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IN THE MATTER OF: FALCON FUNDING LLC DEBORAH ANN MOXAM IAN M. WILLIAMS (collectively "Respondents") * * * * * * * * * * * * * * * * * * * |
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TEMPORARY ORDER TO ORDER OF SUMMARY SUSPENSION NOTICE OF INTENT TO REVOKE NOTICE OF INTENT TO REVOKE NOTICE OF INTENT TO IMPOSE AND NOTICE OF RIGHT TO HEARING |
I. LEGAL AUTHORITY AND JURISDICTION
The Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”.
Pursuant to the authority granted by Sections 36a-17 and 36a-498f of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondents to determine if they have violated, are violating or are about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
Section 36a-17 of the Connecticut General Statutes provides, in pertinent part, that:
(a) The commissioner, in the commissioner’s discretion, may . . . (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner . . . .
(c) For the purpose of any investigation, [or] examination . . . under this title the commissioner may . . . require the production of any records which the commissioner deems relevant or material. . . .
(f) As used in this section, “records” includes, but is not limited to, books, papers, correspondence, memoranda, agreements, diaries, logs, notes, ledgers, journals, visual, audio, magnetic or electronic recordings, computer printouts and software, and any other documents.
Section 36a-498f of the Connecticut General Statutes provides, in pertinent part, that:
(a) In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations and examinations as follows:
(1) For purposes of . . . license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including, but not limited to: . . . (C) any other documents, information or evidence the commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control or custody of such documents, information or evidence. . . .
(c) In making any examination or investigation authorized by this section, the commissioner may control access to any documents and records of the licensee or person under examination or investigation. The commissioner may take possession of the documents and records . . . .
Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:
(a) The commissioner may . . . revoke . . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . revocation . . . .
(b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . revoke . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation . . . . If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke . . . the license. No such license shall be . . . revoked except in accordance with the provisions of chapter 54.
Section 36a-52 of the Connecticut General Statutes provides, in pertinent part, that:
(a) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54.
(b) If the commissioner finds that the public welfare requires immediate action, the commissioner may incorporate a finding to that effect in the notice sent in accordance with subsection (a) of this section and issue a temporary order requiring the person to cease and desist from the activity which constitutes such alleged violation and to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section. Such temporary order shall become effective on receipt and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in the notice.
Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:
(1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted not later than fourteen days after receipt of the notice.
(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.
(3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.
Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:
If the agency finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.
II. MATTERS ASSERTED
| 1. |
Falcon Funding is a Connecticut limited liability company with its main office at 4133 Whitney Avenue, Suite A2, Hamden, Connecticut. |
| 2. |
Falcon Funding is currently licensed on the Nationwide Mortgage Licensing System and Registry (“NMLS”) to act as a mortgage broker in Connecticut. |
| 3. |
Moxam and Williams are control persons for and partners/owners of Falcon Funding. Moxam is also Falcon Funding’s qualified individual for its main office. |
| 4. |
Both Moxam and Williams are currently licensed on NMLS to engage in the business of mortgage loan originators in Connecticut and are sponsored by Falcon Funding.
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| 5. |
On February 22, 2016, examiners from the Division attempted to conduct a routine, unannounced examination of Falcon Funding. |
| 6. | During the examination, the examiners asked Falcon Funding to provide them with a list of all loan files it had worked on from January 1, 2014 through December 31, 2015, including, without limitation, loans in process, closed, funded, approved, denied, cancelled, withdrawn, or any other status. |
| 7. |
Falcon Funding produced a list identifying 99 loan files responsive to the examiners’ request. After receiving Falcon Funding’s response, the examiners randomly selected 21 of those 99 loan files for additional investigation by requesting the complete loan file for each of the 21 randomly selected loan files. |
| 8. | Falcon Funding was only able to locate 17 of the 21 loan files that the examiners requested to review for additional investigation. Falcon Funding failed to produce the remaining 4 loan files. |
| 9. | The examiners reviewed the 17 loan files that Falcon Funding was able to produce. Moxam and Williams were the mortgage loan originators on some of these loan files. |
| 10. | In at least one Williams loan file, the examiners determined that documents had been fraudulently altered, in that a borrower’s original signature was physically cut from one document and taped onto another document, to make a document copy appear as an original or that a borrower had signed or executed a document when the borrower had not. |
| 11. | Similarly, the examiners later determined that in at least one Moxam loan file documents had been fraudulently altered, in that a borrower’s original signature was physically cut from one document and taped onto another document to make a document copy appear as an original or that a borrower had signed or executed a document when the borrower had not. |
| 12. | After uncovering the fraudulent signatures in the Williams loan file, the examiners requested the full loan files for all of the 99 loans that Falcon Funding had previously disclosed. |
| 13. | Falcon Funding, through Moxam and Williams, failed to produce the loan files for all the 99 loans it had disclosed in response to the examiners’ request. |
| 14. |
Falcon Funding, also through Moxam and Williams, provided loan files for loans that it did not initially disclose in its initial list, as more fully described in paragraph 7 above.
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III. STATUTORY BASIS FOR REVOCATION OF MORTGAGE BROKER LICENSE,
REVOCATION OF MORTGAGE LOAN ORIGINATOR LICENSES,
ORDER TO CEASE AND DESIST AND IMPOSITION OF CIVIL PENALTY
Section 36a-494 of the 2016 Supplement to the General Statutes provides, in pertinent part, that:
(a)(1) The commissioner may . . . revoke . . . any . . . mortgage broker license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, or if the commissioner finds that the licensee, any control person of the licensee, the qualified individual . . . with supervisory authority, trustee, employee or agent of such licensee has done any of the following: . . . (B) committed any fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction . . . to anyone entitled to such information; [or] (C) violated any of the provisions of this title . . . .
(2) The commissioner may . . . revoke . . . any mortgage loan originator license . . . or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, or if the commissioner finds that the licensee has committed any fraud, misappropriated funds, misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction or has violated any of the provisions of this title . . . or any other law or regulation applicable to the conduct of such licensee’s business.
(b) Whenever it appears to the commissioner that (1) any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, . . . (2) any person is, was, or would be a cause of the violation of any such provisions . . . due to an act or omission such person knew or should have known would contribute to such violation, or (3) any licensee has . . . committed any fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction . . . to anyone entitled to such information, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
Section 36a-17(d) of the Connecticut General Statutes provides, in pertinent part, that:
Any person who is the subject of any such investigation, [or] examination . . . shall . . . otherwise cooperate with the commissioner.
Section 36a-53b of the Connecticut General Statutes provides, in pertinent part, that:
No person shall, in connection with any activity subject to the jurisdiction of the commissioner: (1) Employ any device, scheme or artifice to defraud; . . . or (3) engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person.
Section 36a-498e of the Connecticut General Statutes provides, in pertinent part, that:
No person or individual who is required to be licensed and who is subject to sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b may:
(1) Directly or indirectly employ any scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person; [or]
(2) Engage in any unfair or deceptive practice toward any person . . . .
Section 36a-498f of the Connecticut General Statutes provides, in pertinent part, that:
(b) Each licensee, individual or person subject to sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b shall make or compile reports or prepare other information as directed by the commissioner in order to carry out the purposes of this section including . . . information lists and data concerning loan transactions in a format prescribed by the commissioner or such other information the commissioner deems necessary to carry out the purposes of this section. . . .
(f) No licensee, individual or person subject to investigation or examination under this section may knowingly withhold . . . any books, records, computer records or other information.
Section 36a-489(a)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner shall not issue an initial license for a . . . mortgage broker unless the commissioner, at a minimum, finds that: . . . (C) the applicant demonstrates that the . . . character and general fitness of the applicant, the control persons of the applicant and the qualified individual . . . having supervisory authority over the office for which the license is sought are such as to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b . . . . If the commissioner fails to make such findings, the commissioner shall not issue a license . . . .
Section 36a-489(b)(1) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner shall not issue an initial license for a mortgage loan originator . . . unless the commissioner, at a minimum, finds that the applicant has: . . . (C) demonstrated . . . character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator . . . will operate honestly, fairly and efficiently within the purposes of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b . . . .
| 1. |
Falcon Funding’s failure to produce loan files during the examination, as more fully described in paragraphs 1 through 8, inclusive, 12 and 13 of the Matters Asserted, constitutes withholding books, records or other information, in violation of Section 36a-498f(f) of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b)(1) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b)(1) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Falcon Funding in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 2. |
Moxam’s failure to produce loan files during the examination, as owner, control person, qualified individual and as a mortgage loan originator at Falcon Funding, as more fully described in paragraphs 3 to 8, inclusive, 12 and 13 of the Matters Asserted, constitutes withholding books, records or other information, in violation of Section 36a-498f(f) of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Moxam’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to subdivisions (1) and (2) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to subdivisions (1) and (2) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Moxam in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 3. | Williams’ failure to produce loan files during the examination, as owner, control person and as a mortgage loan originator at Falcon Funding, as more fully described in paragraphs 3 to 8, inclusive, 12 and 13 of the Matters Asserted, constitutes withholding books, records or other information, in violation of Section 36a-498f(f) of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Williams’ mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to subdivisions (1) and (2) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to subdivisions (1) and (2) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Williams in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 4. | Falcon Funding’s alteration of loan file documents, through Moxam and Williams, as more fully described in paragraphs 10 and 11 of the Matters Asserted, constitutes (1) directly or indirectly employing a scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person, in violation of Section 36a-498e(1) of the Connecticut General Statutes, and (2) engaging in an unfair or deceptive practice, in violation of Section 36a-498e(2) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Sections 36a-494(a)(1)(B) and 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to subdivisions (1) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to subdivisions (1) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Falcon Funding in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 5. | Falcon Funding’s alteration of loan file documents, through Moxam and Williams, as more fully described in paragraphs 10 and 11 of the Matters Asserted, constitutes (1) employing any device, scheme or artifice to defraud, in violation of Section 36a-53b(1) of the Connecticut General Statutes, and (2) engaging in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person, in violation of Section 36a-53b(3) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Sections 36a-494(a)(1)(B) and 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Sections 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Falcon Funding in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 6. | Moxam’s alteration of loan file documents, as more fully described in paragraphs 9 and 11 of the Matters Asserted, constitutes (1) directly or indirectly employing a scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person, in violation of Section 36a-498e(1) of the Connecticut General Statutes, and (2) engaging in an unfair or deceptive practice, in violation of Section 36a-498e(2) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Moxam’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Moxam in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 7. | Moxam’s alteration of loan file documents, as more fully described in paragraphs 9 and 11 of the Matters Asserted, constitutes (1) employing a scheme, device or artifice to defraud, in violation of Section 36a-53b(1) of the Connecticut General Statutes, and (2) engaging in an act, practice or course of business which operates or would operate as a fraud or deceit upon any person, in violation of Section 36a-53b(3) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Moxam’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Moxam in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 8. | Williams’ alteration of loan file documents, as more fully described in paragraphs 9 and 10 of the Matters Asserted, constitutes (1) directly or indirectly employing a scheme, device or artifice to defraud or mislead borrowers or lenders or to defraud any person, in violation of Section 36a-498e(1) of the Connecticut General Statutes, and (2) engaging in an unfair or deceptive practice, in violation of Section 36a-498e(2) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Williams’ mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Williams in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 9. | Williams’ alteration of loan file documents, as more fully described in paragraphs 9 and 10 of the Matters Asserted, constitutes (1) employing a scheme, device or artifice to defraud, in violation of Section 36a-53b(1) of the Connecticut General Statutes, and (2) engaging in an act, practice or course of business which operates or would operate as a fraud or deceit upon any person, in violation of Section 36a-53b(3) of the Connecticut General Statutes. Such violations constitute sufficient grounds to revoke Williams’ mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Williams in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 10. | Falcon Funding’s failure to provide requested examination related information, as more fully described in paragraphs 5 to 8, inclusive, and 12 to 14, inclusive, of the Matters Asserted, constitutes a failure to make or compile reports or prepare other information as directed by the Commissioner, in violation of Section 36a-498f(b) of the Connecticut General Statutes. Such violation constitutes sufficient grounds to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-494(b)(1) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-494(b)(1) of the 2016 Supplement to the General Statutes and 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Falcon Funding in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 11. | Falcon Funding’s failure to produce loan files during the examination, as more fully described in paragraphs 5 to 8, inclusive, and 12 to 14, inclusive, of the Matters Asserted, and its failure to provide requested examination related information, as more fully described in paragraphs 5 to 8, inclusive, 13 and 14 of the Matters Asserted, constitute a failure by Falcon Funding to otherwise cooperate with the Commissioner, which constitutes violations of Section 36a-17(d) of the Connecticut General Statutes. Such conduct forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Falcon Funding in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 12. | Moxam’s failure to produce loan files during the examination, as owner, control person, qualified individual and as a mortgage loan originator at Falcon Funding, as more fully described in paragraphs 3 to 9, inclusive, and 12 to 14, inclusive, of the Matters Asserted, constitutes a failure to otherwise cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. Such failure forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Moxam in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 13. | Williams’ failure to produce loan files during the examination, as owner, control person, and as a mortgage loan originator at Falcon Funding, as more fully described in paragraphs 3 to 9, inclusive, and 12 to 14, inclusive, of the Matters Asserted, constitutes a failure to otherwise cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes. Such failure forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Williams in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
| 14. | Falcon Funding’s conduct, through Moxam and Williams, as more fully described in paragraphs 5 to 14, inclusive, of the Matters Asserted, renders the Commissioner unable to continue to find that Falcon Funding, its control persons and the qualified individual having supervisory authority demonstrate the character and general fitness such as to command the confidence of the community and to warrant a determination that Falcon Funding will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes. Such failure would be sufficient grounds for the Commissioner to deny an application for a mortgage broker license pursuant to Section 36a-489(a)(1)(C) of the Connecticut General Statutes, and would be sufficient grounds for the Commissioner to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Section 36a-494(a)(1) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the of the Connecticut General Statutes. |
| 15. | Moxam’s conduct, as more fully described in paragraphs 5 to 14, inclusive, of the Matters Asserted, renders the Commissioner unable to continue to find that Moxam demonstrates character and general fitness so as to command the confidence of the community and to warrant a determination that Moxam will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes. Such failure would be sufficient grounds for the Commissioner to deny an application for a mortgage loan originator license pursuant to Section 36a-489(b)(1)(C) of the Connecticut General Statutes, and would be sufficient grounds for the Commissioner to revoke Moxam’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes. |
| 16. |
Williams’ conduct, as more fully described in paragraphs 5 to 14, inclusive, of the Matters Asserted, renders the Commissioner unable to continue to find that Williams demonstrates character and general fitness so as to command the confidence of the community and to warrant a determination that Williams will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes. Such failure would be sufficient grounds for the Commissioner to deny an application for a mortgage loan originator license pursuant to Section 36a-489(b)(1)(C) of the Connecticut General Statutes, and would be sufficient grounds for the Commissioner to revoke Williams’ mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
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IV. FINDINGS AND STATUTORY BASIS FOR TEMPORARY ORDER
TO CEASE AND DESIST AND ORDER OF SUMMARY SUSPENSION
The Commissioner finds that public safety and welfare imperatively require emergency action to summarily suspend Falcon Funding’s mortgage broker license in Connecticut and to summarily suspend Moxam and Williams’ mortgage loan originator licenses in Connecticut under Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes and finds that public welfare requires immediate action to issue a temporary order requiring Falcon Funding, Moxam and Williams to cease and desist from violating the laws cited herein, pursuant to Section 36a-52(b) of the Connecticut General Statutes, in that (1) Falcon Funding’s failure to provide loan files to the Commissioner’s examiners at Falcon Funding’s principal place of business or wherever records may be located impedes the Commissioner’s ability to carry out his duties to fully examine the activities of Falcon Funding and thus determine that Falcon Funding, its control persons and the qualified individual having supervisory authority demonstrate the character and general fitness such as to command the confidence of the community and to warrant a determination that Falcon Funding will operate honestly, fairly and efficiently within the purposes of Section 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, and therefore adversely effects the public; (2) Moxam and Williams’ physically cutting borrower signatures from one document in a loan file and taping them onto others constitutes a basis for the Commissioner to be unable to continue to find that Moxam and Williams are demonstrating character and general fitness so as to command the confidence of the community and to warrant a determination that Moxam and Williams will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes.
V. TEMPORARY ORDER TO CEASE AND DESIST, ORDER OF SUMMARY
SUSPENSION, NOTICE OF INTENT TO REVOKE MORTGAGE BROKER LICENSE,
NOTICE OF INTENT TO REVOKE MORTGAGE LOAN ORIGINATOR LICENSES,
NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST, NOTICE OF
INTENT TO IMPOSE CIVIL PENALTY AND NOTICE OF RIGHT TO HEARING
WHEREAS, the Commissioner has reason to believe that Falcon Funding has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Falcon Funding’s mortgage broker license in Connecticut pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(B), 36a-494(a)(1)(C) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist against Falcon Funding pursuant to Sections 36a-494(b)(1), 36a-494(b)(3) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Falcon Funding pursuant to Sections 36a-494(b)(1), 36a-494(b)(3) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner has reason to believe that Moxam has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Moxam’s mortgage loan originator license in Connecticut pursuant to Sections 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist against Moxam pursuant to Sections 36a-494(b)(1), 36a-494(b)(2), 36a-494(b)(3) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty upon Moxam pursuant to Sections 36a-494(b)(1), 36a-494(b)(2), 36a-494(b)(3) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner has reason to believe that Williams has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Williams’ mortgage loan originator license in Connecticut pursuant to Sections 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist against Williams pursuant to Sections 36a-494(b)(1), 36a-494(b)(2), 36a-494(b)(3) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty upon Williams pursuant to Sections 36a-494(b)(1), 36a-494(b)(2), 36a-494(b)(3) and 36a-50(a) of the Connecticut General Statutes;
AND WHEREAS, the Commissioner has made the findings required under Sections 36a-52(b), 36a-51(a) and 4-182(c) of the Connecticut General Statutes.
THE COMMISSIONER THEREFORE ORDERS, pursuant to the authority granted in Section 36a-52(b) of the Connecticut General Statutes, that Falcon Funding LLC immediately CEASE AND DESIST from further violations of Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3), 36a-498f(b) and 36a-17(d) of the Connecticut General Statutes. This Temporary Order shall become effective upon receipt by Falcon Funding LLC, and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Section 36a-52(b) of the Connecticut General Statutes, that Deborah Ann Moxam and Ian M. Williams, respectively, immediately CEASE AND DESIST from further violations of Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3) and 36a-17(d) of the Connecticut General Statutes. This Temporary Order shall become effective upon receipt by Deborah Ann Moxam and Ian M. Williams and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order to Cease and Desist.
THE COMMISSIONER FURTHER ORDERS, pursuant to Section 36a-17(a) and 36a-52(b) of the Connecticut General Statutes, that: Not later than fourteen (14) days from receipt of this Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing, Falcon Funding LLC shall provide to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov:
| 1. |
Complete loan documents for all loans originated between January 2014 to the present, specifically including those currently pending or in the pipeline; |
| 2. |
All payroll records and accounts from January 1, 2014 to the present; and |
| 3. | All bank statements for any accounts owned, operated or controlled by Falcon Funding LLC from January 1, 2014 to the present. |
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes, that the license of Falcon Funding LLC (NMLS # 842865) to act as a mortgage broker in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes, that the license of Deborah Ann Moxam (NMLS # 74194) to engage in the business of a mortgage loan originator in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.
THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes, that the license of Ian M. Williams (NMLS # 93397) to engage in the business of a mortgage loan originator in Connecticut be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.
FURTHER, notice is hereby given to Falcon Funding that the Commissioner intends to REVOKE Falcon Funding’s license to act as a mortgage broker in Connecticut, issue an order requiring Falcon Funding to CEASE AND DESIST from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3), 36a-498f(b) and 36a-17(d) of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Falcon Funding as set forth herein, subject to Falcon Funding’s right to a hearing on the allegations set forth above.
FURTHER, notice is hereby given to Moxam that the Commissioner intends to issue an order to REVOKE Moxam’s license to engage in the business of a mortgage loan originator in Connecticut, issue an order requiring Moxam to CEASE AND DESIST from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3) and 36a-17(d) of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Moxam as set forth herein, subject to Moxam’s right to a hearing on the allegations set forth above.
FURTHER, notice is hereby given to Williams that the Commissioner intends to issue an order to REVOKE Williams’ license to engage in the business of a mortgage loan originator in Connecticut, issue an order requiring Williams to CEASE AND DESIST from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3) and 36a-17(d) of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Williams as set forth herein, subject to Williams’ right to a hearing on the allegations set forth above.
A hearing will be granted to each Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following each Respondent’s receipt of this Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes. This Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator Licenses, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. To request a hearing, complete and return the enclosed Appearance and Request for Hearing Form to the above address. If any Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on May 5, 2016, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless any Respondent fails to appear at the requested hearing. At such hearing, Respondents will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
If Falcon Funding does not request a hearing within the time prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted. Accordingly, the Commissioner will issue an order revoking Falcon Funding’s license to act as a mortgage broker in Connecticut and issue an order that Falcon Funding cease and desist from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3), 36a-498f(b) and 36a-17(d) of the Connecticut General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Falcon Funding.
If Moxam does not request a hearing within the time prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted. Accordingly, the Commissioner will issue an order revoking Moxam’s license to engage in the business of a mortgage loan originator in Connecticut, will issue an order that Moxam cease and desist from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3), and 36a-17(d) of the Connecticut General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Moxam.
If Williams does not request a hearing within the time prescribed or fails to appear at any such hearing, the allegations herein will be deemed admitted. Accordingly, the Commissioner will issue an order revoking Williams’ license to engage in the business of a mortgage loan originator in Connecticut, will issue an order that Williams cease and desist from violating Sections 36a-498f(f), 36a-498e(1), 36a-498e(2), 36a-53b(1), 36a-53b(3) and 36a-17(d) of the Connecticut General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Williams.
So ordered at Hartford, Connecticut
this 7th of March 2016. ________/s/_________
Jorge L. Perez
Banking Commissioner