DOB: Servicial Group Corporation - SA

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IN THE MATTER OF:

SERVICIAL GROUP CORPORATION
d/b/a SERVICIAL

    ("Servicial")

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SETTLEMENT AGREEMENT        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part IV of Chapter 668, Sections 36a-580 to 36a-589, inclusive, of the Connecticut General Statutes, “Check Cashing Services”, and Sections 36a-585-1, 36a-588-1, 36a-588-3 and 36a-588-4 of the Regulations of Connecticut State Agencies;
 
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 Servicial 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 March 26, 2010, the Commissioner, acting pursuant to Sections 36a-587(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Servicial, Hector Chica and Celina Romero, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that Servicial failed to fully cooperate with the Commissioner during the course of an examination of Servicial in violation of Section 36a-17(d) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleges that Servicial failed to surrender its license to the Commissioner after ceasing to engage in the business of cashing checks, drafts or money orders for consideration at its general facility in violation of Section 36a-583 of the Connecticut General Statutes;
 
WHEREAS, on April 16, 2010, Servicial received the Notice;
 
WHEREAS, on April 16, 2010, Servicial requested a hearing on the Notice, which is currently scheduled for August 19, 2010;
 
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, Servicial voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations described above;
 
WHEREAS, Servicial, through its execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement;
 
AND WHEREAS, Servicial specifically assures the Commissioner that the violations alleged in the Notice and set forth herein shall not occur in the future.
 
NOW THEREFORE, the Commissioner and Servicial enter into this Settlement Agreement as follows:

1. No later the date this Settlement Agreement is executed by Servicial, Servicial 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 Five Hundred Dollars ($1,500) as a civil penalty;
2. Upon entry of this Settlement Agreement, this matter with respect to Servicial will be resolved and the Commissioner will not take any future enforcement action against Servicial 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 Servicial based on the allegations contained herein if any representation made by Servicial in this Settlement Agreement is subsequently discovered to be untrue or if Servicial is not fully complying with any term or condition stated herein;
3. Nothing in this Settlement Agreement shall adversely affect the ability of Servicial to apply for or obtain a license to operate a check cashing general facility or limited facility from the Commissioner in the future; and
4. Notwithstanding paragraph 2 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Servicial to enforce this Settlement Agreement if the Commissioner determines that Servicial is not fully complying with any term or condition contained 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 9th day of August 2010.               ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, John Gonzalez, state on behalf of Servicial Group Corporation d/b/a Servicial, 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 Servicial Group Corporation d/b/a Servicial; that Servicial Group Corporation d/b/a Servicial agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Servicial Group Corporation d/b/a Servicial voluntarily agrees to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                                          

                                            By:  ________/s/_________
                                                   Name:  John Gonzalez
                                                   Title:  President
                                                   Servicial Group Corporation d/b/a Servicial


State of:  Connecticut

County of:  Fairfield


On this the 3rd day of August 2010, before me, Roger Wilmot Weldon, the undersigned officer, personally appeared John Gonzalez, who acknowledged himself to be the President of Servicial Group Corporation d/b/a Servicial, a corporation, and that he as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as President.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  28 February 2014


Administrative Orders and Settlements