News Bulletin 2020 - November 8, 2002

State of Connecticut
Department of Banking

The Department of Banking News Bulletin

Bulletin # 2020
Week Ending November 8, 2002

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 John P. Burke, Commissioner of Banking, at the Connecticut Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800 or via E-mail to john.burke@ct.gov . Written comments will be considered only if they are received within ten days from the date of this bulletin.

BRANCH ACTIVITY
State Bank Activity

Section 36a-145 of the Connecticut General Statutes requires that each application for a branch, or for a limited branch at which loans will be made, be accompanied by a plan detailing how adequate services to meet the banking needs of all community residents will be provided. 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 Bank Examination Division, (860) 240-8180.
Note: dates are listed in month/day/year format.

Date

Bank

Location

Activity

11/04/02

NewMil Bank
New Milford

200 Main Street
Southbury, CT 06488

filed

CHECK CASHING SERVICE LICENSE ACTIVITY

On November 5, 2002, pursuant to Section 36a-581 of the Connecticut General Statutes, Ace Cash Express, Inc. filed an application to operate check cashing service general facilities at 593 Farmington Avenue, Hartford, Connecticut, and 90 East Main Street, New Britain, Connecticut.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY Notice of Intent to Revoke Registration as Broker-dealer Issued

On November 5, 2002, the Commissioner issued a Notice of Intent to Revoke Registration as Broker-dealer against Hornblower & Weeks, Inc. , a securities broker-dealer having its principal office at 110 Wall Street, New York, New York. The action was predicated on May 7, 2002 sanctions imposed by the National Association of Securities Dealers, Inc. suspending the respondent from issuing research reports for six months; fining the respondent $100,000 and censuring the respondent. The NASD sanctions were based on findings that 1) the respondent was responsible for a research report that recommended the common stock of a securities issuer as a "strong buy" and set a target price of $55 per share, when the stock was trading at approximately $9.19 per share; 2) the research report contained material misrepresentations, unwarranted statements and exaggerations regarding the issuer's business prospects, and failed to disclose material details regarding the issuer's financial condition; 3) the research report and subsequent press release were not based on principles of fair dealing and good faith; and 4) the respondent failed to establish, maintain or enforce adequate supervisory procedures in violation of NASD rules. The respondent was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Broker-dealer.

Notice of Intent to Revoke Registration as Agent Issued

On November 5, 2002, the Commissioner issued a Notice of Intent to Revoke Registration as Agent against John Ryan Rooney of New York, New York. From November 17, 1994 to October 22, 2002, Rooney had been registered as a broker-dealer agent of Hornblower & Weeks, Inc. under the Connecticut Uniform Securities Act. The Notice of Intent to Revoke Registration as Agent was based on May 7, 2002 sanctions imposed by the National Association of Securities Dealers, Inc. against respondent Rooney and Hornblower & Weeks, Inc. Specifically, the NASD had 1) suspended respondent Rooney for three months from associating with any NASD member in any capacity; 2) suspended respondent Rooney for four months from acting in a principal or supervisory capacity; and 3) imposed an $85,000 fine against respondent Rooney and Hornblower & Weeks, Inc. jointly and severally. The NASD had found that 1) respondent Rooney was responsible for preparing a research report issued by Hornblower & Weeks, Inc. that recommended the common stock of a securities issuer as a "strong buy" and set a target price of $55 per share, when the stock was trading at approximately $9.19 per share; 2) the research report contained material misrepresentations, unwarranted statements and exaggerations regarding the issuer's business prospects, and failed to disclose material details regarding the issuer's financial condition; 3) the research report and subsequent press release were not based on principles of fair dealing and good faith; and 4) respondent Rooney was reckless in not knowing that the research report contained exaggerated, unwarranted and misleading statements regarding the issuer's business prospects and market value. Respondent Rooney was afforded an opportunity to request a hearing on the Notice of Intent to Revoke Registration as Agent.

Dated: Wednesday, November 13, 2002
John P. Burke
Commissioner