Bulletin # 3037 - Week Ending May 6, 2022

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 April 25, 2022, the Commissioner entered into a Consent Order with Kronos SaaShr, Inc. (NMLS # 1698726) (“Kronos”), Branchburg, New Jersey. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Kronos engaged in the business of money transmission in this state without the required license since at least 2018, in violation of Section 36a-597(a) of the Connecticut General Statutes, in effect at such time. As part of the Consent Order, Kronos paid $10,000 as a civil penalty and $3,375 in back licensing fees.

 
Consent Order

On April 29, 2022, the Commissioner entered into a Consent Order with Mobility Credit Acceptance, LLC f/k/a Cigar Break Credit, LLC (NMLS # 1856289) (“MCA”), Richmond, Virginia. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that MCA: (1) failed to file with the Nationwide Multistate Licensing System and Registry (“NMLS”) a change of name from Cigar Break Credit, LLC to Mobility Credit Acceptance, LLC, at least thirty (30) calendar days prior to such change, in violation of Section 36a-540(b) of the Connecticut General Statutes; and (2) MCA failed to file with NMLS a change of address of its main office at least thirty (30) calendar days prior to such change, in violation of Section 36a-540(b) of the Connecticut General Statutes. As part of the Consent Order, MCA paid $1,000 as a civil penalty.

  
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Erin Lynn Verespy (CRD No. 2727866)

On May 2, 2022, the Banking Commissioner entered a Consent Order (Docket No. NRCDF-20-8507-S) with respect to Erin Lynn Verespy of Trumbull, Connecticut. Respondent Verespy was a former broker-dealer agent and investment adviser agent of HD Vest Investment Services and HD Vest Advisory Services, Inc.

Respondent Verespy had been the subject of a June 25, 2020 Order to Cease and Desist, Notice of Intent to Fine, Notice of Intent to Revoke Registrations as a Broker-dealer Agent and an Investment Adviser Agent and Notice of Right to Hearing alleging that respondent 1) engaged in dishonest or unethical business practices by failing to provide HD Vest with written notice of outside business activity in which she was engaged; 2) violated Section 36b-31-14e of the Regulations under the Connecticut Uniform Securities Act by failing to amend her regulatory filings to disclose pending civil litigation involving a Connecticut client; and 3) engaged in dishonest or unethical business practices in her business dealings with a Connecticut customer.  The June 25, 2020 action had acknowledged that, following the initiation of litigation by the affected Connecticut customer, respondent Verespy agreed to pay the customer back $800,000 pursuant to an agreed-upon settlement between the parties.

The May 2, 2022 Consent Order noted that Verespy had provided a written financial affidavit to the Commissioner demonstrating that she was unable to pay any fine that might otherwise have been imposed in the administrative proceeding or as a term of the Consent Order. The Consent Order revoked Verespy's registrations as a broker-dealer agent and an investment adviser agent; rendered the June 25, 2020 Order to Cease and Desist permanent; and barred Verespy for ten years from 1) transacting business as an agent, broker-dealer, broker-dealer agent, investment adviser or investment adviser agent; 2) maintaining a direct or indirect ownership interest in a Connecticut registered broker-dealer or investment adviser; and 3) acting in any other capacity requiring a license or registration under laws administered by the Commissioner. The Consent Order also stayed imposition of a $20,000 fine for three years, following which the fine would be waived if Verespy remained unable to pay the amount assessed.