Bulletin 2587 - September 20, 2013

State of Connecticut Department of Banking

The Department of Banking News Bulletin

Bulletin # 2587 - Week Ending September 20, 2013

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 Howard F. Pitkin, Banking Commissioner, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail . Written comments will be considered only if they are received within ten days from the date of this bulletin.

STATE BANK ACTIVITY

Branch Activity

Section 36a-145 of the Connecticut General Statutes requires certain applications for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided.  Plans are submitted when such applications are filed and are available for public inspection and comment at this Department for a period of 30 days.  Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180 .

Date

Bank

Location

Activity

08/19/13

UPS Capital Buiness Credit

Windsor

• Officina de Representacion

en Monterrey

Av. 444 Ricardo Margain

Torre Norte. Of. 728 Col. Valle de Campestre San Pedro de Garza Garcia

N.L. CP 66265 Monterrey, Mexico

Closing

Date

09/16/13

The Washington Trust Company

Westerly, R.I.

* Soundview Plaza, Suite 700R

1266 East Main Street Stamford, CT  06902

Filed

09/18/13

Bankwell Bank

New Canaan

FROM:  2150 Post Road

Fairfield, CT  06824

TO:      One Sasco Hill Road Fairfield, CT  06824

Filed To Relocate

09/18/13

Bankwell Bank

New Canaan

FROM:  2248 Black Road Tnpk Fairfield, CT  06824

TO:      2220 Black Rock Tnpk Fairfield, CT  06824

Filed To

Relocate

12/31/13

UPS Capital Business Credit

Windsor

* Prime Capital Business Credit LLC Cerrito 228 Piso 7 Date C1010AAS Buenos Aires Argentina

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* United Partners Comercial

e Servicos, Ltda. Rua Pedroso Alvarenga

1046-cj. 124 04531-004 Sao Paulo, SP, Brazil

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* Asesorias Andes Capital Ltda

Windsor Catedral 1009, Piso 18 Edificio Plaza De Armas Santiagom, Chile

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* Brucke S.A.S. Windsor Calle 122 # 18C Columbia

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* Industrial Development Services Pvt. Limited M-1 Kanchenjunga 18 Barakhamba Road New Delhi 110 001 India

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* World Trade Center Montecito 38 Piso 30 Oficina 34 Col. Napoles C.P. 03810 Mexico

Closing

Date

12/31/13

UPS Capital Business Credit

Winsor

* Logistics, Business &

Consulting,SA Calle Los Tuncanes 198 San Isidro Lima 27, Peru

Closing

Date

12/31/13

UPS Capital Business Credit

Windsor

* Worldwide Business

Development, Inc. Buyukdere Cad. No. 24 34 330 1 Levent Istanbul, Turkey

Closing

Date

*Loan Production Office

CONSUMER CREDIT DIVISION ACTIVITY

Check Cashing Service License Activity

Date

Check Casher

Location

Activity

09/16/13

TCC Multikargo LLC

370 West Main Street Stamford, CT  06902

Filed

09/17/13

Navaid, Muhammad M.

1242 Main Street Willimantic, CT  06226

Filed

Consent Order

On August 28, 2013, the Commissioner entered into a Consent Order with Summit Funding, Inc d/b/a Summit Funding Inc. Your Mortgage Professionals (NMLS # 84943) (“Summit Funding”), Flushing, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on July 2, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing.  The Commissioner alleged that Summit Funding failed to file certain annual information required by mortgage call reports, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Summit Funding paid $2,500 as a civil penalty.

Order Revoking Money Transmission License, Order to Cease and Desist and Order Imposing Civil Penalty

On August 28, 2013, the Commissioner issued an Order Revoking Money Transmission License, Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of: Global Money Remittance, Inc. (“Global”) and InterTransfers, Inc. d/b/a InterTransfers (“InterTransfers”) (collectively, “Respondents”), both of Miami, Florida.  The basis of the Order was that:  Global failed to transmit money or monetary value received from purchasers constituting an unsafe or unsound practice within the meaning of Section 36a-596(16) of the Connecticut General Statutes and failed to notify the Commissioner no later than one business day after the commencement of a regulatory action by a governmental agency, in violation of Section 36a-598(e) of the Connecticut General Statutes; InterTransfers failed to notify the Commissioner no later than one business day after the commencement of a regulatory action by a governmental agency, in violation of Section 36a-598(e) of the Connecticut General Statutes; and each Respondent failed to demonstrate that its business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, and in a manner commanding the confidence and trust of the community.  The license of each Respondent to engage in the business of money transmission in Connecticut was revoked.  Global was ordered to cease and desist from engaging in an unsafe or unsound practice and violating Section 36a-598(e) of the Connecticut General Statutes and InterTransfers was ordered to cease and desist from violating Section 36a-598(e) of the Connecticut General Statutes.  In addition, each Respondent was ordered to pay a civil penalty in the amount of $100,000.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Cease and Desist from Regulatory Violations Issued; Notice of Intent to Fine Issued

On September 16, 2013, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-13-7839-S) against multiple respondents, including Christian Meissenn of Orlando, Florida.  Meissenn, who was also known as Christian Nigohossian , Christian Mason , Christopher Mason and Christian Levon Nigohossian , also resided in Suffield, Connecticut.  From 2001 to 2003, Meissenn headed GIT Securities Corporation (CRD # 103735), a brokerage firm that was controlled by respondent Rescon Technology Corporation (“Rescon”).  Also named in the action were 1) Gabriel Abensur of Gibraltar; 2) John Morgan of New York, New York; 3) Speed of Thought Trading Corporation (“Speed”) of Philadelphia, Pennsylvania; 4) Rescon , which shared the same address as Speed; 5) Northeast Development Corporation (“Northeast”) of Philadelphia, Pennsylvania and Windsor Locks, Connecticut; 6) Hybrid Automotive Technologies, Inc. (“Hybrid”) of Enfield, Connecticut; 7) Ironclad Investments, LLC (“Ironclad”) of Bloomfield, Connecticut, an entity which held itself out as a high performance arbitraged FOREX fund; 8) Damian Seth Delgado of Orlando, Florida and Suffield, Connecticut, who had previously been sentenced in New Jersey to a term of imprisonment for securities fraud; and 9) The African Diamond Company, Inc. (now known as Coal Corporation ) (“African”) of Herndon, Virginia.  Although African held itself out as having a business address in West Hartford, Connecticut, the action alleged that that address was actually a mail drop established by respondent Abensur.

At various times, Meissenn was allegedly the president of African, Speed, Rescon and Northeast.  Respondent Meissenn also formed Hybrid and, together with respondent Delgado, co-managed Ironclad.  The action also alleged that Meissenn and/or Abensur had a financial interest or served as an officer or director of Speed, Rescon, Northeast, African, Ironclad and Hybrid (the “Meissenn/Abensur Entities”), and that the securities issued by the Meissenn/Abensur Entities were low priced, thinly traded securities (penny stocks).

According to the action, over a span of eight years, commencing in 2001, respondents, with the exception of Delgado, sold unregistered securities of the Meissenn/Abensur Entities in or from Connecticut in violation of Section 36b-16 of the Connecticut Uniform Securities Act, and that respondent Morgan transacted business as an unregistered agent of issuer.  The action further alleged that Meissenn and Abensur violated the antifraud provisions by inducing investors who had previously bought securities issued by one or more of the Meissenn/Abensur entities to exchange their shares at a premium for different Meissenn/Abensur Entity securities while promising profitability but not disclosing critical information on the entity, the involvement of Meissenn and Abensur in the entity’s operations and the impact of dilution.  The action also alleged that Meissenn violated Section 36b-23 of the Act by misrepresenting in sworn testimony before Division investigators that Meissenn had no relationship with African.

The action further alleged that Meissenn and Abensur, with the material assistance of Delgado, engaged in a second fraudulent scheme which involved defrauding investors of Terra Energy Resources, Ltd. (“Terra”), a Delaware corporation quoted on OTC Link LLC.  Specifically, the action alleged that Abensur formed Sunrise Group Investments Corp. in Gibraltar, Bull Investments Limited in Gibraltar, Monrosa Investments Ltd. in the Republic of Seychelles, Romestar International Inc. in Gibraltar and Raven Investments PLC in Seychelles, then opened U.S. brokerage accounts for these companies at various broker-dealers, providing the companies’ address as 2842 Main Street, Suite 185, Glastonbury, Connecticut.  Through the companies, Abensur then bought and sold Terra securities multiple times on the same day in the companies’ various brokerage accounts, which created the false appearance of inflated and exaggerated trading activity in the shares of Terra.  Abensur deposited the sales proceeds into Ironclad’s bank account, which was controlled by Meissenn, and directed Meissenn and Delgado to write checks from that account for nonbusiness expenses.  The action also alleged that Abensur and/or Meissenn further perpetuated a scheme to defraud investors by circulating, from the Glastonbury address, misleading literature regarding Terra to investors in Connecticut and other states in an effort to create interest in Terra.

The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist and Notice of Intent to Fine.

Consent Order Entered

On September 19, 2013, the Banking Commissioner entered a Consent Order (No. CO-13-7936-S) with respect to Hollywood Next Holdings LLC of Waterford, Connecticut and A. Searle Field , director and control person of the company.  The Consent Order alleged that the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling securities that were not registered nor the subject of a filed exemption claim.  Those securities consisted of shares and/or units of Hollywood Next Holdings LLC as well as securities issued by United Atlantic Film Fund No. 1, LLC, United Atlantic Film Equity Fund No. 2, LLC, United Atlantic Film Equity Fund No. 3, LLC, United Atlantic Film Equity Fund No. 4, LLC and United Atlantic Film Equity Fund No. 5, LLC.  Ultimately, on August 29, 2013, respondent Field made exemptive filings for the United Atlantic funds.  The Consent Order also alleged that the respondents violated the antifraud provisions in Section 36b-4(a)(2) of the Act in connection with sales of the securities.  In resolution of the matter, the respondents agreed to cease and desist from regulatory violations.  The Consent Order also directed respondent Field to pay a $50,000 fine no later than November 1, 2013.

Dated:  Tuesday, September 24, 2013

Howard F. Pitkin

Banking Commissioner