Bulletin # 2971 - Week Ending January 29, 2021

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On January 19, 2021, the Commissioner entered into a Consent Order with DIVERSIFIED MORTGAGE BROKERAGE LLC (NMLS # 1719347) (“DMB”), Opelika, Alabama. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that DMB failed to file with the Nationwide Multistate Licensing System and Registry a change of address of its main office at least thirty (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)(2) of the Connecticut General Statutes. As part of the Consent Order, DMB paid $500 as a civil penalty.

Chatsworth Securities LLC (CRD No. 40804)

On January 27, 2021, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-2020-37-S) with Chatsworth Securities LLC, a Connecticut-registered broker-dealer located at 95 East Putnam Avenue, Greenwich, Connecticut 06830. The firm does not conduct any retail broker-dealer business, but acts as a placement agent for private placements in corporate securities and limited partnerships.

The Stipulation and Agreement alleged that the firm entered into an agreement whereby it would receive a percentage of a management fee from an investment fund, and, in so doing, transacted business as an unregistered investment adviser in violation of Section 36b-6(c)(1) of the Connecticut Uniform Securities Act.

The firm applied for Connecticut investment adviser registration, which became effective on December 18, 2020.

In resolution of the matter, the firm agreed to refrain from regulatory violations and to pay $4,680 to the department. Of that amount, $4,000 constituted an administrative fine and $680 represented reimbursement for past due registration fees.