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IN THE MATTER OF: MICHAEL LYNN SPRADLIN ("Spradlin") |
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SETTLEMENT AGREEMENT |
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, on December 29, 2009, Spradlin filed a Form MU4, “Uniform Individual Mortgage License/Registration & Consent Form” on the Nationwide Mortgage Licensing System seeking to renew Spradlin’s mortgage loan originator license (“Renewal Request”);
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Spradlin to determine if he 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, on June 7, 2010, the Commissioner, acting pursuant to Sections 36a-494(a)(2) and 36a-51 of the 2010 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Revoke and Refuse to Renew Mortgage Loan Originator 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 Spradlin, which Notice is incorporated herein by reference;
WHEREAS, the Notice alleged that a 2006 felony conviction against Spradlin, which conviction has not been pardoned, would be sufficient grounds for the Commissioner to deny an application for a mortgage loan originator license pursuant to Section 36a-489(b)(1)(B) of the 2010 Supplement to the General Statutes, which would be sufficient grounds for the Commissioner to revoke and refuse to renew Spradlin’s mortgage loan originator license pursuant to Sections 36a-494(a)(2) and 36a-51 of the 2010 Supplement to the General Statutes. The Notice also alleged that such felony conviction also causes Spradlin to fail to meet minimum standards for renewal of his mortgage loan originator license under Section 36a-489(b)(2) of the 2010 Supplement to the General Statutes, which shall cause such license to expire;
WHEREAS, the Notice alleged that Spradlin’s response to a question on a prior application constitutes the making in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes, which violation constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Spradlin’s mortgage loan originator license in Connecticut pursuant to Sections 36a-494(a)(2) and 36a-51 of the 2010 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist against Spradlin pursuant to Section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty against Spradlin pursuant to Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Notice alleged that Spradlin’s use of a Social Security number of another person on his Renewal Request constitutes the making of a material misstatement in his Renewal Request which prevents the Commissioner from renewing Spradlin’s license to act as a mortgage loan originator pursuant to Sections 36a-489(b)(2) and 36a-489(b)(1)(F) of the 2010 Supplement to the General Statutes, which constitutes sufficient grounds for the Commissioner to revoke and refuse to renew Spradlin’s mortgage loan originator license pursuant to Sections 36a-494(a)(2) and 36a-51 of the 2010 Supplement to the General Statutes;
WHEREAS, the Notice alleged that Spradlin’s use of a Social Security number of another person on his Renewal Request constitutes the making in a document filed with the Commissioner a statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes, which violation constitutes sufficient grounds to revoke and refuse to renew Spradlin’s mortgage loan originator license pursuant to Sections 36a-494(a)(2) and 36a-51 of the 2010 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist against Spradlin pursuant to section 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty against Spradlin pursuant to Section 36a-50(a) of the Connecticut General Statutes;
WHEREAS, on June 10, 2010, the Notice was received by Spradlin, and on June 28, 2010, the Commissioner received a request for a hearing, which hearing is currently scheduled for August 18, 2010;
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 agreed settlement, unless precluded by law;
WHEREAS, Spradlin voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
AND WHEREAS, Spradlin, through his execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.
NOW THEREFORE, the Commissioner and Spradlin enter into this Settlement Agreement as follows:
| 1. | Effective on the date this Settlement Agreement is executed by the Commissioner, the license of Spradlin to act as a mortgage loan originator in Connecticut shall be deemed REVOKED; |
| 2. | Effective on the date this Settlement Agreement is executed by the Commissioner, the license of Spradlin to act as a mortgage loan originator in Connecticut shall NOT BE RENEWED, and shall be deemed EXPIRED; |
| 3. | No later than the date this Settlement Agreement is executed by Spradlin, Spradlin 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 One Thousand Dollars ($1,000) as a civil penalty; |
| 4. | Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Spradlin to apply for and obtain a mortgage loan originator license under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes; |
| 5. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Spradlin based upon the allegations contained in the Notice and this Settlement Agreement; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Spradlin based on the allegations contained in the Notice and this Settlement Agreement if any representations made by Spradlin in this Settlement Agreement are subsequently discovered to be untrue or if Spradlin is not fully complying with any term or condition stated herein; and |
| 6. | Notwithstanding paragraph 5 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Spradlin to enforce this Settlement Agreement if the Commissioner determines that Spradlin is not fully complying with any term or condition stated herein. For purposes of this paragraph, a violation of this Settlement Agreement shall be deemed to be a violation of an order of the Commissioner. |
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.
Dated at Hartford, Connecticut
this 13th day of September 2010.
________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Michael Lynn Spradlin, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; and that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.
By: ________/s/_________
Michael Lynn Spradlin
State of: Connecticut
County of: Hartford
On this the 18 day of August 2010, before me, Jared Alfin, the undersigned officer, personally appeared Michael Lynn Spradlin, known to me (or satisfactorily proven) to be the person whose name Michael Lynn Spradlin 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/_________
Commissioner of the Superior Court