* * * * * * * * * * * * * * * * * * * * IN THE MATTER OF: SQUIRE INDUSTRIES, INC.     ("Respondent") * * * * * * * * * * * * * * * * * * * *

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ORDER OF SUMMARY SUSPENSION NOTICE OF INTENT TO REVOKE CHECK CASHING SERVICE LICENSE NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST NOTICE OF INTENT TO IMPOSE CIVIL PENALTY AND NOTICE OF RIGHT TO HEARING

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”).

Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner. 

Section 36a-17(a) of the Connecticut General Statutes provides that:

Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:

Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that:

Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:

Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:

1.	Respondent is a Connecticut corporation with its main office at 1154 Dixwell Avenue, Hamden, Connecticut.
2.	At all times relevant hereto, Respondent has been licensed to operate a general facility to engage in the business of cashing checks, drafts or money orders.
3.	At all times relevant hereto, Claude A. Narracci (“Narracci”) has been the President and sole shareholder of Respondent.
4.	On August 31, 2009, Respondent filed a Renewal of Check Cashing Service License application for the October 1, 2009 to September 30, 2011 renewal period (“Renewal Application”).  The Renewal Application asks if any officer or shareholder owning ten percent or more of outstanding stock of the applicant has pending charges for a felony.  The Renewal Application indicated a “no” response to this question and was signed by Narracci.  Respondent’s license was renewed on October 1, 2009.
5.	On December 23, 2009, an Indictment was filed in Westchester County Court against Anthony Delmaro (“Delmaro”) and Narracci (“Indictment”).  The Indictment charges Narracci with the crime of grand larceny in the second degree, a felony in New York, and alleges that Narracci acted in concert with others to steal property with a value in excess of $50,000.  In particular, underlying statements supporting the Indictment allege that during March 2006, Narracci repeatedly cashed, for Delmaro, checks that bounced at Respondent’s Connecticut location and that Narracci subsequently deposited proceeds of approximately $470,000 in Respondent’s account from another individual’s mortgage proceeds in connection with such bounced checks.
6.	As of March 16, 2011, Respondent had not informed the Commissioner of the Indictment.
7.	On March 16, 2011, the Division sent a letter by facsimile and certified mail to Respondent, pursuant to Section 4-182(c) of the Connecticut General Statutes, giving Respondent an opportunity to show compliance with all lawful requirements for the retention of its check cashing service license (“Compliance Letter”).  Respondent received the Compliance Letter on March 17, 2011.
8.	By letter dated March 21, 2011, Narracci, on behalf of Respondent, responded to the Compliance Letter, advising the Commissioner that he was charged with grand larceny in the second degree in New York and that Respondent had not been charged with a crime.  The Commissioner was not persuaded by such response.
9.	On March 28, 2011, Narracci pled guilty to grand larceny in the second degree in New York.

Section 36a-581 of the Connecticut General Statutes provides, in pertinent part, that:

Section 36a-587 of the Connecticut General Statutes provides, in pertinent part, that:

1.	Respondent’s failure to promptly notify the Commissioner of the pending felony charge against Narracci, as more fully described in paragraphs 3 through 6, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-581(f) of the Connecticut General Statutes, and constitutes sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a)(3) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.  Such violation also forms a basis for the Commissioner to issue an order to cease and desist pursuant to Sections 36a-587(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Sections 36a-587(b) and 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Respondent not to exceed Fifteen Thousand Dollars ($15,000), subject to Respondent’s right to a hearing on the allegations set forth above.
2.	As a result of the conduct of Narracci, an officer and shareholder of Respondent, as more fully described in paragraphs 3, 5, 8 and 9 of the Matters Asserted, the Commissioner is unable to find that such officer and shareholder is in all respects properly qualified and of good character.  Such failure constitutes grounds for the Commissioner to deny an application for a check cashing service license pursuant to Section 36a-581(e)(3) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
3.	The conduct of Narracci, an officer and shareholder of Respondent, as more fully described in paragraphs 3, 5, 8 and 9 of the Matters Asserted, demonstrates incompetency or untrustworthiness to act as a licensed check cashing service by a licensee’s officer or shareholder, and such conduct forms a basis for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a)(4) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.

The Commissioner finds that the public safety and welfare imperatively require emergency action to summarily suspend Respondent’s check cashing service license in Connecticut pursuant to Section 4-182(c) of the Connecticut General Statutes in that an Indictment was issued against an officer and shareholder of Respondent, the underlying basis for such Indictment involves check cashing activity at Respondent’s Connecticut location, Respondent failed to inform the Commissioner of the Indictment, the officer and shareholder pled guilty to the felony charge in the Indictment on March 28, 2011, a felony conviction of an officer or shareholder is a basis for denial of a check cashing service license by the Commissioner, and the continued operation of Respondent as a check cashing service licensee may adversely affect Connecticut residents.

WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue an order to cease and desist pursuant to Sections 36a-587(b) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Sections 36a-587(b) and 36a-50(a) of the Connecticut General Statutes;

AND WHEREAS, the Commissioner has made the findings under Section 4-182(c) of the Connecticut General Statutes.

THE COMMISSIONER THEREFORE ORDERS, pursuant to Section 4-182(c) of the Connecticut General Statutes, that the license of Squire Industries, Inc. to operate a general facility to engage in the business of cashing checks, drafts or money orders in Connecticut, be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.

FURTHER, notice is hereby given to Respondent that the Commissioner intends to REVOKE its check cashing service license, issue an order requiring Respondent to CEASE AND DESIST from violating Section 36a-581(f) of the Connecticut General Statutes, and impose a CIVIL PENALTY upon Respondent as set forth herein, subject to its right to a hearing on the allegations set forth above.

A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following its receipt of this Order of Summary Suspension, Notice of Intent to Revoke Check Cashing Service License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes.  This Order of Summary Suspension, Notice of Intent to Revoke Check Cashing Service License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on, July 7, 2011, at 10 a.m. at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner. 

If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order revoking Respondent’s check cashing service license in Connecticut, issue an order to cease and desist and may order a civil penalty in an amount not to exceed Fifteen Thousand Dollars ($15,000) be imposed upon Respondent.

So ordered at Hartford, Connecticut
this 27th day of May 2011.                ________/s/_________
                                                    Howard F. Pitkin
                                                    Banking Commissioner

I hereby certify that on this 27th day of May 2011, the foregoing Order of Summary Suspension, Notice of Intent to Revoke Check Cashing Service License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing was sent by registered mail, return receipt requested, to Squire Industries, Inc., Attention:  Cora Spinelli, Vice President/Secretary, 1154 Dixwell Avenue, Hamden, Connecticut 06514-4732, registered mail no. RB028020138US.

                                                   ________/s/_________

                                                   Stacey L. Serrano
                                                   Prosecuting Attorney

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