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IN THE MATTER OF:
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I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of the Banking Law of Connecticut under Title 36a of the Connecticut General Statutes;
WHEREAS, the Commissioner, through the Financial Institutions Division of the Department of Banking (“Division”), conducted an examination of New Haven County Credit Union, Inc. (“NHCCU”), a Connecticut credit union, pursuant to Connecticut General Statutes § 36a-17 (a);
WHEREAS, James Farrell (“Farrell”), at all times relevant to this matter, was a director, employee and/or manager of NHCCU, and, as such, was a “related person” within the meaning of Connecticut General Statutes § 36a-53;
WHEREAS, following that examination, the Division conducted an investigation pursuant to § 36a-17 (a) into Farrell’s activities to determine whether he engaged in conduct that may warrant corrective action by the Commissioner;
WHEREAS, as a result of such investigation, the Commissioner has reason to believe that Farrell violated certain provisions of the Banking Law of Connecticut, and that such violations would support administrative proceedings against Farrell under § 36a-53;
WHEREAS, an administrative proceeding initiated under § 36a-53 would constitute a “contested case” within the meaning of Connecticut General Statutes § 4-166 (4);
WHEREAS, Connecticut General Statutes § 4-177 (c) and § 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, without holding a hearing and without trial or adjudication of any issue of fact or law, and prior to the initiation of any formal proceeding, the Commissioner and Farrell reached an agreement, the terms of which are reflected in this Consent Order, in full and final resolution of the matters described herein;
WHEREAS, Farrell acknowledges that he has discussed all aspects of this Consent Order and the effect of the same with his attorney, that he has had reasonable time to review this Consent Order, and that he fully understands all the provisions of the Consent Order;
AND WHEREAS, Farrell, through his execution of this Consent Order, voluntarily agrees to waive his procedural rights, including the right to notice and an opportunity for a hearing on the allegations set forth herein, and voluntarily waives his right to seek judicial review or otherwise challenge or contest the matters described herein, including the validity of this Consent Order.
II. ACKNOWLEDGEMENT OF THE COMMISSIONER’S ALLEGATIONS
WHEREAS, Farrell, through his execution of this Consent Order, acknowledges the following allegations of the Commissioner which are sufficient for the Commissioner to impose sanctions pursuant to § 36a-53:
|1.||Farrell violated Connecticut General Statutes §§ 36a-53a, 36a-54 and 36a-454b (f), each of which would form the basis for removing Farrell from office pursuant to § 36a-53 and imposing a civil penalty of up to $100,000 pursuant to § 36a-53 and Connecticut General Statutes § 36a-50 (a);|
|2.||Farrell engaged in conduct that would form the basis for removing Farrell from office pursuant to § 36a-53 (b) (1) (C) and imposing a civil penalty of up to $100,000 pursuant to §§ 36a-53 and 36a-50 (a); and|
|3.||Farrell engaged in conduct that would form the basis for removing him from office pursuant to § 36a-53 (b) (1) (E) and imposing a civil penalty of up to $100,000 pursuant to §§ 36a-53 and 36a-50 (a);|
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Farrell an opportunity for a hearing;
AND WHEREAS, Farrell acknowledges the possible consequences of an administrative hearing and voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegations set forth herein.
III. CONSENT TO ENTRY OF SACTIONS
WHEREAS, Farrell, through his execution of this Consent Order, consents to the Commissioner’s entry of an order imposing the following sanctions:
|1.||Commencing on the date that this Consent Order is executed by Farrell, Farrell may not, without the prior written consent of the Commissioner, hold any position as a director, officer, employee or independent contractor with any bank, Connecticut credit union or federal credit union, as defined in Connecticut General Statutes § 36a-2, or with a holding company that holds a subsidiary that is a bank, as defined in § 36a-2; or as a licensee or registrant under Titles 36a or 36b of the Connecticut General Statutes.|
|2.||Farrell shall remit to the Department, by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Ten Thousand Dollars ($10,000.00) as a civil penalty in accordance with the following schedule:|
|The first payment of Five Thousand Dollars ($5,000.00) shall be due no later than the date Farrell executes this Consent Order;|
|The second payment of Five Thousand Dollars ($5,000.00) shall be due on or before July 31, 2018.|
IV. 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 Farrell based upon the allegations set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Farrell 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, if any representation made by Farrell and reflected herein is subsequently discovered to be untrue or if the Commissioner becomes aware of new evidence after the date hereof; and|
|3.||This Consent Order shall become final when issued.|
So ordered at Hartford, Connecticut
this 26th day of July, 2017.
I, James Farrell, 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 sanctions entered and terms and conditions ordered herein; 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.
On this the 17th day of July, 2017, before me, Cheryl A. Martone, the undersigned officer, personally appeared James Farrell, 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.