Bulletin 2631 - July 25, 2014

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2631 -
Week Ending July 25, 2014

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

07/25/14

United Bank

Rockville

268 Hazard Avenue

Enfield, CT 06082

Into

231 Hazard Avenue

Enfield, CT 06082

No objection

to consolidation

07/25/14

United Bank

Rockville

112 Mountin Road

Suffield, CT 06078

Into

275 Mountain Road

Suffield, CT 06078

No objection

to consolidation

07/25/14

Bank of England

England, AR

*1224 Manin Street

Branford, CT 06405

Approved

*Loan Production Office

Temporary Certificate of Authority Issued

On July 25, 2014, pursuant to Section 36a-70 of the Connecticut General Statutes, a temporary certificate of authority was issued to the organizers of Voya Institutional Trust Company for the establishment of a Connecticut trust bank in Windsor, Connecticut.

Interstate De Novo Branch

On July 25, 2014, pursuant to Section 36a-412(a)(2) of the Connecticut General Statutes and Section 36a-145(b)(1) of the 2014 Supplement to the General Statutes, Signature Bank , a New York chartered bank with its main office in New York, New York, was granted approval to establish a de novo branch at 75 Holly Hill Lane, Greenwich, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

New Jersey Man Fined $5,000 For Unregistered Promissory Note Sales

On July 25, 2014, the Banking Commissioner entered a Consent Order (No. CO-14-7969-S) with respect to George Jay Prussin of Tenafly, New Jersey. The Consent Order alleged that from December 2004 to approximately January 2012, George Prussin offered and sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act. The securities took the form of promissory notes. In furtherance of his desire to resolve the matter informally, George Prussin provided the department with evidence that he had extended a $1,485,000 rescission offer to those Connecticut investors whose unmatured notes were still outstanding and remained unpaid. The Consent Order fined George Prussin $5,000 and directed him to cease and desist from regulatory violations.

CONSUMER CREDIT DIVISION ACTIVITY

Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License and Notice of Intent to Issue Order to Cease and Desist

On July 9, 2014, the Commissioner issued a Notice of Automatic Suspension, 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 and Notice of Right to Hearing (“Notice”) in the Matter of:
Central Credit Services, Inc.
(“Respondent”), St. Charles, Missouri. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 500 Fountain Lakes Boulevard, Suite 130, St. Charles, Missouri, in violation of Section 36a-802(a) of the 2014 Supplement to the General Statutes. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

On July 9, 2014, the Commissioner issued a Notice of Automatic Suspension, 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 and Notice of Right to Hearing (“Notice”) in the Matter of:
Emory Enterprises, LLC d/b/a National Action Financial Services (“Respondent”), Williamsville, New York. The Notice was the result of an investigation by the Consumer Credit Division. The Notice alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 125 Lawrence Bell Drive, Williamsville, New York, in violation of Section 36a-802(a) of the 2014 Supplement to the General Statutes. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Revoke or Refuse to Renew Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On July 17, 2014, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Revoke or Refuse to Renew Mortgage Correspondent Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:
Network Capital Funding Corporation
(NMLS # 11712) (“Respondent”), Irvine, California. The Notice was the result of an examination by the Consumer Credit Division. The Commissioner alleges that Respondent: failed to pay certain loan proceeds, and failed to timely pay other loan proceeds, in violation of Section 36a-758 of the Connecticut General Statutes; accrued interest charges prior to payment of loan proceeds, in violation of Section 36a-498e(2) of the Connecticut General Statutes; engaged the services of mortgage loan originators who were not licensed, in violation of Section 36a-486(b)(1) of the Connecticut General Statutes; failed to disclose the identity of mortgage loan originators, in violation of subdivisions (2) and (10) of Section 36a-498e of the Connecticut General Statutes, and in violation of Sections 36a-53a and 36a-53b of the Connecticut General Statutes; altered loan documents, in violation of Section 36a-498e(2) of the Connecticut General Statutes; failed to timely compile reports as directed by the Commissioner, in violation of Section 36a-498f(b) of the Connecticut General Statutes, and failed to otherwise cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. The Commissioner also found that the public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the Order to Make Restitution and all of the allegations set forth in the Notice.

Consent Order

On July 17, 2014, the Commissioner entered into a Consent Order with US Mortgage Corporation d/b/a US Mortgage Corporation NE (NMLS # 3901) (“US Mortgage Corporation”), Melville, New York. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on May 9, 2014, 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 against US Mortgage Corporation (“Notice”). The Commissioner alleged that US Mortgage Corporation 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, US Mortgage Corporation paid $2,500 as a civil penalty.

On July 25, 2014, the Commissioner entered into a Consent Order with JD Financial Services, Inc. d/b/a JS Mechanic Services (NMLS # 192610) (“JS Mechanic Services”), Stuart, Florida. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on May 9, 2014, 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 against JS Mechanic Services (“Notice”). The Commissioner alleged that JS Mechanic Services 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, JS Mechanic Services requested surrender of its mortgage broker license.

Dated: Tuesday, July 29, 2014

Howard F. Pitkin

Banking Commissioner