Bulletin # 3092 - Week Ending May 26, 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.

BANK ACTIVITY

Section 36a-145 of the Connecticut General Statutes requires that certain applications for a branch or limited branch at which loans will be made address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage. Plans may be submitted when such applications are filed and any plans that are filed will be made available for public inspection and comment at the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division at (860) 240-8180.

DATE: May 26, 2023
BANK: Thomaston Savings Bank, Thomaston
LOCATION: 233 Main Street, New Britain, CT
ACTIVITY-BRANCH TYPE: Approved to Establish Full-Service Branch
PROPOSED OPENING DATE: September 2023

DATE: May 26, 2023
BANK: Fairfield County Bank, Ridgefield
LOCATION: 26 Mill Plain Road, Suite 1A, Danbury, CT
ACTIVITY-BRANCH TYPE: Approved to Establish Full-Service Branch
PROPOSED OPENING DATE: July 2023

Merger

On May 22, 2023, the Commissioner approved the merger of First Connecticut Credit Union, a Connecticut credit union, with and into Finex Credit Union, a Connecticut credit union, pursuant to Section 36a-468a of the Connecticut General Statutes. The proposed effective date of the merger is June 30, 2023.

CONSUMER CREDIT ACTIVITY

Order Revoking Consumer Collection Agency License

On May 17, 2023, the Commissioner issued an Order Revoking Consumer Collection Agency License (“Order”) in the Matter of: Pallida, LLC (“Respondent”), NMLS # 1310880 Seattle, Washington. The basis of the Order was that the Respondent failed to address outstanding deficiencies for retention of its license, including that Respondent failed to submit the required financial statements, name a qualifying individual and provide a complete chain of indirect ownership with an individual or publicly traded company with 10% or greater ownership for retention of its license. In addition, Respondent failed to cooperate with the Division’s requests for information, in violation of Section 36a-17(e) of the Connecticut General Statutes in effect at such time. The Order revokes Respondent’s license to act as a consumer collection agency in Connecticut.

Order of Summary Suspension and Notice of Intent to Revoke Mortgage Loan Originator License

On May 15, 2023, the Commissioner issued an Order of Summary Suspension, Notice of Intent to Revoke Mortgage Loan Originator License and Notice of Right to Hearing (collectively, “Order and Notice”) in the Matter of: Jeffrey Lenard Moore (“Respondent”), NMLS # 846468. The Order was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that: (1) the revocation of Respondent’s mortgage loan originator license in Montana constitutes sufficient grounds to deny Respondent’s application for a mortgage loan originator license pursuant to Section 36a-489(b)(1)(A) of the Connecticut General Statutes, which is sufficient grounds to revoke Respondent’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes; and (2) Respondent’s failure to update his application on NMLS to disclose the revocation of his mortgage loan originator license in Montana, constitutes a violation of Section 36a-490(d)(3) of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Respondent’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. The Commissioner found that the public safety and welfare imperatively required emergency action to summarily suspend Respondent’s mortgage loan originator license in Connecticut. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order and Notice.

Consent Order

On May 22, 2023, the Commissioner entered into a Consent Order with Sound Mortgage, LLC (NMLS # 71423) (“Sound Mortgage”), Guilford, Connecticut. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that from approximately the second quarter of 2018 through the second quarter of 2022, Sound Mortgage failed to timely file on NMLS its mortgage call reports, and from the years 2019 through 2022, failed to timely file its financial condition reports in violation of Section 36a-534b(c) of the Connecticut General Statutes and the terms of a Consent Order issued September 9, 2014. As part of the Consent Order, Sound Mortgage paid $7,500 as a civil penalty.

Consent Order

On May 15, 2023, the Commissioner entered into a Consent Order with Mutual of Omaha Mortgage, Inc. d/b/a Keller Home Loans d/b/a Mutual of Omaha Mortgage d/b/a Mutual of Omaha Reverse Mortgage d/b/a Retirement Funding Solutions (NMLS # 1025894) (“Mutual of Omaha”), San Diego, California. The Commissioner alleged that Mutual of Omaha failed to file with the Nationwide Multistate Licensing System and Registry a change of the address of its branch office at least thirty (30) calendar days prior to such change and 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, Mutual of Omaha paid $500 as a civil penalty.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Blackstone Wealth Solutions LLC, Paul Brian Kopman (CRD No. 2482456) and Matthew Craig Hults (CRD No. 3196510)

On May 23, 2023, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Matter No. CRF-23-202114-S) with respect to Blackstone Wealth Solutions LLC, a purported precious metals dealer located 1t 13750 West Colonial Drive, Suite 360, Winter Garden, Florida 34787. Also named in the action were Paul Brian Kopman, Chief Executive Officer of the firm, and Matthew Craig Hults, the firm’s President. Blackstone Wealth Solutions LLC is currently inactive.

The action alleged that beginning in 2019, Kopman and Hults convinced an elderly Connecticut investor to entrust the investor’s funds to them for the purpose of investing. Ultimately, without the investor's knowledge or authorization, over $300,000 of the investor's money was transferred from the investor’s securities brokerage account to a business account under the control of Blackstone Wealth Solutions LLC. Kopman purportedly impersonated the investor in facilitating the transfer of funds from the brokerage firm. When the investor later confronted Kopman, Kopman claimed that he had invested the withdrawn sums in silver, but was unable to provide the investor with proof that such investments had, in fact, been made. In addition, Respondents allegedly failed to return the investor’s funds.

The action alleged that the Respondents violated the antifraud provisions in Section 36b-5(a) of the Connecticut Uniform Securities Act; that the Respondents engaged in dishonest or unethical practices in contravention of Section 36b-5(f) of the Act; that Blackstone Wealth Solutions LLC transacted business as an unregistered investment adviser in violation of Section 36b-6(c)(1) of the Act; and that Kopman and Hults violated Section 36b-6(c)(2) of the Act by transacting business as unregistered investment adviser agents.

The Respondents were 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.