DOB: Warshaw Capital, LLC d/b/a WC Financial Settlment Agreement

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IN THE MATTER OF:

WARSHAW CAPITAL, LLC
d/b/a WC Financial

    ("WC Financial")

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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 examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of WC Financial 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, WC Financial is a limited liability company that is currently licensed as a mortgage correspondent lender under Part I of Chapter 668 of the Connecticut General Statutes as amended by section 38 of Public Act Number 08-176;

      WHEREAS, as a result of the examination, the Commissioner alleges that during the period of October 26, 2006 to February 28, 2008, WC Financial employed or retained at least four originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the 2008 Supplement to the General Statutes; 

      WHEREAS, the Commissioner believes that the Commissioner’s allegations support the initiation of enforcement proceedings against WC Financial, including proceedings to revoke WC Financial’ license pursuant to Section 36a-494(a) of the 2008 Supplement to the General Statute as amended by Public Act Number 08-176, and impose a civil penalty of up to $100,000 per violation on WC Financial pursuant to Section 36a-50(a) of the Connecticut General Statutes and Sections 36a-494(b) of the 2008 Supplement to the General Statutes as amended by Public Act Number 08-176; 

      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, WC Financial agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegations described above;

      WHEREAS, on June 23, 2008, WC Financial made a contribution to the State Regulatory Registry LLC, a wholly owned subsidiary of the Conference of State Bank Supervisors (“CSBS”), in the amount of four thousand dollars ($4,000) to support the Nationwide Mortgage Licensing System, jointly sponsored by CSBS and the American Association of Residential Mortgage Regulators;

      WHEREAS, WC Financial, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in this Settlement Agreement, 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 WC Financial based upon the allegations contained herein.

      NOW THEREFORE, the Commissioner and WC Financial enter into this Settlement Agreement as follows:

1. 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 WC Financial to enforce this Settlement Agreement, if the Commissioner determines that WC Financial is not fully complying with any term or condition stated herein or if any representations made by WC Financial 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 31st day of July 2008.             ________/s/_________
                                                 HOWARD F. PITKIN
                                                 Banking Commissioner

      I, Michael D. Warshaw, state on behalf of Warshaw Capital, LLC d/b/a WC Financial, 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 Warshaw Capital, LLC d/b/a WC Financial, that Warshaw Capital, LLC d/b/a WC Financial,  agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Warshaw Capital, LLC d/b/a WC Financial voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.


By:  __________/s/______________
Michael D. Warshaw
Managing Member
Warshaw Capital, LLC d/b/a WC Financial


State of:  Connecticut

County of:  Fairfield


      On this the 29th day of July, 2008, before me, Samantha Brickwedde, the undersigned officer, personally appeared Michael D. Warshaw who acknowledged himself to be the Managing Member of Warshaw Capital, LLC d/b/a WC Financial, a member managed limited liability company, and that he, as such Managing Member, 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 as Managing Member.

       In witness whereof I hereunto set my hand.

 _____________/s/_____________
 Notary Public
 Date Commission Expires:  July 31, 2013


 


Administrative Orders and Settlements