Bulletin # 3131 - Week Ending February 23, 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.

CREDIT UNION ACTIVITY 

Conversion

On February 20, 2024 Cornerstone Community Credit Union, a Connecticut credit union with its main office in Stamford, Connecticut, filed an application pursuant to Section 36a-468b of the Connecticut General Statutes to convert into a federal credit union. The proposed target date for this conversion is as of around the third quarter of 2024.

CONSUMER CREDIT DIVISON ACTIVITY

Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Money Transmission License, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On February 13, 2024, the Commissioner issued an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Money Transmission License, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order and Notice”) in the Matter of: Fortress Trust LLC d/b/a Fortress Trust, NMLS # 2318097 (“Respondent”), Las Vegas, Nevada. The Order and Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges in the Order and Notice that: (1) Respondent failed to maintain the minimum tangible net worth required of money transmission licensees, in violation of Sections 36a-600(d) and 36a-604(c) of the Connecticut General Statutes; (2) Respondent failed to file with NMLS an advance change notice for its change in control on October 21, 2023, in violation of Section 36a-598(d)(1) of the Connecticut General Statutes; (3) Respondent failed to file with NMLS a change of its main office at least thirty (30) days prior to such change, in violation of Section 36a-598(d)(2) of the Connecticut General Statutes; (4) Respondent failed to file record of its Summary Suspension in North Carolina on NMLS, in violation of Section 36a-598(e)(3) of the Connecticut General Statutes; (5) Respondent failed to timely update its application on NMLS concerning the changes in its President, Chief Executive Officer, Qualifying Individual and Primary Company Contact, in violation of Section 36a-598(c) of the Connecticut General Statutes; (6) By failing to timely inform the Department of the various management changes and submit the required information to vet its new control persons, Respondent failed to establish, enforce and maintain policies and procedures for supervising employees, agents and office operations that are reasonably designed to achieve compliance with applicable money transmission laws and regulations, in violation of Section 36a-607(c)(10) of the Connecticut General Statutes; and (7) The totality of Respondent’s conduct is sufficient grounds for the Commissioner to deny an application for a money transmission license pursuant to subdivisions (1), (2), and (3) of Section 36a-600(a) of the Connecticut General Statutes and to revoke and refuse to renew Respondent’s license to engage in the business of money transmission in Connecticut. The Commissioner found that the public safety and welfare imperatively required emergency action to summarily suspend Respondent’s money transmission license in Connecticut and to issue a temporary order to cease and desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order and Notice.

Findings of Fact, Conclusions of Law and Order

On February 13, 2024, following an administrative hearing, the Commissioner issued Findings of Fact, Conclusions of Law and Order in the matter of: Lycaste, LLC, NMLS #2068670 (“Lycaste”), Argolica, LLC, NMLS # 1853224 (“Argolica”), Laelia, LLC, NMLS # 1700294 (“Laelia”) and Isanthes, LLC, NMLS #1828100 (“Isanthes”) (“collectively Respondents”), all of Seattle, Washington.

The hearing considered allegations brought by the Commissioner on February 28, 2023, through a Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing issued against Respondents, among others, (“Order and Notice”). In the Order and Notice, the Commissioner alleged that (1) Lycaste acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time; (2) Argolica acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time; (3) Laelia acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time; and (4) Isanthes acted within this state as a consumer collection agency without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time.

The hearing decision concluded that Respondents violated Section 36a-801(a) of the Connecticut General Statutes, and ordered Respondents to cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes. Lycaste was ordered to pay $80,000 as a civil penalty, Argolica was ordered to pay $80,000 as a civil penalty, Laelia was ordered to pay $10,000 as a civil penalty and Isanthes was ordered to pay $30,000 as a civil penalty. 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

True Bullion, LLC and Anthony Allen Anderson

On February 23, 2024, the Banking Commissioner entered a Consent Order (No. CO-24-202323-S) with respect to True Bullion, LLC d/b/a GSI Exchange and Gold Silver International Exchange. The firm has maintained business addresses at 26635 West Agoura Road, Suite 220, Calabasas, California 91302, 3838 Oak Lawn Avenue, Suite 1000, Dallas, Texas 75219 and 4440 PGA Boulevard, Suite 600, Palm Beach Gardens, Florida 33410.  The firm was in the business of selling precious metals. Also named in the Consent Order was Anthony Allen Anderson, managing member of the firm.

The firm had been the subject of a multistate investigation conducted by the North American Securities Administrators Association, Inc. (“NASAA”).

The Consent Order alleged that the Respondents sold precious metals to at least nine known Connecticut residents; rendered advisory services while unregistered in violation of Section 36b-6(c) of the Connecticut Uniform Securities Act and violated Section 36b-5(a) of the Act by making false or misleading statements and omissions to prospective customers. The Consent Order directed the respondents to refrain from violative conduct and to extend a refund offer to eligible Connecticut customers who bought precious metals prior to July 22, 2021. A fine was not imposed since the settlement was originally intended to be a multi-state settlement that did not call for a fine, and since the goal was to expeditiously achieve the maximum percent refund for eligible Connecticut Investors.

      Dated:  Tuesday, February 27, 2024

      Jorge L. Perez
      Banking Commissioner