Bulletin # 2618 - Week Ending April 25, 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.

Name Change

On April 25, 2014, pursuant to Section 36a-82 of the Connecticut General Statutes, the Banking Commissioner approved the change of name of ING Investment Trust Co. to Voya Investment Trust Co.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On April 17, 2014, the Commissioner entered into a Consent Order with Consumer Assistance Project, Corp f/k/a Back Office Law Project, Corp., (“Consumer Assistance Project”) Coral Gables, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on February 28, 2014, In the Matter of:  Law Offices of Timothy McCabe, P.A. and Consumer Assistance Project, Corp f/k/a Back Office Law Project, Corp., the Commissioner issued in 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.  The Commissioner alleged that Consumer Assistance Project 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, Consumer Assistance Project was ordered to immediately cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes and to pay $1,000 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Vasilios Koutsobinas Barred from Connecticut Securities Business for Ten Years

On April 25, 2014, the Banking Commissioner entered a Consent Order (Docket No. CO-13-8022-S) with respect to Vasilios Koutsobinas of Riverdale, New York.  Koutsobinas, the chairman of Euro Group of Companies, Inc., had been the subject of a February 10, 2014 Amended and Restated Order to Cease and Desist and Amended and Restated Notice of Intent to Fine alleging 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.  The action had also alleged that Euro Group and respondent Koutsobinas 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 entry of the Consent Order obviated the need for an administrative hearing on the allegations in the Amended and Restated Order to Cease and Desist and the Amended and Restated Notice of Intent to Fine.

The Consent Order barred Vasilios Koutsobinas and any entity under his control from transacting business in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent for ten years.  In addition, the Consent Order directed Koutsobinas to cease and desist from violative conduct.