DOB: Blake Financial LLC, Settlement Agreement

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IN THE MATTER OF:

BLAKE FINANCIAL LLC

    ("Blake Financial")

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SETTLEMENT AGREEMENT        

WHEREAS, 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”, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209;
 
WHEREAS, Blake Financial is a limited liability company currently licensed as a mortgage broker under Part I of Chapter 668, Sections 36a-485 et seq. of the Connecticut General Statutes;
 
WHEREAS, on March 19, 2009, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an examination pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Blake Financial 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 examination, the Commissioner alleges that Blake Financial employed or retained, during the period of September 12, 2008 through February 11, 2009, two (2) individuals as mortgage loan originators without licensing them in violation of Section 36a-486(b) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would support initiation of enforcement proceedings against Blake Financial, including proceedings to revoke Blake Financial’s license pursuant to Section 36a-494(a) of the Connecticut General Statutes, as amended by Public Act 09-209, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Blake Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Blake Financial pursuant to Section 36a-494(b) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
 
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 Blake Financial acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Blake Financial 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;
 
WHEREAS, Blake Financial herein represents to the Commissioner that the two individuals alleged to be unlicensed mortgage loan originators in violation of Section 36a-486(b), during the period of September 12, 2008 through February 11, 2009, are either currently licensed as mortgage loan originators with Blake Financial, or are no longer engaged in any mortgage-related activity with Blake Financial that would require such individuals to be licensed;
 
WHEREAS, Blake Financial herein represents to the Commissioner that it has reviewed and updated its internal policies, procedures and controls for assessing whether an individual engaged in mortgage-related activity with Blake Financial requires licensure from the Commissioner under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, in connection with this settlement, Blake Financial was provided the option to pay a civil penalty in the amount of Two Thousand Dollars ($2,000) in settlement of the allegations contained herein;
 
WHEREAS, the State of Connecticut is a participant in the Nationwide Mortgage Licensing System and Registry (“NMLS&R”), jointly developed by the Conference of State Bank Supervisors (“CSBS”) and the American Association of Residential Mortgage Regulators to establish a unified and modern system of mortgage licensing and registration, and is committed to the success of NMLS&R;
 
WHEREAS, in connection with this settlement, Blake Financial was provided an alternative option to make a voluntary contribution in the amount of Two Thousand Dollars ($2,000) to the State Regulatory Registry LLC (“SRR”), a wholly-owned subsidiary of CSBS, to support NMLS&R;
 
WHEREAS, Blake Financial elected to make a voluntary contribution to SRR in lieu of a civil penalty;
 
AND WHEREAS, Blake Financial, 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 Blake Financial enter into this Settlement Agreement as follows:

1.
Blake Financial shall make voluntary contributions by cashier’s check, certified check or money order in the total amount of Two Thousand Dollars ($2,000) to SRR to support NMLS&R, in accordance with the following schedule:
$500 on or before December 31, 2009; an additional
$500 on or before January 29, 2009; an additional
$500 on or before February 26, 2009; and an additional
$500 on or before March 31, 2009.
2. Upon entry of this Settlement Agreement, this matter will be resolved and the Commissioner will not take any future enforcement action against Blake Financial 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 Blake Financial based on the allegations contained herein if any representations made by Blake Financial in this Settlement Agreement are subsequently discovered to be untrue or if Blake Financial 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 Blake Financial to apply for or obtain licenses or renewal licenses under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes, and to apply for or obtain licensure of its mortgage loan originators from the Commissioner;
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Blake Financial to enforce this Settlement Agreement if the Commissioner determines that Blake Financial 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 22nd day of December 2009.         ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Pasquale DiMeo, state on behalf of Blake Financial LLC, 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 Blake Financial LLC; that Blake Financial LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Blake Financial LLC, voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                                            

                                            By:  ________/s/_________
                                                   Name:  Pasquale DiMeo
                                                   Title:  Member
                                                   Blake Financial LLC


State of:  CT

County of:  New Haven


On this the 10th day of December 2009, before me, Alfred J. Zullo, the undersigned officer, personally appeared Pasquale DiMeo who acknowledged himself to be the Managing Member of Blake Financial LLC, a member managed/manager managed limited liability company, that he, as such Managing Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Managing Member.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public:  Alfred J. Zullo
                                         Date Commission Expires:  October 31, 2013


Administrative Orders and Settlements