The Department of Banking News Bulletin
Bulletin # 2192
Week Ending February 24, 2006
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.
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 Financial Institutions Division, (860) 240-8180.
| 2/15/06 |
The Bank of Southern
Connecticut
New Haven |
*24 Washington Avenue
North Haven, CT 06473 |
filed |
| 2/16/06 |
The Bank of Southern
Connecticut
New Haven |
**15 Masonic Street
New London, CT 06320 |
opening
date |
|
*To be known as The Bank of North Haven, a division of the Bank of
Southern Connecticut
**To be known as The Bank of Southeastern Connecticut, a division of
the Bank of Southern Connecticut |
CONSUMER CREDIT DIVISION ACTIVITY
Check Cashing Service License Activity
| 2/22/06 |
Moshe Tomear Pinsky |
122 Derby Avenue
New Haven, CT 06511 |
filed |
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Broker-dealer Fined $301,763 for Failing to Maintain Analyst Independence
On December 7, 2005, the Commissioner entered a Consent Order with respect to Deutsche Bank Securities, Inc., a broker-dealer registered under the Connecticut Uniform Securities Act and having its principal office in New York, New York. The agency investigation culminating in the entry of the Consent Order focused on the firm's research practices for the period 1999 through 2001, and was part of similar investigations conducted by a multi-state task force and by the SEC. In entering the Consent Order, the Commissioner found, among other things, that the respondent had 1) violated Section 36b-4(b) of the Act by engaging in acts or practices that created or maintained inappropriate influence by the firm’s investment banking department over firm research analysts; 2) failed to establish, enforce and maintain an adequate supervisory system to detect and prevent regulatory violations; and 3) violated Section 36b-14 of the Act and Section 36b-31-14f of the Regulations thereunder by failing to timely produce all electronic mail requested by the Commissioner.
The Consent Order mandated that the respondent cease and desist from violating the Connecticut Uniform Securities Act and fined the respondent $301,763. In addition, the Consent Order directed the respondent to abide by certain undertakings designed to separate investment banking and research functions.
Order to Cease and Desist from Further Sales of Unregistered
Stock and Notes Issued, Unregistered Agent
of Issuer Activity; Notice of Intent to Fine Issued
On February 9, 2006, the Commissioner issued an Order to Cease and Desist and Notice of Intent to Fine against Digital Entertainment Corp. and Pacific Rim Investment Partners, both of 3702 South Virginia Street, #G-12, Reno, Nevada, and Ernest P. Lamonica of 6200 Meadowood #131, Reno, Nevada. Respondent Lamonica was the president and CEO of Digital Entertainment Corp. and Pacific Rim Investment Partners. The action alleged that 1) the respondents sold unregistered, non-exempt securities consisting of Digital Entertainment Corp. stock and notes and Pacific Rim Investment Partners stock to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act; 2) respondent Lamonica violated Section 36b-6(a) of the Act by transacting business as an unregistered agent of issuer; and 3) respondents Lamonica and Digital Entertainment Corp. violated Section 36b-4(a)(2) of the Act by failing to disclose to Connecticut investors that they had been the subject of cease and desist orders issued by the states of Iowa and Tennessee alleging violations of the antifraud provisions of those states’ securities laws. The respondents were afforded an opportunity to request a hearing on the Order to Cease and Desist. A hearing on the Notice of Intent to Fine has been scheduled for April 4, 2006.
Dated: Tuesday, February 28, 2006
John P. Burke
Commissioner
