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IN THE MATTER OF: GOLDEN STATE DEBT ("Golden State") |
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CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-655 to 36a-665, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;
WHEREAS, Golden State is a Florida corporation and a bona fide nonprofit organization with a place of business at 23842 Hawthorne Boulevard, #201, Torrance, California;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes into the activities of Golden State 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, as a result of such investigation, the Commissioner alleges that from at least December 2008 through April 2011, Golden State engaged in debt adjustment in this state without having obtained the required license, in violation of Section 36a-656(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support initiation of enforcement proceedings against Golden State, including proceedings to issue a cease and desist order against Golden State pursuant to Sections 36a-657(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 on Golden State pursuant to Sections 36a-657(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, both the Commissioner and Golden State acknowledge the possible consequences of formal administrative proceedings, and Golden State voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, Golden State herein represents to the Commissioner that it has not engaged in debt adjustment in this state since June 30, 2011;
WHEREAS, on July 6, 2011, Golden State filed a Main Office – Application for Debt Adjuster License with the Commissioner, which application is currently pending;
WHEREAS, Golden State specifically assures the Commissioner that the violation described herein shall not occur in the future;
AND WHEREAS, Golden State, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a notice and an opportunity for hearing as it pertains to the allegation set forth herein, and voluntarily waives its rights to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Golden State, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
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1. |
No later than the date this Consent Order is executed by Golden State, Golden State 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 Three Thousand Dollars ($3,000) as a civil penalty; and |
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Golden State shall REPAY amounts collected from Connecticut residents or debited from such Connecticut residents’ accounts, which amounts were not due to such residents’ creditors, by cashier’s check, certified check or money order, to be remitted and made payable to the Connecticut residents and in the amounts identified in Exhibit A attached hereto, no later than ten (10) days from the date this Order is issued, and shall 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.
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NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanctions 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 Golden State 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 Golden State 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 Golden State and reflected herein is subsequently discovered to be untrue; |
| 3. | Nothing in the issuance of this Consent Order shall adversely affect the ability of Golden State to apply for or obtain a license or renewal license under Part II of Chapter 669, Sections 36a-655, et seq. of the Connecticut General Statutes, 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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Issued at Hartford, Connecticut
this 13th day of January 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Maria Menendez, state on behalf of Golden State Debt Management Corp., 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 Golden State Debt Management Corp.; that Golden State Debt Management Corp. agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Golden State Debt Management Corp. 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: Maria Menendez
Title: President
Golden State Debt Management Corp.
State of: California
County of: Los Angeles
On this the 30 day of December 2011, before me, Jennifer Bray, the undersigned officer, personally appeared Maria Menendez, who acknowledged herself to be the President of Golden State Debt Management Corp., a corporation, and that she as such Non profit Corp., being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: August 9, 2014