Bulletin # 3126 - Week Ending January 19, 2024

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 

Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender Licenses, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing

On January 8, 2024, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender Licenses, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Order and Notice”) in the Matter of: Guaranty Home Mortgage Corporation (NMLS # 135462) (“Respondent”), Nashville, Tennessee and Cumming, Georgia. The Commissioner alleges in the Order and Notice that the Respondent’s failure to maintain a surety bond that runs concurrently with the period of its mortgage lender licenses constitutes sufficient grounds for the Commissioner to deny an application for such license under Section 36a-489(a) of the Connecticut General Statutes and constitutes sufficient grounds for the Commissioner to revoke Respondent’s licenses to engage in the business of a mortgage lender in Connecticut from its main office and branch office pursuant to Sections 36a-492(c), 36a-494(a)(1) and 36a-494(a)(1)(C)of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Sections 36a 494(b) and 36a-52(a) of the Connecticut General Statutes. The Commissioner found that the public welfare required immediate action to issue a Temporary Order to Cease and Desist against Respondent. As a result of Respondent’s failure to maintain a surety bond, Respondent’s mortgage lender licenses in Connecticut were automatically suspended effective September 30, 2023, and such suspension remains in effect pending proceedings for revocation. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Order and Notice. 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY 

Archer Micro Cap Value Fund, Limited Partnership and Artemis Capital Group L.L.C.

On January 19, 2024, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (No. CF-24-10824-S) against Archer Micro Cap Value Fund, a private investment fund located at 210 South Main Street, 1st Floor, Middletown. Connecticut. Also named in the action was Artemis Capital Group L.L.C., general partner of Archer Micro Cap Value Fund. 

The action alleged that the respondents sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act, and that, between May 2015 and January 2017, Artemis Capital Group L.L.C. transacted business as an unregistered investment adviser by rendering investment advisory services to the Archer Micro Cap Value Fund.

The respondents were afforded an opportunity to request a hearing on the allegations.