Withdrawal of Acquisition Statement

On September 19, 2018, USB Bancorp, Inc. withdrew its acquisition statement filed on August 20, 2018, pursuant to Section 36a-184 of the Connecticut General Statutes, to acquire 100% of the issued and outstanding shares of common stock of Union Savings Bank II.

The acquisition statement was originally filed in conjunction with an application by Union Savings Bank to reorganize into a mutual holding company structure (see Bulletin #2844 for the week ending August 24, 2018).  The acquisition statement filed by USB Bancorp, Inc. was not required for the aforementioned reorganization to occur and was therefore withdrawn.  All other aspects of the application remain open.

Interstate Loan Production Office

On September 20, 2018, Magnolia Bank, Inc., a Kentucky-chartered bank, filed an application to establish a loan production office at 94 East Avenue in Norwalk, Connecticut pursuant to Section 36a-412(d) of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

John A. Pinheiro Barred from Transacting Securities Business in Connecticut for Seven Years; Fine $10,000

On September 18, 2018, the Banking Commissioner entered a Consent Order (Docket No. CRF-18-8250a-S) with respect to John A. Pinheiro. Pinheiro, an attorney, was formerly an appointed receiver and CEO for Latteno Food Corp. The Consent Order had been preceded by a June 5, 2018 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing alleging that Pinheiro violated Section 36b-23 of the Connecticut Uniform Securities Act by providing false testimony under oath with respect to his role in the issuance of press releases by Latteno Food Corp.

The Consent Order barred Pinheiro for seven years from 1) transacting business in or from Connecticut as an agent, broker-dealer, broker-dealer agent, investment adviser or investment adviser agent; 2) maintaining a direct or indirect ownership interest in a broker-dealer or investment adviser registered or required to be registered in Connecticut; and 3) acting in any other capacity which required a license or registration under laws administered by the Commissioner. The Consent Order also directed Pinheiro to cease and desist from regulatory violations and to pay a $ 10,000 fine.

Christopher Sakelarakis Fined $100,000

On September 21, 2018, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-18-8412-S) against Christopher Sakelarakis of 500 West Avenue, Apt. 326, Norwalk, Connecticut 06850. The Order Imposing Fine had been preceded by a July 31, 2018 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleging 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 July 31, 2018 action had 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. Since respondent Sakelarakis failed to request a hearing on the Order to Cease and Desist and the Order to Make Restitution, those orders had become permanent on August 28, 2018.

Similarly, respondent Sakelarakis failed to request a hearing on the Notice of Intent to Fine, and the ensuing Order Imposing Fine was entered by default. Finding that respondent Sakelarakis violated Sections 36b-16 and 36b-4(a) of the Act, the Commissioner fined respondent Sakelarakis $100,000.

      Dated: Tuesday, September 18, 2018