The Department of Banking News Bulletin
Bulletin # 3178 - Week Ending January 17, 2025
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 directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
BANK ACTIVITY
Merger
On January 18, 2025, GSB Mutual Holding Company, a Connecticut bank holding company, and its wholly-owned subsidiary, The Guilford Savings Bank (Guilford, CT) filed an acquisition statement pursuant to Sections 36a-184 and 36a-185 of the Connecticut General Statutes for the acquisition of ECSB Financial Corporation, a Connecticut mutual holding company being formed for Eastern Connecticut Savings Bank (Norwich, CT), and indirectly, the acquisition of Eastern Connecticut Savings Bank. The acquisition of Eastern Connecticut Savings Bank will take place through the merger of Eastern Connecticut Savings Bank with and into The Guilford Savings Bank in accordance with Section 36a-125 of the Connecticut General Statutes. The proposed target date is for the second quarter of 2025.
CONSUMER CREDIT DIVISION ACTIVITY
Cherry Technologies Inc. d/b/a Cherry
On January 17, 2025, the Commissioner entered into a Consent Order with Cherry Technologies Inc. d/b/a Cherry (NMLS # 2061234) (“Cherry”), San Francisco, California. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that between October 2, 2023 and April 24, 2024, Cherry purchased, acquired, or received assignments of small loans made to Connecticut borrowers without first obtaining a small loan license, in violation of Section 36a 556 of the Connecticut General Statutes. As part of the Consent Order, Cherry paid $10,000 as a civil penalty and $400 as back licensing fees.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Russell D. Davis and IRWT, LLC d/b/a In Russ We Trust
On January 13, 2025, the Banking Commissioner issued a Consent Order (No. CO-24-202412-S) with respect to IRWT, LLC d/b/a In Russ We Trust, a Connecticut limited liability company located at 24 Anderson Avenue, Milford, Connecticut 06460, and Russell D. Davis, control person of the firm. IRWT, LLC held itself out as a crypto-consultancy company focused on profit projections. More specifically, Respondents sold subscriptions to a monthly online newsletter advising subscribers when to buy and sell certain cryptocurrencies. The Consent Order had been preceded by a July 22, 2024 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (No. CF-24-202412-S) alleging that , in connection with a Securities and Business Investments Division investigation of the Respondents, Respondent Davis wilfully violated Section 36b-23 of the Connecticut Uniform Securities Act by making a materially misleading statement to the Commissioner regarding the Respondents’ financial holdings.
In resolution of the matter, the Respondents were directed to pay a $10,000 fine to the department and to cease and desist from regulatory violations.
Anchored Tiny Homes Franchising LLC
On January 17, 2025, the Banking Commissioner issued a Notice of Intent to Issue Stop Order Denying Effectiveness to Business Opportunity Registration, an Order to Cease and Desist and a Notice of Right to Hearing (No. CS-24-202453-B) against Anchored Tiny Homes Franchising LLC of 4401 Hazel Avenue, Suite 225, Fair Oaks, California 95628. The firm is in the business of offering franchises featuring the design, sale and installation of customized tiny home accessory dwelling units, affordable homes, and related services and products.
Anchored Tiny Homes Franchising LLC had previously registered its business opportunity under the Connecticut Business Opportunity Investment Act. However, that registration expired on April 30, 2024 and was slated for renewal. In reviewing the renewal application, Division staff noted that the firm's financial statement reflected a negative balance which was not corrected despite several Division inquiries.
The action alleged that the firm violated Section 36b-62(c)(2) of the Act by failing to make adequate financial arrangements to fulfill its contractual obligations. The action also alleged that the firm violated Sections 36b-62(a) and 36b-67(1) of the Act by failing to observe the requirements for renewing its business opportunity registration.
Anchored Tiny Homes Franchising LLC was provided with an opportunity to request a hearing on the allegations in the action.
Dated: Tuesday, January 21, 2025
Jorge L. Perez
Banking Commissioner