Bulletin 2815 - February 2, 2018

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2815 - Week Ending February 2, 2018

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 business days from the date of this bulletin.

STATE BANK ACTIVITY

Branch Activity

Section 361-145 of the Connecticut General Statutes requires certain applications for a branch, of 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:
January 25, 2018

BANK:
Salisbury Bank and Trust Company, Lakeville

LOCATION:
FROM: 1004 Main Street, Fishkill, NY 12524
TO: 701 Route 9, Fishkill, NY 12524

ACTIVITY-BRANCH TYPE:
Amended from Relocation to Consolidation - Full Service

DATE:
February 3, 2018

BANK:
Savings Bank of Danbury, Danbury

LOCATION:
2084 North Main Street, Waterbury, CT 06704

ACTIVITY-BRANCH TYPE:
Opening Date - Full Service Branch

CREDIT UNION ACTIVITY

DATE:
February 12 2018

CREDIT UNION:
Sikorsky Financial Credit Union, Inc., Stratford

LOCATION:
945 White Plains Road, Trumbull, CT 06611

ACTIVITY-BRANCH TYPE:
Opening Date - Full Service Branch

Merger

On February 1, 2018,
Connecticut Community Credit Union, Inc.
, Pawcatuck, Connecticut, a Connecticut credit union, and CorePlus Federal Credit Union, a federally chartered credit union, filed an application for the merger of Connecticut Community Credit Union, Inc., with and into CorePlus Federal Credit Union pursuant to Section 36a-468a of the Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

CE Capital Limited Fined $100,000

On January 31, 2018, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-17-8212-S) against CE Capital Limited , now or formerly of 555 West Country Club Lane, C354, Escondido, California 92026 and Level 19, Two International Finance Centre, 8 Finance Street, Central Hong Kong. The action had been preceded by a December 1, 2017 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleging that CE Capital Limited and co-respondents Arthur Connolly, Trevor M. Allen, Sr. and Troy Rejda offered and sold unregistered securities in the form of participation agreements in or from Connecticut. Under the terms of one such participation agreement, an investor's $50,000 outlay would result in a "Profit Participation" of $450,000 within 31 days as well as the guaranteed return of the investor's initial $50,000. The investor's monies were not returned nor did he receive the $450,000 "Profit Participation." The action had also alleged that the respondents violated the antifraud provisions in Section 36b-4 of the Connecticut Uniform Securities Act by failing to disclose, among other things, how a $50,000 investment could yield an additional return of $450,000 in 31 days or less; financial and background information on CE Capital Limited and its principals; risk factors relating to the investment; and information on how the investment proceeds would be applied. In addition, the action had alleged that CE Capital Limited had violated Section 36b-6 of the Act by employing Connolly, Allen and Rejda as unregistered agents of issuer.

Since CE Capital Limited failed to request a hearing on the Order to Cease and Desist and Order to Make Restitution, the Order to Cease and Desist and Order to Make Restitution became permanent as to it on January 3, 2018.

Likewise, CE Capital Limited failed to request a hearing on the Notice of Intent to Fine. Therefore the January 31, 2018 Order Imposing Fine was entered by default. Finding that CE Capital Limited violated Sections 36b-16, 36b-4(a) and 36b-6(b) of the Act, the Commissioner fined CE Capital Limited $100,000, with payment due within 45 days.

Arthur Connolly Fined $100,000

On January 31, 2018, the Banking Commissioner entered an Order Imposing Fine (Docket No. CRF-17-8212-S) against Arthur Connolly of Kent, Connecticut. Connolly was the Risk Management Officer of CE Capital Limited, an entity with purported offices in Escondido, California and Hong Kong. The action had been preceded by a December 1, 2017 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine alleging that Arthur Connolly and co-respondents CE Capital Limited, Trevor M. Allen, Sr. and Troy Rejda offered and sold unregistered securities in the form of participation agreements in or from Connecticut. Under the terms of one such participation agreement, an investor's $50,000 outlay would result in a "Profit Participation" of $450,000 within 31 days as well as the guaranteed return of the investor's initial $50,000. The investor's monies were not returned nor did he receive the $450,000 "Profit Participation." The action had also alleged that the respondents violated the antifraud provisions in Section 36b-4 of the Connecticut Uniform Securities Act by failing to disclose, among other things, how a $50,000 investment could yield an additional return of $450,000 in 31 days or less; financial and background information on CE Capital Limited and its principals; risk factors relating to the investment; and information on how the investment proceeds would be applied. In addition, the action had alleged that Connolly transacted business as an unregistered agent of issuer in violation of Section 36b-6 of the Act.

Since Connolly failed to request a hearing on the Order to Cease and Desist and Order to Make Restitution, the Order to Cease and Desist and Order to Make Restitution became permanent as to him on January 3, 2018.

Likewise, Arthur Connolly failed to request a hearing on the Notice of Intent to Fine. Therefore the January 31, 2018 Order Imposing Fine was entered by default. Finding that Arthur Connolly violated Sections 36b-16, 36b-4(a) and 36b-6(a) of the Act, the Commissioner fined Connolly $100,000, with payment due within 45 days.

Dale Joseph Quesnel, Sr. (CRD No. 2231152) Permanently Enjoined from

Violating State Securities Laws; Civil Judgment Entered Enforcing

Administrative Sanctions Levied by Commissioner

On December 22, 2017, the Superior Court for the Judicial District of Hartford entered an Order permanently enjoining Dale Joseph Quesnel, Sr. from violating Sections 36b-16, 36b-6(a), 36b-23, 36b-4(a) and 36b-6(c)(1) of the Connecticut Uniform Securities Act (Perez v. Dale Joseph Quesnel, Sr.; Docket No. HHDCV16607129S). The Order also directed defendant Quesnel to make restitution to investors and to pay a $600,000 fine imposed against Quesnel by the Commissioner on March 3, 2016. Defendant Quesnel's failure to pay the administrative fine and to abide by the Commissioner's prior directive regarding restitution resulted in the court imposing an additional $900,000 penalty on Quesnel. Both the $600,000 fine and the $900,000 penalty would be payable in $10,000 monthly installments.

By way of background, on March 3, 2016, the Banking Commissioner had entered Findings of Fact, Conclusions of Law and an Order by default against Quesnel, a former insurance licensee and a former broker-dealer agent of ING Financial Partners, Inc. n/k/a Voya Financial Advisors, Inc. (Docket No. CRF-15-8110-S). Respondent Quesnel had been the subject of a June 22, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine which also named Overtime Marketing, LLC, Overtime Sports Southeast, LLC, Overtime Sports Southwest, LLC, Kenny Hansmire and Floridel, LLC as respondents. Since respondent Quesnel failed to appear at the hearing on the June 22, 2015 action, the allegations against him were deemed admitted. Accordingly, on March 3, 2016, the Commissioner found that Quesnel violated 1) Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities issued by the Overtime entities and by Floridel, LLC; 2) Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer for more than one entity; 3) Section 36b-23 of the Act by making material misrepresentations to the Division concerning his securities-related compensation; 4) the antifraud provisions in Section 36b-4(a) of the Act in connection with the offer and sale of securities; 5) Section 36b-31-6e of the Regulations under the Act by participating in private securities transactions without providing prior written notice to his employing broker-dealer; and 6) Section 36b-6(c)(1) of the Act by transacting business as an unregistered investment adviser. The March 3, 2016 Order had rendered the June 22, 2015 Order to Cease and Desist and Order to Make Restitution permanent, and fined Quesnel $600,000.

Dated: Wednesday, February 7, 2018

Jorge L. Perez
Banking Commissioner