The Department of Banking News Bulletin

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Consent Order Entered

On May 30, 2013, the Banking Commissioner entered a Consent Order (No. CO-13-7831-S) with respect to Michael P. Healey of Milford, Connecticut.  Also named in the Consent Order were Healey Ford of Ansonia, Inc., Eurospeed USA, Inc. and American Motor Sports, LLC, all of Ansonia, Connecticut.  Michael P. Healey is the president of Healey Ford of Ansonia, Inc. and Eurospeed USA, Inc. as well as the managing member of American Motor Sports, LLC.  The Consent Order alleged that, at various times from April 2006 to January 2009, the respondents offered and sold unregistered securities in violation of Section 36b-16 of the Connecticut Uniform Securities Act and made material omissions in contravention of Section 36b-4(a)(2) of the Act.

The Consent Order directed the respondents to cease and desist from regulatory violations.  In addition, the Consent Order barred respondent Healey and any entity under his control from transacting business as a broker-dealer, agent, investment adviser or investment adviser agent; acting as a finder for compensation or receiving referral fees for soliciting or procuring securities investors, customers or clients for any issuer, broker-dealer or investment adviser; and soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut.  The bar would extend for ten years.

In addition, the Consent Order imposed a conditional 10 year bar on respondents Healey Ford of Ansonia, Inc., Eurospeed USA, Inc. and American Motor Sports, LLC.  Specifically, those respondents would be barred from soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut unless they provided the Securities and Business Investments Division with advance written notice; and retained experienced securities counsel to provide legal advice and make required regulatory filings.

CONSUMER CREDIT DIVISION ACTIVITY

Consent Orders

On May 15, 2013, the Commissioner entered into a Consent Order with Xpress Loan Center, LLC (NMLS # 99009) (“Xpress Loan”), New Canaan, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 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.  The Commissioner alleged that Xpress Loan failed to timely file certain annual and quarterly information required by mortgage call reports 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.  As part of the Consent Order, Xpress Loan paid $2,500 as a civil penalty.

On May 16, 2013, the Commissioner entered into a Consent Order with First American Mortgage Trust d/b/a Nxtloan.com, Corp. (NMLS # 2154) (“Nxtloan.com”), Brighton, Massachusetts.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on December 14, 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.  The Commissioner alleged that Nxtloan.com failed to timely file certain quarterly information required by 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, Nxtloan.com paid $500 as a civil penalty.

On May 16, 2013, the Commissioner entered into a Consent Order with Ryan Mortgage, LLC (NMLS # 88226) (“Ryan Mortgage”), Marlborough, Connecticut.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, on March 22, 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.  As a result of such investigation, the Commissioner alleged that Ryan Mortgage failed to timely file certain annual information required by mortgage call reports 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.  As part of the Consent Order, Ryan Mortgage paid $2,500 as a civil penalty.

On May 16, 2013, the Commissioner entered into a Consent Order with Vengroff Williams, Inc. (“Vengroff Williams”), Sarasota, Florida.  The Consent Order was based on an investigation by the Consumer Credit Division.  As a result of such investigation, the Commissioner alleged that Vengroff Williams (1) during the period of January to September 4, 2012, acted as a consumer collection agency in Connecticut without a consumer collection agency license, in violation of Section 36a-801(a) of the Connecticut General Statutes, (2) during the period of January 1 to January 31, 2012, added charges or fees to the amount of claims which it received for collection, in violation of Section 36a 805(13) of the Connecticut General Statutes, and (3) made a material misstatement in its Main Office – Application for Consumer Collection Agency License filed with the Commissioner on February 28, 2012.  As part of the Consent Order, Vengroff Williams was ordered to immediately cease and desist from adding charges and fees in violation of Section 36a-805(13) of the Connecticut General Statutes and paid $10,000 as a civil penalty.

Order to Cease and Desist and Order Imposing Civil Penalty

On May 16, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) In the Matter of:  Namakan Capital, LLC (“Respondent”), Kansas City, Missouri.  The basis of the Order was that Respondent offered and made at least one small loan in Connecticut without obtaining the required license, in violation of Section 36a-555 of the Connecticut General Statutes, and contracted for and charged an interest rate greater than 12% on a loan to a Connecticut resident in an amount less than $15,000, in violation of Section 36a-573(a) of the Connecticut General Statutes.  Respondent was ordered to cease and desist from violating Sections 36a-555 and 36a-573(a) of the Connecticut General Statutes and to pay a civil penalty in the amount of $100,000.  In addition, an Order of Restitution previously issued against Respondent on April 1, 2013, remains in effect and became permanent on April 20, 2013.

On May 23, 2013, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) against New Life Financial Solutions, Inc. a/k/a New Life Consultants (“Respondent”), Hallandale Beach, Florida.  The basis of the Order was that Respondent engaged 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 that Respondent 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.  Respondent was ordered to 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 to pay a civil penalty in the amount of $100,000.  In addition, an Order of Restitution previously issued against Respondent on February 5, 2013, remains in effect and became permanent on March 22, 2013.

Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist and Notice of Intent to Impose Civil Penalty

On May 15, 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 (“Notice”) in the Matter of:  Charles Thomas Heppner (NMLS # 386451) (“Heppner”), and Commercial Loan Solutions, LLC (“CLS”) (collectively, “Respondents”), Los Angeles, California.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondents engaged 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 Heppner engaged in debt negotiation of a residential mortgage loan without being licensed as a mortgage loan originator in Connecticut, in violation of Section 36a-671e(b) of the Connecticut General Statutes.  Respondents were afforded an opportunity to request a hearing with regard to the allegations set forth in the Notice.

Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License and Notice of Intent to Issue Order to Cease and Desist

On May 17, 2013, the Commissioner issued a Notice of Automatic Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (“Notice”) in the Matter of:  Receivables Management Solutions Incorporated (“Respondent”), W. St. Paul, Minnesota.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleged that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office at 260 East Wentworth Avenue, W. St. Paul, Minnesota, in violation of Section 36a-802(a) of the Connecticut General Statutes.  The Commissioner also found that public welfare required the issuance of a Temporary Order to Cease and Desist.  Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Notice.

Dated:  Tuesday, June 4, 2013