| * * * * * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: UNIRUSH, LLC ("UniRush") | * * * * * * * * * * * | CONSENT ORDER |
WHEREAS, UniRush is a Delaware limited liability company with its main office located at 4701 Creek Road, Suite 200, Cincinnati, Ohio;
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-612, inclusive, of the Connecticut General Statutes, “Payment Instruments. Money Transmission” (“Money Transmission Act”);
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of UniRush to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, the Commissioner alleges that, from approximately November 2012 to February 2016, UniRush sold approximately 10,000 Prepaid Visa RushCard electronic payment instruments in Connecticut (“RushCard”) and advertised or solicited such RushCards without a money transmission license, in violation of Section 36a-597 of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against UniRush, including proceedings to issue a cease and desist order pursuant to Sections 36a-608(c) and 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution pursuant to Sections 36a-608(c) and 36a-50(c) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation pursuant to Sections 36a-608(c) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(4) of the 2016 Supplement to the General Statutes;
WHEREAS, Section 4-177(c) of the Connecticut General Statutes and Section 36a-1-55(a) of the Regulations of Connecticut State Agencies provide that a contested case may be resolved by consent order, unless precluded by law;
WHEREAS, both the Commissioner and UniRush acknowledge the possible consequences of formal administrative proceedings, and UniRush voluntarily agrees to consent to the entry of the civil penalty imposed below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations set forth herein;
WHEREAS, the Commissioner and UniRush now desire to resolve the matters set forth herein;
WHEREAS, the Commissioner acknowledges that the monetary relief provided to Connecticut consumers via the RushCard Fee Holiday instituted from November 1, 2015 to February 29, 2016, is expected to save Connecticut consumers a sum in excess of Two Hundred Fifty Thousand Dollars ($250,000);
WHEREAS, UniRush acknowledges that this Consent Order is a public record and is a reportable event for purposes of the regulatory disclosure questions on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as applicable;
WHEREAS, UniRush has submitted an application to the Commissioner for a license under the Money Transmission Act and specifically assures the Commissioner that the violations alleged herein shall not occur in the future;
AND WHEREAS, UniRush, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegations set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF CIVIL PENALTY
WHEREAS, UniRush, through its execution of this Consent Order, consents to the Commissioner’s entry of this Consent Order imposing the following penalty:
No later than the date this Consent Order is executed by UniRush, it shall remit to the Department of Banking by wire transfer, cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, the sum of Two Hundred Thousand Dollars ($200,000) as a civil penalty.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The civil penalty set forth above be and is hereby entered; |
| 2. | Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against UniRush based upon the allegations set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against UniRush based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by UniRush and reflected herein is subsequently discovered to be untrue; |
| 3. | Subject to the foregoing, upon issuance of this Consent Order by the Commissioner, a license will be issued to UniRush under the Money Transmission Act, and so long as this Consent Order is promptly disclosed by UniRush and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of UniRush to apply for or obtain renewal licenses under the Money Transmission Act, provided that all legal requirements for such license are satisfied; and |
| 4. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 29th day of March 2016. _______/s/_________
Jorge L. Perez
Banking Commissioner
I, Douglas J. McGann, state on behalf of UniRush, LLC that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of UniRush, LLC; that UniRush, LLC agrees freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that UniRush, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ________/s/___________
Name: Douglas J. McGann
Title: President & CFO
UniRush, LLC
State of: Ohio
County of: Hamilton
On this the 15 day of March 2016, before me, Michele Meyers, the undersigned officer, personally appeared Douglas J. McGann who acknowledged himself/herself to be the President & CFO of UniRush, LLC, a member managed/manager managed limited liability company, and that he/she as such Officer, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as President & CFO.
In witness whereof I hereunto set my hand.
_________/s/_________
Notary Public
Date Commission Expires: 11/15/2016