The Department of Banking News Bulletin
Bulletin # 2603 - Week Ending January 10, 2014
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.
| Date | Bank | Location | Activity |
|---|---|---|---|
| 01/09/14 |
Rockville Bank
Rockville
|
*114A State Road
Sagamore Beach, MA 02562
|
Approved
|
|
01/09/14
|
Rockville Bank
Rockville
|
*1720 Post Road
Fairfield, CT 06824
|
Approved
|
| *LPO (Loan Production Office) | |||
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued
On January 9, 2014, the Banking Commissioner entered an Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-13-8014-S) against Ulysses Partners, LLC, now or formerly of Norwalk, Connecticut, and James E. Neilsen, founder, chief financial officer and treasurer of Ulysses Partners, LLC. Respondent Neilsen, a former broker-dealer agent, is also a Certified Public Accountant.
The action alleged that Ulysses Partners, LLC was in the business of marketing hedge funds to financial institutions for compensation. According to the action, from approximately November 2005 through December 2010, to finance the business operations of Ulysses Partners, LLC, respondent Neilsen sold approximately $10 million of securities in the form of notes and investment agreements to Connecticut investors, the majority of whom were accounting clients of respondent Neilsen. Respondent Neilsen allegedly represented to would-be investors that the investment would generate a high rate of return. Investors, however, allegedly did not receive key disclosures concerning, among other things, the risks involved, how the offering proceeds would be used or that the securities were not registered under the Connecticut Uniform Securities Act.
The action further alleged that Ulysses Partners, LLC transacted business as an unregistered broker-dealer; that respondent Neilsen transacted business as an unregistered broker-dealer agent; that the respondents sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act; and that the respondents violated the antifraud provisions of the Act.
Respondents Ulysses Partners, LLC and Neilsen were afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.
CONSUMER CREDIT DIVISION ACTIVITY
Consent Orders
On December 23, 2013, the Commissioner entered into a Consent Order with Fairfield County Mortgage Company (NMLS # 116804) (“Fairfield County Mortgage”), Fairfield, Connecticut. The Consent Order resolves allegations made by the Commissioner in a 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 December 11, 2012 (“First Notice”) and in a Notice of Intent to Refuse to Renew Mortgage Broker License and Notice of Right to Hearing issued on June 25, 2013 (“Second Notice”). The First Notice alleged that Fairfield County Mortgage failed to 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 2012 Supplement to the General Statutes, as amended by Public Act 12-96. The Second Notice alleged that Fairfield County Mortgage failed to have a designated qualified individual who was a Connecticut licensed mortgage loan originator, which constitutes sufficient grounds to refuse to renew Fairfield County Mortgage’s license to act as a mortgage broker in Connecticut for the 2013 licensing period, pursuant to Sections 36a 494(a)(1), subsections (a) and (b) of Section 36a-51, and Section 36a-489(a)(2)(A) of the Connecticut General Statutes. In the Consent Order, the Commissioner further alleged that Fairfield County Mortgage subsequently failed to file certain other annual 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, Fairfield County Mortgage requested surrender of its mortgage broker license.
On January 2, 2014, the Commissioner entered into a Consent Order with Fairfield Connecticut Properties, LLC, Southbury, Connecticut, and Charles Wilson d/b/a CB Wilson (collectively, “Respondents”). The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on September 13, 2013, the Commissioner issued a Temporary Order to Cease and Desist, 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 Respondents. The Commissioner alleged that each 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 Consent Order, Respondents were ordered to immediately cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, to repay fees to identified Connecticut residents in an identified amount, and to pay a $500 civil penalty.
Dated: Tuesday, January 14, 2014