The Department of Banking News Bulletin
Bulletin # 2695
Bulletin # 2695
Week Ending October 16, 2015
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 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 days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY
Consent Order
Consent Order
On October 6, 2015, the Commissioner entered into a Consent Order with Town and Country Acceptance Corporation ("Town and Country "), Birmingham, Alabama. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, on August 21, 2015, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Town and Country. The Commissioner alleged that Town and Country received money from a Connecticut debtor and disbursed a portion of such monies to creditors of such Connecticut debtor without the requisite license, in violation of Section 36a-656(a) of the Connecticut General Statutes. As part of the Consent Order, Town and Country paid $2,500 as a civil penalty and $1,600 as back licensing fees.
Temporary Order to Cease and Desist, Order to Make Restitution,
Notice of Intent to Issue Order to Cease and Desist and
Notice of Intent to Impose Civil Penalty
Notice of Intent to Impose Civil Penalty
On October 7, 2015, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) in the Matter of: Another Level Capital Venture, Inc d/b/a Quick Legal Solutions, Irvine, California, Michael Taylor, and Quick Mortgage Solutions Division of: Quick Legal Solutions, New York, New York (collectively “Respondents”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes. As part of the Order to Make Restitution, Respondents were ordered to repay $210,797.68 to identified Connecticut debtors plus interest and repay to any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondents on and after October 1, 2009, any fees paid by such Connecticut debtor to Respondents plus interest. The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist against Respondents. Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.
Notice of Intent to Revoke Mortgage Lender License
On October 9, 2015, the Commissioner issued a Notice of Intent to Revoke Mortgage Lender License and Notice of Right to Hearing (“Notice”) in the Matter of: MCM Holdings, Inc. d/b/a MCM Holdings II, Inc. (NMLS # 213236) (“Respondent”), Miami Lakes, Florida. The Notice was the result of an investigation by the Consumer Credit Division to determine if Respondent continues to meet the minimum qualifications for licensure. The Notice alleges that Respondent’s failure to designate a qualified individual for its main office would constitute sufficient grounds to deny a mortgage lender license under Sections 36a-489(a)(1) and 36a-488 of the Connecticut General Statutes, which constitutes sufficient grounds to revoke Respondent’s license to engage in the business of making residential mortgage loans in Connecticut for the 2015 licensing period under Section 36a-494(a)(1) of the Connecticut General Statutes, as amended by Public Act 15-235, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. Respondent was afforded an opportunity to request a hearing on the allegation set forth in the Notice.
Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist
and Notice of Intent to Impose Civil Penalty
and Notice of Intent to Impose Civil Penalty
On October 9, 2015, the Commissioner issued an Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of: United Collections Recovery, LLC, Wilmington, Delaware, and Charles Lockwood (“Respondents”). The Notice was the result of an investigation by the Consumer Credit Division. The Commissioner alleges that Respondents acted within this state as consumer collection agencies without consumer collection agency licenses, in violation of Section 36a-801(a) of the Connecticut General Statutes. As part of the Order to Make Restitution, Respondents were ordered to repay $2,590.02 to an identified Connecticut consumer debtor, and to refund all monies that Respondents collected or received for payment for others of any account, bill or other indebtedness from a Connecticut consumer debtor and collected with respect to any account, bill or other indebtedness from a Connecticut consumer debtor for Respondents’ own account if the indebtedness was acquired from another person and if the indebtedness was either delinquent or in default at the time it was acquired. Respondents were afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.
SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY
Consent Order Entered
Consent Order Entered
On October 15, 2015, the Banking Commissioner entered a Consent Order (Docket No. CO-15-8110-S) with respect to Floridel, LLC of Orlando, Florida. Floridel, LLC owns a Florida taco franchise.
The respondent had been the subject of a June 22, 2015 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine (Docket No. CRF-15-8110-S) alleging that Floridel, LLC and one Dale Quesnel, Sr. offered and sold approximately $250,000 of Floridel, LLC promissory notes to finance Floridel, LLC’s taco business expansion. The Floridel, LLC notes were not registered under the Connecticut Uniform Securities Act, and Quesnel allegedly received $8,000 from Floridel, LLC in conjunction with the note offering. The action also alleged that prospective investors were not provided with critical disclosures.
The Consent Order directed Floridel, LLC to cease and desist from regulatory violations. Acknowledging that the company had provided documentation evidencing its current inability to pay restitution to investors, the Consent Order also temporarily stayed enforcement of the restitutionary obligation. Among other things, the temporary stay was subject to the respondent providing periodic reports demonstrating that the respondent's financial condition warranted continuation of the stay.
Consent Order Entered
On October 16, 2015, the Banking Commissioner entered a Consent Order (No. CO-15-8257-S) with respect to Carolyn Settzo, a Newtown Connecticut based financial planner now doing business as Carolyn Settzo Financial Plans, LLC. The Consent Order alleged that from approximately 2009 to 2014, a number of financial plans prepared by Carolyn Settzo contained advice on securities such that registration as an investment adviser under Section 36b-6(c) of the Connecticut Uniform Securities Act would have been required. In resolution of the matter, the Consent Order directed Carolyn Settzo to refrain from engaging in violative conduct. In addition, the Consent Order required that Carolyn Settzo remit $5,000 to the department. Of that amount, $3,800 constituted an administrative fine and $1,200 represented payment for past due investment adviser registration fees.
Dated: Tuesday, October 20, 2015
Jorge L. Perez
Banking Commissioner
Jorge L. Perez
Banking Commissioner