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IN THE MATTER OF:
OMNEX GROUP, INC.
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WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, “Money Transmission Act”;
WHEREAS, Omnex Group is currently licensed with the Commissioner to engage in the business of money transmission;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an investigation pursuant to Section 36a-608 of the Connecticut General Statutes into the activities of Omnex Group to determine if it had violated, was violating or was about to violate the provisions of the Money Transmission Act, or whether it had acted in such a manner as otherwise would justify the suspension or revocation of its license;
WHEREAS, Omnex Group submitted a Renewal Application for a Money Transmitters or Issuer of Connecticut Payment Instruments License dated May 11, 2007 (“2007 Renewal Application”), which was approved by the Commissioner;
WHEREAS, Section 36a-53a of the Connecticut General Statutes provides, in pertinent part, that “[n]o 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”;
WHEREAS, as a result of the investigation by the Commissioner, the Commissioner alleges that Omnex Group’s response to Question 12(b) in the 2007 Renewal Application failed to disclose information pertaining to administrative actions taken against it by the State of New Hampshire’s Banking Department in March and April 2007 (“New Hampshire Matter”) in violation of Section 36a-53a of the Connecticut General Statutes, and that Omnex Group’s failure to disclose the New Hampshire Matter would have, if known to the Commissioner at the time, constituted a basis for the Commissioner to refuse to renew the 2007 Renewal Application under Sections 36a-600(a)(5), 36a-600(a)(6) and 36a-601 of the Connecticut General Statutes;
WHEREAS, Section 36a-598(b) of the Connecticut General Statutes requires a licensee to promptly notify the Commissioner, in writing, of any change in the information provided in the application for the most recent renewal of its license;
WHEREAS, as a result of the investigation, the Commissioner further alleges that Omnex Group failed to promptly notify the Commissioner of changes in the information provided in its 2007 Renewal Application when it failed to notify the Commissioner of administrative action taken against it by the State of Nebraska’s Department of Banking and Finance in November 2008, in violation of Section 36a-598(b) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that the allegations contained herein would support the initiation of enforcement proceedings against Omnex Group to suspend and/or revoke the license of Omnex Group under Sections 36a-608(b) and 36a-51 of the Connecticut General Statutes, to issue a cease and desist order against Omnex Group under Section 36a-52 of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Omnex Group pursuant to Sections 36a-608(c) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Omnex Group herein represents to the Commissioner that it has updated its internal policies, procedures and controls to ensure compliance with its obligations to disclose required information consistent with Section 36a-53a of the Connecticut General Statutes, and to promptly notify the Commissioner of changes in information as required by the Money Transmission Act;
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, both the Commissioner and Omnex Group acknowledge the possible consequences of formal administrative proceedings;
WHEREAS, Omnex Group 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;
AND WHEREAS, Omnex Group, 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;
NOW THEREFORE, the Commissioner and Omnex Group enter into this Settlement Agreement as follows:
||No later than the date this Settlement Agreement is executed by Omnex Group, Omnex Group 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 Three Thousand Dollars ($3,000) as a civil penalty;|
Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Omnex Group to apply for or obtain a renewal license under the Money Transmission Act;
||Upon entry of this Settlement Agreement, this matter will be resolved, and the Commissioner will not take any future enforcement action against Omnex Group based upon the allegations contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Omnex Group based on the allegations contained herein if any representations made by Omnex Group in this Settlement Agreement are subsequently discovered to be untrue or if Omnnex Group is not fully complying with any term or condition stated herein;|
||Notwithstanding paragraph 3 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Omnex Group to enforce this Settlement Agreement if the Commissioner determines that Omnex Group 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 21st day of May 2009.
Howard F. Pitkin
I, Darren Manelski, state on behalf of Omnex Group, Inc., 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 Omnex Group, Inc.; that Omnex Group, Inc. agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Omnex Group, Inc. voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.
Name: Darren Manelski
Title: CEO, President & Director
Omnex Group, Inc.
State of: New Jersey
County of: Bergen
On this the 8th day of May, 2009, before me, Mr. Peter Robinson, the undersigned officer, personally appeared Mr. Darren Manelski who acknowledged himself/herself to be the CEO President Director of Omnex Group, Inc., a corporation, and that he/she, as such Officer & Director, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as Omnex Group, Inc.
In witness whereof I hereunto set my hand.
Date Commission Expires: 1/30/2013
Administrative Orders and Settlements