DOB: Riddle & Associates, P.C., Settlement Agreement

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IN THE MATTER OF:

RIDDLE & ASSOCIATES, P.C.

    ("Riddle")

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SETTLEMENT AGREEMENT        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder (Sections 36a-809-1 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);
 
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 Riddle to determine if it had violated, was violating, or was about to violate the provisions of the Connecticut General Statutes or the Regulations;
 
WHEREAS, on August 29, 2008, the Commissioner acting pursuant to Sections 36a-804(b) and 36a-52(a) of the 2008 Supplement to the General Statutes and Sections 36a-807(a), 36a-808 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 Riddle, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Riddle attempted to collect consumer debts on at least four occasions from Connecticut residents on behalf of at least one bank and one satellite television provider, without a license, in violation of Section 36a-801(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice indicated that if the allegations against Riddle were proven, the Commissioner would issue an order that Riddle cease and desist from violating Section 36a-801(a) of the Connecticut General Statutes, and may order that the maximum civil penalty of Four Hundred Thousand Dollars ($400,000) be imposed upon Riddle;
 
WHEREAS, on September 8, 2008, Riddle received the Notice, and on September 22, 2008, Riddle requested a hearing;
 
WHEREAS, David G. Wood is President of Riddle and Jesse L. Riddle is a shareholder of Riddle;
 
WHEREAS, following various continuance requests, the hearing is currently scheduled to be held on March 2, 2009;
 
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, Riddle agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
 
WHEREAS, Riddle, 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 Riddle based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Riddle enter into this Settlement Agreement as follows:

1. Effective on the date this Settlement Agreement is executed by the Commissioner, Riddle, Jesse L. Riddle and David G. Wood are BARRED for a period of five (5) years from acting within Connecticut as a consumer collection agency within the meaning of Sections 36a-800(1) and 36a-801(a) of the Connecticut General Statutes, and from being employed on the staff of a consumer collection agency licensed in Connecticut or by a creditor who is exempt from licensing as a consumer collection agency in Connecticut when attempting to collect on behalf of such consumer collection agency;
2. Riddle shall not act within Connecticut as a consumer collection agency within the meaning of Sections 36a-800(1) and 36a-801(a) of the Connecticut General Statutes without first obtaining the required license from the Commissioner;
3. No later than the date this Settlement Agreement is executed by the Commissioner, Riddle 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 Five Thousand Dollars ($5,000) as a civil penalty; and
4. 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 any enforcement action against Riddle to enforce this Settlement Agreement if the Commissioner determines that Riddle is not fully complying with any term or condition stated herein.  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 4th day of March 2009.               ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, David G. Wood, state on behalf of Riddle & Associates, P.C., 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 Riddle & Associates, P.C.; and that Riddle & Associates, P.C., agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                                          

                                            By:  ________/s/_________
                                                   Name:  David G. Wood
                                                   Title:  President
                                                   Riddle & Associates, P.C.


State of:  Utah

County of:  Salt Lake


On this the 26 day of February 2009, before me, ________________________, the undersigned officer, personally appeared David G. Wood, who acknowledged himself to be the President of Riddle & Associates, P.C., 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:  07/01/2011

 

I Jesse L. Riddle, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I voluntarily agree to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                            By:  ________/s/_________
                                                   Jesse L. Riddle


State of:  Utah

County of:  Salt Lake


On this the 26 day of February 2009, before me, ________________________, the undersigned officer, personally appeared Jesse L. Riddle, known to me (or satisfactorily proven) to be the person whose name Jesse L. Riddle subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained.


In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  07/01/2011

 

I David G. Wood, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that I voluntarily agree to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.

                                           By:  ________/s/_________
                                                   David G. Wood

State of:  Utah

County of:  Salt Lake


On this the 26 day of February 2009, before me, ________________________, the undersigned officer, personally appeared David G. Wood, known to me (or satisfactorily proven) to be the person whose name David G. Wood subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained.


In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  07/01/2011


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