* * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF:
| * * * * * * * * * * | ORDER TO CEASE AND DESIST AND ORDER IMPOSING CIVIL PENALTY |
I. PRELIMINARY STATEMENT
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 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 within the jurisdiction of the Commissioner;
WHEREAS, on November 16, 2015, 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 Respondent, which Order and Notice is incorporated herein by reference;
WHEREAS, on November 16, 2015, the Order and Notice was caused to be mailed by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70133020000042269418, 70133020000042269425 and 70133020000042269432);
WHEREAS, on November 27, 2015, the Order and Notice sent to Respondent by Certified Mail No. 70133020000042269432 was returned to the Department marked “Return to Sender – Attempted – Not Known – Unable to Forward”;
WHEREAS, on December 1, 2015, the Notice sent to Respondent by Certified Mail Nos. 70133020000042269418 and 70133020000042269425 were returned to the Department marked “Return to Sender – Attempted – Not Known – Unable to Forward”;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending”;
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, Section 36a-50(c) of the Connecticut General Statutes provides, in pertinent part, that “[t]he order shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, Respondent failed to request a hearing within the prescribed time period;
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, Respondent shall repay $2,950 to identified Connecticut debtors plus interest and repay to any other Connecticut debtor who entered into an agreement for debt negotiation services with Respondent on or after October 1, 2009, any fees paid 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 Respondent on December 9, 2015;
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”;
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 paragraphs 1 through 7, inclusive, of Section II of the Order and Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions, as set forth in Section III of the Order and 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. |
2. | The Commissioner finds that Respondent has 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 Respondent, 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 Respondent. |
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. | Compliance Audit Group CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes; |
2. | A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Compliance Audit Group, 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; and |
3. | This Order shall become effective when mailed. |
Dated at Hartford, Connecticut
this 22nd day of December 2015.
________/s/_________
Jorge L. Perez
Banking Commissioner
This Order was sent by certified mail,
return receipt requested, to
Respondent on December 22, 2015.
Compliance Audit Group Certified Mail No. 70142120000036973865
468 Camden Drive, Suite 280
Beverly Hills, California 90210
Compliance Audit Group Certified Mail No. 70142120000036973964
468 North Camden Drive, Suite 280
Beverly Hills, California 90210
Compliance Audit Group Certified Mail No. 70142120000036973971
3325 Wilshire Boulevard, Unit 940
Los Angeles, California 90010