Bulletin # 3114 - Week Ending October 27, 2023

This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications.  Any observations you may have are solicited.  Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800.  Written comments will be considered only if they are received within ten business days from the date of this bulletin.

CONSUMER CREDIT DIVISION ACTIVITY 

Settlement Agreement and Consent Order

On October 16, 2023, the Commissioner, along with 43 state financial regulators (“Participating States”), entered into a Settlement Agreement and Consent Order (“Consent Order”) with ACI Worldwide Corp., Miami, Florida and ACI Payments, Inc. (NMLS # 93677) Elkhorn, Nebraska (collectively “ACI”). The Consent Order was based on a multi-state investigation performed by several states including Connecticut. The Commissioner, together with the Participating States, alleged that ACI erroneously initiated electronic transactions totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper (formerly known as Nationstar Mortgage, LLC). As part of the Consent Order, ACI, among other items, agreed to: (1) maintain a comprehensive Enterprise Risk Management Program and a Third-Party Risk Management Program tailored to the nature, size, complexity and risk profile of ACI; (2) report regularly for two years to a state regulator monitoring committee to ensure both the adequacy of the risk management programs and compliance with the Consent Order; (3) agreed to pay $10 million in fines for administrative costs and penalties.

Order Revoking Consumer Collection Agency License

On October 12, 2023, the Commissioner issued an Order Revoking Consumer Collection Agency License (“Order”) in the matter of: Mercantile CT, LLC d/b/a Mercantile Adjustment Bureau (NMLS # 1731286) (“Mercantile CT”), Williamsville, New York. The Order revokes Mercantile CT’s license to act as a consumer collection agency in Connecticut, pursuant to the terms of the Consent Order entered into on June 29, 2023, with the Commissioner, due to Mercantile CT’s failure to provide satisfactory evidence of compliance with all requirements for the completion of the surrender of its license.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY 

Validea Capital Management LLC (CRD No. 130887)

On October 19, 2023, the Banking Commissioner entered into a Stipulation and Agreement (No. ST-23-202324-S) with Validea Capital Management LLC, a Connecticut-registered investment adviser located at 363 Ridgewood Road, West Hartford, Connecticut 06107. The Stipulation and Agreement alleged that the firm engaged an unregistered investment adviser agent in violation of Section 36b-6(c)(3) of the Connecticut Uniform Securities Act. The investment adviser agent has since become registered.

In resolution of the matter, the firm agreed to refrain from violative conduct and to pay $5,250 to the department. Of that amount, $5,000 constituted an administrative fine and $250 represented payment of past due investment adviser agent registration fees.