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IN THE MATTER OF: TORRINGTON PAYMENT ("Respondent")
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NOTICE OF INTENT TO REVOKE NOTICE OF INTENT TO ISSUE AND NOTICE OF RIGHT TO HEARING |
I. LEGAL AUTHORITY AND JURISDICTION
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 2012 Supplement to the General Statutes, as amended by Public Act 12-96, 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 2012 Supplement to the General Statutes, as amended, provides, in pertinent part, that:
The commissioner, in the commissioner’s discretion, may, subject to the provisions of section 36a-21 and the Freedom of Information Act, as defined in section 1-200; (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner . . . .
Subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes provide, in pertinent part, that:
(a) The commissioner may . . . revoke . . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, [or] regulations . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . revocation . . . .
(b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . revoke . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation . . . . If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke . . . the license. No such license shall be suspended or revoked except in accordance with the provisions of chapter 54.
Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that:
Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, [or] regulations . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If 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.
Section 36a-50(a) of the Connecticut General Statutes, as amended by Public Act 12-96, provides, in pertinent part, that:
(1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes, [or] regulation . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted not later than fourteen days after receipt of the notice.
(2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision, [or] regulation, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If 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.
(3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.
Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:
No revocation, suspension, annulment or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license.
II. MATTERS ASSERTED
| 1. | Respondent is a Connecticut limited liability company with an office at 264 Main Street, Torrington, Connecticut. |
| 2. | At all times relevant hereto, Respondent has been licensed to operate a main office-general facility to engage in the business of cashing checks, drafts or money orders. |
| 3. | Hajaj Odimeh (“Odimeh”) is the Member/Owner and authorized agent of Respondent. |
| 4. | On April 13, 2012, the Division sent a Report of Examination dated February 22, 2012 (“Report of Examination”) to Odimeh and requested that Respondent provide the Division with a written response outlining management’s corrective action to the Report of Examination findings, along with the “Signature of Owner(s)/Members(s)/Director(s)” signature page (“Signature Page”) to the Report of Examination, within thirty (30) days of receipt of the Report of Examination. |
| 5. |
On April 25, 2012, the Division received the Signature Page signed by Odimeh, but no other response to the Report of Examination was received. |
| 6. | On August 21, 2012, the Division sent a letter by certified mail to Respondent, addressed to Odimeh, 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”). As part of the Compliance Letter, Respondent was requested to provide a response to the Report of Examination no later than September 4, 2012. Respondent received the Compliance Letter on August 23, 2012. |
| 7. |
To date, the Commissioner has not received a response to either the Report of Examination or the Compliance Letter. |
III. STATUTORY BASIS FOR REVOCATION OF CHECK CASHING SERVICE
LICENSE, ORDER TO CEASE AND DESIST AND IMPOSITION CIVIL PENALTY
Section 36a-17(d) of the 2012 Supplement to the General Statutes, as amended, provides, in pertinent part, that:
Any person who is the subject of any such investigation, [or] examination . . . shall . . . otherwise cooperate with the commissioner.
Section 36a-581(e) of the 2012 Supplement to the General Statutes provides, in pertinent part, that:
Upon the filing of the required application and the applicable license and location fees, the commissioner shall investigate the facts and may issue a license if the commissioner finds that (1) the applicant is in all respects properly qualified and of good character, . . . (4) if the applicant is a limited liability company, each member and authorized agent is in all respects properly qualified and of good character, [and] (5) granting such license would not be against the public interest . . . .
Section 36a-587(a) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner may . . . revoke . . . any license issued pursuant to section 36a-581 or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-580 to 36a-589, inclusive or if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: . . . (4) demonstrated incompetency or untrustworthiness to act as a licensed check cashing service.
| 1. | Respondent’s failure to timely provide the Commissioner with a detailed report of the corrective action taken as a result of the Report of Examination, as more fully described in paragraphs 4 through 7, inclusive, of the Matters Asserted, renders the Commissioner unable to determine that Respondent is in all respects properly qualified and of good character and that the granting such license would not be against the public interest. Such failure would be sufficient grounds for the Commissioner to deny an application for a check cashing service license under Sections 36a-581(e)(1) and 36a-581(e)(5) of the 2012 Supplement to the General Statutes, which would be sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 2. | Odimeh’s failure to timely provide the Commissioner with a detailed report of the corrective action taken as a result of the Report of Examination, as more fully described in paragraphs 4 through 7, inclusive, of the Matters Asserted, renders the Commissioner unable to determine that the member and authorized agent of Respondent is in all respects properly qualified and of good character and that the granting of such license would not be against the public interest. Such failure would be sufficient grounds for the Commissioner to deny an application for a check cashing service license under Sections 36a-581(e)(4) and 36a-581(e)(5) of the 2012 Supplement to the General Statutes, which would be sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 3. | Respondent’s failure to timely provide the Commissioner with a detailed report of the corrective action taken as a result of the Report of Examination, as more fully described in paragraphs 4 through 7, inclusive, of the Matters Asserted, causes Respondent to demonstrate incompetency or untrustworthiness to act as a licensed check cashing service. Such failure would be sufficient grounds for the Commissioner to revoke Respondent’s check cashing service license pursuant to Section 36a-587(a)(4) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes. |
| 4. | Respondent’s failure to timely provide the Commissioner with a detailed report of the corrective action taken as a result of the Report of Examination, as more fully described in paragraphs 4 through 7, inclusive, of the Matters Asserted, constitutes a failure by Respondent to fully cooperate with the Commissioner, in violation of Section 36a-17(d) of the 2012 Supplement to the General Statutes, as amended. Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes, as amended. Section 36a-50(a) of the Connecticut General Statutes, as amended, authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation. |
IV. 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
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 Sections 36a-587(a) and 36a-587(a)(4) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes, issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes, as amended.
NOW THEREFORE, 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-17(d) of the 2012 Supplement to the General Statutes, as amended, 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 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 of the 2012 Supplement to the General Statutes, Section 36a-52(a) of the Connecticut General Statutes and Section 36a-50(a) of the Connecticut General Statutes, as amended. This 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, January 16, 2013, 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, issue an order to cease and desist and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent.
Dated at Hartford, Connecticut
this 14th day of November 2012. ________/s/_________
Howard F. Pitkin
Banking Commissioner
CERTIFICATION
I hereby certify that on this 15th day of November 2012, the foregoing 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 certified mail, return receipt requested, to Torrington Payment Center LLC, Attention: Hajaj Odimeh, Member, 264 Main Street, Torrington, Connecticut 06790, certified mail no. 70112000000247315751.
________/s/________
Doniel Kitt
Prosecuting Attorney