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IN THE MATTER OF: DIMENSION FINANCIAL HARRIS DELROY MCFARLANE |
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CONSENT ORDER |
WHEREAS, 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”, and Sections 36a-655 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”;
WHEREAS, Dimension is a Connecticut limited liability company that has never been licensed to act as a mortgage broker in this state under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and has never been licensed to engage or offer to engage in debt negotiation in this state under Sections 36a-671 et seq., of the Connecticut General Statutes, contained in Part II of Chapter 669 of the Connecticut General Statutes;
WHEREAS, McFarlane is an individual who was, at all times pertinent to this Consent Order, and currently is sole owner, President and Chief Executive Officer of Dimension;
WHEREAS, McFarlane has not held an active license to engage in the business of a mortgage loan originator in this state under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes since August 5, 2009, and McFarlane’s inactive license to engage in the business of a mortgage loan originator in this state expired on December 31, 2009;
WHEREAS, McFarlane has never been licensed to engage or offer to engage in debt negotiation in this state under Section 36a-671 et seq., of the Connecticut General Statutes, contained in Part II of Chapter 669 of the Connecticut General Statutes;
WHEREAS, on June 23, 2011, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Sections 36a-17 and 36a-498f of the Connecticut General Statutes into the activities of Dimension and McFarlane to determine if they had violated, were violating or were 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 in 2010 Dimension acted as an unlicensed mortgage broker with respect to two residential mortgage loans, in violation of Section 36a-486(a) of the then applicable Connecticut General Statutes;
WHEREAS, as a result of such investigation, the Commissioner alleges that in 2010 McFarlane engaged in the business of a mortgage loan originator with respect to two residential mortgage loans without the requisite license, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes;
WHEREAS, as a result of such investigation, the Commissioner alleges that during late 2009 and during 2010, Dimension, through McFarlane, engaged or offered to engage in debt negotiation in this state without a license, in violation of Section 36a-671(b) of the then applicable Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Dimension and McFarlane, individually, including proceedings to issue a cease and desist order against Dimension and McFarlane pursuant to Sections 36a-494(b), 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation each on Dimension and McFarlane pursuant to Sections 36a-494(b), 36a-671a(b) 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(2) of the Connecticut 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, the Commissioner, Dimension and McFarlane acknowledge the possible consequences of formal administrative proceedings, and Dimension and McFarlane voluntarily agree to consent to the entry of the sanction described below solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation contained herein;
WHEREAS, Dimension and McFarlane each acknowledge that this Consent Order is a public record and constitutes a finding by the Commissioner that Dimension and McFarlane have been involved in a violation of a financial services-related regulation or statute required to be disclosed in response to regulatory disclosure questions on the MU1 Form, MU2 Form or MU4 Form on the Nationwide Mortgage Licensing System and Registry (“NMLS”), as such forms are applicable;
WHEREAS, Dimension and McFarlane admit that they engaged in the conduct set forth in this Consent Order;
WHEREAS, Dimension and McFarlane represent that each immediately ceased all business activity involving residential mortgage loans and debt negotiation upon their receipt of correspondence from the Division dated June 23, 2010;
WHEREAS, all advertising for residential mortgage loan and debt negotiation services were promptly removed from Dimension’s website;
WHEREAS, Dimension and McFarlane have cooperated in all respects with the Division’s investigation and have provided the Division with requested documents and information;
WHEREAS, Dimension and McFarlane each represent to the Commissioner that neither will engage or offer to engage in any activity or act in any capacity that requires licensure under any provision of the Connecticut General Statutes within the jurisdiction of the Commissioner without first obtaining such license;
AND WHEREAS, Dimension and McFarlane, each through their execution of this Consent Order, voluntarily agree to waive their procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegations set forth herein, and voluntarily waives their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, Dimension and McFarlane, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by Dimension and McFarlane, Dimension and McFarlane 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 Two Thousand Five Hundred Dollars ($2,500) as a civil penalty, in accordance with the following schedule:
Eight Hundred Thirty-three Dollars ($833) no later than April 25, 2012; an additional
Eight Hundred Thirty-three Dollars ($833) on or before May 23, 2012; and an additional
Eight Hundred Thirty-four Dollars ($834) on or before June 27, 2012.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction 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 Dimension or McFarlane based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Dimension and McFarlane 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 Dimension or McFarlane and reflected herein is subsequently discovered to be untrue; |
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So long as this Consent Order is promptly disclosed by Dimension and McFarlane on the MU1, MU2 and MU4 Forms, as applicable, on NMLS, nothing in the issuance of this Consent Order shall adversely affect the ability of Dimension or McFarlane to apply for or obtain a license or renewal license in Connecticut under Part I of Chapter 668, Sections 36a-485 et seq., provided all applicable legal requirements for such license are satisfied. |
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So long as this Consent Order is promptly disclosed by Dimension or McFarlane in connection with any future application filed with the Commissioner for a license or renewal license to engage or offer to engage in debt negotiation in this state, nothing in the issuance of this Consent Order shall adversely affect the ability of Dimension or McFarlane to obtain such license, provided all applicable legal requirements for such license are satisfied; and |
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This Consent Order shall become final when issued.
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Dated at Hartford, Connecticut
this 26th day of April 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Harris Delroy McFarlane, state on behalf of Dimension Financial Services 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 Dimension Financial Services LLC; that Dimension Financial Services LLC agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that Dimension Financial Services 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: Harris Delroy McFarlane
Title: President and Chief Executive Officer
Dimension Financial Services LLC
State of: Connecticut
County of: Hartford
On this the 16th day of April 2012, before me, Wendy Lamb, the undersigned officer, personally appeared Harris Delroy McFarlane who acknowledged himself to be the President and Chief Executive Officer of Dimension Financial Services LLC, a limited liability company, and that he as such President and Chief Executive 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 as President and Chief Executive Officer.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: July 31st, 2016
I, Harris Delroy McFarlane, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
By: ___________/s/_____________
Name: Harris Delroy McFarlane
State of: Connecticut
County of: Hartford
On this the 16th day of April 2012, before me, Wendy Lamb, the undersigned officer, personally appeared Harris Delroy McFarlane, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: July 31st, 2016