DOB: Shaukathusein G. Dalal, Denial and Rejection of Originator Registration

 June 30, 2008
 
 
 
FIRST CLASS AND REGISTERED MAIL
 

Mr. Shaukathusein G. Dalal
20 Parsons Court
Manchester, CT 06040
 
Re: Denial and Rejection of Originator Registration
 
Dear Mr. Dalal:
 
On May 23, 2008, Nations Funding Source, Inc. (“Nations Funding”) filed a New Application for Registration of Loan Originators with the Consumer Credit Division (“Division”) of this department seeking to register you as a loan originator.  Nations Funding is currently licensed as a first mortgage lender/broker under Part I(A) of Chapter 668 of the Connecticut General Statutes, “Nondepository First Mortgage Lenders, Brokers and Originators”.
 
Section 36a-489(b) of the 2008 Supplement to the General Statutes requires me to register an originator unless I find, among other things, that the character and integrity of such originator are not such as to warrant belief that registration would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.  If I deny the registration, I must notify the originator and the applicant of the denial and the reasons for such denial.  Pursuant to Section 36a-489(b) of the 2008 Supplement to the General Statutes, I hereby deny and reject the registration for the reasons set forth below.
 
Section 46a-80 of the Connecticut General Statutes provides, in pertinent part, that:
(a)  Except as provided in subsection (b) of this section and subsection (b) of section 46a-81, and notwithstanding any other provisions of law to the contrary, a person shall not . . . be disqualified to practice, pursue or engage in any occupation, trade, vocation, profession or business for which a . . . registration is required to be issued by the state of Connecticut or any of its agencies solely because of a prior conviction of a crime.
(b)  A person may be denied . . . a . . . registration to pursue, practice or engage in an occupation, trade, vocation, profession or business by reason of the prior conviction of a crime if after considering (1) the nature of the crime and its relationship to the job for which the person has applied; (2) information pertaining to the degree of rehabilitation of the convicted person; and (3) the time elapsed since the conviction or release, the state, or any of its agencies determines that the applicant is not suitable for . . . the specific occupation, trade, vocation, profession or business for which the . . . registration is sought.
(c)  If a conviction of a crime is used as a basis for rejection of an applicant, such rejection shall be in writing and specifically state the evidence presented and reasons for rejection.  A copy of such rejection shall be sent by registered mail to the applicant.
Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have, through the Division, investigated your activities to determine whether your financial responsibility, character, reputation, integrity and general fitness are such as to warrant belief that granting you registration as an originator would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.  As a result of such investigation, I have considered the fact that on August 4, 2006, you were convicted for sexual assault, and were sentenced to one year jail, thirty days to serve and two years probation.  I have considered the criteria contained in Section 46a-80(b) of the Connecticut General Statutes that must be considered prior to rejecting a registration based solely upon convictions.
 
Based on the nature of the crime mentioned above and its relationship to the registration being sought and the time elapsed since the conviction, I am unable to find that your financial responsibility, character, reputation, integrity and general fitness are such as to warrant belief that granting you a registration as an originator will be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.
 
I have also considered the information you provided in the Loan Originator Addendum Form.  In response to Question 1(a) on the Loan Originator Addendum Form, which asked “[h]ave you ever been:  (a) convicted of or pled guilty or nolo contendere (‘no contest’) in a domestic, foreign, or military court to any misdemeanor or felony (not including motor vehicle traffic misdemeanors)?”, you answered “No”.
 
Section 36a-53a of the Connecticut General Statutes provides, in pertinent part, that: 
No person shall make or cause to be made . . . in any document filed with the commissioner . . . any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.
Based on the facts mentioned above, I also find that you have made in a document filed with me a statement which is, at the time and in the light of the circumstances under which it was made, misleading in a material respect in violation of Section 36a-53a of the Connecticut General Statutes.  Therefore, I am unable to find that your character and integrity are such as to warrant belief that granting you registration as an originator will be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, of the Connecticut General Statutes.
Very truly yours,
 
Howard F. Pitkin
Banking Commissioner
 
HFP/DK/ag
 
Registered Mail No. RB028034874US
 
cc:  Nations Funding Source, Inc.