The Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671e, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”.

Pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, the Commissioner, through the Consumer Credit 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(a) of the 2012 Supplement to the General Statutes provides:

Section 36a-52 of the Connecticut General Statutes provides, in pertinent part, that:

Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:

Section 36a-671a(c) of the Connecticut General Statutes provides, in pertinent part, that:

1.	D & K Holdings is a Missouri corporation with places of business at 12101 Woodcrest Executive Drive, Suite 160, St. Louis Missouri; 7113 135th Street, Suite 361, Overland Park, Kansas; 6711 W. 121st Street, Overland Park, Kansas; and 157 Forest Brook Lane, Creve Coeur, Montana.
2.	SKD Holdings is a Missouri corporation with places of business at 1000 Executive Parkway, Suite 227, St. Louis, Missouri; and 3965 W. 83rd Street, Suite 164, Prairie Village, Kansas.
3.	Arize Group was a Kansas corporation with places of business at 7300 W. 110th Street, Suite 700, Overland Park, Kansas; and 15941 W. 65th Street, Suite 394, Shawnee, Kansas.
4.	Tyler T. Korn is President of D & K Holdings and SKD Holdings.
5.	D & K Holdings, under the name of Reliant Home Financial Group, Incorporated, offered to engage in debt negotiation services in this state via various media, including the Internet.
6.	SKD Holdings, under the name Arize Home Financial Group, Incorporated, offered to engage in debt negotiation services in this state via various media, including the Internet.
7.	On or about March 17, 2011, a Connecticut resident, while physically present in this state, entered into an Agreement for Loan Restructure Services with Arize Group for debt settlement services (“Agreement for Services”).  As part of such agreement, the Connecticut resident completed an “Authorization to Represent (Loan Restructure Services)” authorizing Sara Cordry and Ruby Price of Arize Group to represent the Connecticut resident in speaking to such resident’s lender with respect to such resident’s mortgage loan.
8.	The front page of the Agreement for Services states, in pertinent part, that: A.  WHEREAS Company has entered into an agreement with an outsourcing entity to process Loan Restructure Services for that outsourcing entity’s clients. B.  Company has expertise in preparing and presenting a financial profile and restructuring proposal to lender(s); C.  WHEREAS Client has a need to restructure debt and has requested assistance, and the Company offers to its clients, services to assist them in preparing and presenting a financial profile and restructuring proposal to their lender(s); and D.  WHEREAS Client wishes to engage Company to perform the following services (“Services”): (a)  Analyze Client’s debt situation; (b)  Research potential debt/loan restructuring options that are or may be available to Client(s); (c)  Present to Client and lender(s) the findings of said research
9.	On or about March 3, 2011, in connection with the Agreement for Services, the Connecticut resident, referred to in paragraph 7 above, also entered into an Agreement for Loan Audit Services with Arize Group, and executed a Draft Payment Form in which such Connecticut resident authorized D & K Holdings, as agent for Arize Group, to draft via the ACH system $2,990 from such resident’s checking account.
10.	On August 3, 2011, the Connecticut resident, referred to in paragraphs 7 and 8 above, filed a complaint with the Commissioner against D & K Holdings and Arize Group concerning the fees paid for debt negotiation services.
11.	From at least January 2011 to the present, Arize Group engaged in debt negotiation in this state on behalf of at least thirteen (13) additional Connecticut residents who negotiated or agreed to contract terms, while physically present in this state, concerning their secured debt and who remitted approximately $38,350 to D & K Holdings, as agent for Arize Group.
12.	From at least March 22, 2011 to April 13, 2012, the thirteen (13) additional Connecticut residents filed complaints with the Commissioner against D & K Holdings and Arize Group concerning the fees paid for debt negotiation services.
13.	From at least March 17, 2011 to the present, at least thirty (30) additional Connecticut residents remitted payments to D & K Holdings, as agent for Arize Group, in excess of amounts that debt negotiators may charge for services pursuant to the Schedule of Maximum Fees established by the Commissioner on or about October 1, 2009.
14.	On or about October 1, 2009, the Commissioner established a Schedule of Maximum Fees, which provides, in pertinent part, that “[a] debt negotiator of secured debt, including Short Sales and Foreclosure Rescue Services, may impose a fee upon the mortgagor or debtor for performing debt negotiation services not to exceed five hundred dollars ($500).  Such fee shall only be collectable upon the successful completion of all services stated in the debt negotiation service contract”.
15.	By letter dated October 5, 2011, Tyler T. Korn, as President of Reliant Home Financial Group (“Reliant”), stated that Reliant performed sales and marketing for Arize Group.
16.	At no time relevant hereto did Arize Group perform or successfully complete the services specified in the Agreement for Services entered into with the Connecticut resident, referred to in paragraphs 7 through 12, inclusive, above.
17.	At no time relevant hereto was D & K Holdings licensed to engage or offer to engage in debt negotiation in this state, nor did D & K Holdings qualify for an exemption from such licensure.
18.	At no time relevant hereto was SKD Holdings licensed to engage or offer to engage in debt negotiation in this state, nor did SKD Holdings qualify for an exemption from such licensure.
19.	At no time relevant hereto was Arize Group licensed to engage or offer to engage in debt negotiation in this state, nor did Arize Group qualify for an exemption from such licensure.

Section 36a-671 of the Connecticut General Statutes, in effect prior to October 1, 2011, stated, in pertinent part, that:

Section 36a-671(b) of the 2012 Supplement to the General Statutes, which incorporates Section 40 of Public Act 11-216, effective October 1, 2011, provides, in pertinent part, that:

Section 36a-671a(b) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:

Section 36a-671b(b) of the Connecticut General Statutes provides that:

1.	D & K Holdings’ offering to engage in debt negotiation in this state without obtaining the required license, as more fully described in paragraphs 1, 5, 15 and 17 of the Matters Asserted, constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-671a(b) of the 2012 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 D & K Holdings in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
2.	SKD Holdings’ offering to engage in debt negotiation in this state without obtaining the required license, as more fully described in paragraphs 2, 6 and 18 of the Matters Asserted, constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-671a(b) of the 2012 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 SKD Holdings in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
3.	Arize Group’s engaging in debt negotiation in this state without obtaining the required license, as more fully described in paragraphs 3, 7 through 13, inclusive, and 16 and 19 of the Matters Asserted constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-671a(b) of the 2012 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 Arize Group in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.

The Commissioner finds that public welfare requires immediate action to issue a temporary order requiring Respondents to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and to take such other action as set forth herein to effectuate the purposes of Section 36a-52(b) of the Connecticut General Statutes.  Specifically, Connecticut residents, who are already in debt, are being materially prejudiced by DK Holdings and Arize Group’s receipt of fees in excess of the Schedule of Maximum Fees established by the Commissioner.  The Commissioner also finds the fees paid by each of the Connecticut residents identified in Exhibit A to be excessive upon consideration that the Schedule of Maximum Fees issued by the Commissioner only permits a fee in connection with secured debt of $500 to be collected upon successful completion of the debt negotiation services contract, the debt negotiation services contracts were not successfully completed and the Connecticut residents received no benefit from such contracts.

WHEREAS, the Commissioner has reason to believe that Respondents have engaged in acts or conduct which forms the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;

AND WHEREAS, the Commissioner has made the finding required under Section 36a-52(b) of the Connecticut General Statutes.

THE COMMISSIONER THEREFORE ORDERS, pursuant to Section 36a-52(b) of the Connecticut General Statutes, that D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d//b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc., immediately CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  This Temporary Order shall become effective upon receipt by D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d//b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc., 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 Section 36a-52(b) of the Connecticut General Statutes, that SKD Holdings, Inc. d/b/a Arize Home Financial Group, Incorporated, immediately CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  This Temporary Order shall become effective upon receipt by SKD Holdings, Inc. d/b/a Arize Home Financial Group, Incorporated, 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 Section 36a-52(b) of the Connecticut General Statutes, that The Arize Group, Incorporated, immediately CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes.  This Temporary Order shall become effective upon receipt by The Arize Group, Incorporated, 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 Sections 36a-671a(c) and 36a-52(b) of the Connecticut General Statutes, that:  Not later than 10 days from receipt of this Order, D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d//b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc., and The Arize Group, Incorporated, shall:

1.

Provide repayment of fees to the Connecticut residents and in the amounts identified in Exhibit A and provide repayment of all fees received from the Connecticut residents identified in Exhibit B by cashier’s check, certified check or money order; and

2.

Provide to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov, evidence of such repayments and a list of all Connecticut residents with whom they have entered into agreements for debt negotiation services on and after October 1, 2009.  Such submission shall include:  (a) a copy of each agreement, and (b) a list of each debtor’s name and address and full itemization of each debtor’s payments made pursuant to the agreement, specifying the dates, amounts and to whom such payments were made.

NOW THEREFORE, notice is hereby given to D & K Holdings that the Commissioner intends to issue an order requiring D & K Holdings to CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and impose a CIVIL PENALTY upon D & K Holdings as set forth herein, subject to D & K Holdings’ right to a hearing on the allegations set forth above.

FURTHER, notice is hereby given to SKD Holdings that the Commissioner intends to issue an order requiring SKD Holdings to CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and impose a CIVIL PENALTY upon SKD Holdings as set forth herein, subject to SKD Holdings’ right to a hearing on the allegations set forth above.

FURTHER, notice is hereby given to Arize Group that the Commissioner intends to issue an order requiring Arize Group to CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and impose a CIVIL PENALTY upon Arize Group as set forth herein, subject to Arize Group’s 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, 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 Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes.  This Temporary Order to Cease and Desist, 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.  The enclosed Appearance and Request for Hearing Form must be completed and mailed 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 hearing 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 September 18, 2012, 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 Respondents fail 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 D & K Holdings does not request a hearing within the time prescribed, the Commissioner will issue an order that D & K Holdings cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, may issue an order of repayment of fees and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon D & K Holdings.

If SKD Holdings does not request a hearing within the time prescribed, the Commissioner will issue an order that SKD Holdings cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon SKD Holdings.

If Arize Group does not request a hearing within the time prescribed, the Commissioner will issue an order that Arize Group cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes, may issue an order of repayment of fees and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Arize Group.

So ordered at Hartford, Connecticut
this 24th day of July 2012.                      ________/s/_________
                                                          Howard F. Pitkin
                                                          Banking Commissioner

I hereby certify that on this 25th day of July 2012, the foregoing Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing was sent by certified mail, return receipt requested, to D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d/b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc., at 12101 Woodcrest Executive Drive, Suite 160, St. Louis, Missouri 63141, certified mail no. 70112000000247358734; 7113 135th Street, Suite 361, Overland Park, Kansas 66223, certified mail no. 70112000000247358758; 6711 W. 121st Street, Overland Park, Kansas 66212, certified mail no. 70112000000247358765; and 157 Forest Brook Lane, Creve Coeur, Missouri 63146, certified mail no. 70112000000247358772; Tyler Korn, Agent, D & K Holdings, Incorporated d/b/a D & K Holdings Group Incorporated d/b/a Reliant Home Financial Group, Incorporated d/b/a The Arize Group, Inc., 157 Forest Brook Lane, Creve Coeur, Missouri 63146, certified mail no. 70112000000247358741; Tyler Korn, Registered Agent for D & K Holdings Group Incorporated d/b/a D & K Holdings, Incorporated, 12101 Woodcrest Executive Drive, Suite 160, St. Louis, Missouri 63141, certified mail no. 70110470000225730423; SKD Holdings, Inc. d/b/a Arize Home Financial Group, Incorporated, at 1000 Executive Parkway, Suite 227, St. Louis, Missouri 63141, certified mail no. 70112000000247358796; and 3965 W. 83rd Street, Suite 164, Prairie Village, Kansas 66208, certified mail no. 70112000000247358802; The Arize Group, Incorporated, at 15941 W. 65th Street, Suite 394, Shawnee, Kansas 66217, certified mail no. 70112000000247358819; and 7300 W. 110th Street, Suite 700, Overland Park, Kansas 66210, certified mail no. 70110470000225730416; Sara H. Cordry, Registered Agent for The Arize Group, Incorporated, 9849 Cedar Street, Overland Park, Kansas 66207, certified mail no. 70112000000247358789; and James Leightner, Esq., Diekman & Leightner, 230 South Bemiston, Suite 600, Clayton, Missouri 63105, certified mail no. 70110470000225730430.

                                                          ________/s/_________

                                                          Doniel Kitt       
                                                          Prosecuting Attorney

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