| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: TRANSFER SERVICES INC. BRIAN C. SOLOMON JOHN ORTEGA ("Ortega") (collectively, "Respondents") * * * * * * * * * * * * * * * * * * * * * * * | * * * * * * * * * * * * * * * * * * * * * * * * * * | ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTY |
I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671e, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, as amended by Public Acts 14-7 and 14-89, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, on October 16, 2014, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-50(c), 36a-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, 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 “Order and Notice”) against Respondents, which Order and Notice is incorporated herein by reference;
WHEREAS, on October 17, 2014, the Order and Notice was sent by certified mail, return receipt requested, to Transfer Services (Certified Mail Nos. 70120470000147897067, 70120470000147897074 and 70120470000147897081), Lawson Financial (Certified Mail Nos. 70120470000147897104, 70120470000147897111 and 70140470000147897128), Rafo (Certified Mail Nos. 70120470000147897098, 70120470000147897180, 70140470000147897197 and 70120470000147897234), Solomon (Certified Mail Nos. 70120470000147897203, 70140470000147897210, 70120470000147897227 and 70120470000147897166), and Ortega (Certified Mail Nos. 70120470000147897135, 70120470000147897142 and 70140470000147897159);
WHEREAS, the Order and Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of Respondent’s receipt, the Order to Make Restitution shall remain in effect and become permanent against such Respondent and the Commissioner would issue an order that such Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, as amended by Public Act 14-7, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon such Respondent;
WHEREAS, on October 22, 2014, Transfer Services received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Lawson Financial received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Rafo received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Solomon received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Ortega received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that each Respondent 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 amended. Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, to issue an order to make restitution pursuant to Sections 36a-671a(b) and 36a-50(c) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes against each Respondent;
WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-50(c) of the Connecticut General Statutes, that not later than thirty (30) days from the date the Order to Make Restitution becomes permanent, Respondents repay identified Connecticut residents in identified amounts plus interest, and repay to any other Connecticut resident who entered into an agreement for debt negotiation services with Respondents on and after October 1, 2009, any fees paid by such resident plus interest, and provide evidence of such repayments to the Director of the Consumer Credit Division;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Transfer Services on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Lawson Financial on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Solomon on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Ortega on November 6, 2014;
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 that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
WHEREAS, on December 24, 2014, the Commissioner entered into a Consent Order with Rafo;
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 Respondents, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, as amended by Public Acts 14-7 and 14-89, to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, on October 16, 2014, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-50(c), 36a-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, 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 “Order and Notice”) against Respondents, which Order and Notice is incorporated herein by reference;
WHEREAS, on October 17, 2014, the Order and Notice was sent by certified mail, return receipt requested, to Transfer Services (Certified Mail Nos. 70120470000147897067, 70120470000147897074 and 70120470000147897081), Lawson Financial (Certified Mail Nos. 70120470000147897104, 70120470000147897111 and 70140470000147897128), Rafo (Certified Mail Nos. 70120470000147897098, 70120470000147897180, 70140470000147897197 and 70120470000147897234), Solomon (Certified Mail Nos. 70120470000147897203, 70140470000147897210, 70120470000147897227 and 70120470000147897166), and Ortega (Certified Mail Nos. 70120470000147897135, 70120470000147897142 and 70140470000147897159);
WHEREAS, the Order and Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of Respondent’s receipt, the Order to Make Restitution shall remain in effect and become permanent against such Respondent and the Commissioner would issue an order that such Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, as amended by Public Act 14-7, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon such Respondent;
WHEREAS, on October 22, 2014, Transfer Services received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Lawson Financial received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Rafo received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Solomon received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, on October 22, 2014, Ortega received the Order and Notice, and no request for a hearing has been received by the Commissioner;
WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that each Respondent 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 amended. Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, to issue an order to make restitution pursuant to Sections 36a-671a(b) and 36a-50(c) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes against each Respondent;
WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-50(c) of the Connecticut General Statutes, that not later than thirty (30) days from the date the Order to Make Restitution becomes permanent, Respondents repay identified Connecticut residents in identified amounts plus interest, and repay to any other Connecticut resident who entered into an agreement for debt negotiation services with Respondents on and after October 1, 2009, any fees paid by such resident plus interest, and provide evidence of such repayments to the Director of the Consumer Credit Division;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Transfer Services on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Lawson Financial on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Solomon on November 6, 2014;
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Ortega on November 6, 2014;
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 that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
WHEREAS, on December 24, 2014, the Commissioner entered into a Consent Order with Rafo;
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
| 1. | The Commissioner finds that the matters asserted, as set forth in Section II of the Order and Notice, shall constitute findings of fact with respect to Transfer Services, Lawson Financial, Solomon and Ortega, as applicable, within the meaning of Section 4-180(c) of the 2014 Supplement to the General Statutes, and that the conclusions, as set forth in Section III of the Order and Notice, shall constitute conclusions of law with respect to Transfer Services, Lawson Financial, Solomon and Ortega, as applicable, within the meaning of Section 4-180(c) of the 2014 Supplement to the General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies. |
| 2. | The Commissioner finds that Transfer Services, Lawson Financial, Solomon and Ortega have engaged in acts or conduct which, pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against with respect to Transfer Services, Lawson Financial, Solomon and Ortega, and, pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Transfer Services, Lawson Financial, Solomon and Ortega. |
| 3. | The Commissioner finds that the Order and Notice was given in compliance with Section 36a-52(a), subsections (a) and (c) of Section 36a-50 and Section 4-177 of the Connecticut General Statutes. |
III. ORDER
Having read the record, I HEREBY ORDER, pursuant to Sections 36a-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes that:
| 1. | Transfer Services Inc. d/b/a Resolution Center d/b/a United Law Center d/b/a Trustee Services CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, as amended; |
| 2. | A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Transfer Services Inc. d/b/a Resolution Center d/b/a United Law Center d/b/a Trustee Services, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; |
| 3. | Lawson Financial LLC d/b/a Hamp Services CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, as amended; |
| 4. | A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Lawson Financial LLC d/b/a Hamp Services, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; |
| 5. | Brian C. Solomon CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, as amended; |
| 6. | A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Brian C. Solomon, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; |
| 7. | John Ortega CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, as amended; |
| 8. | A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon John Ortega, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; |
| 9. | This Order shall become effective when mailed. |
Dated at Hartford, Connecticut
this 31st day of December 2014.
________/s/_________
Howard F. Pitkin
Banking Commissioner
This Order was sent by certified mail,
return receipt requested, to the following
Respondents on January 5, 2015.
Administrative Orders and Settlements