DOB: Quadrant Funding, LLC, Settlement Agreement

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IN THE MATTER OF:

QUADRANT FUNDING, LLC

    ("Quadrant")

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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-534a, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Brokers and Originators”;
 
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 Quadrant to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;
 
WHEREAS, on March 17, 2008, acting pursuant to Sections 36a-494(a)(1)(C), 36a-492(b) and 36a-51 of the 2008 Supplement to the General Statutes, the Commissioner issued a Notice of Automatic Suspension, Notice of Intent to Revoke First Mortgage Broker License and Notice of Right to Hearing (collectively “Notice”) against Quadrant, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleged that Quadrant, in violation of Section 36a-492(a) of the 2008 Supplement to the General Statutes, failed to maintain a surety bond that runs concurrently with the period of the license granted to Quadrant to act as a first mortgage broker in Connecticut from 266 Merrick Road, Suite 2000E, Lynbrook, New York;
 
WHEREAS, on March 24, 2008, Quadrant received the Notice, and no request for a hearing was received by the Commissioner;
 
WHEREAS, on March 27, 2008, Quadrant specifically assured the Commissioner that it has not engaged in the business of a first mortgage broker in Connecticut from 266 Merrick Road, Suite 2000E, Lynbrook, New York, since October 2007;
 
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, Quadrant agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
 
WHEREAS, Quadrant, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice, and waives 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 Quadrant based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Quadrant enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Quadrant will surrender its first mortgage broker license No. 16217 in Connecticut and cease engaging in the business of a first mortgage broker in Connecticut from 226 Merrick Road, Suite 2000E, Lynbrook, New York;
2. Nothing in this Settlement Agreement shall adversely affect the ability of Quadrant to apply for or obtain a license or renewal license under Part I of Chapter 668 of the Connecticut General Statutes in the future; and
3. 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 Quadrant to enforce this Settlement Agreement if the Commissioner determines that Quadrant is not fully complying with any term or condition stated herein or if any representation made by Quadrant 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 14th day of April 2008.                ________/s/_________
                                                    Howard F. Pitkin
                                                    Banking Commissioner

 

I, Gary Miller, state on behalf of Quadrant Funding, LLC, 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 Quadrant Funding, LLC; and that Quadrant Funding, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.


 By:  ________/s/_________
       Name:  Gary Miller
       Title:  CEO
       Quadrant Funding, LLC


State of:  NY

County of:  Nassau


On this the 9th day of April 2008, before me, Joseph Sternschein, the undersigned officer, personally appeared Gary Miller, who acknowledged himself/herself to be the CEO of Quadrant Funding, LLC, a New York limited liability company, and that he/she, as such CEO, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself/herself as CEO.

In witness whereof I hereunto set my hand.

  ________/s/_________
  Notary Public / Commissioner of the Superior Court
  Date Commission Expires:  Jan. 31, 2011


Administrative Orders and Settlements