Bulletin # 2659 - Week Ending February 6, 2015

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 Bruce H. Adams, Acting 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.

STATE CREDIT UNION ACTIVITY

Conversion and Field of Membership

On February 2, 2015, First New England Federal Credit Union, a federal credit union with its main office in East Hartford, Connecticut, filed an application to convert to a Connecticut credit union pursuant to Section 36a-469b of the Connecticut General Statutes.  The credit union proposes the following field of membership: (1) persons, who live, work, worship or attend school in, and businesses and other legal entities located in Hartford and Tolland counties of Connecticut, (2) spouses of persons who died while within the field of membership, (3) volunteers in the community, employees of the credit union, organizations of such persons, and (4) members of the immediate family or household of such persons, volunteers or employees.  The credit union also proposes to retain any employee groups, organizations associations and employees of groups previously approved by the National Credit Union Administration.

CONSUMER CREDIT DIVISION ACTIVITY

Order to Cease and Desist

On February 2, 2014, the Commissioner issued an Order to Cease and Desist In the Matter of: Rivercrest Credit Services (“Respondent”), Middletown, Connecticut.  The basis of the Order was that Respondent engaged in the business of making residential mortgage loans without a license by advertising, soliciting or offering to make residential mortgage loans via its website, in violation of Section 36a-486(a) of the Connecticut General Statutes, and acted as a mortgage broker without a license by advertising via its website that it would negotiate, solicit, place or find residential mortgage loans, either directly or indirectly, in violation of Section 36a-486(a) of the Connecticut General Statutes.  Respondent was ordered to cease and desist from violating Section 36a-486(a) of the Connecticut General Statutes.

Consent Orders

On January 26, 2015, the Commissioner entered into a Consent Order with Kmart Corporation (“Kmart”), Hoffman Estates, Illinois.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Kmart, during the period of May 2013 through August 2014, engaged in the business of cashing checks, drafts or money orders for consideration of more than fifty cents ($0.50) per check without licensure for a general facility or limited facility at 45 Shunpike Road, Cromwell; 295 Hartford Turnpike, Vernon; 589 Bridgeport Avenue, Milford; 44 Providence Pike, Putnam; 100 Main Street North, Southbury; 595 Straits Turnpike, Watertown; and 681 Main Street, Torrington, Connecticut, in violation of Section 36a-581(a) of the Connecticut General Statutes.  As part of the Consent Order, Kmart paid $10,000 as a civil penalty and $5,100 as payment for back licensing fees.

On January 29, 2015, the Commissioner entered into a Consent Order with Condor Capital Corp. (“Condor”), Hauppauge, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke Sales Finance Company License and Notice of Right to Hearing on May 8, 2014.  The Commissioner alleged, among other things, that the filing of a civil complaint by the Superintendent of Financial Services of the State of New York against Condor and Stephen Baron (“Baron”), the President and sole shareholder of Condor, which complaint alleged, among other things, that Condor wrongfully retained customers’ positive credit balances and took active steps to conceal such balances from customers and regulators, and the issuance of an Ex Parte Temporary Restraining Order and Order to Show Cause for Preliminary Injunction against Condor and Baron, constitutes a basis for the Commissioner to conclude that Condor fails to demonstrate that the financial responsibility, character, reputation, integrity and general fitness of Condor are such as to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a 535 to 36a 546, inclusive, of the Connecticut General Statutes.  As part of the Consent Order, Condor shall remit to each client monies erroneously retained by Condor from such client’s account(s) which had a positive credit balance, and, for a period of seven (7) years, Condor and any successor in interest are barred from engaging in the business of a sales finance company in this state or acting in any other capacity which requires a license or registration from the Commissioner.

On January 29, 2015, the Commissioner entered into a Consent Order with Silvermine Ventures, LLC d/b/a Thoroughbred Mortgage d/b/a Thoroughbred Mortgage LLC (“Silvermine Ventures”) ( NMLS # 975428).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Silvermine Ventures changed its name specified on its most recent filing with the Nationwide Mortgage Licensing System and Registry (“NMLS”) and failed to file such change with NMLS at least 30 calendar days prior to such change and, in connection with such name change, failed to provide, directly to the Commissioner, a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner that reflects its new name, in violation of Section 36a-490(b) of the Connecticut General Statutes  As part of the Consent Order, Silvermine Ventures paid $500 as a civil penalty.

Dated:  Tuesday, February 10, 2015

Bruce H. Adams
Acting Banking Commissioner