Bulletin # 2720 - Week Ending April 8, 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.

STATE CREDIT UNION ACTIVITY

Merger

On March 29, 2016, the Commissioner approved the merger of Stratford Municipal Federal Credit Union, a federally chartered credit union, with and into Sikorsky Financial Credit Union, Inc., a Connecticut credit union.  The merger was approved pursuant to Section 36a-468a of the Connecticut General Statutes.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On March 24, 2016, the Commissioner entered into a Consent Order with Another Level Capital Venture, Inc. d/b/a Quick Legal Solutions, Irvine, California, and Michael Taylor, also known as Michael Ojimba and Ifeanyi Ojimba (collectively, “Respondents”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on October 7, 2015, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Order and Notice”) against Respondents, among others.  The Commissioner alleged that Respondents 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, Respondents and any successors in interest are 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 Respondents first apply to the Commissioner for reconsideration and provide satisfactory evidence of full restitution to Connecticut debtors of the refunds they are due.  Respondents shall repay identified Connecticut debtors through $3,000 monthly payments until all aggrieved Connecticut debtors have been paid in full.  In the event of a violation of the consent order, Respondents consented to the immediate entry and imposition of a civil penalty in the amount of $10,000, among other things.

On March 29, 2016, the Commissioner entered into a Consent Order against UniRush, LLC (NMLS # 910799) (“UniRush”), Cincinnati, Ohio.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that from approximately November 2012 to February 2016, UniRush sold Prepaid Visa RushCard electronic payment instruments in Connecticut (“RushCards”) and advertised or solicited such RushCards without a money transmission license, in violation of Section 36a-597 of the Connecticut General Statutes.  As part of the Consent Order, UniRush became licensed as a money transmitter in Connecticut and paid $200,000 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Stipulation and Agreement entered

On April 8, 2016, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-16-8259-S) with John A. Tatoian of Somers, Connecticut.  The Stipulation and Agreement alleged that, in 2013, John A. Tatoian offered unregistered securities of a Florida-based issuer in contravention of Section 36b-16 of the Connecticut Uniform Securities Act and transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.  Two Connecticut residents ultimately purchased securities of the Florida issuer.  In furtherance of his desire to resolve the matter informally, John A. Tatoian provided the Commissioner with evidence that 1) Tatoian had voluntarily remitted $95,000 in restitution to the first investor, and that the issuer had paid the balance of $5,000 to that investor; and 2) Tatoian had voluntarily remitted $4,000 in partial restitution to the second investor, had executed a note obligating Tatoian to pay an additional $44,000 to that investor and that the issuer had paid the balance of $6,000 to the second investor.

Pursuant to the Stipulation and Agreement, John A. Tatoian agreed to refrain from regulatory violations. Tatoian also agreed, for five years, to retain and consult with experienced securities legal counsel to ensure that future securities-related activities were conducted in compliance with regulatory requirements.  In addition, Tatoian agreed to reimburse the agency $200 for past due agent registration fees.