Bulletin 3038 - May 13, 2022

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 3038 - Week Ending May 13, 2022

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.

BANK ACTIVITY

Interstate Branch Activity

On May 10, 2022,
M&T Bank
, a New York-chartered bank, filed notice pursuant to Connecticut General Statutes Sections 36a-412 and 36a-145(f) of the closing of seven branches in Connecticut as of August 12, 2022. The seven branches proposed to be closed are: 747 Pine Street in Bristol, CT; 25 State Route 39 in New Fairfield, CT; 228 South Main Street in Newtown, CT; 380 Main Avenue in Norwalk, CT; 91 Voluntown Road in Pawcatuck, CT; 10 Pitkin Road in Vernon, CT; and 1095 Kennedy Road in Windsor, CT. Each of these branches is a former People’s United Bank branch located within a Stop & Shop location and part of the contemplated closures when People’s United announced its decision not to renew in-store branch contracts in Connecticut. Any comments received by the Commissioner will be forwarded to their State Regulator.

CREDIT UNION ACTIVITY

Branch Activity

DATE:
May 12, 2022

CREDIT UNION:
Achieve Financial Credit Union, Berlin, CT

LOCATION:
FROM
:
1064 East Main Street, Meriden, CT
TO: 752 East Main Street, Meriden, CT

ACTIVITY-BRANCH TYPE:
Filed to Relocate Branch

CONSUMER CREDIT DIVISION ACTIVITY

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

On May 4, 2022, the Commissioner issued a
Notice of Automatic Suspension, Notice of Intent to Revoke Consumer Collection Agency 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: Connecticut Medical Financial Services, Inc d/b/a C.M. Financial Services Inc (NMLS # 1389326) (“Respondent”), Spring Hill, Florida. The Notice was the result of an examination by the Consumer Credit Division. The Commissioner alleges in the Notice that: (1) Respondent failed to provide information requested during the examination, in violation of Section 36a-17(e) of the Connecticut General Statutes in effect at such time; and (2) Respondent’s conduct renders the Commissioner unable to determine that the financial responsibility, character, reputation, integrity and general fitness of Respondent are such to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of Section 36a-800 to 36a-814, inclusive, as required pursuant to Section 36a-801(c)(2) of the Connecticut General Statutes in effect at such time; and (3) Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license, in violation of Section 36a-802(a) of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

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 Other Legal and Equitable Relief

On May 4, 2022, 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 Other Legal and Equitable Relief, and Notice of Right to Hearing (collectively, “Order”) in the Matter of: SoLo Funds, Inc., NMLS # 1909701, Los Angeles, California (“Respondent”). The Order was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that: (1) Respondent’s offering, soliciting, brokering, directly or indirectly arranging, placing or finding a small loan for a prospective Connecticut borrower, without the required license, constitutes at least 1600 violations of Section 36a-556(a)(2) of the Connecticut General Statutes; (2) Respondent’s engaging in any activities intended to assist prospective Connecticut borrowers in obtaining small loans, which includes but is not limited to, generating leads without the required license constitutes at least 1,600 violations of Section 36a-556(a)(3) of the Connecticut General Statutes. (3) Respondent’s acting as a consumer collection agency in this state without the required license constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes in effect at such time; (4) By providing false and misleading information to Connecticut borrowers concerning the terms and costs associated with the loan transactions, Respondent engaged in a deceptive practice towards Connecticut consumers or misrepresented or omitted material information in connection with a small loan in this state, in violation of Section 36a-561(4) of the Connecticut General Statutes; and (5) By providing false and misleading information to Connecticut borrowers concerning the terms and costs associated with the loan transactions, Respondent engaged in a deceptive act or practice, in violation of Section 1036 of the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B). The Commissioner found that the public welfare required the issuance of a Temporary Order to Cease and Desist against Respondent. As part of the Order to Make Restitution, Respondent was ordered to repay any amounts received by Respondent from Connecticut residents in connection with a loan, plus interest. Respondent was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Sage Financial Design, Inc. (CRD No. 127996) and Robert Sheldon Thompson (CRD No. 446052)

On May 9, 2022, the Banking Commissioner entered a Consent Order (No. CO-22-202125-S) with respect to Sage Financial Design, Inc., a Connecticut registered investment adviser located at 548 Hopmeadow Street, Simsbury, Connecticut, and Robert Sheldon Thompson, president and treasurer of the firm.

The Consent Order alleged that, in January 2021, a firm employee impersonated a nonclient trust beneficiary to obtain year-end investment information from a mutual fund, and that the firm failed to establish and implement a supervisory system to prevent such conduct. The Consent Order also alleged that Thompson separately served as the trustee for an advisory client from 2012 to 2021, that Sage Financial Design, Inc. had custody as a result and that the firm 1) failed to have the funds and securities over which it had custody verified annually by an independent public accountant without prior notice to the firm; and 2) failed to abide by required financial reporting requirements, including providing the Commissioner with notice that it maintained custody. The second affected trust is no longer in existence, and no misappropriation of funds was detected.

The Consent Order also alleged that, from August 2020 to December 2021, one Robert Morgan Thompson (CRD No. 7501771) transacted business as an unregistered investment adviser agent of the firm.

The Consent Order further alleged that the firm engaged in conduct made actionable as dishonest or unethical by Section 36b-15(a)(2)(H) of the Connecticut Uniform Securities Act; failed to establish and maintain sufficient supervisory controls in violation of Section 36b-31-6f of the Regulations under the Act, failed to the adhere to the custodial and financial reporting requirements in Sections 36b-31-5b and 36b-31-14d of the Regulations; and engaged an unregistered investment adviser agent in violation of Section 36b-6(c)(3) of the Act. The Consent Order also alleged that Robert Sheldon Thompson engaged in conduct made actionable as dishonest or unethical by Section 36b-15(a)(2)(H) of the Act.

The Consent Order directed Sage Financial Design, Inc. and Robert Sheldon Thompson to cease and desist from regulatory violations; required that the firm retain an independent consultant to evaluate its compliance procedures; and fined the firm and Robert Sheldon Thompson $50,000 in the aggregate.

Dated: Tuesday, May 17, 2022

Jorge L. Perez
Banking Commissioner