Bulletin 2888 - June 28, 2019

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2888 - Week Ending June 28, 2019

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 36a-145 of the Connecticut General Statutes requires certain applications for a branch or 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 the Department for a period of 30 days. Questions concerning branch activity should be directed to the Financial Institutions Division, (860) 240-8180.

DATE:
June 25, 2019

BANK:
The Simsbury Bank & Trust Company, Simsbury

LOCATION:
782 Park Avenue, Bloomfield, CT 06002

ACTIVITY-BRANCH TYPE:
Approved to Establish Full Service Branch

CONSUMER CREDIT DIVISION ACTIVITY

Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing

On June 18, 2019, the Commissioner issued a
Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Order”) in the Matter of:
Smart Marketing Corp.
, Mineola, New York,
Smart Family Group LLC
, Mineola, New York, and
Rency Mejia
(collectively, “Respondents”). The Order was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that: (1) Smart Marketing Corp’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2017; (2) Smart Family Group LLC’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2017; (3) Mejia’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2017; and (4) Mejia’s engaging or offering to engage in debt negotiation of a residential mortgage loan on behalf of a mortgagor for compensation or gain in this state without obtaining and maintaining the required mortgage loan originator license constitutes a violation of subsections (b) and (c) of Section 36a-671e of the Connecticut General Statutes. The Commissioner found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents. As part of the Order to Make Restitution, Respondents were ordered to repay $3,100 to an identified Connecticut debtor plus interest, and repay to any other Connecticut debtor who entered into an agreement for debt negotiation services with either Respondent on or after October 1, 2015, any fees paid by such Connecticut debtor to either Respondent plus interest. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Order. SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

James Welsh and GHC Fund One LLC a/k/a Gilbert Hill Fund I, LLC

On June 25, 2019, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-19-8311-S) against GHC Fund One LLC a/k/a Gilbert Hill Fund I, LLC , a currently inactive limited liability company, and its managing member James Welsh . GHC Fund One LLC was located at 49 Richmondville Avenue, Westport, Connecticut 06880. The action alleged that in 2008, respondents sold $300,000 of GHC Fund One LLC membership interests to a Massachusetts investor with the representation that the investor's monies would be used by GHC Fund One LLC to implement its day trading strategy. According to the action, the investor's monies were actually used to purchase shares of an unrelated entity based in Waterbury, Connecticut. The investor made a second investment of $50,000 in 2009, and the action alleged that at least a portion of the total investment was used to pay respondent Welsh's personal expenses. The action claimed that the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered securities and that the conduct described violated the antifraud provisions in Section 36b-4(a) of the Act. The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.

Dated: Tuesday, July 2, 2019

Jorge L. Perez
Banking Commissioner