Bulletin 2725 - May 13, 2016

State of Connecticut Department of Banking

The Department of Banking News Bulletin

Bulletin # 2725 - Week Ending May 13, 2016

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, address how the establishment of the branch will be consistent with safe and sound banking practices and promote the public convenience and advantage.  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-Branch Type

05/10/16

First County Bank

Stamford

Academy of Information

Technology & Engineering

411 High Ridge Road

Stamford, CT  06905

Opening Date - Special

Needs Limited Branch

05/10/16

Customers Bank

Wyomissing, PA

115 Munson Street

New Haven, CT  06511

Application Withdrawn -

Loan Production Office

05/12/16

Simsbury Bank & Trust Co.

Simsbury

175 Capital Boulevard

4th Floor

Rocky Hill, CT  06067

Application Approved -

Loan Production Office

05/23/16

Dime Bank

Norwich

139 South Main Street

Colchester, CT  06415

Opening Date -

Full Service Branch

05/31/16

Simsbury Bank & Trust Co.

Simsbury

20 Cabot Boulevard

Suite 300, Office 21

Mansfield, MA  02048

Closing Date -

Loan Production Office

Proposed Findings of Fact, Conclusions of Law and Notice of Right to Hearing

On May 6, 2016, the Commissioner issued a Proposed Findings of Fact, Proposed Conclusions of Law and Notice of Right to Hearing (“Notice”) in the Matter of: Great Plains Lending, LLC , John R. Shotton , and Clear Creek Lending (collectively, “Respondents”). The Notice was issued in response to the Memorandum of Decision issued by Judge Carl J. Schuman of the Superior Court, Judicial District of New Britain on November 23, 2015, and as part of proceedings related to Orders issued by the Commissioner against Respondents on October 24, 2014 (see Bulletin # 2645) and January 6, 2015 (see Bulletin #2655) alleging various violations of Connecticut’s small loan laws. Respondents have been afforded an opportunity to request a hearing on the matters set forth in the Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Permanent Bar Issued

On May 13, 2016, the Banking Commissioner entered a Consent Order (No. CO-16-8275-S) with respect to Paul Anthony Steffany , a former broker-dealer agent of Raymond James & Associates, Inc.  The Consent Order alleged that grounds existed for initiating administrative proceedings under Section 36b-15(a) of the Connecticut Uniform Securities based on an October 8, 2015 bar (No. 2014041650301) imposed by the Financial Industry Regulatory Authority against Steffany.  The FINRA action had alleged that Steffany was trustee of a testamentary trust for an estate that was a customer of Raymond James; that from January 2007 through April 2014, Steffany violated NASD Rule 2330(a), FINRA Rule 2150(a), NASD Rule 2110, and FINRA Rule 2010 by converting at least $112,742 of estate funds purportedly as compensation for Steffany’s services as trustee; that Steffany converted the funds by transferring monies from the estate’s brokerage account at Raymond James to an estate bank account held outside of the firm, having the bank account statements sent to his home to conceal his conduct from Raymond James and writing checks from the estate account to cover his personal expenses; and that from August 2007 through April 2014, Steffany violated NASD Rule 2110 and FINRA Rule 2010 by forging the signature of a co-executor on at least twelve checks made payable to the estate and later used certain of these funds for his personal use.  According to the FINRA action, Steffany ultimately refunded approximately $112,742 to the estate and resigned as trustee.

The Consent Order permanently barred Steffany from 1) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; 2) soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut; 3) engaging in any activity that would require Steffany to obtain a license or register under Chapters 668 or 669 of the Connecticut General Statutes governing Nondepository Financial Institutions and Regulated Activities, respectively, and 4) serving as a control person, qualified individual or branch manager of any entity regulated by the Commissioner under Chapter 668 of the Connecticut General Statutes.

Dated: Tuesday, May 17, 2016

Jorge L. Perez Banking Commissioner