Bulletin # 2628 - Week Ending July 4, 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.

*Loan Production Office

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Michael James Byl (CRD # 1204677) - Order to Cease and Desist and Notice of Intent to Revoke Registration as an Investment Adviser Agent Issued

On July 3, 2014, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Revoke Registration as an Investment Adviser Agent and Notice of Right to Hearing (Docket No. CR-14-8150-S) against Michael James Byl, a control person and registered investment adviser agent of LGAUS LLC d/b/a Landmark Global Advisors LLC.  The action noted that respondent Byl and others were directed to pay damages in conjunction with an April 4, 2012 FINRA arbitration award (Coleman McCarthy v. Southridge Investment Group LLC et al., Case No. 09-06667); and that, on December 18, 2013, FINRA suspended respondent Byl for failing to comply with the arbitration award or to satisfactorily respond to a FINRA information request.  The action alleged that the failure to pay the arbitration award and the FINRA suspension would support administrative proceedings against Byl.  In addition, the action alleged that Byl violated Section 36b-31-14e(a) of the Regulations under the Connecticut Uniform Securities Act by failing to update his Form U-4 to disclose the 2012 arbitration award, his failure to pay the award and his suspension by FINRA.  The respondent was afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Revoke Registration as an Investment Adviser Agent.

CONSUMER CREDIT DIVISION ACTIVITY

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

On June 24, 2014, 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 (collectively “Notice”) in the Matter of:  S&S Health Group LLC d/b/a Financial Link (“Financial Link”), Boynton Beach, Florida, Sean P. Miller (“Miller”) and Stephen E. De Navea (“De Navea”) (collectively, “Respondents”).  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Financial Link offered debt negotiation services by a direct mailer to Connecticut residents that had the capacity or tendency to mislead Connecticut consumers as to Financial Link’s affiliation, connection or association with a bank, in violation of Section 36a-56a(a) of the Connecticut General Statutes; 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 in effect to prior to October 1, 2011; and 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.  The Commissioner also alleged that Miller and De Navea 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.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Order to Cease and Desist and Order Imposing Civil Penalty

On June 27, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Javier Gutierrez d/b/a Home Affordable Direct Inc (“Respondent”).  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 April 22, 2014, remains in effect and became permanent on May 9, 2014.

On June 27, 2014, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  P&C Capital Group LLC (“Respondent”), El Monte, California.  The basis of the Order was that Respondent acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the 2014 Supplement to the General Statutes.  Respondent was ordered to cease and desist from violating Section 36a-801(a) of the 2014 Supplement to the General Statutes and to pay a civil penalty in the amount of $100,000.

Dated:  Tuesday, July 8, 2014