Bulletin 3156 - August 16, 2024

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 3156 - Week Ending August 16, 2024

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 directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Order

On August 14, 2024, the Commissioner entered into a Consent Order with Fortress Trust LLC d/b/a Fortress Trust (NMLS # 2318097) (“Fortress Trust”), Las Vegas, Nevada. The Consent Order resolved allegations made by the Commissioner in the Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Money Transmission License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order and Notice”). The Order and Notice was the result of an investigation by the Consumer Credit Division. The Order and Notice alleged that Fortress Trust failed to: (1) maintain the minimum tangible net worth required of money transmission licensees, in violation of Sections 36a-600(d) and 36a-604(c) of the Connecticut General Statutes; (2) file with NMLS an advance change notice for its change in control on October 21, 2023, in violation of Section 36a-598(d)(1) of the Connecticut General Statutes; (3) file with NMLS a change of its main office at least thirty (30) days prior to such change, in violation of Section 36a-598(d)(2) of the Connecticut General Statutes; (4) file record of its Summary Suspension in North Carolina on NMLS, in violation of Section 36a-598(e)(3) of the Connecticut General Statutes; (5) timely update its application on NMLS concerning the changes in its President, Chief Executive Officer, Qualifying Individual and Primary Company Contact, in violation of Section 36a-598(c) of the Connecticut General Statutes; and (6) establish, enforce and maintain policies and procedures for supervising employees, agents and office operations that are reasonably designed to achieve compliance with applicable money transmission laws and regulations, in violation of Section 36a-607(c)(10) of the Connecticut General Statutes. The Order and Notice also alleged that the totality of Fortress Trust’s conduct caused the Commissioner unable to find that its financial condition is sound, its business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of Sections 36a-595 to 36a-612, inclusive, of the Connecticut General Statutes, in a manner commanding the confidence and trust of the community, and its control persons and qualified individual demonstrate financial responsibility and are in all respects properly qualified and of good character. As part of the Consent Order, among other items, Fortress Trust paid $75,000 as a civil penalty, agreed to meet the minimum tangible net worth requirements of money transmission licensees no later than September 30, 2024, and institute various measures, including retaining an external consultant and an independent auditor, to enhance its compliance management system.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Gerald Lawrence White (CRD No. 2418081)

On August 15, 2024, the Banking Commissioner entered a Consent Order (No. CO-24-202219-S) with respect to Gerald Lawrence White of 5A Top Pasture Road, Washington Depot, Connecticut 06794. Respondent White was previously registered as a broker-dealer agent under the Connecticut Uniform Securities Act. The Consent Order alleged that Respondent White violated Section 36b-6(c)(1) of the Act by transacting business as an unregistered investment adviser; and that Respondent White violated the antifraud provisions in Section 36b-5(a) of the Act by failing to disclose to affected investors the risk factors involved or that Respondent White would use a portion of investor funds for his personal expenses.

The Consent Order directed Respondent White to cease and desist from regulatory violations and barred him from transacting business in Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent, and from acting in any other capacity requiring a license or registration from the Commissioner. The Consent Order also temporarily stayed for three years the $50,600 restitutionary amount and the $100,000 fine that otherwise would have been imposed. Following expiration of the three year period, if Respondent White remained financially unable to pay the administrative fine, the fine would be waived but the restitutionary obligation would remain outstanding.

Dated: Tuesday, August 20, 2024

Jorge L. Perez
Banking Commissioner