 13, 2013, remains in effect and became permanent on September 5, 2013.

On October 7, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Charles Thomas Heppner (NMLS # 386451) (“Heppner”) and Commercial Loan Solutions, LLC (“CLS”) (collectively, “Respondents”) Los Angeles, California.  The basis of the Order was that Respondents engaged in debt negotiation in this state without obtaining the require license, in violation of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and that Heppner engaged in debt negotiation of a residential mortgage loan without being licensed as a mortgage loan originator in Connecticut, in violation of Section 36a-671e(b) of the Connecticut General Statutes.  The Commissioner ordered that:  Heppner cease and desist from violating Sections 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and 36a-671e(b) of the Connecticut General Statutes; CLS cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011; and imposed a civil penalty of $100,000 on each Respondent.  In addition, an Order of Restitution previously issued against each Respondent on May 15, 2013, remains in effect and became permanent against Heppner on June 2, 2013, and against CLS on June 4, 2013.

On October 7, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against G. Darrell Rigley, The Rigley Group, Inc., Boca Raton, Florida, and TriMark Financial Solutions, Inc., Columbus, Ohio (collectively, “Respondents”).  The basis of the Order was 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.  The Order required each Respondent to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and imposed a civil penalty of $100,000 on each Respondent.  In addition, an Order of Restitution previously issued against Rigley and Rigley Group on July 10, 2013, remains in effect and became permanent on August 1, 2013.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Connecticut Registered Broker-dealer Assessed $114,457.79 for Supervisory Lapse Relating to Unregistered Client Service Associates

On October 15, 2013, the Banking Commissioner entered a Consent Order (No. CO-13-8116-S) with respect to UBS Financial Services Inc., a Connecticut registered broker-dealer.  The Consent Order grew out of a multi-state investigation and global settlement by the North American Securities Administrators Association, Inc. (“NASAA”) into the firm’s registration practices between 2004 and 2010  regarding firm Client Service Associates, some of whom were permitted to accept orders from clients.  The multi-state investigation found that, on certain occasions, some UBS Client Service Associates, although registered in other states, accepted unsolicited orders to buy or sell securities from clients residing in Connecticut at a time when the Client Service Associates were not also registered under Connecticut’s securities laws.  The Consent Order alleged that, in conjunction with the practice, the firm failed to discharge its supervisory responsibilities, failed to maintain order tickets accurately identifying the person who accepted client orders and failed to abide by state agent registration requirements.

The Consent Order directed the firm to refrain from regulatory violations and to remit $114,457.79 to the department within ten days.  Of that amount, $50,000 constituted an administrative fine and $64,457.79 represented reimbursement for past due agent registration fees for the period from 2004 to 2010.

Dated:  Tuesday, October 22, 2013