Bulletin # 2702 - Week Ending December 4, 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 Jorge L. Perez, 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, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage.  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.

Pursuant to Sections 16-262j(d), 47a-21(i)(2) and 49-2a(c) of the Connecticut General Statutes, the Commissioner has determined the deposit index for the calendar year 2016 to be 0.08%.

These rates are for the period commencing January 1, 2016 and ending December 31, 2016.

¹ PLEASE NOTE:  The interest rates provided herein are done as a convenience to the public; the commissioner has no authority to establish interest rates beyond what is provided in statute.  Accordingly, parties required to pay interest under these Sections must ensure compliance with the applicable statute(s). 

CREDIT UNION ACTIVITY

Field of Membership Amendment

On December 4, 2015, the Commissioner approved the request by Connex Credit Union, Inc. to amend its bylaws to add persons who live, work, attend school or worship in Fairfield County, as well as any and all businesses, corporations, organizations or associations within the county, to its field of membership.  The request was approved pursuant to Section36a-437a(h)(3) of the Connecticut General Statutes.

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 November 23, 2015, the Commissioner issued an Order to Make Restitution (“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:  Financial Help Services, Inc. (“Respondent”), Fort Lauderdale and Boca Raton, Florida.  The Notice was the result of an investigation by the Consumer Credit Division.  The Commissioner alleges that Respondent received money from a Connecticut debtor for the purpose of distributing such money to creditors of the Connecticut debtor without the requisite license, in violation of Section 36a-656(a) of the Connecticut General Statutes.  As part of the Order to Make Restitution, Respondent was ordered to repay $3,474 to an identified Connecticut debtor plus interest and to repay any other Connecticut debtor who entered into an agreement for debt adjustment services in this state with Respondent any fees paid by such Connecticut debtor to Respondent plus interest.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Order Revoking Mortgage Lender License

On November 24, 2015, the Commissioner issued an Order Revoking Mortgage Lender License (“Order”) In the Matter of:  MCM Holdings, Inc. d/b/a MCM Holdings II, Inc. (NMLS # 213236) (“Respondent”), Miami Lakes, Florida.  The basis of the Order was that Respondent failed to designate any qualified individual, which, pursuant to Section 36a-494(a)(1) of the Connecticut General Statutes, as amended by Public Act 15-235, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, constituted sufficient grounds to revoke Respondent’s license to engage in the business of making residential mortgage loans in Connecticut.

Consent Order

On November 24, 2015, the Commissioner entered into a Consent Order with Pierpoint Mortgage, LLC (NMLS # 112844) (“Pierpoint Mortgage”), Muskegon, Michigan.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Pierpoint Mortgage failed to file with the Nationwide Mortgage Licensing System and Registry a change of address of its main office at least 30 calendar days prior to such change and failed to file a bond rider or endorsement, or addendum, as applicable, to the surety bond on file with the Commissioner, in violation of Section 36a-490(b) of the Connecticut General Statutes.  As part of the Consent Order, Pierpoint Mortgage paid $500 as a civil penalty.

On November 24, 2015, the Commissioner entered into a Consent Order with Vanderbilt Mortgage and Finance, Inc. (NMLS # 1561) (“Vanderbilt”), Maryville, Tennessee.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Vanderbilt acted as a mortgage servicer in Connecticut without a license, in violation of Section 36a-718 of the Connecticut General Statutes, and engaged in the business of a sales finance company in Connecticut without a license, in violation of Section 36a-536 of the Connecticut General Statutes.  As part of the Consent Order, Vanderbilt paid $35,000 as a civil penalty and paid $3,200 as back licensing fees.

SECURITIES AND BUSINESS INVESTMENTS DIVISION

Order to Cease and Desist and Order to Make Restitution Made Permanent

On December 1, 2015, the Banking Commissioner entered Findings of Fact, Conclusions of Law and an Order by default against James E. Neilsen of Norwalk, Connecticut.  Neilsen, a former broker-dealer agent, provided tax and accounting services and did business as Neilsen Financial Services.  Neilsen had been the subject of a March 31, 2015 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-15-8175-S) alleging that 1) respondent Neilsen entered into investment agreements with at least two investors who gave Neilsen at least $243,000 to invest; 2) respondent Neilsen represented to the investors that the investment would generate a 9% return with no risk of loss; 3) respondent Neilsen used investor monies to cover his personal expenses and failed to provide investors with written disclosures concerning investment risks; 4) respondent Neilsen violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act; 5) respondent Neilsen sold unregistered securities in violation of Section 36b-16 of the Act; and 6) respondent Neilsen made a material misrepresentation to the agency in conjunction with an investigation.

Incorporating the allegations of the March 31, 2015 action into his Findings of Fact and Conclusions of Law, the Commissioner rendered permanent the March 31, 2015 Order to Cease and Desist and Order to Make Restitution.  In addition, the Commissioner directed respondent Neilsen to pay a $300,000 fine to the agency.

Respondent Neilsen had also been the subject of a November 13, 2014 Order of the Commissioner (Docket No. CRF-13-8014-S) based on similar conduct.  The 2014 action resulted in a $25,000 fine and a directive to pay restitution in connection with activities conducted through Ulysses Partners, LLC of which Neilsen was the founding member.  The fine and restitutionary amount imposed in the 2014 proceeding remain unpaid.