DOB: Allied Financial Services, LLC, Settlement Agreement and Withdrawal of Order of Summary Suspension

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IN THE MATTER OF:

ALLIED FINANCIAL
SERVICES, LLC

    ("Allied Financial")

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SETTLEMENT AGREEMENT

AND

WITHDRAWAL OF ORDER
OF SUMMARY SUSPENSION

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, 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 Allied 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, on November 23, 2009, the Commissioner, acting pursuant to Sections 36a-52(b) and 4-182(c) of the Connecticut General Statutes; Sections 36a-494(a)(1) and 36a-494(a)(1)(C) of the Connecticut General Statutes, as amended by Public Act 09-209; subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, 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, issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Mortgage Broker License, Notice of Intent to Issue Order to Cease and Desist and Notice of Right to Hearing (collectively “Notice”) against Allied Financial, which Notice is incorporated by reference herein;
 
WHEREAS, the Notice alleged that Allied Financial, in violation of Section 36a-492 of the Connecticut General Statutes, as amended by Public Act 09-209, failed to maintain a surety bond that runs concurrent with the period of its license to act as a mortgage broker in Connecticut from 83 East Avenue, Suite 206, Norwalk, Connecticut;
 
WHEREAS, on November 30, 2009, Allied Financial received the Notice;
 
WHEREAS, on December 7, 2009, Allied Financial requested a hearing on the Notice, which hearing is currently scheduled for April 8, 2010;
 
WHEREAS, on February 17, 2010, Allied Financial filed with the Commissioner a replacement bond numbered 387-004-160 issued by Liberty Mutual Insurance Company, effective September 8, 2009;
 
WHEREAS, on February 22, 2010, Allied Financial assured the Commissioner that it has not done any business with Connecticut borrowers since September 8, 2009;
 
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, Allied Financial agrees to voluntarily enter into this Settlement Agreement and Withdrawal of Order of Summary Suspension (“Settlement Agreement and Withdrawal”) without admitting or denying any allegations contained in the Notice set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegation described above;
 
WHEREAS, Allied Financial, through its execution of this Settlement Agreement and Withdrawal, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement and Withdrawal;
 
AND WHEREAS, upon the entry of this Settlement Agreement and Withdrawal, this matter will be resolved and the Commissioner will not take any future enforcement action against Allied Financial based upon the allegations contained in the Notice.
 
NOW THEREFORE, the Commissioner and Allied Financial enter into this Settlement Agreement and Withdrawal as follows:

1. Allied Financial shall cease and desist from violating Section 36a-492 of the Connecticut General Statutes, as amended, and agrees to maintain surety bonds that run concurrently with any license issued to Allied Financial under Part I of Chapter 668 of the Connecticut General Statutes;
2. Nothing in this Settlement Agreement and Withdrawal shall adversely affect the ability of Allied Financial to apply for or obtain a license or renewal license under Part I of Chapter 668 of the Connecticut General Statutes in the future;
3. The Order of Summary Suspension of the license of Allied Financial to act as a mortgage broker in Connecticut from 83 East Avenue, Suite 206, Norwalk, Connecticut, issued on November 23, 2009, is hereby WITHDRAWN; and
4. Notwithstanding anything to the contrary in this Settlement Agreement and Withdrawal, execution of this Settlement Agreement and Withdrawal is without prejudice to the right of the Commissioner to take enforcement action against Allied Financial to enforce this Settlement Agreement and Withdrawal if the Commissioner determines that Allied Financial is not fully complying with any term or condition stated herein or if any representation made by Allied Financial and reflected herein is subsequently discovered to be untrue.  For purposes of this paragraph, a violation of this Settlement Agreement and Withdrawal shall be deemed to be a violation of an order of the Commissioner.

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement and Withdrawal to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.


Dated at Hartford, Connecticut
this 26th day of March 2010.        

________/s/_________
Howard F. Pitkin
Banking Commissioner


I, Ayeshah Malik, state on behalf of Allied Financial Services, LLC, that I have read the foregoing Settlement Agreement and Withdrawal of Order of Summary Suspension; that I know and fully understand its contents; that I am authorized to execute this Settlement Agreement and Withdrawal of Order of Summary Suspension on behalf of Allied Financial Services, LLC and Allied Financial Services, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.

                                          By:  ________/s/_________
                                                 Name:  Ayeshah Malik  
                                                 Title:  Member
                                                 Allied Financial Services, LLC


State of:  Connecticut

County of:  Fairfield


On this the 10th day of March 2010, before me, Almeta Kiett, the undersigned officer, personally appeared Ayeshah Malik, who acknowledged herself to be the Member of Allied Financial Services, LLC, a member managed/manager managed limited liability company, and that she as such Member, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by herself as its Member.

In witness whereof I hereunto set my hand.

                                           ________/s/_________
                                           Notary Public/Commissioner of the Superior Court
                                           Date Commission Expires:  05/31/2013


Administrative Orders and Settlements