Bulletin # 2652 - Week Ending December 19, 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, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  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.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Consent Order Entered

On December 11, 2014, the Banking Commissioner entered a Consent Order (No. CO-13-8124-S) with respect to HFP Capital Markets LLC of New York City.  The firm, once registered in multiple states as well as Connecticut, filed to withdraw its broker-dealer registration at the state and federal levels. The Consent Order alleged that in January 2010, the firm sold securities of Metals Milling & Mining LLC in violation of Section 36b-16 of the Connecticut Uniform Securities Act.  The Consent Order acknowledged, however, that the firm had made a $30,000 restitutionary payment to the affected investor.  In addition, the Consent Order alleged that the firm 1) failed to maintain the net capital prescribed by law; 2) violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act; 3) used sales presentations and sales scripts in a deceptive or misleading manner; 4) violated Section 36b-6(b) of the Act by employing at least three unregistered agents; 5) violated Section 36b-23 of the Act by representing to the agency that the firm's agents had updated a Connecticut customer's investment objectives when that was not the case; and 6) failed to establish, enforce and maintain an adequate supervisory system.  In agreeing to the Consent Order, the firm represented that it had discharged 26 broker-dealer agents who the firm believed may have violated the Act and the Regulations thereunder.  The Consent Order directed HFP Capital Markets LLC to cease and desist from regulatory violations and fined the firm $3,500.

Dated:  Tuesday, December 23, 2014

Howard F. Pitkin
Banking Commissioner