Bulletin # 2575 - Week Ending June 28, 2013

Consent Orders

On June 4, 2013, the Commissioner entered into a Consent Order with New England Residential Finance, LLC (NMLS # 815059) (“New England Residential Finance”), Plantsville, 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 New England Residential Finance 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, New England Residential Finance paid $2,500 as a civil penalty.

On June 4, 2013, the Commissioner entered into a Consent Order with On Deck Mortgage Services, LLC. (NMLS # 84623) (“On Deck Mortgage Services”), Trumbull, 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 On Deck Mortgage Services 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, On Deck Mortgage Services paid $2,500 as a civil penalty.

On June 10, 2013, the Commissioner entered into a Consent Order with Woodbridge Mortgage LLC (NMLS # 72664) (“Woodbridge Mortgage”), Glastonbury, Connecticut.  The Consent Order was based on an examination and investigation by the Consumer Credit Division.  As a result of such examination and investigation, the Commissioner alleged that Woodbridge Mortgage (1) failed to timely submit 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, and (2) during the period of September 1, 2011 to January 28, 2013, engaged the services of an individual as a loan processor or underwriter on an independent contractor basis without requisite licensure as a mortgage loan originator or loan processor or underwriter, in violation of Sections 36a-486(b)(3) and 36a-489(b) of the then applicable Connecticut General Statutes.  As part of the Consent Order, Woodbridge Mortgage paid $2,500 as a civil penalty.

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

On June 19, 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:  The Receivable Management Services Corporation d/b/a RMS (“Respondent”), Atlanta, Georgia.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 1000 Circle 75 Parkway, Suite 2000, Atlanta, Georgia, 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.

On June 19, 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:  Titanium Solutions, Inc. (“Respondent”), Fort Mill, South Carolina.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to maintain a surety bond that runs concurrently with the period of its consumer collection agency license for its office located at 3023 HSBC Way, 2nd Floor, Fort Mill, South Carolina, 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.

Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty

On June 11, 2013, the Commissioner issued an Order to Cease and Desist, Order of Repayment of Fees and Order Imposing Civil Penalty (“Order”) In the Matter of:  Law Offices of Drew Alia, P.C., A Professional Law Corporation d/b/a The Alia Law Group and GMK Solutions, LLC (collectively, “Respondents”), both of Philadelphia, Pennsylvania.  The basis of the Order was that Respondents engaged in debt negotiation in this state without obtaining the required license, in violation of Section 36a 671(b) of the Connecticut the General Statutes in effect prior to October 1, 2011.  Each 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 to pay a civil penalty in the amount of $100,000.  The Commissioner also ordered the Respondents to repay all fees paid to them by identified Connecticut residents.

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

On June 24, 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:  Long Ridge Mortgage, LLC (NMLS # 146932) (“Respondent”), Stratford, Connecticut.  The Notice was the result of an investigation by the Consumer Credit Division.  The Notice alleges that Respondent failed to file certain annual information required on the Nationwide Mortgage Licensing System and Registry, in violation of Section 36a-534b(c)(3) of the Connecticut General Statutes.  Respondent was afforded an opportunity to request a hearing on the allegation set forth in the Notice. 

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

Sageworks Capital Inc. d/b/a Raiseworks (CRD # 162182) - Broker-dealer Registration Conditioned 

On June 28, 2013, the Banking Commissioner executed a Stipulated Agreement (No. ST-13-8090-S) conditioning the registration of Sageworks Capital Inc. as a broker-dealer in Connecticut.  The firm is located at 25 West 36th Street, 11th Floor, New York, New York, and focuses on selling private placements.  Connecticut law requires that the principals of a securities brokerage firm fulfill certain experience requirements, and the firm did not satisfy the experience criteria.  The Stipulated Agreement required that, for two years, the firm restrict its Connecticut securities activities to accredited investors and notify the agency of any material disciplinary actions and complaints involving the firm, its principals, employees and representatives.  Sageworks Capital Inc. became registered as a broker-dealer under the Connecticut Uniform Securities Act on June 28, 2013.