DOB: Sookrani Sattie Narain, et al - NOI CD-CP

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IN THE MATTER OF:

SOOKRANI SATTIE NARAIN
NMLS # 16386
("Narain")

MICHAEL VALERIO
("Valerio")

VERONICA ROSE CZARNIEWSKI
NMLS # 115179
("Czarniewski")

KENNETH MICHAEL PAGE
NMLS # 134504
("Page")

CHARLES A. HINKLE
NMLS # 142595
("Hinkle")

BEN NKONYE IRABOR
NMLS # 30163
("Irabor")

DAVID KARAT
NMLS # 14552
("Karat")
  
   (collectively "Respondents")

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NOTICE OF INTENT TO ISSUE
ORDER TO CEASE AND DESIST

NOTICE OF INTENT TO IMPOSE
CIVIL PENALTY

                      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”.
 
Pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes and Section 36a-498f of the 2010 Supplement to the General Statutes, the Commissioner, through the Consumer Credit Division of the Department of Banking, has investigated the activities of Respondents to determine if they have violated, are violating or are 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, in pertinent part, that:
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.
Section 36a-498f(a) of the 2010 Supplement to the General Statutes, provides, in pertinent part, that:
In addition to any authority provided under this title, the Banking Commissioner shall have the authority to conduct investigations . . . as follows: . . .
(2)  For the purposes of investigating violations . . . arising under sections 36a-485 to 36a-498f, inclusive, 36a-534a or 36a-534b . . . , the commissioner may . . . investigate . . . any . . . individual . . . subject to said sections as often as necessary in order to carry out the purposes of said sections.
Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that:
Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person 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 person 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 . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.  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 person fails to appear at the hearing.  After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice.  If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person.  No such order shall be issued except in accordance with the provisions of chapter 54.
Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:
(1)  Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, . . . the commissioner may send a notice to such person 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 person on the earlier of the date of actual receipt or seven days after mailing or sending.  Any such notice shall include:  (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.
(2)  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 such person fails to appear at the hearing.  After the hearing, if the commissioner finds that the person has violated any such provision, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.  If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.
(3)  Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54.
 
II.  MATTERS ASSERTED
 
1.
Nations Funding Source, Inc. (“Nations Funding”) was a Florida corporation with an office at 280 W. Prospect Road, Ft. Lauderdale, Florida.
2.
Nations Funding was licensed as a mortgage lender in Connecticut from February 2007 through September 2, 2010, when it requested surrender of its mortgage lender license on the Nationwide Mortgage Licensing System (“NMLS”), and such surrender request was accepted on the NMLS.
3.
On or about September 10, 2010, Nations Funding filed Articles of Dissolution with the Florida Department of State – Division of Corporations.
4.
Narain is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
5. At all times pertinent hereto, Narain was President and 100 percent owner of Nations Funding.
6. Narain was never registered as an originator in Connecticut and has never been licensed as a mortgage loan originator in Connecticut.
7. Valerio is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
8.
Valerio was registered as an originator in Connecticut for a period of time ending in July 2008.  Valerio was not thereafter licensed as a mortgage loan originator in Connecticut.
9. Czarniewski is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
10. Czarniewski was licensed as a mortgage loan originator for the 2009 licensing period, although her license was “inactive” until November 20, 2009.  Czarniewski was licensed as a mortgage loan originator in Connecticut for the 2010 licensing period until November 2, 2010, when she requested surrender of her license on NMLS and such surrender request was accepted.
11. Page is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
12. Page was registered as an originator in Connecticut for a period of time ending in April 2003.  Page was licensed as a mortgage loan originator in Connecticut on September 22, 2010 for the 2010 licensing period.
13. Hinkle is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
14. Hinkle was never registered as an originator in Connecticut and has never been licensed as a mortgage loan originator in Connecticut.
15. Irabor is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
16. Irabor has never been registered as an originator in Connecticut and has never been licensed as a mortgage loan originator in Connecticut.
17. Karat is an individual whose most recent mailing address is set forth in the Certification page incorporated herein.
18. Karat was registered as an originator for a period of time ending in April 2005, and was licensed as a mortgage loan originator between December 17, 2008 and December 31, 2009.  Karat presently has an application for a mortgage loan originator license pending.
19. Narain was identified as the interviewer on an initial Uniform Residential Loan Application on or about December 29, 2008, and again on a subsequent Uniform Residential Loan Application on or about April 16, 2009, both associated with a residential mortgage loan in Connecticut.
20. Valerio was the actual interviewer of the borrower on behalf of Nations Funding in connection with the Uniform Residential Loan Applications described in paragraph 19 above.
21. On or about July 22, 2009, Narain was identified as the interviewer on a Uniform Residential Loan Application associated with a residential mortgage loan in Connecticut.
22. Narain was not the actual interviewer of the borrower on behalf of Nations Funding in connection with the Uniform Residential Loan Application described in paragraph 21 above.
23. On or about June 4, 2009, Narain was identified as the interviewer on a Uniform Residential Loan Application associated with a residential mortgage loan in Connecticut.
24. Czarniewski was the actual interviewer of the borrower on behalf of Nations Funding in connection with the Uniform Residential Loan Application described in paragraph 23 above.
25. On March 18, 2009, Narain was identified as the interviewer on a Uniform Residential Loan Application associated with a residential mortgage loan in Connecticut.
26. Page was the actual interviewer of the borrower on behalf of Nations Funding in connection with the Uniform Residential Loan Application described in paragraph 25 above.
27. On each of the occasions described in paragraphs 19 to 26, inclusive, above and 29, 30 and 31 below, the Uniform Residential Loan Applications were presented to, and the loan closed with, third parties who were licensed as mortgage lenders in Connecticut, and commissions were paid to Nations Funding on each such loan.
28. At all times pertinent hereto, Section 36a-496 of the Connecticut General Statutes prohibits the licensed mortgage lenders described in paragraph 27 from accepting applications or referrals of applicants from any originator who was required to be registered or mortgage loan originator who was required to be licensed but was not, if the mortgage lender has actual knowledge that the originator was not registered or mortgage loan originator was not licensed by the Commissioner.
29. Hinkle was identified as the interviewer on behalf of Nations Funding on an initial Uniform Residential Loan Application on or about January 8, 2009, and again on a subsequent Uniform Residential Loan Application on or about March 11, 2009, both associated with a single residential mortgage loan in Connecticut.
30. Irabor was identified as the interviewer on behalf of Nations Funding on Uniform Residential Loan Applications taken on or about February 19, 2009 and March 18, 2009, for residential mortgage loans.
31.
Karat was identified as the interviewer on behalf of Nations Funding on Uniform Residential Loan Applications taken on or about May 21, 2008, September 30, 2008, October 13, 2008, October 17, 2008, and November 4, 2008.
 
 
III.  STATUTORY BASIS FOR ORDER TO CEASE AND DESIST
AND IMPOSITION OF CIVIL PENALTY
 
Prior to July 1, 2008, Section 36a-494(b) of the 2008 Supplement to the Connecticut General Statutes, as amended by Public Act 07-91, provided, in pertinent part, that:
Whenever it appears to the commissioner that any person has violated . . . any of the provisions of sections 36a-485 to 36a-498a, inclusive, . . . or any licensee or registrant has . . . misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any mortgage loan transaction . . . to anyone entitled to such information, the commissioner may take action against such person, licensee or registrant in accordance with sections 36a-50 and 36a-52.
On and after July 1, 2008, and until July 30, 2009, Section 36a-494(b) provided, in pertinent part, that:
Whenever it appears to the commissioner that any person has violated . . . any of the provisions of sections 36a-485 to 36a-498a, inclusive, . . . or any licensee has . . . misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any mortgage loan transaction . . . to anyone entitled to such information, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
Effective July 31, 2009, Section 36a-494(b) of the Connecticut General Statutes, as amended by Public Act 09-209, provides, in pertinent part, that:
Whenever it appears to the commissioner that any person has violated . . . any of the provisions of sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b, . . . or any licensee has . . . misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any residential mortgage loan transaction . . . to anyone entitled to such information, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.
Prior to July 1, 2008, Section 36a-485(8) of the 2008 Supplement to the General Statutes, as amended by Public Act 07-91, provided, in pertinent part, that:
“Originator” means an individual who is employed or retained by, or otherwise acts on behalf of, a mortgage lender or first mortgage broker that is licensed or required to be licensed. . . for, or with the expectation of, a fee, commission, or other valuable consideration, to take an application for or negotiate, solicit, arrange or find a first mortgage loan.  “Originator” does not include (1) an officer, if the licensee is a corporation . . . or (2) an individual whose responsibilities are limited to clerical and administrative tasks and who does not solicit borrowers, take applications or negotiate the terms of loans[.]
On and after July 1, 2008, and until July 30, 2009, Section 36a-485(10), as amended by Public Acts 07-156 and 08-176, provided, in pertinent part, that:
“Mortgage loan originator” means an individual who is employed or retained by, or otherwise acts on behalf of, a mortgage lender, mortgage correspondent lender or mortgage broker licensee who, for, or with the expectation of, a fee, commission, or other valuable consideration, takes an application for or negotiates, solicits, arranges or finds a mortgage loan.  “Mortgage loan originator” does not include (1) an officer, if the licensee is a corporation . . . or (2) an individual whose responsibilities are limited to clerical and administrative tasks and who does not solicit borrowers, arrange or find mortgage loans, take applications or negotiate the terms of loans[.]
Prior to July 1, 2008, Section 36a-486(b) of the 2008 Supplement to the General Statutes provided, in pertinent part, that:
No individual may act as an originator without being registered, or act as an originator, . . . for more than one person.  The registration of an originator is not effective during any period when such originator is not associated with a licensee.
On and after July 1, 2008, Section 36a-486(b), as amended by Public Acts 07-156, 08-176 and 09-208, and until July 30, 2009, provided, in pertinent part:
No individual may act as a mortgage loan originator without being licensed, or act as a mortgage loan originator for more than one person. The license of a mortgage loan originator is not effective during any period when such mortgage loan originator is not associated with a licensed mortgage lender, mortgage correspondent lender or mortgage broker. . . .
Prior to July 1, 2008, Section 36a-56 of the Connecticut General Statutes provided, in pertinent part, that:
Any person who knowingly makes any false statement or report . . . with intent to defraud and for the purpose of influencing in any way the action of . . . any first or secondary mortgage lender . . . licensee, upon any application, advance, commitment, loan or extension of credit, or any change, extension, renewal or refinancing thereof, . . . and upon which such . . . licensee relies in taking such action, shall be fined not more than five hundred dollars or imprisoned not more than one year, or both. A finding by the commissioner as a result of an investigation of any such making . . . shall be considered a violation of this section for purposes of the administrative enforcement of sections 36a-50 to 36a-53, inclusive. The commissioner shall refer to the Chief State’s Attorney any evidence found by the commissioner of a criminal violation of the provisions of this section.
On and after July 1, 2008, Section 36a-56 of the Connecticut General Statutes, as amended by Public Act 08-176, provides in pertinent part, that:
Any person who knowingly makes any false statement or report . . . with intent to defraud and for the purpose of influencing in any way the action of . . . any person licensed as a mortgage lender, . . . as defined in section 36a-485, upon any application, advance, commitment, loan or extension of credit, or any change, extension, renewal or refinancing thereof, . . . and upon which such . . . licensee relies in taking such action, shall be fined not more than five hundred dollars or imprisoned not more than one year, or both. A finding by the commissioner as a result of an investigation of any such making . . . shall be considered a violation of this section for purposes of the administrative enforcement of sections 36a-50 to 36a-53, inclusive. The commissioner shall refer to the Chief State’s Attorney any evidence found by the commissioner of a criminal violation of the provisions of this section.
 
A.  Violations by Respondent Narain and Respondent Valerio
 
1. Paragraphs 1 through 8, inclusive, 19, 20, 27 and 28 of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
2.
Narain and Valerio misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of mortgage loan transactions to lenders entitled to such information when Narain was identified as the interviewer on Uniform Residential Mortgage Loan Applications, as more fully described in paragraphs 19 and 20 of the Matters Asserted.  Such conduct formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Narain and Valerio individually in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Narain and Valerio individually not to exceed Fifteen Thousand Dollars ($15,000) each, subject to Narain and Valerio’s respective rights to a hearing on the allegations set forth above.
3.
As set forth in paragraphs 7, 8, 19, 20, 27 and 28 of the Matters Asserted, Valerio acted as an unlicensed mortgage loan originator, in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violation formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Valerio in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Valerio not to exceed Fifteen Thousand Dollars ($15,000), subject to Valerio’s right to a hearing on the allegations set forth above.
 
 
B.  Violations by Respondent Narain and Respondent Czarniewski
 
4. Paragraphs 1 through 6, inclusive, 9, 10, 23, 24, 27 and 28 of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
5.
Narain and Czarniewski misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of a mortgage loan transaction to lenders entitled to such information when Narain was identified as the interviewer on the Uniform Residential Mortgage Loan Application, as more fully described in paragraphs 23 and 24 of the Matters Asserted.  Such conduct formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Narain and Czarniewski individually in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Narain and Czarniewski individually not to exceed Fifteen Thousand Dollars ($15,000) each, subject to each of Narain and Czarniewski’s respective rights to a hearing on the allegations set forth above.
6.
As set forth in paragraphs 9, 10, 23, 24, 27 and 28 of the Matters Asserted, Czarniewski acted as an unlicensed mortgage loan originator during the period when his mortgage loan originator license was not effective in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violation formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Czarniewski in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Czarniewski not to exceed Fifteen Thousand Dollars ($15,000), subject to Czarniewski’s right to a hearing on the allegations set forth above.
 
 
C.  Violations by Respondent Narain and Respondent Page
 
7. Paragraphs 1 through 6, inclusive, 11, 12 and 25 through 28, inclusive, of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
8.
Narain and Page misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose material particulars of a mortgage loan transaction to lenders entitled to such information when Narain was identified as the interviewer on the Uniform Residential Mortgage Loan Application, as more fully described in paragraphs 25 and 26 of the Matters Asserted.  Such conduct formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Narain and Page individually in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Narain and Page individually not to exceed Fifteen Thousand Dollars ($15,000) each, subject to Narain and Page’s respective rights to a hearing on the allegations set forth above.
9.
As set forth in paragraphs 11, 12 and 25 through 28, inclusive, of the Matters Asserted, Page acted as an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violation formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Page in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Page not to exceed Fifteen Thousand Dollars ($15,000), subject to Page’s right to a hearing on the allegations set forth above.
 
 
D.  Violation by Respondent Hinkle
 
10. Paragraphs 1 through 3, inclusive, 13, 14 and 29 of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
11.
As set forth in paragraphs 13, 14, and 29 of the Matters Asserted, Hinkle acted as an unlicensed mortgage loan originator in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violation formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Hinkle in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Hinkle not to exceed Fifteen Thousand Dollars ($15,000), subject to Hinkle’s right to a hearing on the allegations set forth above.
 
 
E.  Violations by Respondent Irabor
 
12. Paragraphs 1 through 3, inclusive, 15, 16, and 30 of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
13.
As set forth in paragraphs 15, 16 and 30 of the Matters Asserted, Irabor acted as an unlicensed mortgage loan originator on two occasions in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violations formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently forms the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Irabor in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Irabor not to exceed Fifteen Thousand Dollars ($15,000), subject to Irabor’s right to a hearing on the allegations set forth above.
 
 
F.  Violations by Respondent Karat
 
14. Paragraphs 1 through 3, inclusive, 17, 18, and 31 of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
15.
As set forth in paragraphs 17, 18 and 31 of the Matters Asserted, Karat acted as an unregistered originator on one occasion and an unlicensed mortgage loan originator on four occasions, all in violation of Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such violations formed the basis to issue an order to cease and desist and impose a civil penalty pursuant to Section 36a-494(b) of the then applicable Connecticut General Statutes, and presently form the basis to issue an order to cease and desist pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Karat in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Karat not to exceed Fifteen Thousand Dollars ($15,000), subject to Karat’s right to a hearing on the allegations set forth above.
 
 
G.  Additional Violations by Respondent Narain
 
16. Paragraphs 1 through 31, inclusive, of the Matters Asserted, are incorporated and made a part hereof as if more fully set forth herein.
17.
As described in paragraphs 5, 6 and 19 through 28, inclusive, of the Matters Asserted, Narain knowingly made false statements or reports when she identified herself, or allowed herself to be identified to the lenders described in paragraph 27 of the Matters Asserted, as the actual interviewer on Uniform Residential Loan Applications with intent to defraud and influence the actions of such lenders to make the loans, and the lenders made the loans.  Said lenders were prohibited from knowingly accepting applications from an individual who should have been licensed but was not, as described in paragraph 28 of the Matters Asserted, and Narain was excluded from a requirement from licensure as a mortgage loan originator under Section 36a-486(b) of the then applicable Connecticut General Statutes.  Such conduct by Narain violated Section 36a-56 of the then applicable Connecticut General Statutes and forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-50(a) and of the Connecticut General Statutes.  Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Narain in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.  The Commissioner intends to impose a civil penalty upon Narain not to exceed Fifty Thousand Dollars ($50,000), subject to Narain’s right to a hearing on the allegations set forth above.
 
 
IV.  NOTICE OF INTENT TO ISSUE ORDER TO CEASE AND DESIST,
NOTICE OF INTENT TO IMPOSE CIVIL PENALTY
AND NOTICE OF RIGHT TO HEARING
 
WHEREAS, the Commissioner has reason to believe that Narain has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Narain pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Narain pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Valerio has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Valerio pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Valerio pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Czarniewski has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Czarniewski pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Czarniewski pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Page has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Page pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Page pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Hinkle has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Hinkle pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Hinkle pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner has reason to believe that Irabor has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Irabor pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Irabor pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
AND WHEREAS, the Commissioner has reason to believe that Karat has engaged in acts or conduct which forms a basis to issue an order to cease and desist against Karat pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Karat pursuant to Section 36a-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes.
 
NOW THEREFORE, notice is hereby given to Respondents that the Commissioner intends to issue an order requiring:
 
1. Narain to CEASE AND DESIST from violating Sections 36a-494(b) and 36a-56 of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Narain as set forth herein, subject to Narain’s right to a hearing on the allegations set forth above;
2.
Valerio to CEASE AND DESIST from violating Sections 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Valerio as set forth herein, subject to Valerio’s right to a hearing on the allegations set forth above;
3. Czarniewski to CEASE AND DESIST from violating Sections 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Czarniewski as set forth herein, subject to Czarniewski’s right to a hearing on the allegations set forth above;
4. Page to CEASE AND DESIST from violating Section 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Page as set forth herein, subject to Page’s right to a hearing on the allegations set forth above;
5. Hinkle to CEASE AND DESIST from violating Section 36a-486(b) of the applicable Connecticut General Statutes and imposing a CIVIL PENALTY upon Hinkle as set forth herein, subject to Hinkle’s right to a hearing on the allegations set forth above;
6. Irabor to CEASE AND DESIST from violating Section 36a-486(b) of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Irabor as set forth herein, subject to Irabor’s right to a hearing on the allegations set forth above; and
7. Karat to CEASE AND DESIST from violating Section 36a-486(b) of the applicable Connecticut General Statutes, and imposing a CIVIL PENALTY upon Karat as set forth herein, subject to Karat’s right to a hearing on the allegations set forth above.
 
A hearing will be granted to each 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 each Respondent’s receipt of this Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes.  This Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty 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 any 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 a 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 presiding 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 March 23, 2011, 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 Respondents fail to appear at the requested hearing.  At such hearing, Respondents 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 Narain does not request a hearing within the time prescribed, the Commissioner will issue an order that Narain cease and desist from violating Section 36a-494(b) and 36a-56 of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Ninety-five Thousand Dollars ($95,000) be imposed upon Narain.
 
If Valerio does not request a hearing within the time prescribed, the Commissioner will issue an order that Valerio cease and desist from violating Sections 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Thirty Thousand Dollars ($30,000) be imposed upon Valerio.
 
If Czarniewski does not request a hearing within the time prescribed, the Commissioner will issue an order that Czarniewski cease and desist from violating Sections 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Thirty Thousand Dollars ($30,000) be imposed upon Czarniewski.
 
If Page does not request a hearing within the time prescribed, the Commissioner will issue an order that Page cease and desist from violating Sections 36a-494(b) and 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Thirty Thousand Dollars ($30,000) be imposed upon Page.
 
If Hinkle does not request a hearing within the time prescribed, the Commissioner will issue an order that Hinkle cease and desist from violating Section 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Fifteen Thousand Dollars ($15,000) be imposed upon Hinkle.
 
If Irabor does not request a hearing within the time prescribed, the Commissioner will issue an order that Irabor cease and desist from violating Section 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Fifteen Thousand Dollars ($15,000) be imposed upon Irabor.
 
If Karat does not request a hearing within the time prescribed, the Commissioner will issue an order that Karat cease and desist from violating Section 36a-486(b) of the applicable Connecticut General Statutes, and may order a civil penalty not to exceed Fifteen Thousand Dollars ($15,000) be imposed upon Karat.
 
 
So ordered at Hartford, Connecticut
this 19th day of January 2011.                 ________/s/_________
                                                          Howard F. Pitkin
                                                          Banking Commissioner
 
 

Administrative Orders and Settlements