The Department of Banking News Bulletin

CREDIT UNION ACTIVITY

Merger

On April 25, 2013, pursuant to Section 36a-468a of the Connecticut General Statutes, Quiet Corner Community Credit Union, Inc., Putnam, Connecticut, a Connecticut credit union and Charter Oak Federal Credit Union, Groton, Connecticut, a federally-chartered credit union, were granted approval for the merger of Quiet Corner Community Credit Union, Inc., with and into Charter Oak Federal Credit Union.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On March 27, 2013, the Commissioner entered into a Consent Order with 1st New England Mortgage Corporation d/b/a FNE Mortgage (NMLS # 2662) (“FNE Mortgage”), Newton, Massachusetts.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on November 20, 2012, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against FNE Mortgage.  The Commissioner alleged that FNE Mortgage failed to timely file certain annual information required by standard mortgage call reports in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes and/or Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes, as amended by Public Act 12-96.  As part of the Consent Order, FNE Mortgage paid $2,500 as a civil penalty.

On March 27, 2013, the Commissioner entered into a Consent Order with Home Law Center, LLC (“Home Law Center”), Pompano Beach, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on January 31, 2013, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Home Law Center.  The Commissioner alleged that Home Law Center (1) offered to engage in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes; and (2) engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a-671(b) of the 2012 Supplement to the General Statutes.  As part of the Consent Order, Home Law Center was ordered to immediately cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and paid a civil penalty in the amount of $1,000.

Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Issue Order Imposing Civil Penalty

On March 27, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Approved Funding Corp. (NMLS # 5411) (“Respondent”), River Edge, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On March 27, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Precision Funding Group, LLC (NMLS # 126542) (“Respondent”), Cherry Hill, New Jersey.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

On March 27, 2013, the Commissioner issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (“Notice”) in the Matter of:  Priority Mortgage Group, Inc. (NMLS # 4040) (“Respondent”), Stratford, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to timely file certain annual and quarterly information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the 2012 Supplement to the General Statutes in effect prior to October 1, 2012, and Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the allegations set forth in the Notice.

Order to Cease and Desist and Order Imposing Civil Penalty

On March 27, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against First Choice Debt Resolution, LLC (“First Choice”), Lighthouse Point, Florida.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on February 15, 2013, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against First Choice.  The Order required that First Choice cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and imposed a civil penalty of $100,000.  The Order to Make Restitution against First Choice remains in effect and became permanent on March 9, 2013.

On March 27, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against The Gallo Law Center, PLLC (“Gallo Law”), Plainview and Wantagh, New York.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on December 11, 2012, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against Gallo Law.  The Order required that Gallo Law cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and imposed a civil penalty of $100,000.  The Order to Make Restitution against Gallo Law remains in effect and became permanent on January 1, 2013.

On March 27, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against Instant Loans USA (“Instant Loans”), Wilmington, Delaware.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on November 1, 2012, the Commissioner 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 Instant Loans.  The Order required that Instant Loans cease and desist from violating Section 36a 555 of the Connecticut General Statutes and Section 36a-573(a) of the Connecticut General Statutes in effect prior to October 1, 2011, and imposed a civil penalty of $100,000.

On March 27, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  National Credit Relief Bureau, Inc. a/k/a NCRB (“NCRB”), Plantation, Florida.  The Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on February 5, 2013, the Commissioner issued an Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against NCRB.  The Order required that NCRB cease and desist from violating Section 36a 671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and imposed a civil penalty of $100,000.  The Order to Make Restitution against NCRB remains in effect and became permanent on February 28, 2013.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Petition for Reconsideration Granted

On April 25, 2013, the Banking Commissioner rendered a Decision on a Petition filed by John Calash and Susan Calash to reconsider an Order to Cease and Desist, Order to Make Restitution and Order Imposing Fine entered by default against each of them.  The Respondents argued that they did not receive actual notice of the administrative actions since their address of record had been subject to a bank foreclosure and that the home to which they then moved had been destroyed by Hurricane Sandy.  John Calash and Susan Calash had been the subject of a December 17, 2012 Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CRF-12-7892-S).  The Order to Cease and Desist and the Order to Make Restitution had become permanent by default on February 1, 2013.  Similarly, on March 19, 2013, orders by default had been entered fining John Calash $100,000 and Susan Calash $30,000.

In agreeing to reconsider the matter, the Commissioner rescinded the Certifications rendering the Order to Cease and Desist and the Order to Make Restitution permanent.  In addition, the Commissioner vacated the March 19, 2013 Orders Imposing Fine against John Calash and Susan Calash.  The December 17, 2012 Order to Cease and Desist, Order to Make Restitution and Notice of Intent to Fine was modified to reflect the respondents’ current address, and the respondents were given an additional opportunity to request a hearing and respond to the allegations in the December 17, 2012 action.

Dated:  Tuesday, April 30, 2013