|* * * * * * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF:
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-612, inclusive, of the Connecticut General Statutes, “Payment Instruments. Money Transmission Act”;
WHEREAS, Telmate is a Delaware limited liability company with an office at 655 Montgomery Street, 18th Floor, San Francisco, California;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Sections 36a-17(a) and 36a-608(a) of the Connecticut General Statutes into the activities of Telmate 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, as a result of such investigation, the Commissioner alleges that, from September 2014 to September 2016, Telmate engaged in the business of money transmission in this state without the required license, in violation of Section 36a-597(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support the initiation of administrative proceedings against Telmate, including proceedings to issue a cease and desist order pursuant to Sections 36a-608(c) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation pursuant to Sections 36a-608(c) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such administrative 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 Telmate acknowledge the possible consequences of formal administrative proceedings, and Telmate voluntarily agrees to consent to the entry of the sanctions imposed below without admitting or denying the allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, the Commissioner and Telmate now desire to resolve the matters set forth herein;
WHEREAS, Telmate specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
WHEREAS, Telmate represents that it has ceased engaging in the activities alleged to constitute the business of money transmission in this state;
WHEREAS, Telmate acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Multistate Licensing System and Registry (“NMLS”), as applicable;
AND WHEREAS, Telmate, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegation 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
|1.||No later than the date this Consent Order is executed by Telmate, it shall remit to the Department of Banking by wire transfer, cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Four Thousand Dollars ($4,000) as payment for back licensing fees;|
|2.||No later than the date this Consent Order is executed by Telmate, Telmate shall remit to the Department of Banking by wire transfer, cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Three Thousand Five Hundred Dollars ($3,500) as a civil penalty; and|
Telmate shall cease and desist from engaging in the activities alleged to constitute the business of money transmission in this state without a license, in violation of Section 36a-597(a) of the Connecticut General Statutes.
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 Telmate based upon the allegation set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Telmate 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 Telmate and reflected herein is subsequently discovered to be untrue;|
|3.||Upon issuance of this Consent Order by the Commissioner, and so long as this Consent Order is promptly disclosed by Telmate and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Telmate to apply for or obtain initial or renewal licenses under Part V of Chapter 668, Sections 36a-595 et seq., of the Connecticut General Statutes, provided all legal requirements for such licenses are satisfied; and|
This Consent Order shall become final when issued.
Issued at Hartford, Connecticut
this 14th day of June 2017. ______/s/__________
Jorge L. Perez
I, Pablo Nichols, state on behalf of Telmate, 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 Telmate, LLC; that Telmate, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and the terms and conditions ordered herein; and that Telmate, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Pablo Nichols
Title: General Counsel
State of: California
County of: San Francisco
On this the 12 day of June 2017, before me, Lisa Garcia, the undersigned officer, personally appeared Pablo Nichols who acknowledged himself/herself to be the General Counsel of Telmate, LLC, a member managed/manager managed limited liability company, and that he/she as such General Counsel, 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 Pablo Nichols.
In witness whereof I hereunto set my hand.
Date Commission Expires: Jun 29, 2018