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Branch Activity

On June 3, 2013, the Banking Commissioner entered a Consent Order (No. CO-13-8024-S) with respect to ProEquities, Inc., a Connecticut-registered broker-dealer located in Birmingham, Alabama.  The Consent Order followed a related multistate investigation, capped by a global settlement, into unregistered broker-dealer and investment advisory activity by Bankers Life and Casualty Company and BLC Financial Services, Inc. and their agents.  The Commissioner had entered a consent order regarding those entities on June 29, 2012 (No. CO-12-8018-S).   State regulators also negotiated an ancillary global settlement with ProEquities, Inc.  ProEquities, Inc. had purportedly entered into an agreement with the Bankers Life entities pursuant to which certain securities-related roles were assigned to the Bankers Life entities.  The involvement of the Bankers Life entities in securities-related roles allegedly led to confusion in the reporting and responsibility hierarchies between Bankers Life and ProEquities, Inc.

The June 3, 2013 Consent Order directed ProEquities, Inc. to cease and desist from materially aiding any person in a violation of the Connecticut Uniform Securities Act and its Regulations.  In addition, the Consent Order directed the firm to pay a fine of $8,207.55 within ten business days following the Commissioner's entry of the Consent Order.  The fine amount represented Connecticut's proportionate share of the total state settlement amount of $435,000 against ProEquities, Inc.

On May 24, 2013, the Commissioner entered into a Consent Order with P.I.C. Property Funding Corp (NMLS # 17541) (“P.I.C. Property Funding”), Syosset, New York.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing.  The Commissioner alleged that P.I.C. Property Funding failed to timely file certain quarterly information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, P.I.C. Property Funding paid $1,000 as a civil penalty.

On May 31, 2013, the Commissioner entered into a Consent Order with Lightning Mortgage Inc. (NMLS # 111621) (“Lightning Mortgage”), Jersey City, New Jersey.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on December 11, 2012, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing.  The Commissioner alleged that Lightning Mortgage failed to timely file certain annual information required by mortgage call reports in violation of Section 36a 534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96.  As part of the Consent Order, Lightning Mortgage paid $2,500 as a civil penalty.

On May 31, 2013, the Commissioner entered into a Consent Order with Mortgage Assistance Company, LLC (NMLS # 2754) (“Mortgage Assistance Company”), Plainville, CT.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing.  The Commissioner alleged that Mortgage Assistance Company failed to timely file certain annual and quarterly information required by mortgage call reports in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Mortgage Assistance Company paid $2,500 as a civil penalty.

On May 31, 2013, the Commissioner entered into a Consent Order with Turnkey Financial Services LLC (NMLS # 87487) (“Turnkey Financial Services”), Fairfield, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing.  The Commissioner alleged that Turnkey Financial Services failed to timely file certain annual information required by mortgage call reports in violation of Section 36a 534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  As part of the Consent Order, Turnkey Financial Services requested surrender of its mortgage broker license.

       Dated:  Tuesday, June 11, 2013