Bulletin # 3090 - Week Ending May 12, 2023

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 ACTIVITY

Consent Order

On May 1, 2023, the Commissioner entered into a Consent Order with Tower DBW VI Trust 2016-1, NMLS # 1507072 (“Tower Trust 2016”) and Tower DB IX Trust 2019-1, NMLS # 1886666 (“Tower Trust 2019”), both of New York, New York (collectively, “Respondents”). The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that: (1) from December 2021 to the present, Tower Trust 2016 acted within this state as a consumer collection agency without the requisite license by indirectly collecting or indirectly receiving payments on real estate tax liens of Connecticut consumer debtors, in violation of Section 36a-801(a) of the Connecticut General Statutes; and (2) from October 2021 to the present, Tower Trust 2019 acted within this state as a consumer collection agency without the requisite license by indirectly collecting or indirectly receiving payments on sewer connection and real estate tax liens of Connecticut consumer debtors, in violation of Section 36a-801(a) of the Connecticut General Statutes. As part of the Consent Order, Respondents paid $10,000 as a civil penalty and $800 as back licensing fees.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Terrascheduler LLC and Richard Craig Hamar

On May 8, 2023, the Banking Commissioner entered a Consent Order (No. CO-23-202210-S) with respect to Terrascheduler LLC, a now dissolved Connecticut software development company, and Richard Craig Hamar of Norwich, Connecticut, Chief Executive Officer of the company. The Consent Order alleged that in 2021, the Respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by selling an unregistered security to a California investor. The security consisted of a percentage interest in Terrascheduler LLC for which the investor paid $10,000.  Following the investment, the Respondents privately agreed to pay back the investor in six installments by July 8, 2023. Acknowledging this arrangement, the Consent Order fined the Respondents $1,750, but provided that a failure to repay the investor as represented would result in a $10,000 fine and an order of restitution issued by the agency. The Consent Order also directed the Respondents to refrain from regulatory violations.