August 25, 2009
FIRST CLASS AND CERTIFIED MAIL
Mr. Edward James Stock Jr.
15 Island Trail
Mount Sinai, NY 11766
Re: Denial of Mortgage Loan Originator License
Dear Mr. Stock:
On March 30, 2009, you filed a Form MU4, “Uniform Individual Mortgage License/Registration & Consent Form” (“Form MU4”), with the Nationwide Mortgage Licensing System seeking to obtain a mortgage loan originator license in Connecticut. Your sponsoring company is Atlantic Home Capital, Corp., which is currently licensed as a mortgage broker under Part I of Chapter 668 of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”. Pursuant to Section 36a-489 of the Connecticut General Statutes, as amended by Public Acts 09-207, 09-208 and 09-209, I hereby deny the license for the reasons set forth below.
Section 36a-489(b)(1) of the Connecticut General Statutes, as amended, prohibits me from issuing an initial license for a mortgage loan originator unless I find at a minimum, among other things, that the applicant has “(B) notwithstanding the provisions of section 46a-80, . . . not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign or military court during the seven-year period preceding the date of the application for licensing or at any time preceding such date of application if such felony involved an act of fraud, dishonesty, a breach of trust, or money laundering, provided any pardon of a conviction shall not be a conviction for purposes of this subdivision; . . . and (F) not made a material misstatement in the application.” If I deny the license, I must notify the applicant and may notify the sponsor of the denial and the reasons for such denial.
In response to Question 8(D)(1) of the Form MU4, which asked “[h]ave you ever: (1) been convicted of or pled guilty or nolo contendere (‘no contest’) in a domestic, foreign, or military court to any felony?”, you answered “yes.” In response to Question 8(D)(2) of the Form MU4, which asked, “[h]ave you ever: . . . (2) been charged with a felony?”, you answered, “yes.” Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have reviewed your criminal history record, which disclosed that in 1999 you pled guilty in the United States District Court for the Eastern District of New York to one count of Conspiracy to Commit Securities Fraud (a class D felony) in violation of 18 U.S.C. 371. Please be advised that I have considered the Certificate of Relief from Disabilities (“Certificate”) under New York law which you submitted in connection with your application. Because the Certificate does not constitute a pardon, and the conviction involved an act of fraud, I am prohibited by law from issuing you a mortgage loan originator license.
In addition, in response to Question 8(I)(5) of the Form MU4, which asked, “[h]as any State or federal regulatory agency or foreign financial regulatory authority ever: . . . (5) denied, suspended, or revoked your registration or license, disciplined you, or otherwise by order prevented you from associating with a financial services-related business or restricted your activities?”, you answered, “no.” Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have investigated your activities in the State of South Carolina, which revealed that on May 5, 1998, the Office of the Attorney General, Securities Division issued an Order of Denial on your application to become registered in South Carolina as an agent of International Bond & Share, Inc.
In response to Question 8(L)(2) on the Form MU4, which asked, “[h]ave you ever been named as a respondent/defendant in a financial services-related consumer-initiated arbitration or civil litigation which: . . . (2) resulted in an arbitration award or civil judgment against you, regardless of amount, or that required corrective action?”, you answered “no”. Pursuant to the authority granted to me by Section 36a-17 of the Connecticut General Statutes, I have investigated the Financial Industry Regulatory Authority’s WebCRD records of financial services-related consumer-initiated arbitrations filed against you, which reveals that in August and November 2000, National Association of Securities Dealers (“NASD”) arbitration awards for compensatory damages were entered against you as a result of customer complaints filed with NASD.
Based on these facts, I find that you also made material misstatements in your application which further prohibit me from issuing you a mortgage loan originator license.
For the reasons stated above, I am unable to issue you a mortgage loan originator license.
Very truly yours,
Howard F. Pitkin
Certified Mail No. 7007 1490 0004 3509 7222
cc: Atlantic Home Capital, Corp.