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IN THE MATTER OF: FAIRFIELD FINANCIAL MORTGAGE ("Fairfield Financial") |
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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”;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Fairfield Financial 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, on October 20, 2008, the Commissioner, acting pursuant to Sections 36a-494(a)(1)(A), 36a-494(a)(1)(C) and 36a-494(b) of the 2008 Supplement to the General Statutes, as amended by Public Acts 07-91, 07-156 and 08-176, Sections 36a-51 and 36-52(a) of the 2008 Supplement to the General Statutes, and Section 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke Mortgage Lender License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Fairfield Financial, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleged that Fairfield Financial failed to comply with a Settlement Agreement that Fairfield Financial had entered into with the Commissioner on June 5, 2007 (“Settlement Agreement”), wherein Fairfield Financial agreed to retain an independent, unaffiliated third-party auditor or compliance firm to conduct two semi-annual reviews of Fairfield Financial’s compliance with its loan policy and to provide a written report of the findings of such review. Such conduct forms the basis to issue an order to cease and desist against Fairfield Financial pursuant to Section 36a-52(a) of the 2008 Supplement to the General Statutes, and to impose a civil penalty against Fairfield Financial pursuant to Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Notice also alleged that Fairfield Financial made a material misstatement concerning litigation in its license renewal application dated August 24, 2006 (“Renewal Application”) and that such statement also constituted the making of a statement that is false in a material respect in a document filed with the Commissioner in violation of Section 36a-53a of the Connecticut General Statutes. Such conduct constitutes grounds to revoke Fairfield Financial’s mortgage lender license pursuant to Sections 36a-494(a)(1)(A) and 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, and Section 36a-51 of the 2008 Supplement to the General Statutes; and forms the basis to issue an order to cease and desist against Fairfield Financial pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, and Section 36a-52(a) of the 2008 Supplement to the General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Notice additionally alleged that Fairfield Financial failed to notify the Commissioner of eight lawsuits against Fairfield Financial subsequent to the filing of the Renewal Application in violation of Section 36a-490(b) of the 2008 Supplement to the General Statutes prior to July 1, 2008. Such violation constitutes grounds to revoke Fairfield Financial’s mortgage lender license pursuant to Sections 36a-494(a)(1)(A) and 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes; and forms the basis to issue an order to cease and desist against Fairfield Financial pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the 2008 Supplement to the General Statutes, and to impose a civil penalty pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Notice further alleged that Fairfield Financial failed to pay the cost of an examination conducted by the Division in violation of Section 36a-65(c)(6) of the Connecticut General Statutes, as amended by Public Act 08-176. Such violation constitutes grounds to revoke Fairfield Financial’s mortgage lender license pursuant to Section 36a-494(a)(1)(C) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-51 of the 2008 Supplement to the General Statutes; and forms the basis to issue an order to cease and desist against Fairfield Financial pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-52(a) of the 2008 Supplement to the General Statutes; and to impose a civil penalty pursuant to Section 36a-494(b) of the 2008 Supplement to the General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, on October 23, 2008, the Notice was received by Fairfield Financial, and a request for a hearing has been received by the Commissioner;
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, on June 29, 2009, Fairfield Financial paid the cost of the examination conducted by the Division;
WHEREAS, Fairfield Financial has otherwise demonstrated economic hardship, such that the Commissioner believes that Fairfield Financial is financially incapable of paying any civil penalty;
WHEREAS, the Commissioner has determined that no civil penalty will be imposed on Fairfield Financial based on such economic hardship;
WHEREAS, Fairfield Financial, Charles L. Levesque, President of Fairfield Financial (“Levesque”), and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings and agree to the issuance of this Consent Order;
WHEREAS, Fairfield Financial and Levesque agree that the Notice may be used in construing the terms of this Consent Order;
WHEREAS, Fairfield Financial and Levesque, through their execution of this Consent Order, voluntarily agree to waive any rights to a hearing upon the allegations contained in the Notice and this Consent Order, and waive the right to seek judicial review or otherwise challenge or contest the validity of this Consent Order;
WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Fairfield Financial an opportunity for a hearing;
WHEREAS, Fairfield Financial and Levesque acknowledge the possible consequences of an administrative hearing and voluntarily agree to consent to the entry of the sanctions described below.
WHEREAS, Levesque specifically assures the Commissioner that since September 10, 2009, Levesque has not served as director, officer, general partner, member or sole proprietor of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, or in any other position that would require licensure pursuant to Part I of Chapter 668 of the Connecticut General Statutes;
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Fairfield Financial and Levesque, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing on Levesque the following sanctions:
| 1. | Commencing on the date this Consent Order is issued by the Commissioner, Levesque is BARRED for an additional three (3) years and eight (8) months for a total of four (4) years from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed pursuant to Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, and from any position that would require licensure pursuant to Part I of Chapter 668 of the Connecticut General Statutes; |
| 2. | Levesque shall do one hundred (100) hours of community service as a volunteer for a 501(c)(3) organization, which organization shall not be involved in rendering consumer credit related services; |
| 3. | For a period of three (3) years and eight (8) months commencing on the date this Consent Order is issued by the Commissioner, Levesque shall file with the Commissioner sworn affidavits on a quarterly basis in which Levesque states whether he is complying with the terms of this Consent Order; |
AND WHEREAS, Fairfield Financial and Levesque specifically assure the Commissioner that none of the violations alleged in the Notice shall occur in the future.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions set forth above be and are hereby entered; |
| 2. | Issuance of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Fairfield Financial or Levesque 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 representations made by Fairfield Financial and Levesque and reflected herein are subsequently discovered to be untrue; and |
| 3. | This Consent Order shall become final when issued. |
Dated at Hartford, Connecticut
this 2nd day of March 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
CONSENT TO ENTRY OF ORDER
I, Charles L. Levesque, state on behalf of Fairfield Financial Mortgage Group, Inc., that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this consent to entry of order on behalf of Fairfield Financial Mortgage Group, Inc., that Fairfield Financial Mortgage Group, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Fairfield Financial Mortgage Group, Inc., consents to the issuance of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Name: Charles L. Levesque
Title: President
Fairfield Financial Mortgage Group, Inc.
State of: Massachusetts
County of: Norfolk
On this the 23 day of February 2010, before me, ________________________, the undersigned officer, personally appeared Charles L. Levesque, who acknowledged himself to be the President of Fairfield Financial Mortgage Group, Inc., a corporation, and that he, as such President, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: June 8, 2012
CONSENT TO ENTRY OF ORDER
I, Charles L. Levesque, 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 terms and conditions stated herein; and I consent to the issuance of this Consent Order, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Charles L. Levesque
State of: Massachusetts
County of: Norfolk
On this the 23 day of February 2010, before me, ________________________, the undersigned officer, personally appeared Charles L. Levesque, 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: June 8, 2012