Fraud Alert: Wallace Stock Transfers Agents Is not Registered to Sell Securities or Do Business in Washington, DC
The District of Columbia Department of Insurance, Securities and Banking (DISB) has received an inquiry on Wallace Stock Transfers Agents that it is offering securities services using a Washington, DC, address. However, Wallace Stock Transfers Agents is not registered to effect any securities transaction or do business in Washington, DC DISB is warning all District residents that Wallace Stock Transfers Agents is falsely representing itself as a business located at 1150 18th St., NW, Washington, DC, according to its website, www.wallacesta.com. However, Wallace Stock Transfers Agents is not located at this address. Individuals associated with the company appear to be located in Florida. If you have any questions about registration of a company or individuals who are offering or selling securities in Washington, DC, please contact DISB at (202) 727-8000 and ask for the Enforcement and Investigation Bureau.
Fraud Alert: Cityline Financial Group Is not a Legitimate Lender in Washington, DC
DISB has received consumer complaints that Cityline Financial Group (CFG) is falsely representing itself as a business in Washington, DC, and is perpetrating an advance fee scam throughout the United States. CFG states it is located at 1030 15th St., NW, Washington, DC 20005, with phone number (888) 271-3718. However, the company is NOT located at the above address or anywhere in the District of Columbia. Individuals who have applied for personal loans with CFG in several states were required to forward a percentage of the loan amount to a person or company in Canada before receiving the loan as part of the application process. However, the loan money was never received by the applicants.
DISB is warning all District residents and consumers that:
- CFG is falsely representing itself as a business located in Washington, DC,
- CFG is NOT registered to conduct business in the District of Columbia, and
- Consumers should not be required by any lender to pay an advance fee for personal loans.
If you have any questions about companies or individuals offering or selling financial services or products in Washington, DC, please contact DISB at (202) 727-8000 and ask to talk to the Enforcement and Investigation Bureau.
DC Council Approves NuAmerica Bank Charter
The Council of the District of Columbia approved the charter for NuAmerica Bank to open a branch in the Columbia Heights neighborhood of the District. This will be the third bank chartered and regulated by the DC Department of Insurance, Securities and Banking. The bank will target small businesses operated by Hispanics seeking loans of $25,000 and more. According to media reports, NuAmerica’s founder and chair, Julio Lopez-Brito, a Venezuelan native, has raised $3 million from 15 investors, including $400,000 of his own money. The bank is trying to raise $20 million in equity with an initial public offering.
Industrial Bank to Re-Convert to District Chartered Bank
Industrial Bank on Georgia Ave., NW, recently applied to re-convert its national charter to a District chartered bank. The 73-year-old bank was previously chartered in 1934 as a District chartered bank by an act of Congress. It is currently the fourth largest African-American-owned commercial bank in the United States and is reported to be the oldest and largest minority owned commercial bank in the metropolitan Washington region. Industrial was founded by real estate investor, broker and attorney Jesse H. Mitchell, grandfather of its current president and chief executive officer, B. Doyle Mitchell Jr. The bank operates six branches in the District and two in Maryland, and as of Dec. 31, 2006, reported $323 million in total assets, $266 million in deposits, and $27 million in capital. Under the national charter, the bank is supervised by the Office of the Comptroller of the Currency. Under a District charter, DISB will supervise Industrial, which may become the fourth bank chartered and regulated in the District.
“The District of Columbia is glad to receive Industrial Bank’s application to convert back to a District chartered bank,” said DISB Commissioner Thomas E. Hampton. “Given the bank’s origins as a District bank, its extensive involvement in District business and economic development, and its long standing commitment to providing banking services to the residents of the District, it is fitting that the bank again be officially designated a District chartered bank.”
Industrial is a full service commercial bank whose services include checking, savings and investment accounts for retail and commercial customers. The bank also provides cash management, corporate on-line banking, electronic banking services, debit cards, credit cards and a variety of consumer, real estate and commercial loans and lines of credit. DISB has 90-180 days from the time the application is deemed complete to make its recommendation. Then the Council of the District of Columbia has 45 days to act on the recommendation.
New DC Bank Charter Law Proposed
Ward 3 Councilmember Mary Cheh, chair of the Committee on Public Services and Consumer Affairs, plans to introduce legislation to overhaul the District law requiring Council approval of a bank charter. The proposed legislation would eliminate the Council from the approval process, and let the DC Department of Insurance, Securities and Banking (DISB) make the final decision. The proposed legislative change is intended to shorten the approval process and to make the District more appealing and competitive as a financial center.
Under the current bank chartering process, banks seeking to do business in the District must apply to DISB, which requires an in-depth application process. It includes a recommendation to either approve or disapprove by the commissioner to the council, which must approve or reject the recommendation within 45 days, or approval is automatic.
DC Deputy Mayor Albert to Offer Welcome Remarks During NASAA Spring Conference
The North American Securities Administrators Association (NASAA) will hold its 2007 Public Policy Conference on May 8 in Washington, DC, to focus attention on investor protection issues to both state securities regulators and the securities industry. The conference, “Because Every Investor Deserves Protection,” will be held at the Renaissance Mayflower Hotel.
DC Deputy Mayor Neal Albert will give welcome remarks on behalf of Mayor Adrian Fenty as the hosting city for the event. A public policy forum, “Investor Protection Through Effective Enforcement and Regulation,” will feature a panel of distinguished investor protection advocates who will discuss how to balance the ongoing need for strong and effective regulation while maintaining the competitiveness of the nation’s capital markets. The keynote luncheon speaker will be Rep. Paul E. Kanjorski (D-PA), chair of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, which has jurisdiction over securities exchanges and most insurance matters.
Insurance Bureau Introduces Consumer Complaint Handling Changes
DISB’s Insurance Bureau has implemented a two-tiered system for handling consumer complaints. Experienced senior staff with high levels of technical expertise will focus on complicated consumer complaints requiring high levels of technical expertise and staff hours while other staff will be assigned to complaint intake, routine service and assistance. The two-tiered consumer complaint handling system will allow experienced senior staff to better target and focus complicated cases.
Insurance Bureau Adopts New License Renewal System
DISB’s Insurance Bureau is in the process of converting its insurance producer license renewal from the current biannual system to an anniversary-month-renewal system, to be consistent with other states’ practices. The bureau is finishing the last group of license renewals under the current system. The new system will start the month of May 2007.