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IN THE MATTER OF: GANESH ASSOCIATES, LLC |
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CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part IV of Chapter 668, Sections 36a-580 to 36a-589, inclusive, of the Connecticut General Statutes, “Check Cashing Services”, and Sections 36a-585-1, 36a-588-1, 36a-588-3 and 36a-588-4 of the Regulations of Connecticut State Agencies (“Regulations”);
WHEREAS, Ganesh Associates is a Connecticut limited liability company that at all times relevant hereto has been licensed to operate general facility to engage in the business of cashing checks, drafts or money orders for consideration at 314 Farmington Avenue, Hartford, Connecticut;
WHEREAS, Sanjay B. Dave (“Dave”) is a member of Ganesh Associates;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes, into the activities of Ganesh Associates to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, on August 19, 2013, the Commissioner, acting pursuant to Sections 36a-587(a), 36a-587(a)(4), subsections (a) and (b) of Section 36a-51, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke Check Cashing Service License, 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”) against Ganesh Associates, which Notice is incorporated herein by reference;
WHEREAS, on August 21, 2013, the Notice was sent by certified mail, return receipt requested, to Ganesh Associates, which was received by Ganesh Associates on August 22, 2013;
WHEREAS, on August 29, 2013, Ganesh Associates requested a hearing, which hearing is currently scheduled for October 23, 2013;
WHEREAS, the Commissioner alleged in the Notice that Ganesh Associates’ failure to timely provide the Commissioner with a complete report of the corrective action taken as a result of an October 17, 2011, Report of Examination (“ ROE”) renders the Commissioner unable to determine that Ganesh Associates is in all respects properly qualified and of good character and that the granting of such license would not be against the public interest. Such failure would be sufficient grounds for the Commissioner to deny an application for a check cashing service license under Sections 36a-581(e)(1) and 36a-581(e)(5) of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Ganesh Associates’ check cashing service license pursuant to Section 36a-587(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, the Commissioner also alleged in the Notice that Dave’s failure to timely provide the Commissioner with a complete report of the corrective action taken as a result of the ROE renders the Commissioner unable to determine that a member of Ganesh Associates is in all respects properly qualified and of good character and that the granting of such license would not be against the public interest. Such failure would be sufficient grounds for the Commissioner to deny an application for a check cashing service license under Sections 36a-581(e)(4) and 36a-581(e)(5) of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Ganesh Associates’ check cashing service license pursuant to Section 36a-587(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, the Commissioner additionally alleged in the Notice that Ganesh Associates’ failure to timely provide the Commissioner with a complete report of the corrective action taken as a result of the ROE causes Ganesh Associates to demonstrate incompetency or untrustworthiness to act as a licensed check cashing service. Such failure would be sufficient grounds for the Commissioner to revoke Ganesh Associates’ check cashing service license pursuant to Section 36a-587(a)(4) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, the Commissioner further alleged in the Notice that Ganesh Associates’ failure to timely provide the Commissioner with a complete report of the corrective action taken as a result of the ROE constitutes a failure by Ganesh Associates to fully cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, as a result of further investigation by the Commissioner, the Commissioner alleges that Ganesh Associates failed to maintain its books and records as required to be maintained by check cashing licensees pursuant to Sections 36a-586(a) of the Connecticut General Statutes and Section 36a 588-3 of the Regulations;
WHEREAS, the Commissioner believes that the additional allegation above would support initiation of additional enforcement proceedings against Ganesh Associates, including proceedings to revoke Ganesh Associates’ general facility license pursuant to Section 36a-587(a) of the Connecticut General Statutes and subsections (a) and (b) of the Connecticut General Statutes, issue a cease and desist order against Ganesh Associates pursuant to Sections 36a-587(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Ganesh Associates pursuant to Sections 36a-587(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) of the Connecticut General Statutes;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, both the Commissioner and Ganesh Associates acknowledge the possible consequences of formal administrative proceedings, and Ganesh Associates voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, Ganesh Associates and Dave specifically assure the Commissioner that the violations described herein shall not occur in the future;
WHEREAS, Ganesh Associates agrees that the Notice may be used in construing the terms of this Consent Order and agrees to the language of this Consent Order;
AND WHEREAS, Ganesh Associates, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including an opportunity for hearing as it pertains to the allegation set forth in the Notice and a right to notice and an opportunity for hearing as it pertains to the additional allegation set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Ganesh Associates, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by Ganesh Associates, Ganesh Associates shall remit to the Department of Banking, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Thousand Five Hundred Dollars ($2,500) as a civil penalty; and |
| 2. | Ganesh Associates shall maintain the books, records and accounts required by Section 36a-586 of the Connecticut General Statutes and Section 36a-588-3 of the Regulations. According to the schedule below, Ganesh Associates shall submit copies of the books, records and accounts required to be maintained to Carmine Costa, Division Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 or carmine.costa@ct.gov. |
• On or before January 15, 2014, copies for the period covering October 1, 2013 through December 31, 2013;
• On or before April 15, 2014, copies for the period covering January 1, 2014 through March 31, 2014;
• On or before July 15, 2014, copies for the period covering April 1, 2014 through June 30, 2014; and
• On or before October 15, 2014, copies for the period covering July 1, 2014 through September 30, 2014.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against Ganesh Associates based upon the allegations contained in the Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Ganesh Associates, Dave or both based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by Ganesh Associates and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of Ganesh Associates to apply for or obtain a license or renewal license for a general facility or limited facility under Part IV of Chapter 668, Sections 36a-580, et seq. of the Connecticut General Statutes, provided all applicable legal requirements for such license are satisfied; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 31st day of October 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Sanjay Dave, state on behalf of Ganesh Associates, LLC, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Ganesh Associates, LLC; that Ganesh Associates, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Ganesh Associates, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/________
Name:
Title: Owner
Ganesh Associates, LLC
State of: Connecticut
County of: Hartford
On this the 25 day of October 2013, before me, Sara J. Watson, the undersigned officer, personally appeared Sanjay Dave who acknowledged himself/herself to be the owner of Ganesh Associates, LLC, a member managed/manager managed limited liability company, and that he/she as such _____________________, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as _______________________.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: Nov. 30, 2015