Bulletin # 3140 - Week Ending April 26, 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.

BANK ACTIVITY

On April 22, 2024, Berkshire Bank, a Massachusetts-chartered bank, filed notice pursuant to Connecticut General Statutes Sections 36a-412 and 36a-145(f) of the closing of three branches as follows:

• 596 Hartford Pike in Dayville, CT
• 114 Woodland Street, St. Francis Hospital in Hartford, CT 
• 159 Merrow Road in Tolland, CT 

The proposed closing date is June 28, 2024. Any comments received by the Commissioner will be forwarded to their State Regulator.

On April 11, 2024, Fieldpoint Private Bank & Trust, a Connecticut-chartered bank, filed an updated notice that it will not close its branch located at 300 Park Avenue Suite 2502 in New York, NY. This is in reference to bulletin #3123 in which the entity had originally filed a notice of intent to close the branch.

CREDIT UNION ACTIVITY

On April 26, 2024, SoundView Financial Credit Union, Bethel, Connecticut, a Connecticut credit union, filed a request for approval to amend its bylaws pursuant to Section 36a-437a(h)(3) of the Connecticut General Statutes to change its name to Albright Credit Union.

CONSUMER CREDIT 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 April 24, 2024, the Commissioner issued an 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, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order and Notice”) in the Matter of: BAM Trading Services Inc. d/b/a Binance.US NMLS # 1906829 (“Respondent”), Miami, Florida. The Order and Notice was the result of examination and investigation by the Consumer Credit Division. The Commissioner alleges in the Order and Notice that: (1) Respondent failed to maintain the permissible investments required of money transmission licensees, in violation of Sections 36a-600(a)(1) and 36a-603(a) of the Connecticut General Statutes; (2) Respondent or its affiliate’s multiple federal plea agreements and admissions of wrongdoing, is conduct that is likely to otherwise materially prejudice the interests of Connecticut consumers, which constitutes an unsafe or unsound practice within the meaning of Section 36a-608(a) of the Connecticut General Statutes; (3) Respondent failed to file with NMLS not later than one business day of the multiple federal plea agreements and admissions of wrongdoing, in violation of Section 36a-598(e)(6) of the Connecticut General Statutes; (4) Changpeng Zhao’s (“CZ”) convictions to felony charges while acting as a control person of Respondent per Section 36a-596(4) of the Connecticut General Statutes, would be sufficient grounds for the Commissioner to deny an application for a money transmission license pursuant to Section 36a 600(b)(2) of the Connecticut General Statutes and constitutes an unsafe or unsound practice within the meaning of Section 36a 608(a) of the Connecticut General Statutes; (5) CZ’s admission to wilfully violating the BSA by causing Respondent to have an ineffective anti-money laundering program, constitutes a violation of Section 36a-607(c)(4) of the Connecticut General Statutes; and (6) 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), (3) and (4) 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 license to engage in the business of money transmission 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.

Consent Order

On April 25, 2024, the Commissioner entered into a Consent Order with Sigue Corporation (NMLS # 915912) (“Sigue”), Sylmar, California. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that from at least January 1, 2024 to the present, Sigue: (1) failed to maintain permissible investments having a value at least equal to the aggregate amount of its outstanding money transmissions in this state, in violation of Section 36a-603(a) of the Connecticut General Statutes; (2) failed to maintain minimum tangible net worth of Five Hundred Thousand Dollars ($500,000), in violation of Section 36a-604(c) of the Connecticut General Statutes; (3) has engaged, or is likely to engage, in unsafe or unsound practices as defined in Section 36a-608(a) of the Connecticut General Statutes by being unable to remit monies received for transmission on behalf of approximately 70 Connecticut purchasers, as that term is defined in Section 36a-596(17) of the Connecticut General Statutes; and (4) failed to demonstrate that its financial condition is sound and its business will be able to continue to be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of sections 36a-595 to 36a-612, inclusive, of the Connecticut General Statutes, and in a manner commanding the confidence and trust of the community, as required by subdivisions (1) and (2) of Section 36a-600(a) of the Connecticut General Statutes. The Consent Order requires, among other items, that Sigue pay $300,000 as a civil penalty and Mr. de la Viña, Chief Executive Officer of Sigue, not, directly or indirectly, act as a director, manager, owner, control person or qualified individual of any entity engaged in money transmission activity in Connecticut until such time the Commissioner determines he demonstrates the requisite character to do so.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Arcview Capital, LLC (CRD No. 306029)

On April 24, 2024, the Banking Commissioner issued a Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Right to Hearing (No. NRC-24-20248-S) against Arcview Capital, LLC, a Connecticut-registered broker-dealer located at 159 20th Street, Suite 1B-17, Brooklyn, New York 11232.  The action alleged that the Respondent violated Section 36b-31-6a(a) of the Regulations under the Connecticut Uniform Securities Act by failing to maintain a broker-dealer agent registration. The action further alleged that the Respondent failed to cure the problem following several requests from the Division.

The Respondent was afforded an opportunity to request a hearing on the allegations in the Notice.

Horang Securities, LLC (CRD No. 6004)

On April 24, 2024, the Banking Commissioner issued a Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Right to Hearing (No. NRC-24-20249-S) against Horang Securities, LLC, a Connecticut-registered broker-dealer having its principal office at 27 W 72nd Street, New York, New York 10023. The action alleged that the Respondent failed to maintain a broker-dealer agent registration in violation of Section 36b-31-6a(a) of the Regulations under the Connecticut Uniform Securities Act. The action further alleged that the Respondent was not responsive to the Division’s requests that the problem be remedied.

The Respondent was afforded an opportunity to request a hearing on the allegations in the Notice.

Phillips & Company Securities Inc. (CRD No. 35800)

On April 24, 2024, the Banking Commissioner issued a Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Right to Hearing (No. NRC-24-202410-S) against Phillips & Company Securities Inc., a Connecticut-registered broker-dealer located at 521 SW 11th, Suite 200, Portland, Oregon 97205.

The action alleged that the Respondent violated Section 36b-31-6a(a) of the Regulations under the Connecticut Uniform Securities Act by failing to maintain a broker-dealer agent registration. The action further alleged that the Respondent failed to remedy the situation following several communications from the Division.

The Respondent was provided with an opportunity to request a hearing on the allegations in the Notice.

Radius Securities, LLC (CRD No. 286256)

On April 24, 2024, the Banking Commissioner issued a Notice of Intent to Revoke Registration as a Broker-dealer and Notice of Right to Hearing (No. NRC-24-202411-S) against Radius Securities, LLC, a Connecticut-registered broker-dealer located at 42 Broadway, Suite 12-129, New York, New York.

The action alleged that the Respondent violated Section 36b-31-6a(a) of the Regulations under the Connecticut Uniform Securities Act by failing to maintain any Connecticut-registered agents. The action further alleged that the Respondent failed on several occasions to address the issue once notified by the Division.

The Respondent was afforded an opportunity to request a hearing on the matters alleged in the Notice.

      Dated:  Tuesday, April 30, 2024

      Jorge L. Perez
      Banking Commissioner