DOB: Prospect Financial Services, Settlement

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IN THE MATTER OF:

PROSPECT FINANCIAL
SERVICES, LLC

   ("Prospect Financial Services")

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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”;
 
WHEREAS, Prospect Financial Services is a Connecticut limited liability company that was licensed as a mortgage lender under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
WHEREAS, on April 3, 2008, 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 Prospect 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 examination, the Commissioner alleges that Prospect Financial Services employed or retained, during the period of January 11, 2006 through October 31, 2007, four (4) individuals as originators without registering them, in violation of Sections 36a-486(b) and 36a-511(b) of the then applicable Connecticut General Statutes;
 
WHEREAS, the Commissioner believes that such allegations would have supported initiation of enforcement proceedings against Prospect Financial Services, including proceedings to revoke Prospect Financial Services’ license pursuant to Sections 36a-494(a) and 36a-51 of the Connecticut General Statutes, issue a cease and desist order against Prospect Financial Services pursuant to Sections 36a-494(b) and 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 Prospect Financial Services pursuant to Sections 36a-494(b) and 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 Prospect Financial Services acknowledge the possible consequences of formal administrative proceedings;
 
WHEREAS, Prospect Financial Services 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, Prospect Financial Services herein represents to the Commissioner that it is no longer engaged in any mortgage-related activity in Connecticut that would require Prospect Financial Services to obtain a mortgage lender, mortgage correspondent lender or mortgage broker license under Part I of Chapter 668, Sections 36a-485 et seq., of the Connecticut General Statutes;
 
AND WHEREAS, Prospect Financial Services, 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 Prospect Financial Services enter into this Settlement Agreement as follows:

1. No later than sixty (60) days following the date this Settlement Agreement is executed by Prospect Financial Services, Prospect Financial Services shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of One Thousand Dollars ($1,000) 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 Prospect Financial Services 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 Prospect Financial Services based on the allegations contained herein if any representations made by Prospect Financial Services in this Settlement Agreement are subsequently discovered to be untrue or if Prospect 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 Prospect Financial Services 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 for its mortgage loan originators to apply for or obtain licensure 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 Prospect Financial Services to enforce this Settlement Agreement if the Commissioner determines that Prospect 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 19th day of May 2010.                 ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



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

                                            
                                    By:  ________/s/_________
                                           Name:  Thomas F. Curis
                                           Title:  Member
                                           Prospect Financial Services, LLC


State of:  CT

County of:  Hartford


On this the 17 day of May 2010, before me, Thomas F. Curis, the undersigned officer, personally appeared Thomas F. Curis who acknowledged himself to be the Member of Prospect Financial Services, LLC, a limited liability company that he, 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 himself as Member.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  November 30, 2011


Administrative Orders and Settlements