Bulletin # 2613 - Week Ending March 21, 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

Merger

On March 17, 2014, pursuant to Sections 36a-412(b) and 36a-125 of the Connecticut General Statutes, the Commissioner approved the merger of United Bank, a federal savings association and wholly-owned subsidiary of United Financial Bancorp, Inc., a Maryland corporation, with and into Rockville Bank, a Connecticut-chartered stock savings bank and wholly-owned subsidiary of Rockville Financial, Inc., a Connecticut corporation.  In connection with the merger, Rockville Bank shall change its name to “United Bank.”

Branch Acquisition

On March 17, 2014, pursuant to Section 36a-145(b)(1) of the Connecticut General Statutes, Salisbury Bank and Trust Company, Lakeville, Connecticut, a Connecticut chartered bank and trust company and a wholly-owned subsidiary of Salisbury Bancorp, Inc., Lakeville, Connecticut, a Connecticut stock corporation and bank holding company, filed an application to establish a branch through the purchase by Salisbury Bank and Trust Company of certain deposits, assets and other liabilities of the branch of Union Savings Bank located at 5 Gay Street, Sharon, Connecticut.  This application was made in connection with an application by Union Savings Bank for the sale of its branch that was filed on February 3, 2014, pursuant to Section 36a-145(i) of the Connecticut General Statutes, and was posted in Bulletin #2607 for the week ending February 7, 2014. Also on March 17, 2014, in connection with this application and pursuant to Section 36a-145(h) of the Connecticut General Statutes, Salisbury Bank and Trust Company submitted written notice of its intention to consolidate its branch located at 29 Low Road, Sharon, Connecticut with and into the branch located at 5 Gay Street, Sharon, Connecticut.

Name Change

On March 19, 2014, pursuant to Section 36a-82 of the Connecticut General Statutes, ING Investment Trust Co., a Connecticut-chartered trust bank headquartered at One Orange Way, Windsor, Connecticut, filed an application to change its name to Voya Investment Trust Co.  Written objections to such application may be made, for a period of thirty days from the date of publication of this Bulletin, on the grounds that the name selected will tend to confuse the public. 

CONSUMER CREDIT DIVISION ACTIVITY

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

On March 14, 2014, 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 (“Notice”) in the Matter of:  Approved Funding Corp. (NMLS # 5411) (“Respondent”), River Edge, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On March 14, 2014, 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 (“Notice”) in the Matter of:  C.U. Members Mortgage Corporation (NMLS # 65128) (“Respondent”), East Haven, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On March 14, 2014, 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 (“Notice”) in the Matter of:  Great Western Financial Services, Inc. (NMLS # 82156) (“Respondent”), Plano, Texas.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On March 14, 2014, 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 (“Notice”) in the Matter of:  L'Altrella Lending Group, LLC (NMLS # 130753) (“Respondent”), Shelton, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes and in violation of an order of the Commissioner.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Issuer of Securities Fined $1,300 for Late Rule 506 Notice Filing

On March 18, 2014, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-14-8142-S) with Opportunity Income Plus, LP, an issuer of securities located in Saddle Brook, New Jersey.  The Stipulation and Agreement alleged that Opportunity Income Plus, LP had been delinquent in making a Regulation D Rule 506 notice filing under Section 36b-21(e) of the Connecticut Uniform Securities Act with respect to an offering of pooled investment fund interests made to Connecticut investors commencing on or about January 1, 2007.  After making the requisite filing, Opportunity Income Plus, LP agreed to pay a $1,300 fine and to refrain from offering or selling securities in or from Connecticut absent compliance with Section 36b-16 of the Act.

Consent Order Entered

On March 20, 2014, the Banking Commissioner entered a Consent Order (Docket No. CO-13-8022-S) with respect to Euro Group of Companies, Inc. now or formerly New Haven, Connecticut.  Euro Group of Companies, Inc. had been the subject of an October 23, 2013 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-13-8022-S).

On February 10, 2014, an Amended and Restated Order to Cease and Desist and Amended and Restated Notice of Intent to Fine was issued.  The amended action added Vasilios Koutsobinas as a respondent.  As amended, the action alleged that Euro Group, with the material assistance of respondent Koutsobinas, violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered nonexempt securities, and that Euro violated Section 36b-6(b) of the Act by employing one Christos Christoforou as an unregistered agent of issuer.  In addition, the action alleged that Euro Group and respondent Koutsoubinas violated the antifraud provisions of the Act by 1) failing to disclose to affected investors, none of whom was a control person of Euro Group, that the investors could have purchased Euro Group shares in the open market for significantly less than what they paid in the issuer transactions; and 2) failing to provide investors with an offering document that disclosed the risks associated with purchasing Euro Group securities.  The action also alleged that public shares of Euro Group (OTC Bulletin Board symbol:  EGCO) were essentially low priced and thinly traded penny stocks.

The March 20, 2014 Consent Order only resolved the allegations against respondent Euro Group of Companies, Inc.  The Consent Order reflected Euro Group of Companies, Inc.’s representation that it was not presently conducting any business activities in Connecticut and had no known assets.  In addition, the Consent Order acknowledged that the respondent had demonstrated to the agency that it was financial unable to pay the fine that otherwise would have been imposed against it.  The Consent Order required Euro Group of Companies, Inc., its affiliates and successors in interest to cease and desist from violative conduct, including selling unregistered securities in and from Connecticut, engaging an unregistered agent of issuer and engaging in an act, practice or course of business which operates as a fraud or deceit.

Dated:  Tuesday, March 25, 2014