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IN THE MATTER OF: VENGROFF WILLIAMS, INC. ("Vengroff Williams") |
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CONSENT ORDER |
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, Vengroff Williams is a Florida corporation with an office at 8440 North Tamiami Trail, Sarasota, Florida, that is currently licensed to act as a consumer collection agency in Connecticut;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department, conducted an investigation and examination pursuant to Sections 36a-17(a) and 36a-806(a) of the Connecticut General Statutes into the activities of Vengroff Williams 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, as a result of such investigation and examination, the Commissioner alleges that Vengroff Williams, during the period of January to September 4, 2012, acted as a consumer collection agency in Connecticut without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes;
WHEREAS, as a result of such investigation and examination, the Commissioner also alleges that during the period of January 1 to January 31, 2012, Vengroff Williams added charges or fees to the amount of claims which it received for collection, in violation of Section 36a-805(13) of the Connecticut General Statutes;
WHEREAS, as a result of such investigation and examination, the Commissioner further alleges that Vengroff Williams made a material misstatement in its Main Office – Application for Consumer Collection Agency License filed with the Commissioner on February 28, 2012, when it answered “No” under the Civil Disclosure question concerning prior litigation filed against Vengroff Williams;
WHEREAS, the Commissioner believes that such allegations would support the initiation of enforcement proceedings against Vengroff Williams, including proceedings to revoke its consumer collection agency licenses in Connecticut pursuant to Sections 36a-804(a) and 36a-51(a) of the Connecticut General Statutes, issue a cease and desist order against Vengroff Williams pursuant to Sections 36a-804(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 upon Vengroff Williams pursuant to Sections 36a-804(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 Vengroff Williams acknowledge the possible consequences of formal administrative proceedings, and Vengroff Williams voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, Vengroff Williams specifically assures the Commissioner that the violations and material misstatement alleged herein shall not occur in the future;
AND WHEREAS, Vengroff Williams, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for a hearing as it pertains to the allegations 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, Vengroff Williams, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | Vengroff Williams shall immediately cease and desist from adding charges and fees in violation of Section 36a-805(13) of the Connecticut General Statutes; and |
| 2. | No later than the date this Consent Order is executed by Vengroff Williams, Vengroff Williams 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 Ten Thousand Dollars ($10,000) as a civil penalty. |
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 Vengroff Williams based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Vengroff Williams 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 Vengroff Williams and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of Vengroff Williams to apply for or obtain a license or renewal licenses under Part XII of Chapter 669, Sections 36a-800 to 36a-810 et seq., of the Connecticut General Statutes; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 16th day of May 2013. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Harvey Vengroff, state on behalf of Vengroff Williams, Inc., 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 Vengroff Williams, Inc.; that Vengroff Williams, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Vengroff Williams, Inc., 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: Harvey Vengroff
Title: President
Vengroff Williams, Inc.
State of: Florida
County of: Manatee
On this the 3rd day of May 2013, before me, Sherry L. Moore, the undersigned officer, personally appeared Harvey Vengroff who acknowledged himself to be the President of Vengroff Williams, Inc., a corporation, and that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President for Vengroff Williams, Inc.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: February 9, 2017