DOB: Envios R.D. Corp. d/b/a Pronto Envios - SA

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IN THE MATTER OF:

ENVIOS R.D. CORP.
d/b/a PRONTO ENVIOS

    ("Pronto Envios")

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SETTLEMENT AGREEMENT        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, “Money Transmission Act”;
 
WHEREAS, Pronto Envios is a New York corporation currently licensed with the Commissioner to engage in the business of money transmission in Connecticut;
 
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Division”), conducted an investigation pursuant to Section 36a-608(a) of the Connecticut General Statutes, as amended by Public Act 09-208, and Section 36a-17(a) of the Connecticut General Statutes into the activities of Pronto Envios 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 January 15, 2010, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes, Section 36a-608(b) of the Connecticut General Statutes, as amended by Public Act 09-208, subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, Section 36a-608(c) of the Connecticut General Statutes, as amended by Public Act 09-208, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Notice of Intent to Revoke Money Transmission License, 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 Pronto Envios, which Notice is incorporated by reference herein;
 
WHEREAS, on January 15, 2010, the Notice was sent to Pronto Envios by registered mail, return receipt requested (Registered Mail No. RB028036901US), and via facsimile;
 
WHEREAS, on January 21, 2010, Pronto Envios received the Notice sent by registered mail, and on January 27, 2010, Pronto Envios requested a hearing, which is subject to an open-ended continuance;
  
WHEREAS, the Notice alleged that Pronto Envios’ failure to transmit money or monetary value received from purchasers or to return such money or monetary value to purchasers constitutes conduct that is likely to otherwise materially prejudice the interests of purchasers, which conduct constitutes an unsafe or unsound practice, within the meaning of Section 36a-596(16) of the Connecticut General Statutes, as amended by Public Act 09-208.  Such conduct constitutes grounds for the Commissioner to revoke Pronto Envios’ license to engage in the business of money transmission in Connecticut pursuant to Section 36a-608(b) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-608(c) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-608(c) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Notice also alleged that Pronto Envios’ failure to transmit money or monetary value received from purchasers or to return such money or monetary value to purchasers fails to demonstrate that Pronto Envios’ business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes and intent of Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes and in a manner commanding the confidence and trust of the community.  Such conduct constitutes grounds for the Commissioner to revoke Pronto Envios’ license to engage in the business of money transmission in Connecticut pursuant to Section 36a-608(b) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
 
WHEREAS, the Notice alleged that Pronto Envios’ “no” responses to Question 12(b) on its 2006 and 2007 license renewal applications in light of a March 6, 2006 Cease and Desist Order issued by the State of California, Department of Financial Institutions (“California Cease and Desist”), constitute Pronto Envios knowingly making an incorrect statement of a material fact in an application made pursuant to Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes or Pronto Envios knowingly omitting to state a material fact necessary to give the Commissioner any information lawfully required by the Commissioner, which constitutes sufficient grounds for the Commissioner to refuse to issue a license to engage in the business of money transmission in Connecticut, and which constitutes grounds for the Commissioner to revoke Pronto Envios’ license to engage in the business of money transmission in Connecticut pursuant to Section 36a-608(b) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
 
WHEREAS, the Notice further alleged that Pronto Envios’ failure to promptly notify the Commissioner, in writing, of the California Cease and Desist Order and a June 6, 2007 Consent Agreement with the State of New Hampshire, Department of Banking, constitutes a failure to promptly notify the Commissioner, in writing, of any change in the information provided in the application for the most recent renewal of such license, in violation of Section 36a-598(b) of the Connecticut General Statutes, as amended by Public Act 09-208.  Such violation constitutes grounds to revoke Pronto Envios’ license to engage in the business of money transmission in Connecticut pursuant to Section 36a-608(b) of the Connecticut General Statutes, as amended, and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Section 36a-608(c) of the Connecticut General Statutes, as amended, and Section 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-608(c) of the Connecticut General Statutes, as amended, and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Pronto Envios herein represents to the Commissioner that it has fully complied with the Temporary Order to Cease and Desist contained in the Notice;
 
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, Pronto Envios voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegation 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 in the Notice and set forth herein and to resolve any and all claims between the Commissioner and Pronto Envios with prejudice, except as provided herein;
 
WHEREAS, Pronto Envios has submitted evidence demonstrating economic hardship, such that the Commissioner believes that Pronto Envios is financially incapable of paying any civil penalty that otherwise would have been assessed against it pursuant to the Notice;
 
WHEREAS, the Commissioner has determined that no civil penalty will be imposed upon Pronto Envios based on such economic hardship;
 
AND WHEREAS, Pronto Envios, 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.
 
NOW THEREFORE, the Commissioner and Pronto Envios enter into this Settlement Agreement as follows:

1. Prior to the date this Settlement Agreement is executed by the Commissioner, Pronto Envios will surrender its license No. 13953, and cease engaging in the business of money transmission in Connecticut;
2. Commencing on the date this Settlement Agreement is executed by the Commissioner, Pronto Envios shall deposit as a one-time payment One Thousand Five Hundred Dollars ($1,500) in an escrow account in a financial institution of Pronto Envios’ choosing, which shall be maintained in such account for a period of one year, for the purpose of reconciling any outstanding amount due to its agents for senders located in the state of Connecticut.  As part of this requirement, Pronto Envios shall provide proof, in writing, to the Commissioner that such account has been established within thirty (30) days after execution of this Settlement Agreement.  Nothing herein shall obligate Pronto Envios to remit any sums to any such agent beyond the escrow deposit.
3. Commencing on the date this Settlement Agreement is executed by the Commissioner, Pronto Envios is BARRED for a period of three (3) years from applying for a license to engage in the business of money transmission or to engage in the business of issuing Connecticut payment instruments in Connecticut;
4. Commencing on the date this Settlement Agreement is executed by the Commissioner, Rodger Zepka, President of Pronto Envios, is BARRED for a period of one (1) year from being a director, officer, general partner, member or sole proprietor of any entity required to be licensed under the Money Transmission Act;
5. Upon mutual execution of this Settlement Agreement, all matters herein will be forever resolved with prejudice, and the Commissioner will not take any future enforcement action against Pronto Envios based upon the allegations contained herein; provided however, that execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Pronto Envios based on the allegations contained herein if any representation made by Pronto Envios in this Settlement Agreement is subsequently discovered to be untrue or if Pronto Envios is not fully complying with any term or condition stated herein;
6. Notwithstanding paragraph 5 herein, execution of this Settlement Agreement is without prejudice to the right of the Commissioner to take enforcement action against Pronto Envios to enforce this Settlement Agreement if the Commissioner determines that Pronto Envios 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 23rd day of March 2011.              ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, _______________________, state on behalf of Envios R.D. Corp. d/b/a Pronto Envios, 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 Envios R.D. Corp. d/b/a Pronto Envios; and that Envios R.D. Corp. d/b/a Pronto Envios agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                          

                                            
                                    By:  ________/s/_________
                                           Name:  Rodger Zepka     
                                           Title:  President
                                           Envios R.D. Corp. d/b/a Pronto Envios


State of:  New Jersey

County of:  Essex

On this the 14th day of March, 2011 before me, Jo Ann Garcia the undersigned officer, personally appeared Rodger Zepka who acknowledged himself to be the President of Envios R.D. Corp. d/b/a Pronto Envios, 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 corporation by himself as Rodger Zepka.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  6/12/2013

 

I, Rodger Zepka, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and I voluntarily agree to enter into this Settlement Agreement, expressly waiving any right to a hearing on the matters described herein.                         

                                            
                                    By:  ________/s/_________
                                           Rodger Zepka     
                                           


State of:  New Jersey

County of:  Essex

On this the 14th day of March 2011, before me, Jo Ann Garcia, the undersigned officer, personally appeared Rodger Zepka, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                     ________/s/_________
                                     Notary Public
                                     Date Commission Expires:  6/12/2013


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