The Department of Banking News Bulletin
Bulletin # 2827 - Week Ending April 27, 2018This 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 Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
CREDIT UNION ACTIVITY
Merger
On April 23, 2018, the Commissioner approved the merger of Connecticut Community Credit Union, Inc., Pawcatuck, Connecticut, a Connecticut credit union with and into CorePlus Federal Credit Union, Norwich, Connecticut, a federally chartered credit union, pursuant to Section 36a-468a of the Connecticut General Statutes.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Voya Financial Advisors, Inc. (CRD No. 2882) Ordered to Cease and Desist from Regulatory Violations; Notice of Intent to Fine and Order to Make Restitution Issued
On April 23, 2018, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-18-8430-S) against Voya Financial Advisors, Inc. f/k/a ING Financial Partners, Inc. The firm is registered as a broker-dealer under the Connecticut Uniform Securities Act and maintains its principal office at 699 Walnut Street, Suite 1000, Des Moines, Iowa 50309.
The action was an outgrowth of an investigation into the firm's failure to exercise supervisory controls over various agents overseen remotely from the firm's Grafton, Massachusetts office. Among the agents was Connecticut agent Dale Joseph Quesnel, Sr. (CRD No. 2231152) who allegedly engaged in improper selling away, and sold $1.9 million of securities issued by Overtime Marketing, LLC, Overtime Sports Southeast, LLC and Overtime Sports Southwest, LLC (the "Overtime Entities") as well as $250,000 of securities issued by Floridel, LLC. The action seeks restitution for those who invested in the Overtime Entities and in Floridel, LLC while Quesnel was associated with Voya Financial Advisors, Inc. The action also cited alleged misconduct by Texas agent Daniel Tapia (CRD No. 2219749) who, despite Voya Financial Advisors, Inc.'s objection, paid Quesnel $35,000 for securities research for Tapia's business, Rembrandt Financial Group, LLC. The action also alleged that Voya Financial Advisors, Inc. failed to supervise the activities of Florida agent Stephen Mark Ruff (CRD No. 1527170) who, contrary to the firm's request, failed to completely sever his ties with Floridel, LLC. In addition, the action alleged that Voya Financial Advisors, Inc. was remiss in supervising Connecticut agent Eric Olojugba (CRD number 2925206) who failed to amend his Form U4 to reflect his outside business activity.
Voya Financial Advisors, Inc. was afforded an opportunity to request a hearing on the Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine.
Allied Energy, Inc. and SE Ohio Shale & Oriskany Development - Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine Issued
On April 25, 2018, the Banking Commissioner issued an Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-18-8238-S) against Allied Energy, Inc. f/k/a Allied Syndications, Inc. of 2427 Russellville Road, Bowling Green, Kentucky 42101. The corporation was involved in exploratory oil and gas investments. Also named in the order was SE Ohio Shale & Oriskany Development, a self-described general partnership located at 2800 Griffin Drive, Bowling Green, Kentucky 42103. The action alleged that the respondents violated Section 36b-16 of the Connecticut Uniform Securities Act by offering and selling unregistered nonexempt securities to Connecticut residents. The action also alleged that respondent SE Ohio Shale & Oriskany Development violated Section 36b-6(b) by employing one Andrew A. Flowers (CRD number 5191114) as an unregistered agent of issuer, and that respondent Allied Energy, Inc. materially aided in that violation. Each of the respondents was afforded an opportunity to request a hearing on the allegations.
Hunjo LLC (IARD No. 290595) - Stipulation and Agreement Entered
On April 27, 2018, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-18-8438-S) with Hunjo LLC, an investment adviser located at 93 Bayberry Lane, Westport, Connecticut. Since relocating to Connecticut from New York in January 2017, the firm had continued to service the advisory accounts of four high net worth individuals and one affiliated hedge fund while unregistered in Connecticut as an investment adviser and without registering an investment adviser agent. The firm self-reported the issue and has since become registered as an investment adviser under the Connecticut Uniform Securities Act. Pursuant to the Stipulation and Agreement, the firm agreed to refrain from regulatory violations and to pay a $2,500 fine to the department.