CREDIT UNION ACTIVITY

Conversion

On June 24, 2015, the Commissioner approved the conversion of First New England Federal Credit Union, East Hartford, Connecticut, from a federal credit union to a Connecticut credit union pursuant to Section 36a-469b of the Connecticut General Statutes.  The Connecticut credit union will be known as Finex Credit Union.  The proposed field of membership of the Connecticut credit union will be limited to: persons who live, work, worship, volunteer, or attend school in, and businesses and other legal entities located in Harford or Tolland counties within Connecticut; any groups previously approved by the National Credit Union Administration whose membership falls outside of such counties; spouses of persons who died while within the field of membership of the credit union; employees of the credit union; organizations of such persons or members of such groups; and members of the immediate family or household of such persons or members of such groups.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On June 10, 2015, the Commissioner entered into a Consent Order with Vision Quest Lending d/b/a Vision Quest Lending Corporation (“Vision Quest”) (NMLS # 1097640), Irvine, California.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Vision Quest changed the address of its main office 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 address 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 the address of the main office, in violation of Section 36a-490(b) of the Connecticut General Statutes.  As part of the Consent Order, Vision Quest paid $500 as a civil penalty.

On June 17, 2015, the Commissioner entered into a Consent Order with Anthony J. Marchese (“Marchese“) and Beacon Financial Solutions, L.L.C. (“Beacon”), Southport, Connecticut (collectively, “Respondents”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that on or about February 9, 2012, Marchese acted as a mortgage loan originator without the required license, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes, and Beacon acted as a mortgage broker without the required license, in violation of Section 36a-486(a) of the then applicable Connecticut General Statutes.  As part of the Consent Order, the Respondents were ordered to cease and desist from violating Sections 36a-486(b) and 36-486(a) of the Connecticut General Statutes, respectively.

Order Revoking Consumer Collection Agency License and Order to Cease and Desist

On June 16, 2015, the Commissioner issued an Order Revoking Consumer Collection Agency License and Order to Cease and Desist (“Order”) in the Matter of:  Apex Financial Management, LLC d/b/a Apex Collections, LLC (“Respondent”), Hazelwood, Missouri.  The Order was based on Respondent’s failure to maintain a surety bond that runs concurrently with the period of its consumer collection agency license, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut from 5757 Phantom Drive, Suite 300, Hazelwood, Missouri, and orders Respondent to cease and desist from violating Section 36a 802(a) of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued

On June 22, 2015, the Banking Commissioner entered an Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-15-8110-S) against Dale Joseph Quesnel, Sr., a former broker-dealer agent and insurance licensee.  Also named in the order were Overtime Marketing, LLC and Overtime Sports Southeast, LLC, both of Dallas, Texas; Overtime Sports Southwest, LLC and Kenny Hansmire  both of Comanche, Texas; and Floridel, LLC of Orlando, Florida.  Hansmire, the control person of Overtime Marketing, LLC, Overtime Sports Southeast, LLC and Overtime Sports Southwest, LLC (collectively, “Overtime”), was in the business of promoting an all-star football game for college athletes.  Floridel, LLC owns a Florida taco franchise.

The action alleged that, from approximately February 2009 to May 2012, respondents Hansmire and Quesnel sold approximately $1.9 million of securities consisting of notes issued by Overtime to at least ten investors in Connecticut and other states.  The notes were not registered under the Connecticut Uniform Securities Act.  The action also alleged that Quesnel received approximately $166,000 in compensation from Overtime for his role in offering and selling the notes, and that Quesnel was not registered as an agent of issuer in violation of Section 36b-6(a) of the Act.  In addition, respondents allegedly failed to provide investors with any offering document or other written disclosure describing the risks associated with the note investment and, in so doing, violated the antifraud provisions of the Act.

The action further alleged that respondents Quesnel and Floridel, LLC offered and sold approximately $250,000 of Floridel, LLC promissory notes to finance Floridel, LLC’s taco business expansion.  The Floridel, LLC notes were not registered under the Act, and Quesnel allegedly received $8,000 from Floridel, LLC in conjunction with the note offering.  As with the offering of the Overtime notes, the action alleged that the prospective investors were not provided with critical disclosures, and that Quesnel was not registered as an agent of issuer.

In connection with both the Overtime and the Floridel, LLC offerings, the action further alleged that:  1) Quesnel violated Section 36b-23 of the Act by representing to the Division that he did not receive sales-related compensation for selling the Overtime notes and the Floridel, LLC notes; and 2) Quesnel violated Section 36b-31-6e(c) of the Regulations under the Act by not disclosing to his employing broker-dealer his involvement in the note offerings.

As a separate matter, the action also alleged that from August 2011 to December 2013, Quesnel violated Section 36b-6(c)(1) of the Act by providing securities research and technical analysis on a compensated basis to two broker-dealer agents at a time when Quesnel was not registered as an investment adviser in Connecticut.

Each of the respondents was afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.

Branford man Fined $3,500 for Unregistered Investment Adviser Agent Activity

On June 26, 2015, the Banking Commissioner entered a Consent Order (No. CO-15-8222-S) with respect to Peter D. Hershman of Branford, Connecticut.  The Consent Order alleged that commencing in 2011, Peter Hershman solicited at least one investment advisory client on behalf of Essex Financial Services, Inc., an investment adviser registered with the Securities and Exchange Commission, and that in 2012, Peter Hershman received compensation from Essex Financial Services, Inc. in connection with the solicitation activity. Peter Hershman was not registered as an investment adviser agent of Essex Financial Services, Inc. under the Connecticut Uniform Securities Act.  The Consent Order alleged that Peter Hershman violated Section 36b-6(c) of the Act by transacting business as an unregistered investment adviser agent.  The Consent Order fined Peter Hershman $3,500 and directed him to cease and desist from regulatory violations.

   Dated:  Tuesday, June 30, 2015


    Jorge L. Perez
    Banking Commissioner