Bulletin # 2716 - Week Ending March 11, 2016

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. 

Business and Industrial Development Corporation

On March 7, 2016, the Commissioner approved the application of Business Lenders, LLC, a Delaware limited liability company, with Penn Joe Ritter Corporation as 100% equity owner, to operate as a business and industrial development corporation pursuant to Section 36a-628 of the Connecticut General Statutes.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On March 3, 2016, the Commissioner entered into a consent order with The Consumer Law Group, P.A. (“Consumer Law Group”), Boca Raton, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on May 18, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Consumer Law Group.  The Commissioner alleged that Consumer Law Group engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes.  As a result of the Consent Order, Consumer Law Group and any successor in interest is barred from engaging or offering to engage in debt negotiation in Connecticut, or acting in any other capacity which requires a license or registration from the Commissioner, until Consumer Law Group first applies to the Commissioner for reconsideration and provides satisfactory evidence of full restitution to Connecticut debtors and the refunds they are due.  In addition, in the event that Consumer Law Group does not comply with any term or condition of the Consent Order, the Commissioner may immediately enter and impose a civil penalty in the amount of $10,000 against Consumer Law Group which knowingly, willfully and voluntarily waived its right to notice and an administrative hearing on such a penalty.

On March 7, 2016 the Commissioner entered into a Consent Order with LMB Mortgage Services, Inc. d/b/a lowermybills.com (NMLS #167283) (“lowermybills.com”), Playa Vista, California.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on September 8, 2015, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against lowermybills.com.  The Commissioner alleged that lowermybills.com failed to timely file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, lowermybills.com paid $2,500 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

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

On March 3, 2016, the Banking Commissioner entered Findings of Fact, Conclusions of Law and an Order by default against Dale Joseph Quesnel, Sr., a former insurance licensee and a former broker-dealer agent of ING Financial Partners, Inc. n/k/a Voya Financial Advisors, Inc. (Docket No. CRF-15-8110-S).

Respondent Quesnel had been the subject of a June 22, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine which also named Overtime Marketing, LLC, Overtime Sports Southeast, LLC, Overtime Sports Southwest, LLC, Kenny Hansmire and Floridel, LLC as respondents.  Since respondent Quesnel failed to appear at the hearing on the June 22, 2015 action, the allegations against him were deemed admitted.

Accordingly, the Commissioner found that respondent Quesnel violated 1) Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities issued by the Overtime entities and by Floridel, LLC; 2) Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer for more than one entity; 3) Section 36b-23 of the Act by making material misrepresentations to the Division concerning his securities-related compensation; 4) the antifraud provisions in Section 36b-4(a) of the Act in connection with the offer and sale of securities; 5) Section 36b-31-6e of the Regulations under the Act by participating in private securities transactions without providing prior written notice to his employing broker-dealer; and 6) Section 36b-6(c)(1) of the Act by transacting business as an unregistered investment adviser.

The March 3, 2016 Order rendered the June 22, 2015 Order to Cease and Desist and Order to Make Restitution permanent.  In addition, the Order fined respondent Quesnel $600,000.