| * * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: CONDOR CAPITAL CORP. | * * * * * * * * * | CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part II of Chapter 668, Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, “Finance Companies”;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes into the activities of Condor to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes;
WHEREAS, on May 8, 2014, the Commissioner, acting pursuant to Section 4-182(c) of the 2014 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issued an Order of Summary Suspension, Notice of Intent to Revoke Sales Finance Company License and Notice of Right to Hearing (collectively “Notice”) against Condor, which Notice is incorporated herein by reference;
WHEREAS, on May 9, 2014, the Notice was sent by certified mail, return receipt requested, to Condor (Certified Mail No. 70121010000172647278);
WHEREAS, on May 12, 2014, Condor received the Notice, and on May 20, 2014, requested a hearing, which hearing is currently scheduled for November 20, 2014;
WHEREAS, the Commissioner alleges in the Notice that the filing of a civil complaint by the Superintendent of Financial Services of the State of New York against Condor and Stephen Baron (“Baron”), the President and sole shareholder of Condor (“Complaint”), which complaint alleged, among other things, that Condor wrongfully retained customers’ positive credit balances and took active steps to conceal such balances from customers and regulators, and the issuance of an Ex Parte Temporary Restraining Order and Order to Show Cause for Preliminary Injunction against Condor and Baron (“Restraining Order”), constitutes a basis for the Commissioner to conclude that Condor fails to demonstrate that the financial responsibility, character, reputation, integrity and general fitness of Condor are such as to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes. Such failure constitutes grounds for the Commissioner to deny an application for a license as a sales finance company under Section 36a-541 of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Condor’s license to engage in the business of a sales finance company pursuant to Section 36a-543(a)(4) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, the Commissioner also alleges in the Notice that the filing of the Complaint and issuance of the Restraining Order against Baron constitutes a basis for the Commissioner to conclude that Baron fails to demonstrate that the financial responsibility, character, reputation, integrity and general fitness of an officer, director or principal employee of Condor are such as to warrant belief that Condor’s business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes. Such failure constitutes grounds for the Commissioner to deny an application for a license as a sales finance company under Section 36a-541 of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Condor’s license to engage in the business of a sales finance company pursuant to Section 36a-543(a)(4) and subsections (a) and (b) of Section 36a-51 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, the Commissioner and Condor now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Condor voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice and set forth herein;
WHEREAS, Condor herein represents to the Commissioner that it has not engaged in the business of a sales finance company in this state since receipt of the Notice on May 12, 2014;
WHEREAS, Condor 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, Condor, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegations contained in the Notice and 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, Condor, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by Condor, Condor shall surrender its Connecticut sales finance company license to the Commissioner, which surrender shall only become effective upon remittance of all payments required pursuant to paragraph 2 below and the issuance of an Order Accepting Surrender by the Commissioner; |
| 2. | No later than thirty (30) days following the date this Consent Order is executed by Condor, Condor shall (a) remit to each client, by cashier’s check, certified check or money order, all monies erroneously retained by Condor from such client’s account(s) which had a positive credit balance, and (b) provide to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov, evidence of such payments and an affidavit that all such payments have been made; |
| 3. | For a period of seven (7) years commencing on the date this Consent Order is issued by the Commissioner, Condor and any successor in interest shall be BARRED from engaging in the business of a sales finance company in this state or acting in any other capacity which requires a license or registration from the Commissioner; |
| 4. | Stephen Baron may sell or otherwise transfer all or substantially all of his ownership interest in Condor to any person, including any person licensed under Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, or cause Condor to sell or transfer all or substantially all of its assets to any person, including any person licensed under Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, with the exception of a relative of Stephen Baron, or an entity in which Stephen Baron or a relative of Stephen Baron is an officer, director, partner, manager, member, employee or shareholder, and Stephen Baron may not become an officer, director, partner, manager, member, employee or shareholder of any successor to the purchaser or transferee; and |
| 5. | At least thirty (30) days after the effective date of any such sale or transfer described in paragraph 4 above, Stephen Baron shall submit to the Division a sworn affidavit specifying the nature of any involvement that he has had with the purchaser, transferee, or any successor to the purchaser or transferee, and confirming that he will not have a financial interest in or be engaged in managing or directing, directly or indirectly, any other person engaging in the business of a sales finance company in Connecticut or in any other capacity which requires a license or registration from the Commissioner. |
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 Condor 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 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 herein is subsequently discovered to be untrue; and |
| 3. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 29 day of January 2015. _______/s/_________
Bruce H. Adams
Acting Banking Commissioner
I, Denis O’Connor, state on behalf of Condor Capital Corp., 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 Condor Capital Corp.; that Condor Capital Corp. agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Condor Capital Corp. 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: Denis O'Connor
Title: Receiver
Condor Capital Corp.
State of: New York
County of: Bronx
On this the 21st day of January 2015, before me, Joann R. Johnson, the undersigned officer, personally appeared Denis O’Connor, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: July 15, 2018
I, Stephen Baron, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
_________/s/__________
Stephen Baron
State of: New York
County of: New York
On this the 13 day of January 2015, before me, Leah Campbell, the undersigned officer, personally appeared Stephen Baron, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: Sept, 24, 2016