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IN THE MATTER OF: HYLAN DEBT FUND LLC - ("Hylan Debt Fund") |
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CONSENT ORDER |
WHEREAS, Hylan Debt Fund is a Delaware limited liability company with an office located at 3500 South Dupont Highway, Dover, Delaware;
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder, Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”);
WHEREAS, Hylan Debt Fund is not currently licensed to act as a consumer collection agency in Connecticut;
WHEREAS, on December 23, 2015, Hylan Debt Fund filed an application to obtain a consumer collection agency license in Connecticut with the Commissioner (“Application”) on the Nationwide Multistate Licensing System and Registry (“NMLS”);
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 Hylan Debt Fund to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, the Commissioner alleges that on or about October 1, 2013 to the present, Hylan Debt Fund has acted within this state as a consumer collection agency without the requisite consumer collection agency license, in violation of Section 36a-801(a) of the 2016 Supplement to the General Statutes;
WHEREAS, the Commissioner believes that such allegation would support the initiation of enforcement proceedings against Hylan Debt Fund, including, without limitation, proceedings to issue a cease and desist order against Hylan Debt Fund pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, impose a civil penalty upon Hylan Debt Fund pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes, and issue an order to make restitution pursuant to Section 36a-804(b) of the 2016 Supplement to the General Statutes and Section 36a-50(c) 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 Hylan Debt Fund acknowledge the possible consequences of formal administrative proceedings, and Hylan Debt Fund voluntarily agrees to enter into the terms below without admitting or denying the allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, Hylan Debt Fund specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
WHEREAS, Hylan Debt Fund acknowledges that this Consent Order is a public record and is a reportable event for the purposes of the regulatory disclosure questions on the Nationwide Multistate Licensing System and Registry (“NMLS”), as applicable;
AND WHEREAS, Hylan Debt Fund, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for a hearing as it pertains to the allegation 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 SANCTIONS
WHEREAS, Hylan Debt Fund, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following terms:
| 1. | No later than the date this Consent Order is executed by Hylan Debt Fund, it shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Fifteen Thousand Dollars ($15,000) as a civil penalty; |
| 2. | No later than January 15, 2017, Hylan Debt Fund shall reduce each “Hylan Current Balance”, as used in the attached Exhibit A, by Fifteen Percent (15%) for all Connecticut debtors listed in Exhibit A (collectively, “Balance Reduction Amount”). Hylan Debt Fund shall: (a) not collect or attempt to collect on the Balance Reduction Amount with respect to any individual Connecticut debtor’s account; (b) not sell or assign the Balance Reduction Amount with respect to any individual Connecticut debtor’s account; and (c) release and forever discharge the Balance Reduction Amount as it applies to any individual Connecticut debtor’s account. Between the date this Consent Order is executed by Hylan Debt Fund and January 15, 2017, Hylan Debt Fund, or any third party or consumer collection agency Hylan Debt Fund retains, shall not collect or attempt to collect on any account listed in Exhibit A; |
| 3. | Hylan Debt Fund shall immediately cease and desist from acting as a consumer collection agency in Connecticut without a license, in violation of Section 36a-801(a) of the 2016 Supplement to the General Statutes. |
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The terms set forth above be and are 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 Hylan Debt Fund based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Hylan Debt Fund 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 Hylan Debt Fund and reflected herein is subsequently discovered to be untrue; |
| 3. | Subject to the foregoing, and so long as this Consent Order is promptly disclosed by Hylan Debt Fund and its control persons on NMLS, as applicable, nothing in the issuance of this Consent Order shall adversely affect the ability of Hylan Debt Fund to apply for or obtain a license or renewal license under Part XII of Chapter 669, Sections 36a-800 to 36a-812, inclusive, of the Connecticut General Statutes; |
| 4. | In the event of nonperformance or violation by Hylan Debt Fund of any term or condition set forth in this Consent Order, including, without limitation, Hylan Debt Fund’s obligations to timely remit the civil penalty or reduce Connecticut debtors’ balances, as set forth more fully in paragraphs 1 and 2 of the Consent to Entry of Sanctions above, the Commissioner shall issue to Hylan Debt Fund a written notice of violation. In the event that the violation remains unresolved after the expiration of fifteen (15) days from the Commissioner’s transmission of such notice, Hylan Debt Fund consents to the immediate entry and imposition of an additional civil penalty in the amount of Ten Thousand Dollars ($10,000), knowingly, willfully and voluntarily waiving its right to a notice and an opportunity for a hearing in conjunction therewith. Any modification or extension of the deadlines imposed upon Hylan Debt Fund absent prior written authorization from and prior review by the Commissioner shall be construed as a violation of this Consent Order; and |
| 5. | This Consent Order shall become final when issued. |
Issued at Hartford, Connecticut
this 26th day of January 2017. ______/s/__________
Jorge L. Perez
Banking Commissioner
I, Andrew Shaevel, state on behalf of Hylan Debt Fund LLC – Portfolio Series 66, 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 Hylan Debt Fund LLC – Portfolio Series 66; that Hylan Debt Fund LLC – Portfolio Series 66 agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Hylan Debt Fund LLC – Portfolio Series 66 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: Andrew J. Shaevel
Title: CEO
Hylan Debt Fund LLC - Portfolio Series 66
State of: New York
County of: Erie
On this the 12th day of January 2017, before me, Stephanie Canastraro, the undersigned officer, personally appeared Andrew Shaevel who acknowledged himself/herself to be the CEO of Hylan Debt Fund LLC – Portfolio Series 66, a member managed/manager managed limited liability company, and that he/she as such CEO, 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 CEO.
In witness whereof I hereunto set my hand.
__________/s/___________
Notary Public
Date Commission Expires: Dec. 07, 2019