The Department of Banking News Bulletin 

Bulletin # 2157
Week Ending June 24, 2005

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, Banking Commissioner, 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.

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 Financial Institutions Division, (860) 240-8180.

NOTICE OF SPECIAL MEETING

On June 30, 2005, pursuant to Section 1-225 of the Connecticut General Statutes, a special meeting will be held for the purpose of voting on the application of the organizers of The Bank of Greenwich, Greenwich, Connecticut, to organize a bank and trust company. The meeting is scheduled to be held at 11:30 a.m. at the Department of Banking, Room 50, 260 Constitution Plaza, Hartford, Connecticut.

CREDIT UNION ACTIVITY

On June 17, 2005, pursuant to Section 36a-458a(b) of the Connecticut General Statutes, CONNEX Credit Union, Inc., North Haven, requested approval to engage in member business lending.

On June 20, 2005, pursuant to Section 36a-463b of the Connecticut General Statutes, approval was granted to Achieve Financial Credit Union, Inc. (formerly CenConn Credit Union, Inc.) to relocate its main office from 1064 East Main Street, Meriden, to 279 New Britain Road, Berlin.

ACQUISITION AND MERGER

On June 20, 2005, NewAlliance Bancshares, a Delaware corporation, and NewAlliance Bank, a Connecticut chartered savings bank and wholly owned subsidiary of NewAlliance Bancshares, filed an application for the acquisition of Cornerstone Bancorp, a Connecticut corporation and holding company, and the merger of Cornerstone Bank, a Connecticut chartered bank and trust company wholly owned by Cornerstone Bancorp. The application was filed pursuant to Sections 36a-125 and 36a-184 of Connecticut General Statutes.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Arizona Firm Fined $5,000 Following Unregistered Business
Opportunity Sales; Ordered to Cease and Desist From
Regulatory Violations, Business Opportunity Registration Terminated

On June 7, 2005, the Commissioner entered a Consent Order resolving the allegations against Taxback, L.L.C. contained in a January 10, 2005 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing and the allegations against Taxback Opportunities, L.L.C. contained in a January 10, 2005 Notice of Intent to Issue Stop Order Revoking Business Opportunity Registration and Notice of Intent to Fine. Both entities maintain an address at 10429 S 51st Street, Suite 201, Phoenix, Arizona. The Order to Cease and Desist and Notice of Intent to Fine against Taxback, L.L.C. had alleged that Taxback, L.L.C. violated Section 36b-67(1) of the Connecticut Business Opportunity Investment Act from April 2004 forward by offering and selling unregistered "Tax Review and Recovery" business opportunities to one or more Connecticut persons. Since Taxback, L.L.C. had not requested a hearing on the Order to Cease and Desist, the Order to Cease and Desist had become permanent on January 29, 2005. The Notice of Intent to Issue a Stop Order and Notice of Intent to Fine against Taxback Opportunities, L.L.C. had alleged that Taxback Opportunities, L.L.C. violated Section 36b-65(f) of the Act by failing to notify the Commissioner of material changes in information contained in the respondent's registration application and by failing to amend its disclosure document to cover an October 12, 2004 Consent Order entered by the Securities Division of the State of Washington Department of Financial Institutions against Taxback, LLC, Shawn D. Hull and Lindsay J. Hull based upon the alleged sale of unregistered business opportunities in Washington state. The Notice of Intent to Issue Stop Order and Notice of Intent to Fine had also alleged that, in violating Section 36b-65(f) of the Act, Taxback Opportunities, L.L.C. failed to comply with the terms of the department's registration order which obligated the respondent to immediately notify the Commissioner of any material change in the information contained in the registration application and to make appropriate amendment of the disclosure document.

The Consent Order fined Taxback, L.L.C. $5,000 and directed it to 1) cease and desist from regulatory violations; and 2) with its execution of the Consent Order, withdraw an appeal filed in the Superior Court for the Judicial District of New Britain on March 15, 2005 contesting the January 10, 2005 Order to Cease and Desist after that order had become permanent.

The Consent Order also 1) directed Taxback Opportunities, L.L.C. to cease and desist from regulatory violations, and 2) deemed the business opportunity registration of Taxback Opportunities, L.L.C. to be terminated as of June 7, 2005. The Consent Order also provided that any future business opportunity registration application by Taxback, L.L.C. or Taxback Opportunities, L.L.C. could be subject, in the Commissioner's discretion, to periodic compliance audits by qualified legal counsel.