| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: SKO-BRENNER-AMERICAN, INC. | * * * * * * * * * * | 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, SKO-Brenner-American is a New York corporation that is currently licensed to act as a consumer collection agency in Connecticut from 841 Merrick Road, Baldwin, New York;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of SKO-Brenner-American to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such examination, the Commissioner alleged in a Report of Examination dated March 11, 2015 (“ROE”), that SKO-Brenner-American changed its location from 841 Merrick Road, Baldwin, New York, to 40 Daniel Street, Suite 4, Farmingdale, New York, without having provided the required prior written notice, in violation of Section 36a-801(i) of the then applicable Connecticut General Statutes;
WHEREAS, as a result of such examination, the Commissioner alleged in the ROE that SKO-Brenner-American failed to report changes to the information contained in its initial application for a consumer collection agency license in Connecticut or most recent renewal application, not later than ten (10) days after the occurrence of the events that resulted in such information becoming inaccurate, in violation of Section 36a-801(e) of the then applicable Connecticut General Statutes;
WHEREAS, as a result of such examination, the Commissioner also alleged in the ROE that SKO-Brenner-American failed to maintain sufficient funds in its trust accounts to cover amounts due to creditors, in violation of Section 36a-811(b) of the Connecticut General Statutes;
WHEREAS, as a result of such examination, the Commissioner additionally alleged in the ROE that SKO-Brenner-American failed to make remittances to creditors within the time limits required by Section 36a-805(a)(9) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support the initiation of enforcement proceedings against SKO-Brenner-American, including proceedings to revoke SKO-Brenner-American’s license to act as a consumer collection agency in Connecticut pursuant to Section 36a-804(a) of the Connecticut General Statutes, as amended by Public Act 15-235, and Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against SKO-Brenner-American pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended by Public Act 15-235, and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation upon SKO-Brenner-American pursuant to Section 36a-804(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of 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 SKO-Brenner-American acknowledge the possible consequences of formal administrative proceedings, and SKO-Brenner-American voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegations set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, SKO-Brenner-American specifically assures the Commissioner that the violations alleged herein shall not occur in the future;
AND WHEREAS, SKO-Brenner-American, 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 SANCTIONS
WHEREAS, SKO-Brenner-American, 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 SKO-Brenner-American, SKO-Brenner-American 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 Twenty Thousand Dollars ($20,000) as a civil penalty; |
| 2. | SKO-Brenner-American shall immediately cease and desist from violating Sections 36a-801(i), 36a-801(e) and 36a-805(a)(9) of the Connecticut General Statutes, as amended by Public Act 15-235, and Section 36a-811(b) of the Connecticut General Statutes. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
The Sanctions set forth above be and are hereby entered;
| 1. | 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 SKO-Brenner-American 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 SKO-Brenner-American 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 SKO-Brenner-American and reflected herein is subsequently discovered to be untrue; |
| 2. | Nothing in the issuance of this Consent Order shall adversely affect the ability of SKO-Brenner-American to apply for or obtain a license or renewal license under Part XII of Chapter 669, Sections 36a-800 to 36a-812 et seq., of the Connecticut General Statutes; and |
| 3. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 28th day of October 2015. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Stuart Brenner, state on behalf of SKO-Brenner-American, Inc., 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 SKO-Brenner-American, Inc.; that SKO-Brenner-American, Inc., agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that SKO-Brenner-American, Inc., 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: Stuart Brenner
Title: President
SKO-Brenner-American, Inc.
State of: New York
County of: Nassau
On this the 19 day of August 2015, before me, Elizabeth McGovern, the undersigned officer, personally appeared Stuart Brenner who acknowledged himself/herself to be the President of SKO-Brenner-American, Inc., a corporation, and that he/she as such President, 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 SKO Brenner American.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: August 2, 2018