News Bulletin 2055 - July 11, 2003

State of Connecticut Department of Banking

The Department of Banking News Bulletin

Bulletin # 2055 Week Ending July 11, 2003

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.

CREDIT UNION DIVISION ACTIVITY Branch Activity

Date

Credit Union

Location

Activity

07/08/2003

CenConn Credit Union, Inc. Meriden

22 Masonic Avenue Wallingford, CT  06492

approved

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY Broker-Dealer Permanently Barred from Securities Business in Connecticut; Ordered to Cease and Desist from Regulatory Violations

On July 8, 2003, the Commissioner entered a Consent Order with respect to Todd R. Scully of 4 East Trail, Darien, Connecticut. The Consent Order alleged that, commencing in March 1996, respondent Scully engaged in dishonest and unethical business practices by borrowing money and sharing in customer account profits or losses without the prior written consent of the customer or his employing broker-dealer, Merrill Lynch, Pierce, Fenner & Smith, Incorporated. The Consent Order also claimed that, commencing in August 1997, respondent Scully violated the antifraud provisions in Section 36b-4 of the Connecticut Uniform Securities Act by representing that investor funds would be invested in "Treasury Direct" securities or "Certificates of Deposit" when, in actuality, respondent retained the funds for his personal use. The Consent Order permanently barred respondent Scully from transacting business in Connecticut as a broker-dealer, investment adviser, agent or investment adviser agent, and directed him to cease and desist from regulatory violations. On May 23, 2003, respondent Scully had pled guilty in Stamford Superior Court to one count of securities fraud, one count of second degree forgery and two counts of first degree larceny in a case prosecuted by the Office of the Chief State's Attorney. The criminal action had focused on allegations that Todd Scully defrauded an elderly client of $1million by closing the victim's brokerage account without the victim's knowledge and transferring the proceeds to accounts that Scully controlled. Under the terms of the plea, Todd Scully would receive a prison term of 5 years, suspended after 18 months incarceration, and pay $1,008,732 in restitution.

Dated: Tuesday, July 15, 2003 John P. Burke Commissioner