| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: JD FINANCIAL SERVICES, INC. | * * * * * * * * * * * * | CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;
WHEREAS, JS Mechanic Services is a Florida corporation that is presently licensed to act as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking conducted an investigation pursuant to the authority granted by Sections 36a-17(a) and 36a-498f of the Connecticut General Statutes, into the activities of JS Mechanic Services to determine if it had violated, was violating, or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, on May 9, 2014, as a result of the investigation, the Commissioner, acting pursuant to Sections 36a-494(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 JS Mechanic Services, which Notice is incorporated herein by reference;
WHEREAS, the Commissioner alleged in the Notice that JS Mechanic Services failed to file its Mortgage Call Report (“MCR”) due on March 31, 2014 (“2013 Financial Condition”) in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes, which violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, on May 12, 2014, the Notice was sent by certified mail, return receipt requested, to JS Mechanic Services (Certified Mail No. 70121010000172646820);
WHEREAS, on May 15, 2014, JS Mechanic Services received the Notice and on May 16, 2014, requested a hearing;
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, the Commissioner and JS Mechanic Services now desire to resolve the matters alleged in the Notice;
WHEREAS, JS Mechanic Services admits that it did not file the report described in the Notice by its due date and acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;
WHEREAS, JS Mechanic Services voluntarily agrees to consent to the entry of the sanction described below, solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained in the Notice and set forth herein;
WHEREAS, JS Mechanic Services 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, JS Mechanic Services, through its execution of this Consent Order, voluntarily agrees to waive any applicable procedural rights, including JS Mechanic Services’ right to a hearing as it pertains to the allegation contained in the Notice and set forth herein, and voluntarily waives any right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, JS Mechanic Services, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by JS Mechanic Services, JS Mechanic Services shall request surrender of its mortgage broker license and JS Mechanic Services or any other company with David Mechanic as a control person shall not be eligible to apply for licensure as a mortgage lender, mortgage correspondent lender or mortgage broker before January 15, 2015.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is 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 JS Mechanic Services based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against JS Mechanic Services 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 JS Mechanic Services and reflected herein is subsequently discovered to be untrue; |
| 3. | So long as this Consent Order is promptly disclosed by JS Mechanic Services and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of JS Mechanic Services or any other company with David Mechanic as a control person to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes after January 15, 2015, 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 25th day of July 2014. _______/s/_________
Howard F. Pitkin
Banking Commissioner
I, David B. Mechanic, state on behalf of JD Financial Services, Inc. d/b/a JS Mechanic Services, 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 JD Financial Services, Inc. d/b/a JS Mechanic Services; that JD Financial Services, Inc. d/b/a JS Mechanic Services agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that JD Financial Services, Inc. d/b/a JS Mechanic Services 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: David Mechanic
Title: Officer
JD Financial Services, Inc.
d/b/a JS Mechanic Services
State of: Florida
County of: Martin
On this the 21 day of July 2014, before me, Kristen Seelinger, the undersigned officer, personally appeared David Mechanic, who acknowledged himself/herself to be the Officer of JD Financial Services, Inc. d/b/a JS Mechanic Services, a corporation, and that he/she as such Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Officer.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 8/18/14