The Department of Banking News Bulletin
Bulletin # 2842 - Week Ending August 10, 2018
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 business days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY
Consent Order
On July 24, 2018, the Commissioner entered into a Consent Order with CMRE Financial Services, Inc. (NMLS # 935753) (“CMRE”), Brea, California. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that CMRE acted within this state as a consumer collection agency without the requisite consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes. As part of the Consent Order, CMRE paid $20,000 as a civil penalty and $400 as a back licensing fee.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Allied Energy, Inc. and SE Ohio Shale & Oriskany Development - Orders Imposing Fine Issued
On August 10, 2018, the Banking Commissioner entered Orders Imposing Fine (Docket No. CRF-18-8238-S) against Allied Energy, Inc. f/k/a Allied Syndications, Inc. and SE Ohio Shale & Oriskany Development. Allied Energy, Inc., which was involved in exploratory oil and gas investments, maintained an office at 2427 Russellville Road, Bowling Green, Kentucky 42101. SE Ohio Shale & Oriskany Development was a self-described general partnership located at 2800 Griffin Drive, Bowling Green, Kentucky 42103.
Both respondents had been the subject of an April 25, 2018 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-18-8238-S) alleging that the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered nonexempt securities to Connecticut residents. The action had also alleged that respondent SE Ohio Shale & Oriskany Development violated Section 36b-6(b) of the Act by employing one Andrew A. Flowers (CRD number 5191114) as an unregistered agent of issuer, and that respondent Allied Energy, Inc. materially aided in that violation.
Neither respondent requested a hearing on the Order to Cease and Desist and Order to Make Restitution. Consequently, the Order to Cease and Desist and Order to Make Restitution became permanent as to each respondent on June 28, 2018.
Similarly, since neither respondent requested a hearing on the Notice of Intent to Fine, the August 10, 2018 Orders Imposing Fine were entered by default. The Commissioner adopted as findings the allegations against each respondent contained in the original Notice.
The resulting Order Imposing Fine against Allied Energy, Inc. directed the corporation to pay a $10,000 fine to the department. The Order Imposing Fine against SE Ohio Shale & Oriskany Development likewise fined that entity $10,000.