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IN THE MATTER OF: MOHAMMAD M. HASAN ("Mohammad Hasan") |
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SETTLEMENT AGREEMENT |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part IV of Chapter 668, Sections 36a-580 to 36a-589, inclusive, of the Connecticut General Statutes, “Check Cashing Services” and Sections 36a-585-1, 36a-588-1, 36a-588-3 and 36a-588-4 of the Regulations of Connecticut State Agencies (“Regulations”);
WHEREAS, Mohammad Hasan at all times relevant hereto was licensed by the Commissioner to engage in the business of cashing checks, drafts and money orders for consideration, pursuant to Section 36a-582 of the 2010 Supplement to the General Statutes, at 1084 Burnside Avenue, East Hartford, Connecticut;
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 Mohammad Hasan to determine if he had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, the Commissioner alleges that Mohammad Hasan, during the period of July 1, 2007 through June 30, 2009, charged or collected fees, charges or otherwise for cashing checks, drafts or money orders drawn on a depository institution, in a sum exceeding two percent of the items or one dollar, whichever was greater, in violation of Section 36a-585 of the Connecticut General Statutes and Section 36a-585-1 of the Regulations;
WHEREAS, on September 1, 2009, Mohammad Hasan filed a renewal application for his check cashing license;
WHEREAS, the Commissioner believes that the allegation that Mohammad Hasan charged or collected fees or charges in excess of that allowed by Section 36a-585 of the Connecticut General Statutes and Section 36a-585-1 of the Regulations, would support initiation of enforcement proceedings against Mohammad Hasan, including proceedings to refuse to renew and revoke his license to engage in the business of cashing checks, drafts and money orders for consideration pursuant to Section 36a-587(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes; to issue a cease and desist order against Mohammad Hasan pursuant to Sections 36a-587(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 Mohammad Hasan pursuant to Sections 36a-587(b) and 36a-50(a) 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 agreed settlement, unless precluded by law;
WHEREAS, both the Commissioner and Mohammad Hasan acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Mohammad Hasan voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
WHEREAS, Mohammad Hasan, through his execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
AND WHEREAS, Mohammad Hasan specifically assures the Commissioner that the violation described herein shall not occur in the future.
NOW THEREFORE, the Commissioner and Mohammad Hasan enter into this Settlement Agreement as follows:
| 1. | No later than the date this Settlement Agreement is executed by Mohammad Hasan, Mohammad Hasan 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. |
| 2. | If Mohammad Hasan’s license to engage in the business of cashing checks, drafts or money orders for consideration is renewed, Mohammad Hasan shall not charge or collect a sum exceeding the amounts permitted by Section 36a-585 of the Connecticut General Statutes and Section 36a-585-1 of the Regulations. |
| 3. | Within twenty (20) days following the execution of this Settlement Agreement by the Commissioner, Mohammad Hasan shall extend to his customers a written offer to refund the amount of any fees charged and collected for cashing checks, drafts and money orders in excess of the amount permitted by Section 36a-585 of the Connecticut General Statutes and Section 36a-585-1 of the Regulations. The written offer shall be submitted to the Division for approval prior to being disseminated to the customers, and shall provide that upon written acceptance of such offer by the customer(s) within thirty (30) days of the offer, payment shall be made by Mohammad Hasan by check no later than thirty (30) days following Mohammad Hasan’s receipt of a written communication of acceptance. |
| 4. | No later than ninety (90) days following the execution of this Settlement Agreement by the Commissioner, Mohammad Hasan shall submit evidence to the Division, in the form of copies of the offer made to each customer, copies of the acceptance received from each customer and copies of the checks required by paragraph 3, showing that payment has been made to each customer identified in the written acceptance. |
| 5. | Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Mohammad Hasan based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Mohammad Hasan based on the allegations contained herein if any representation made by Mohammed Hasan in this Settlement Agreement is subsequently discovered to be untrue or if Mohammad Hasan is not fully complying with any term or condition stated herein; |
| 6. | Nothing in this Settlement Agreement shall adversely affect the ability of Mohammad Hasan to apply for or obtain a license to operate a check cashing general facility or limited facility from the Commissioner in the future; and |
| 7. | Notwithstanding paragraph 5 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Mohammad Hasan for violating this Settlement Agreement if the Commissioner determines that Mohammad Hasan is not fully complying with any term or condition contained herein or if any representation made by Mohammad Hasan and reflected herein is subsequently discovered to be untrue. 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 26th day of March 2010. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Mohammad M. Hasan d/b/a Circle H Food Mart, LLC, state that I have read the foregoing Settlement Agreement; 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 that I voluntarily agree to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
By: ________/s/_________
Mohammad M. Hasan
d/b/a Circle H Food Mart, LLC
State of: Connecticut
County of: Hartford
On this the 24th day of March 2010, before me, David K. Williams, the undersigned officer, personally appeared Mohammad M. Hasan, 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: Apr. 30, 2010