| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: CARSON SMITHFIELD, LLC | * * * * * * * * * * | CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-812, 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, Carson Smithfield is a Delaware limited liability company that is currently licensed to act as a consumer collection agency in Connecticut under Part XII of Chapter 669, Sections 36a-800, et seq., of the Connecticut General Statutes;
WHEREAS, on September 26, 2011, Carson Smithfield filed a Main Office – Application for Consumer Collection Agency License (“Application”), for which a license was issued on February 10, 2012;
WHEREAS, on August 16, 2013, Carson Smithfield filed a Renewal of Consumer Collection Agency License – Main Office application (“Renewal Application”), which renewal was issued effective October 1, 2013;
WHEREAS, on or about February 11, 2015, Carson Smithfield self-reported that the response to a disclosure question contained in the Application and Renewal Application was inaccurate;
WHEREAS, as a result of such investigation, the Commissioner alleges that Carson Smithfield made a material statement in its Application and Renewal Application by responding “no” to the disclosure question with respect to regulatory orders when, in fact, an officer of Carson Smithfield had been the subject of a Consent Cease-and-Desist Order dated June 5, 1995, with the Office of Thrift Supervision, in violation of Section 36a-801(b)(1) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Carson Smithfield, including proceedings to revoke Carson Smithfield’s license to act as a consumer collection agency in Connecticut pursuant to Sections 36a-804(a)(1) and 36a-51(a) of the Connecticut General Statutes, issue a cease and desist order against Carson Smithfield 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 on Carson Smithfield pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) 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 Carson Smithfield acknowledge the possible consequences of formal administrative proceedings and Carson Smithfield voluntarily agrees to consent to the entry of the sanction imposed below without admitting or denying any allegation contained herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations contained herein;
WHEREAS, Carson Smithfield specifically assures the Commissioner that the conduct and violations described herein shall not occur in the future;
AND WHEREAS, Carson Smithfield, 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 SANCTION
WHEREAS, Carson Smithfield, 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 Carson Smithfield, Carson Smithfield 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.
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 Carson Smithfield 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 Carson Smithfield 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 Carson Smithfield and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of Carson Smithfield to apply for or obtain a license or renewal license under Part XII of Chapter 669, Sections 36a-800 et seq., of the Connecticut General Statutes; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 8th day of June 2015. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Albert T. Jaronczyk, state on behalf of Carson Smithfield, 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 Carson Smithfield, LLC; that Carson Smithfield, LLC agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Carson Smithfield, 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: Albert T. Jaronczyk
Title: SVP/CFO
Carson Smithfield, LLC
State of: New York
County of: Nassau
On this the 26th day of May 2015, before me, Donna Voss-Costa, the undersigned officer, personally appeared Albert T. Jaronczyk who acknowledged himself/herself to be the SVP/CFO of Carson Smithfield, LLC, a member managed/manager managed limited liability company, and that he/she as such SVP/CFO, 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 SVP/CFO.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 4/22/18