On July 24, 2007 the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Revoke First Mortgage Correspondent Lender, First Mortgage Lender/Broker, Secondary Mortgage Correspondent Lender and Secondary Mortgage Lender/Broker Licenses, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order”), In the Matter of: Apex Financial Group, Inc. (“Apex”), which has its principal place of business at 213 West Bloomingdale Avenue, Brandon, Florida.  In the Order, the Commissioner alleges that Apex: failed to maintain a bond that runs concurrently with the period of its first mortgage 
correspondent lender license, in violation of Section 36a-492(a) of the Connecticut General Statutes (“General Statutes”); acted as a first mortgage correspondent lender without obtaining the required licenses, in violation of Section 36a-490(a) of the General Statutes; failed to register 114 loan originators who originated first mortgage loans, in violation of Section 36a-486(b) of the General Statutes; failed to register 25 loan originators who originated secondary mortgage loans, in violation of Section 36a-511(b) of the General Statutes; used a name other than the name stated on the licenses issued by the Commissioner, in violation of Sections 36a-490(a) and 36a-515(a) of the General Statutes; and, failed to provide loan files that had been requested by the Commissioner, in violation of Sections 36a-17(d), 36a-493(a) and 36a-516(a) of the General Statutes.  In the Order, the Commissioner gave notice that on June 29, 2007, Apex’s license to engage in the business of a first mortgage correspondent lender in Connecticut from the Brandon, Florida office was automatically suspended, and that the Commissioner intends to issue an order requiring Apex to cease and desist from violating Sections 36a-490(a), 36a-486(b), 36a-511(b), 36a-515(a), 36a-17(d), 36a-493(a) and 36a-516(a) of the General Statutes.  Also, in the Order, the Commissioner gave notice that he intends to revoke Apex’s first mortgage correspondent lender, first mortgage lender/broker, secondary mortgage correspondent lender and secondary mortgage lender/broker licenses in Connecticut, and impose a civil penalty upon Apex.  Apex was afforded an opportunity to request a hearing with regard to the allegations set forth in the Order.  A copy of the Order can be obtained from the department's website, www.ct.gov/dob, or by contacting the department's Legal Division.

On August 3, 2007, the Commissioner issued a Temporary Order To Cease and Desist, Order of Summary Suspension, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Revoke First and Secondary Mortgage Lender/Broker Licenses, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Order”), In the Matter of: American Home Mortgage Corp. d/b/a American Home Mortgage of New York, American Brokers Conduit, HLB Mortgage, Mortgage Select (“American”), American Home Mortgage Acceptance, Inc. (“Acceptance”), American Home Mortgage Ventures, LLC d/b/a American Home Mortgage V (“Ventures”).  In the Order, the Commissioner alleged that: American failed to close at least 244 loans secured by mortgages on real property in Connecticut and 3,448 loans secured by mortgages on real property in states other than Connecticut for which it had issued commitments; failed to cooperate with the Commissioner; gave a statement to the Commissioner that it was no longer conducting its mortgage business or accepting any mortgage loan applications when it was accepting applications at its Connecticut locations; and failed to transfer to the account of its attorney loan proceeds for 38 loans, which form the basis to issue an order to cease and desist, impose a civil penalty and to revoke its first and secondary mortgage lender/broker licenses.  The Order also alleged that American’s conduct illustrates that the financial responsibility, character, reputation, integrity and general fitness of American are not such as to warrant belief that its business will be operated soundly and efficiently, in the public interest and consistent with the purposes of Part I(A) and Part I(B) of Chapter 668 of the Connecticut General Statutes (the “First Mortgage Act and the Secondary Mortgage Act”), which constitutes an additional ground to revoke American’s first and secondary mortgage lender/broker licenses in Connecticut.  In the Order, the Commissioner alleged that Acceptance and Ventures’ failure to cooperate with the Commissioner forms the basis to issue an order to cease and desist, impose a civil penalty and revoke their first and secondary mortgage lender/broker licenses; Acceptance and Ventures’ failure to cooperate with the Commissioner illustrates that the financial responsibility, character, reputation, integrity and general fitness of such entities are not such as to warrant belief that their business will be operated soundly and efficiently, in the public interest and consistent with the purposes of the First Mortgage Act and the Secondary Mortgage Act, which constitutes an additional ground to revoke their first and secondary mortgage lender/broker licenses in Connecticut.  In the Order, Commissioner found that public safety and welfare require emergency action with respect to the licenses of American, Acceptance and Ventures.  Notice was given to American, Acceptance and Ventures that the Commissioner intends to (1) issue an order requiring American to cease and desist from violating Sections 36a-17(d), 36a 53a and 36a-758a of the Connecticut General Statutes, and Acceptance and Ventures from violating Section 36a-17(d) of the Connecticut General Statutes; (2) impose a civil penalty upon such entities; and (3) revoke the first and secondary mortgage lender/broker licenses held by such entities in Connecticut.  In the Order, the Commissioner ordered that the licenses of American, Acceptance and Ventures to engage in the business of granting first and secondary mortgage loans and to act as a first and secondary mortgage broker in Connecticut be summarily suspended pending proceedings for revocation.  The Commissioner ordered that American cease and desist from further violations of Section 36a 17(d) of the Connecticut General Statutes by failing to provide information requested by the Commissioner, further violations of Section 36a-53a of the Connecticut General Statutes by making material misstatements to the Commissioner and further violations of Section 36a-758a of the Connecticut General Statutes by failing to transfer funds and failing to perform agreements with borrowers.  The Commissioner ordered that Acceptance and Ventures cease and desist from further violations of Section 36a 17(d) of the Connecticut General Statutes by failing to provide information requested by the Commissioner.  Also, in the Order, the Commissioner imposed six additional requirements on such entities.  American, Acceptance and Ventures were afforded an opportunity to request a hearing with regard to the allegations set forth in the Order.  A copy of the Order can be obtained from the department's website, www.ct.gov/dob, or by contacting the department's Legal Division.

On July 30, 2007, the Commissioner issued a Consent Order conditioning the broker-dealer registration of M & I Brokerage Services, Inc. of 770 North Water Street, Milwaukee, Wisconsin.  The Consent Order alleged that at various times between December 1995 and January 2006, the firm transacted business as a broker-dealer absent registration under the Connecticut Uniform Securities Act and employed unregistered agents.  The Consent Order required the firm to file quarterly reports for three years describing any securities-related complaints, actions or proceedings involving Connecticut residents; implement revised supervisory and compliance procedures; and refrain from engaging in violative conduct.  In addition, the Consent Order required the firm to pay $7,550 to the department.  Of that amount, $5,000 constituted an administrative fine, $1,050 constituted reimbursement for past due registration fees and $1,500 would be allocated to defray agency investigative costs.

M & I Brokerage Services, Inc. became registered as a broker-dealer in Connecticut on July 30, 2007.

       Dated:  Tuesday, August 7, 2007