DOB: Daniel Charles Allegrini, Notice of Intent to Revoke Mortgage Loan Originator License

* * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

DANIEL CHARLES ALLEGRINI

    ("Respondent")

* * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*

NOTICE OF INTENT TO REVOKE
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”, and Sections 9 and 19 to 21, inclusive of Public Act 09-209.
 
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.
Subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:
(a)  The commissioner may . . . revoke 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 . . . revoke 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 . . . revocation . . . .  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 . . . revoke . . . the license. . . .
Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:
No revocation, suspension, annulment or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license.


II.  MATTERS ASSERTED
1.
Respondent is an individual whose address last known to the Commissioner is 21-6 Lisa Court, Waterbury, Connecticut.
2.
Respondent presently holds a mortgage loan originator license, which license is presently in “Approved – Inactive” status.
3.
On August 19, 2009, the Commissioner issued an Order to Cease and Desist (“Order”), Notice of Intent to Fine and Notice of Right to Hearing against Respondent.
4.
On September 11, 2009, the Order became permanent after Respondent failed to timely request a hearing.
5.
In the Order, the Commissioner found that Respondent engaged in conduct that violated Sections 36b-6 and 36b-16 of the Connecticut Uniform Securities Act (“Act”) and Section 36b-4 of the Act, as amended by Public Act 09-174, and Section 36b-31-6(e) [sic] of the Regulations of Connecticut State Agencies.  Respondent was ordered to cease and desist from:
[D]irectly or indirectly violating the provisions of the Act, including without limitation, (1) transacting business as an investment adviser in Connecticut absent registration, (2) offering and selling unregistered securities in Connecticut, (3) in connection with the offer, sale or purchase of any security, employing devices, schemes or artifices to defraud, making untrue statements of material facts or omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, or engaging in acts, practices or courses of business which operate as a fraud or deceit upon any person, and (4) participating in private securities transactions without providing prior written notice to . . . [your] employing broker-dealer[.]
6.
On November 19, 2009, the Division sent Respondent a compliance letter in accordance with Section 4-182(c) of the Connecticut General Statutes.  The letter was sent to Respondent at the address set forth in paragraph 1 above, by certified mail, return receipt requested, and was returned to the Division marked, “Returned to Sender – Attempted Not Known”.
7.
As of the date of this Notice, Respondent has not updated his mortgage loan originator license information on the Nationwide Mortgage Licensing System (“NMLS”) to reflect the administrative actions described in paragraphs 3 through 5, inclusive, above.
 
 
III.  STATUTORY BASIS FOR REVOCATION
OF MORTGAGE LOAN ORIGINATOR LICENSE
 
Section 36a-494(a)(2) of the Connecticut General Statutes, as amended by Public Act 09-209, provides, in pertinent part, that:
The commissioner may . . . revoke . . . any mortgage loan originator license . . . in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for such license under sections 36a-485 to 36a-498c, inclusive, . . . sections 36a-534a and 36a-534b, . . . and sections 9 and 19 to 21, inclusive, of . . . [Public Act 09-209], or if the licensee . . . has violated any of the provisions of this title . . . .
Section 36a-489(b)(1) of the Connecticut General Statutes, as amended by Public Acts 09-207, 09-208 and 09-209, provides, in pertinent part:
The commissioner shall not issue an initial license for a mortgage loan originator unless the commissioner, at a minimum, finds that the applicant has: . . . (C) demonstrated financial responsibility, character and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly and efficiently within the purpose of sections 36a-485 to 36a-498c, inclusive, . . . sections 36a-534a and 36a-534b, . . . and sections 9 and 19 to 21, inclusive, of . . . [Public Act 09-209] . . . .
Section 36a-490(d) of the Connecticut General Statutes, as amended by Public Act 09-209, states, in pertinent part, that:
Each mortgage loan originator licensee shall promptly file with the [Nationwide Mortgage Licensing] system, or if the information cannot be filed on the system, directly notify the commissioner, in writing, of the occurrence of any of the following developments: . . .
 
(3)  Receiving notification of the institution of license or registration denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action by any governmental agency against the mortgage loan originator licensee and the reasons therefor . . . .
1.
Respondent’s failure to promptly file with NMLS or otherwise directly notify the Commissioner, in writing, of the administrative actions described in paragraphs 3 through 5, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-490(d) of the Connecticut General Statutes, as amended, and constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Section 36a-494(a)(2) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
2.
The administrative actions more fully described in paragraphs 3 through 5, inclusive, of the Matters Asserted, and more specifically, the findings made therein that Respondent’s conduct constituted violations of the Act, constitute a basis for the Commissioner to conclude that Respondent fails to demonstrate character and general fitness so as to command the confidence of the community and to warrant a determination that Respondent will operate honestly, fairly and efficiently within the purpose of Sections 36a-485 to 36a-498c, inclusive, as amended, Sections 36a-534a and 36a-534b, as amended, and Sections 9 and 19 to 21, inclusive, of Public Act 09-209.  Such failure would prohibit the Commissioner from issuing an initial license under Sections 36a-489(b)(1)(C) of the Connecticut General Statutes, as amended, which constitutes sufficient grounds to revoke Respondent’s mortgage loan originator license pursuant to Section 36a-494(a)(2) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
 
 
IV.  NOTICE OF INTENT TO REVOKE 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 revoke Respondent’s license to act as a mortgage loan originator in Connecticut pursuant to Section 36a-494(a)(2) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.
 
NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to REVOKE Respondent’s license to act as a mortgage loan originator in Connecticut, subject to Respondent’s 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 Revoke Mortgage Loan Originator License and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.  This Notice of Intent to Revoke 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 February 25, 2010, at 10 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 revoking Respondent’s license to act as a mortgage loan originator in Connecticut.
 
 
 
So ordered at Hartford, Connecticut
this 30th day of December 2009.            ________/s/_________
                                                        Howard F. Pitkin
                                                        Banking Commissioner
 
 
 
CERTIFICATION
 
I hereby certify that on this 30th day of December 2009, the foregoing Notice of Intent to Revoke Mortgage Loan Originator License and Notice of Right to Hearing was sent by registered mail, return receipt requested, to Daniel Charles Allegrini at 21-6 Lisa Court, Waterbury, Connecticut 06704, registered mail no. RB028036875US; and a copy to Respondent at 488 Perkins Avenue, Apt. 2-7, Waterbury, Connecticut 06704-1982, registered mail no. RB028036889US.
 
 
                                                       ________/s/_________
                                                       Stacey Valerio
                                                       Prosecuting Attorney
 

Administrative Orders and Settlements