Bulletin # 2875 - Week Ending March 29, 2019

Acquisition

On March 29, 2019, pursuant to Sections 36a-412(a)(1) and 36a-210(a) of the Connecticut General Statutes, the Commissioner approved the application of KeyBank National Association, a national bank, to acquire a significant part of the assets of Laurel Road Bank, a Connecticut bank.

Change of Name

On March 29, 2019, the Commissioner approved the application of Laurel Road Bank, Darien, Connecticut, to change its name to DR Bank pursuant to Section 36a-82 of the Connecticut General Statutes. 

CONSUMER CREDIT DIVISION ACTIVITY

Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On March 18, 2019, 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 (collectively “Notice”) in the Matter of: The Hamilton Law Association, P.A., Coral Springs, Florida (“Respondent”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that the Respondent acted as a consumer collection agency without obtaining a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Vaughn Lee Andrews-McKay (CRD No. 6491985) - Consent Order Entered

On March 25, 2019, the Banking Commissioner entered a Consent Order (No. CO-18-8450-S) with respect to Vaughn Lee Andrews-McKay of Enfield, Connecticut. Andrews-McKay was previously registered as a broker-dealer agent of PruCo Securities, LLC under the Connecticut Uniform Securities Act. The Consent Order alleged that from approximately January 2017 to October 2017, Andrews-McKay engaged in dishonest or unethical practices by misappropriating approximately $48,000 from two of his clients at PruCo Securities, LLC and diverting those funds for his personal use. In 2018, FINRA sanctioned Andrews-McKay for the foregoing misconduct, barring him from associating with any FINRA member in any capacity (AWC No. 2018058343001).

The Consent Order acknowledged that PruCo Securities, LLC had remitted $49,097.87 (including interest) to the affected clients as full restitution for the monies misappropriated by Andrews-McKay.

The Consent Order permanently barred Andrews-McKay from transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent and from acting in any other capacity that required a license or registration from the Commissioner. The Consent Order also directed Andrews-McKay to cease and desist from regulatory violations. Based on financial documentation provided by the respondent, the Commissioner stayed the imposition of a $50,000 fine for three years. If the respondent became able to pay the fine or failed to disclose material financial information in his financial affidavit, the fine would immediately become due. At the conclusion of the three year period, if Andrews-McKay still was unable to pay the fine, the fine would be waived.

North American Drilling Corporation, Brown Well 1 Joint Venture, Brown Well 1A Joint Venture, Brazelton Well 2A Joint Venture and Larry Michael Koonce (CRD No. 4603240) - Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued

On March 27, 2019, the Banking Commissioner entered an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-19-8287-S) against North American Drilling Corporation of 1417 Gables Court, Suite 101, Plano, Texas 75075. North American Drilling Corporation was the manager of corespondents Brown Well 1 Joint Venture, Brown Well 1A Joint Venture and Brazelton Well 2A Joint Venture, all three of which were Texas joint ventures engaged in the oil and gas business. Also named in the action was Larry Michael Koonce of Plano, Texas. Koonce was the president of North American Drilling Corporation and a control person of the joint ventures. According to the action, at least three Connecticut individuals invested in the joint ventures.

The action alleged that the respondents violated the antifraud provisions in Section 36b-4(a) of the Connecticut Uniform Securities Act by representing to investors that the investment had little risk and by channeling investment proceeds to Wildcat Resources, LC, an affiliated entity, in contravention of statements made in the offering materials. In addition, investors were not apprised that at least a portion of the monies transferred to the Wildcat Resources, LC account were used to benefit Koonce and/or his relatives. The action also alleged that respondents Koonce and North American Drilling Corporation violated Section 36b-23 of the Act by making a misleading statement to the Commissioner concerning the source of Koonce's compensation in connection with the joint ventures.

Each of the respondents was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.