DOB: Vernick Finance Company d/b/a Vernick Financial Services, Settlement Agreement

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IN THE MATTER OF:

VERNICK FINANCE COMPANY
d/b/a VERNICK FINANCIAL SERVICES

    ("Vernick Financial Services")

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SETTLEMENT AGREEMENT        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part II of Chapter 668, Sections 36a-535 to 36a-546, inclusive, of the Connecticut General Statutes, “Finance Companies”; 
 
WHEREAS, Vernick Financial Services is a Michigan corporation with an office at 25526 Goddard Road, Taylor, Michigan;
 
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 Vernick Financial Services 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, as a result of such investigation, the Commissioner alleges that Vernick Financial Services engaged in the business of a sales finance company without having obtained the required license, in violation of Section 36a-536 of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that the unlicensed sales finance company activity allegation would support initiation of enforcement proceedings against Vernick Financial Services, including proceedings to issue a cease and desist order against Vernick Financial Services pursuant to Sections 36a-543(d) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Vernick Financial Services pursuant to Sections 36a-543(d) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, on March 9, 2009, Vernick Financial Services filed an application for a sales finance company license with the Commissioner;
 
WHEREAS, Vernick Financial Services specifically assures the Commissioner that the acts, conduct and violation alleged herein shall not occur in the future;
 
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 Vernick Financial Services acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Vernick Financial Services agrees to voluntarily enter into this Settlement Agreement without admitting or denying any allegation set forth herein, and solely for the purposes of obviating the need for formal administrative proceedings concerning the allegation described above;
 
AND WHEREAS, Vernick Financial Services, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegation 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 Vernick Financial Services enter into this Settlement Agreement as follows:

1. No later than the date this Settlement Agreement is executed by Vernick Financial Services, Vernick Financial Services shall remit to the Department of Banking, by cashier’s or certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Four Thousand Dollars ($4,000) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Vernick Financial Services based upon the allegation contained herein; provided that entry of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Vernick Financial Services based on the allegations contained herein if any representations made by Vernick Financial Services in this Settlement Agreement are subsequently discovered to be untrue or if Vernick Financial Services is not fully complying with any term or condition stated herein;
3. Nothing in the entry of this Settlement Agreement shall adversely affect the ability of Vernick Financial Services to apply for or obtain a license or renewal license under Part II of Chapter 668, Sections 36a-535 et seq., of the Connecticut General Statutes;
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Vernick Financial Services to enforce this Settlement Agreement if the Commissioner determines that Vernick Financial Services 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 1st day of December 2009.           ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Richard S. Mousseau, state on behalf of Vernick Finance Company d/b/a Vernick Financial Services, 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 Vernick Finance Company d/b/a Vernick Financial Services; that Vernick Finance Company d/b/a Vernick Financial Services agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Vernick Finance Company d/b/a Vernick Financial Services voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein. 

                                            By:  ________/s/_________
                                                   Name:  Richard S. Mousseau
                                                   Title:  President
                                                   Vernick Finance Company
                                                   d/b/a Vernick Financial Services


State of:  Michigan

County of:  Wayne


On this the 23 day of November 2009, before me, Richard S. Mousseau, the undersigned officer, personally appeared at 25526 Goddard, Taylor who acknowledged himself to be the President of Vernick Finance Company d/b/a Vernick Financial Services, a corporation, and that he, as such Officer 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:  Aug. 11, 2012


Administrative Orders and Settlements