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IN THE MATTER OF: FRANK ALBANESE JEFFREY CLARK (collectively, "Respondents") * * * * * * * * * * * * * * * * * * * |
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ORDER TO CEASE AND DESIST ORDER OF REPAYMENT OF FEES AND ORDER IMPOSING CIVIL PENALTY |
I. PRELIMINARY STATEMENT
WHEREAS, 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”;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, 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, on April 24, 2012, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes, Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a 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 (collectively “Notice”) against Respondents, which Notice is incorporated herein by reference;
WHEREAS, on April 25, 2012, the Notice was sent by certified mail, return receipt requested, to Frank Albanese a/k/a C.A. Financial Group (Certified Mail No. 70112000000247358659), and to Frank Albanese (Certified Mail No. 70112000000247358185);
WHEREAS, on April 25, 2012, the Notice was sent by certified mail, return receipt requested, to Jeffrey Clark a/k/a C.A. Financial Group (Certified Mail No. 70112000000247358192);
WHEREAS, the Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of each Respondent’s receipt, the Commissioner would issue an order that each Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, may issue an order of repayment of fees and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon each Respondent;
WHEREAS, on May 1, 2012, Frank Albanese received the Notice sent by Certified Mail No. 70112000000247358185;
WHEREAS, on May 7, 2012, the Notice sent to Frank Albanese a/k/a C.A. Financial Group by Certified Mail No. 70112000000247358659 was returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;
WHEREAS, on May 7, 2012, the Notice sent to Jeffrey Clark a/k/a C.A. Financial Group was returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, no request for a hearing has been received by the Commissioner from Respondents;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that each Respondent’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011. Such violation forms the basis to issue an order to cease and desist against each Respondent pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon each Respondent pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, also in the Notice, the Commissioner found that the fees charged by Respondents for debt negotiation services were excessive and ordered, pursuant to Section 36a-671a(c) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-52(b) of the Connecticut General Statutes that not later than 10 days from each Respondent’s receipt of the Notice, Respondents provide repayment of $1,500 to the New York residents identified in Exhibit A to the Notice, and among other things, provide evidence of such repayment to the Director of the Consumer Credit Division;
WHEREAS, no evidence of such repayment was provided to the Director of the Consumer Credit Division;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”;
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, 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, on April 24, 2012, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes, Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a 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 (collectively “Notice”) against Respondents, which Notice is incorporated herein by reference;
WHEREAS, on April 25, 2012, the Notice was sent by certified mail, return receipt requested, to Frank Albanese a/k/a C.A. Financial Group (Certified Mail No. 70112000000247358659), and to Frank Albanese (Certified Mail No. 70112000000247358185);
WHEREAS, on April 25, 2012, the Notice was sent by certified mail, return receipt requested, to Jeffrey Clark a/k/a C.A. Financial Group (Certified Mail No. 70112000000247358192);
WHEREAS, the Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by any Respondent within 14 days of each Respondent’s receipt, the Commissioner would issue an order that each Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, may issue an order of repayment of fees and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon each Respondent;
WHEREAS, on May 1, 2012, Frank Albanese received the Notice sent by Certified Mail No. 70112000000247358185;
WHEREAS, on May 7, 2012, the Notice sent to Frank Albanese a/k/a C.A. Financial Group by Certified Mail No. 70112000000247358659 was returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;
WHEREAS, on May 7, 2012, the Notice sent to Jeffrey Clark a/k/a C.A. Financial Group was returned to the Department marked “Return to Sender – Not Deliverable as Addressed – Unable to Forward”;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, Section 36a-50(a)(1) of the Connecticut General Statutes provides, in pertinent part, that “[t]he notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending”;
WHEREAS, no request for a hearing has been received by the Commissioner from Respondents;
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that each Respondent’s engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011. Such violation forms the basis to issue an order to cease and desist against each Respondent pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty upon each Respondent pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, also in the Notice, the Commissioner found that the fees charged by Respondents for debt negotiation services were excessive and ordered, pursuant to Section 36a-671a(c) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-52(b) of the Connecticut General Statutes that not later than 10 days from each Respondent’s receipt of the Notice, Respondents provide repayment of $1,500 to the New York residents identified in Exhibit A to the Notice, and among other things, provide evidence of such repayment to the Director of the Consumer Credit Division;
WHEREAS, no evidence of such repayment was provided to the Director of the Consumer Credit Division;
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”;
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”;
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides, in pertinent part, that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.
II. FINDINGS OF FACT AND CONCLUSIONS OF LAW
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The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 6, inclusive, of Section II of the Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions, as set forth in Section III of the Notice, shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies. |
| 2. |
The Commissioner finds that Respondents have engaged in acts or conduct which, pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against each Respondent, and, pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Section 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon each Respondent. |
| 3. |
The Commissioner finds that the payment of fees by the New York residents identified in Exhibit A of the Notice to be excessive, upon consideration of the Schedule of Maximum Fees issued by the Commissioner, the debt negotiation services contract was not successfully completed and the New York residents received no benefit from such contract. |
| 4. | The Commissioner finds that the Notice was given in compliance with Sections 36a-52(a), 36a-50(a) and 4-177 of the Connecticut General Statutes. |
III. ORDER
Having read the record, I HEREBY ORDER, pursuant to Section 36a-671a(b) of the Connecticut General Statutes, in effect prior to July 13, 2011, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:
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Frank Albanese a/k/a C.A. Financial Group and Jeffrey Clark a/k/a C.A. Financial Group CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011; |
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Frank Albanese a/k/a C.A. Financial Group and Jeffrey Clark a/k/a C.A. Financial Group REPAY FEES in the amount of One Thousand Five Hundred Dollars ($1,500) by cashier’s check, certified check or money order, to be remitted and made payable to the New York residents identified in Exhibit A attached hereto, no later than ten (10) days from the date this Order is mailed, and shall provide Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov, evidence of such repayment; |
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A CIVIL PENALTY of Ten Thousand Dollars ($10,000) be imposed upon Frank Albanese a/k/a C.A. Financial Group, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; |
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A CIVIL PENALTY of Ten Thousand Dollars ($10,000) be imposed upon Jeffrey Clark a/k/a C.A. Financial Group, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and |
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This Order shall become effective when mailed.
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Dated at Hartford, Connecticut
this 30th day of July 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
This Order was sent by certified mail,
return receipt requested, to
Respondents on July 31, 2012.
Frank Albanese Certified Mail No. 70110470000225730508
1372 Summer Street
Stamford, CT 06905
Frank Albanese Certified Mail No. 70110470000225730515
a/k/a C.A. Financial Group
21 Maywood Avenue
Rye Brook, NY 10573
Frank Albanese Certified Mail No. 70110470000225730553
a/k/a C.A. Financial Group
303 West Broad Street
Stamford, CT 06902
Jeffrey Clark Certified Mail No. 70110470000225730522
a/k/a C.A. Financial Group
1372 Summer Street
Stamford, CT 06905
Jeffrey Clark Certified Mail No. 70110470000225730560
a/k/a C.A. Financial Group
303 West Broad Street
Stamford, CT 06902