Bulletin 2681 - July 10, 2015

State of Connecticut Department of Banking

The Department of Banking News Bulletin

Bulletin # 2681 - Week Ending July 10, 2015

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 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

07/06/15

Simsbury Bank & Trust

Company, Simsbury

1232 Farmington Avenue

West Hartford, CT  06107

Filed

07/06/15

Farmington Bank

Farmington

61 North Main Street

East Longmeadow, MA  01028

Notice of Intent

Not to Disapprove

07/06/15

Dime Bank

Norwich

139 South Main Street

Colchester, CT  06415

Notice of Intent

Not to Disapprove

07/31/15

Simsbury Bank & Trust

Company, Simsbury

250 Albany Turnpike

Canton, CT 06019

Closing       *

Date

09/30/15

Farmington Bank

Farmington

500 West Farms Mall

Suite B103

Farmington, CT  06032

Closing

Date

09/30/15

Farmington Bank

Farmington

138 Memorial Avenue

West Springfield, MA  01089

Closing        *

Date

*Loan Production Office

CREDIT UNION ACTIVITY

Branch Activity

Date

Credit Union

Location

Activity

08/29/15

Nutmeg State Financial

Credit Union, Rocky Hill

137 Prospect Hill Road

East Windsor, CT  06088

Closing

Date

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On June 30, 2015, the Commissioner entered into a Consent Order with James D. Graham d/b/a CFLA Agent (“James D. Graham”).  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that James D. Graham engaged and offered to engage in debt negotiation in this state without the required license, in violation of Section 36a 671(b) of the Connecticut General Statutes.  As part of the Consent Order, James D. Graham was ordered to repay fees in 10 installments to an identified Connecticut resident until a total of $1,500 has been paid.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Order to Cease and Desist and Notice of Intent to Fine Issued

On July 10, 2015, the Banking Commissioner issued an Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-15-8113-S) against Southridge Real Estate Partners, Limited Partnership (the "Fund"), a private investment fund focusing on real estate; Ridgebury Partners, LLC , general partner of the Fund; Douglas R. Esposito ; and Stephen Murray Hicks .  The Fund maintains or has maintained an office in Danbury, Connecticut.  The action alleged that respondents Esposito and Hicks, through one or more entities, exerted indirect control over the Fund's general partner.

The action alleged that 1) the Fund violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered limited partnership interests; 2) the Fund employed Esposito and Hicks as unregistered agents of issuer in contravention of Section 36b-6(b) of the Act; 3) Esposito and Hicks transacted business as unregistered agents of issuer in violation of Section 36b-6(a) of the Act; 4) the Fund's general partner transacted business as an unregistered investment adviser in violation of Section 36b-6(c)(1) of the Act and engaged Esposito and Hicks as unregistered investment adviser agents; and 5) Esposito and Hicks, in turn, violated Section 36b-6(c)(2) of the Act by transacting business as unregistered investment adviser agents.

Each of the respondents was afforded an opportunity to request a hearing on the allegations in the Order to Cease and Desist and Notice of Intent to Fine.

Dated:  Tuesday, July 14, 2015

Jorge L. Perez Banking Commissioner