* * * * * * * * * * * * * * * * * * * * * * * * * THE PUREWAL LAW GROUP SETTLEMENT CORPORATION | * * * * * * * * * * * * * * * * | CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671d, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;
WHEREAS, LNOA is a California professional corporation with a place of business at 22320 Foothill Boulevard, Suite 400, Hayward, California;
WHEREAS, SCOA is a California corporation with a place of business at 22320 Foothill Boulevard, Suite 400, Hayward, California;
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 Respondents, among others, 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, as a result of such investigation, on December 13, 2011, the Commissioner, acting pursuant to Sections 36a-671a(b), 36a-52(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Respondents, among others (“Notice”), which Notice is incorporated herein by reference;
WHEREAS, the Notice alleges that LNOA and SCOA engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes;
WHEREAS, on December 13, 2011, the Notice was sent by registered mail, return receipt requested to LNOA (Registered Mail No. RB028020668US), to LNOA’s agent for service of process (Registered Mail No. RB028020671US), and to SCOA (Registered Mail No. RA878574729US);
WHEREAS, on December 16, 2011, LNOA and SCOA received the Notice and on January 3, 2012, LNOA and SCOA requested a hearing, which hearing is subject to an open-ended continuance;
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, LNOA and SCOA now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, on February 15, 2012, LNOA and SCOA provided the Division with the contracts and enrollment documents for seventy-five (75) Connecticut residents who had retained LNOA and, indirectly, SCOA for debt negotiation services after October 1, 2009;
WHEREAS, LNOA and SCOA herein represent that they are not aware of any additional Connecticut residents who had retained LNOA or SCOA for debt negotiation services since October 1, 2009;
WHEREAS, LNOA and SCOA specifically assure the Commissioner that the violations contained in the Notice and set forth herein shall not occur in the future;
WHEREAS, LNOA and SCOA voluntarily agree 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, LNOA and SCOA agree that the Notice may be used in construing the terms of this Consent Order and agree to the language of this Consent Order;
AND WHEREAS, LNOA and SCOA, through their execution of this Consent Order, each voluntarily agrees to waive its respective procedural rights, including a right to a hearing as it pertains to the allegations contained in the Notice and set forth herein, and each voluntarily waives its respective right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, LNOA and SCOA, through their execution of this Consent Order, consent 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 LNOA, LNOA 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-five Thousand Dollars ($25,000) as a civil penalty; |
| 2. | LNOA and SCOA shall immediately cease and desist from engaging or offering to engage in debt negotiation in Connecticut without a license, in violation of Section 36a-671(b) of the Connecticut General Statutes; and |
| 3. | No later than ninety (90) days after this Consent Order is executed by LNOA and SCOA, LNOA and SCOA shall repay fees to the Connecticut residents in the amounts identified in Exhibit A attached hereto, and shall provide satisfactory evidence of such repayments to: Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov. |
CONSENT ORDER
| 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 LNOA or SCOA 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 LNOA or SCOA 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 LNOA or SCOA and reflected herein is subsequently discovered to be untrue; and |
| 3. | This Consent Order shall become final when issued. |
_________/s/_________
Issued at Hartford, Connecticut Bruce H. Adams
this 4 day of February 2015. Acting Banking Commissioner
I, Mandip Purewal, state on behalf of The Purewal Law Group A Professional Corporation d/b/a Legal Network of America (LNOA), 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 The Purewal Law Group A Professional Corporation d/b/a Legal Network of America (LNOA); that The Purewal Law Group A Professional Corporation d/b/a Legal Network of America (LNOA) agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that The Purewal Law Group A Professional Corporation d/b/a Legal Network of America (LNOA) 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:
Title:
The Purewal Law Group A Professional Corporation
d/b/a Legal Network Of America (LNOA)
State of: California
County of: Alameda
On this the 16 day of January 2015, before me, Amanda Lee Scott, the undersigned officer, personally appeared Mandip Purewal who acknowledged himself/herself to be the Managing Partner of The Purewal Law Group A Professional Corporation d/b/a Legal Network of America (LNOA), a professional corporation, and that he/she as such _________________, 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 _____________________.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: May 17, 2016
I, Jay Singh, state on behalf of Settlement Corporation of America, 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 Settlement Corporation of America; that Settlement Corporation of America agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Settlement Corporation of America 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:
Title:
Settlement Corporation of America
State of: California
County of: Alameda
On this the 16 day of January 2015, before me, Amanda Lee Scott, the undersigned officer, personally appeared Jay Singh who acknowledged himself/herself to be the CEO of Settlement Corporation of America, a corporation, and that he/she as such _________________, 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 _____________________.
In witness whereof I hereunto set my hand.
__________/s/_________
Notary Public
Date Commission Expires: May 17, 2016