DOB: ABC Money Transactions, Inc., Settlement Agreement

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IN THE MATTER OF:

ABC MONEY TRANSACTIONS, INC.

    ("ABC")

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SETTLEMENT AGREEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, “Money Transmission Act”;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an investigation pursuant to Section 36a-608 of the Connecticut General Statutes into the activities of ABC to determine if it had violated, was violating or was about to violate the provisions of the “Money Transmission Act”;
 
WHEREAS, on May 9, 2007, the Commissioner, acting pursuant to Sections 36a-52(a), 36a-608(c) and 36a-50(a) of the Connecticut General Statutes, issued a 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 ABC, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that during the period of at least January 1, 2004 through June 2006, ABC engaged in the business of “money transmission”, within the meaning of Section 36a-596(7) of the Connecticut General Statutes, without obtaining the required license, in violation of Section 36a-597(a) of the Connecticut General Statutes;
 
WHEREAS, on May 21, 2007, ABC received the Notice;
 
WHEREAS, on May 25, 2007, ABC requested a hearing on the Notice, which is currently scheduled for September 28, 2007;
 
WHEREAS, Section 4-177(c) of the Connecticut General Statutes states, in pertinent part, that “[u]nless precluded by law, a contested case may be resolved by . . . agreed settlement”;
 
WHEREAS, Section 36a-1-55(a) of the Regulations of Connecticut State Agencies states, in pertinent part, that “[p]ursuant to subsection (c) of section 4-177 of the Connecticut General Statutes, unless precluded by law, any contested case may be resolved by . . . agreed settlement”;
 
WHEREAS, ABC and John Tai Vu, President of ABC, agree to voluntarily enter into this Settlement Agreement without admitting or denying any allegation set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described herein;
 
WHEREAS, ABC and John Tai Vu, through their execution of this Settlement Agreement, voluntarily agree to waive any rights to a hearing upon the allegation contained in the Notice, and waive the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
 
AND WHEREAS, upon the entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against ABC or John Tai Vu based upon the allegation contained herein.
 
NOW THEREFORE, the Commissioner, ABC and John Tai Vu enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by ABC and John Tai Vu (“Mr. Tai Vu”), ABC 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 Fifteen Thousand Dollars ($15,000) as a civil penalty;
2. ABC and Mr. Tai Vu shall not engage in the business of issuing Connecticut payment instruments or engage in the business of “money transmission” in Connecticut within the meaning of Section 36a-596(7) of the Connecticut General Statutes without first obtaining the required license from the Commissioner;
3. Neither ABC nor Mr. Tai Vu shall apply to the Commissioner for a license to engage in the business of issuing Connecticut payment instruments or engage in the business of “money transmission” in Connecticut for a five-year period commencing with the execution of this Settlement Agreement by the Commissioner (“Five-year Period”);
4. Mr. Tai Vu may sell or otherwise transfer all or substantially all of his ownership interest in ABC to any person, including any person licensed under Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, or cause ABC to sell or transfer all or substantially all of its assets to any person, including any person licensed under Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, with the exception of a child or the spouse of Mr. Tai Vu, or an entity in which a child or the spouse of Mr. Tai Vu is an officer, director, partner, manager, member or employee, and Mr. Tai Vu may become a minority owner, employee or consultant with the purchaser, transferee or any successor to the purchaser, provided that subsequent to any such sale or transfer, Mr. Tai Vu shall not engage in the business of issuing Connecticut payment instruments or engage in the business of “money transmission” in Connecticut within the meaning of Section 36a-596(7) of the Connecticut General Statutes during the Five-year Period.  Mr. Tai Vu shall notify the Commissioner within seven days of the effective date of any such sale or transfer;
5. Six months after the effective date of any such sale or transfer described in paragraph 4 above, Mr. Tai Vu shall submit to the Division a sworn affidavit specifying the nature of any involvement that he has had with the purchaser, transferee, or any successor to the purchaser or transferee, and confirming that he has not engaged in the business of issuing Connecticut payment instruments or engaged in the business of “money transmission” in Connecticut within the meaning of Section 36a-596(7) of the Connecticut General Statutes or managed or directed any other individual engaged in the business of issuing Connecticut payment instruments or engaged in the business of “money transmission” in Connecticut within the meaning of Section 36a-596(7) of the Connecticut General Statutes.  The affidavit shall further describe the nature of the activities Mr. Tai Vu has performed for such purchaser, transferee or successor, during the preceding six months, including a description of the locations at which such activities were performed as well as the locations at which any person Mr. Tai Vu has managed or supervised has engaged in the business of “money transmission”.  Mr. Tai Vu shall continue to file these affidavits with the Division every six months during the Five-year Period until such time that he provides written notice to the Division that all his financial interests in, including any salary or other payment for services, equity interests, including stocks, stock options or other ownership interests, and involvement with such purchaser, transferee or successor have terminated; and
6. Notwithstanding anything to the contrary in this Settlement Agreement, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against ABC or Mr. Tai Vu to enforce this Settlement Agreement, if the Commissioner determines that ABC or John Tai Vu is not fully complying with any term or condition stated herein or if any representation made by ABC or Mr. Tai Vu and reflected herein are 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 2nd day of October 2007.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, John Tai Vu, state on behalf of ABC Money Transactions, Inc., that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement on behalf of ABC Money Transactions, Inc.; and that ABC Money Transactions, Inc., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


By:  ________/s/_________
      John Tai Vu, President
      ABC Money Transactions, Inc.

State of:  California

County of:  Orange


On this the 25th day of September 2007, before me, Quang Huu Nguyen, the undersigned officer, personally appeared John Tai Vu, who acknowledged himself to be the President of ABC Money Transactions, Inc., a corporation, and that he, as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as President.

In witness whereof I hereunto set my hand.

                                                 ________/s/_________
                                                 Notary Public
                                                 Date Commission Expires:  11-01-2009


I, John Tai Vu, 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.

 ________/s/_________
 John Tai Vu


State of:  California

County of:  Orange


On this the 25th day of September 2007, before me, Quang Huu Nguyen, the undersigned officer, personally appeared John Tai Vu, 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:  11/01/2009


Administrative Orders and Settlements