Bulletin # 2841 - Week Ending August 3, 2018

CREDIT UNION ACTIVITY

Branch Activity

DATE: July 30, 2018
CREDIT UNION: Dutch Point Credit Union, Wethersfield
LOCATION: From: 8 West Main Street, Niantic, CT 06537
TO: 241 Main Street, Niantic, CT 06357
ACTIVITY: Approved to Relocate Branch

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On July 23, 2018, the Commissioner entered into a Consent Order with Amerifund Home Mortgage LLC (NMLS # 53336) (“Amerifund”), New York, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Amerifund failed to file with the Nationwide Multistate Licensing System and Registry a change of address of its main office at least 30 calendar days prior to such change and, in connection with such address change, failed to provide 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 2018 Supplement to the General Statutes. As part of the Consent Order, Amerifund paid $500 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

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

On July 31, 2018, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-18-8412-S) against Christopher Sakelarakis of 500 West Avenue, Apt. 326, Norwalk, Connecticut 06850. The action alleged that, in October 2017, a Connecticut investor gave respondent Sakelarakis $60,000 to invest in stocks, options and other financial instruments at Sakelarakis' discretion; that the investor would pay Sakelarakis a 10% commission based on net profits realized; and that, rather than investing all of the investor's funds, respondent Sakelarakis applied a portion to pay for Sakelarakis' personal expenses. The action further alleged that the investment arrangement constituted a security which was not registered under Section 36b-16 of the Connecticut Uniform Securities Act, and that respondent Sakelarakis violated the antifraud provisions in Section 36b-4(a) of the Act.

Respondent Sakelarakis was afforded an opportunity to request a hearing on the allegations.

Endeavor Management Solutions, LLC and James Ward Doyle Each Fined $100,000

On July 31, 2018, the Banking Commissioner entered two Orders Imposing Fine (Docket No. CRF-18-8403-S) against Endeavor Management Solutions, LLC and its Senior Managing Director James Ward Doyle. Endeavor Management Solutions, LLC is an executive search and management consulting company located at 45 Rockefeller Plaza, 630 Fifth Avenue, 206h Floor, New York, New York 10111.

Endeavor Management Solutions, LLC and Doyle had been corespondents in a May 21, 2018 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing. The May 21, 2018 action had alleged that in 2017, a Connecticut investor invested $30,000 with Endeavor Management Solutions, LLC pursuant to a Letter of Agreement that guaranteed a ten percent rate of return; that the Letter Agreement was not registered under the Connecticut Uniform Securities Act; and that respondents violated the antifraud provisions in Section 36b-4(a) of the Act by failing to disclose to the investor the basis for their ability to pay a guaranteed return of ten percent; what Endeavor Management Solutions, LLC did to generate the return; the fact that the security was not registered under Connecticut’s securities law; and the fact that, prior to the investment, the State of Maine had entered an Cease and Desist Order, Imposition of Civil Fines and Order of Restitution against respondents based on a similar factual scenario.

Since Endeavor Management Solutions, LLC and Doyle failed to request a hearing on the Order to Cease and Desist and the Order to Make Restitution, those orders had become permanent as to each of them on June 9, 2018 and July 6, 2018, respectively.

Endeavor Management Solutions, LLC and Doyle similarly did not request a hearing on the Notice of Intent to Fine. Therefore, the two Orders Imposing Fine were entered by default. Adopting as findings the allegations in the original Notice, the Commissioner determined that Endeavor Management Solutions, LLC and Doyle had each violated Sections 36b-16 and 36b-4(a) of the Act. The Commissioner imposed a $100,000 fine on Endeavor Management Solutions, LLC and a $100,000 fine on Doyle.