DOB: Ronald Anthony Gagliardi, Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Right to Hearing

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IN THE MATTER OF:

RONALD ANTHONY GAGLIARDI

    ("Respondent")

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NOTICE OF INTENT TO REFUSE
TO RENEW MORTGAGE LOAN
ORIGINATOR LICENSE

AND

NOTICE OF RIGHT TO HEARING


I.  LEGAL AUTHORITY AND JURISDICTION

The Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”.
 
Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if he has violated, is violating or is about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner.
 
Section 36a-17(a) of the Connecticut General Statutes provides:
The commissioner, in the commissioner’s discretion, may make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner.
Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:
(a)  The commissioner may . . . refuse to renew any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt.  The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending.  Any such notice shall include:  (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.
(b)  If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing.  After the hearing, the commissioner shall . . . refuse to renew the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . .  refusal to renew.   If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . .  refuse to renew the license.
Section 4-182(b) of the Connecticut General Statutes provides, in pertinent part, that:
When a licensee has made timely and sufficient application for the renewal of a license . . . , the existing license shall not expire until the application has been finally determined by the agency . . . .


II.  MATTERS ASSERTED
1.
Respondent is an individual whose address last known to the Commissioner is 79 Red Barn Road, Monroe, Connecticut.
2.
On April 2, 2002, Respondent was arrested and charged with one count of Larceny 1 (Felony - B) and two counts of Larceny 4 (Misdemeanor –A).  The Larceny 1 count was reduced to Larceny 4, and on August 22, 2002, Respondent was convicted of three (3) counts of Larceny 4 (Misdemeanor – A).
3.
On August 31, 2006, Family Choice Mortgage Corporation, a mortgage lender licensed with the Commissioner, filed a Renewal Form Registration of Existing Loan Originators (“Renewal Form”) with the Commissioner, seeking to renew the registration of Respondent, among other loan originators, for the October 1, 2006 to September 30, 2008 registration period.  Such registration was renewed on October 1, 2006.
4.
In connection with the Renewal Form, Respondent filed a Renewal Addendum signed and dated August 17, 2006.  In response to Question 1 on the Renewal Addendum, which asked “[h]ave you ever been convicted in any state or federal court of any crime (not including motor vehicle traffic misdemeanors)?”, Respondent answered “No”.
5. Effective July 1, 2008, Section 36a-486(b) of the Connecticut General Statutes, as amended by Public Acts 07-156 and 08-176, replaced the registration requirement for originators with a licensing requirement for mortgage loan originators.
6.
On September 29, 2008, Respondent transitioned onto the Nationwide Mortgage Licensing System (“NMLS”), and a part of that transition, he filed a Form MU4, “Uniform Individual Mortgage License/Registration & Consent Form” (“Form MU4”).  In response to Disclosure Question 8(D) on the Form MU4, which asked, in relevant part, “[h]ave you ever:  . . . (2) been charged with any felony?”, Respondent answered “No”.
7.
On December 17, 2008, Respondent requested renewal of his mortgage loan originator license on NMLS.
 
 
III.  STATUTORY BASIS FOR REFUSAL TO RENEW
MORTGAGE LOAN ORIGINATOR LICENSE
 
Section 36a-489(b) of the Connecticut General Statutes provides, in pertinent part, that:
Upon the filing of an application for a mortgage loan originator license, the commissioner shall license the mortgage loan originator named in the application unless the commissioner finds that such applicant . . . has made a material misstatement in the application or that the . . . character, . . . integrity and general fitness of such mortgage loan originator are not such as to warrant belief that granting such license would be in the public interest and consistent with the purposes of sections 36a-485 to 36a-498a, inclusive, and sections 36a-760a to 36a-760h, inclusive.  If the commissioner denies an application for a mortgage loan originator license, the commissioner shall notify the applicant . . . of the denial and the reasons for such denial.
Section 36a-494(a)(2) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner may . . .  refuse to renew any mortgage loan originator license . . . for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498a, inclusive . . . .
1.
Respondent’s response to Question 8(D)(2) on the Form MU4, as more fully described in paragraph 6 of the Matters Asserted, constitutes a material misstatement in an application, which would be sufficient grounds to deny the requested renewal, as more fully described in paragraph 7 of the Matters Asserted, under Section 36a-489(b) of the Connecticut General Statutes, and constitutes sufficient grounds to refuse to renew Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Sections 36a-494(a)(2) and 36a-51 of the Connecticut General Statutes.
2.
Respondent’s response to Question 1 on the Renewal Addendum, as more fully described in paragraphs 3 and 4 of the Matters Asserted, and Respondent’s response to Question 8(D)(2) on the Form MU4, as more fully described in paragraph 6 of the Matters Asserted, demonstrate that Respondent’s character, integrity and general fitness are not such as to warrant belief that granting Respondent a mortgage loan originator license would be in the public interest and consistent with the purposes of Sections 36a-485 to 36a-498a, inclusive, and Sections 36a-760a to 36a-760h, inclusive, of the Connecticut General Statutes, which constitutes sufficient grounds to refuse to renew Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Sections 36a-494(a)(2) and 36a-51 of the Connecticut General Statutes.
 
 
IV.  NOTICE OF INTENT TO REFUSE TO RENEW MORTGAGE LOAN
ORIGINATOR LICENSE AND NOTICE OF RIGHT TO HEARING
 
WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to refuse to renew his license to act as a mortgage loan originator in Connecticut pursuant to Sections 36a-494(a)(2) and 36a-51 of the Connecticut General Statutes.
 
NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to REFUSE TO RENEW Respondent’s license to act as a mortgage loan originator in Connecticut, subject to his right to a hearing on the allegations set forth above.
 
A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following his receipt of this Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Notice of Right to Hearing as set forth in Section 36a-51 of the Connecticut General Statutes.  This Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending.  The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address.  If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”.  Once a written request for hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a hearing officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies.  If a hearing is requested, the hearing will be held on June 17, 2009, at 9 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.
 
The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing.  At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.
 
If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order refusing to renew Respondent’s license to act as a mortgage loan originator in Connecticut.
 
 
So ordered at Hartford, Connecticut
this 9th day of April 2009.                 ________/s/_________
                                                    Howard F. Pitkin
                                                    Banking Commissioner
 
 
 
CERTIFICATION
 
I hereby certify that on this 9th day of April 2009, the foregoing Notice of Intent to Refuse to Renew Mortgage Loan Originator License and Notice of Right to Hearing was sent by registered mail, return receipt requested, to Ronald Anthony Gagliardi, 79 Red Barn Road, Monroe, Connecticut 06468, registered mail no. RB028036172US.
 
 
                                                   ________/s/_________
                                                   Doniel Kitt
                                                   Prosecuting Attorney
 

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