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IN THE MATTER OF:
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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” (“Act”);
WHEREAS, OPC is a Delaware corporation that is not currently licensed to engage in the business of issuing Connecticut payment instruments or to engage in the business of money transmission in Connecticut under Part V of Chapter 668, Sections 36a-595, et seq., of the Connecticut General Statutes;
WHEREAS, by letter dated December 12, 2006, counsel for OPC inquired of the Department of Banking (“Department”) whether OPC’s activities would require licensure under the Act;
WHEREAS, by letter dated December 19, 2007, this Department opined that OPC’s proposed activities would constitute engaging in the business of receiving money for current or future transmission and would require licensure under the Act;
WHEREAS, on February 20, 2009, OPC filed an application to engage in the business of money transmission (“Application”) with the Commissioner, which Application is currently pending;
WHEREAS, the Commissioner, through the Consumer Credit Division of the Department, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of OPC in connection with its Application, 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 investigation, the Commissioner alleges that during the period of at least January 2008 through October 2011, OPC engaged in the business of money transmission in Connecticut without the required license, in violation of Section 36a-597(a) of the Connecticut General Statutes;
WHEREAS, the Commissioner believes that such allegation would support the initiation of enforcement proceedings against OPC, including proceedings to issue a cease and desist order against OPC pursuant to Sections 36a-608(c) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty on OPC pursuant to Sections 36a-608(c) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) 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 consent order, unless precluded by law;
WHEREAS, both the Commissioner and OPC acknowledge the possible consequences of formal administrative proceedings, and OPC voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, OPC represents that it has instituted a comprehensive Anti-Money Laundering and Bank Secrecy Act Compliance Program and utilizes a legal advisory update service to apprise itself of Connecticut laws concerning money transmission and any amendments thereto;
WHEREAS, OPC specifically assures the Commissioner that the violation alleged herein shall not occur in the future;
AND WHEREAS, OPC, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for a hearing as it pertains to the allegation set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, OPC, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:
||No later than the date this Consent Order is executed by OPC, OPC 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 Sixty Thousand Dollars ($60,000) as a civil penalty; and|
||OPC shall cease and desist from engaging in the business of money transmission in Connecticut without a license in violation of Section 36a-597(a) of the Connecticut General Statutes.|
NOW THEREFORE, the Commissioner enters the following:
||The Sanctions set forth above be and are hereby entered;|
||Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against OPC based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against OPC based upon a violation of this Consent Order or the matters underlying its entry, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made by OPC and reflected herein is subsequently discovered to be untrue;|
Nothing in the issuance of this Consent Order shall adversely affect the ability of OPC to apply for or obtain an original license or renewal license under Part V of Chapter 668, Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes; and
This Consent Order shall become final when issued.
Dated at Hartford, Connecticut
this 23rd day of December 2011. ________/s/_________
Howard F. Pitkin
I, Jeffrey W. Hodges, state on behalf of Official Payments Corporation, that I have read the foregoing Consent Order; that I know and fully understand its contents; that I am authorized to execute this Consent Order on behalf of Official Payments Corporation; that Official Payments Corporation agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Official Payments Corporation voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.
Name: Jeffrey W. Hodges
Official Payments Corporation
State of: Virginia
County of: Fairfax
On this the 28th day of November 2011, before me, Suzanne Elizabeth Campbell Rapp, the undersigned officer, personally appeared Jeffrey W. Hodges who acknowledged himself/herself to be the CFO of Official Payments Corporation, and that he/she as such CFO, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself/herself as CFO.
In witness whereof I hereunto set my hand.
Date Commission Expires: June 30, 2012
Administrative Orders and Settlements