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IN THE MATTER OF: MONTGOMERY & MEYERS |
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ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTY |
I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder (Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;
WHEREAS, on March 12, 2013, the Commissioner, acting pursuant to Sections 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, 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 (“Notice”) against Respondent, which Notice is incorporated herein by reference;
WHEREAS, on March 13, 2013, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70121010000172645793) and to Respondent’s agent for service of process (Certified Mail No. 70121010000172645809);
WHEREAS, the Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of Respondent’s receipt the Commissioner would issue an order that Respondent cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
WHEREAS, on March 19, 2013, Respondent’s agent received the Notice and on April 8, 2013, the Notice sent to Respondent was returned the Department marked “Return to Sender – Undeliverable as Addressed”, and no request for hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes. Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”;
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;
WHEREAS, on March 12, 2013, the Commissioner, acting pursuant to Sections 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, 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 (“Notice”) against Respondent, which Notice is incorporated herein by reference;
WHEREAS, on March 13, 2013, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70121010000172645793) and to Respondent’s agent for service of process (Certified Mail No. 70121010000172645809);
WHEREAS, the Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of Respondent’s receipt the Commissioner would issue an order that Respondent cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
WHEREAS, on March 19, 2013, Respondent’s agent received the Notice and on April 8, 2013, the Notice sent to Respondent was returned the Department marked “Return to Sender – Undeliverable as Addressed”, and no request for hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s acting within this state as a consumer collection agency without a consumer collection agency license constitutes a violation of Section 36a-801(a) of the Connecticut General Statutes. Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and an order imposing civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”;
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.
II. FINDINGS OF FACT AND CONCLUSIONS OF LAW
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The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 3, inclusive, of Section II of the Notice shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusion set forth in Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies. |
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The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut the General Statutes, forms a basis to issue an order to cease and desist against Respondent from violating Section 36a-801(a) of the Connecticut General Statutes, and pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes, forms a basis to impose a civil penalty upon Respondent. |
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The Commissioner finds that the Notice was given in compliance with Sections 36a-52(a), 36a-50(a) and 4-177 of the Connecticut General Statutes. |
III. ORDER
Having read the record, I HEREBY ORDER, pursuant to Sections 36a-804(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:
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Montgomery & Meyers PA Corporation CEASE AND DESIST from violating Section 36a-801(a) of the Connecticut General Statutes; |
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A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Montgomery & Meyers PA Corporation, to be remitted to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, not later than thirty (30) days from the date this Order is mailed; and |
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This Order shall become effective when mailed. |
Dated at Hartford, Connecticut
this 2nd day of May 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
This order was sent by certified mail,
return receipt requested, to Respondent and
Respondent’s agent for service of process
on May 2, 2013.
Montgomery & Meyers Certified Mail No. 70121010000173171802
PA Corporation
2029 Century Park East #1400
Los Angeles, California 90067
LegalZoom.com Certified Mail No. 70121010000173171819
Agent for Service of Process
for Montgomery & Meyers
PA Corporation
100 West Broadway, Suite 100
Glendale, California 91210