DOB: Global Client Solutions - CO

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IN THE MATTER OF:

GLOBAL CLIENT SOLUTIONS, LLC

    ("Global")

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CONSENT ORDER        

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”, and Sections 36a-655 to 36a-665, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;
 
WHEREAS, Global is an Oklahoma limited liability company with an office at 4500 South 129th East Avenue, Suite 175, Tulsa, Oklahoma;
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the Connecticut General Statutes into the activities of Global 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, on November 30, 2011, the Commissioner, acting pursuant to Sections 36a-608(c), 36a-657(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, 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 Global, which Notice is incorporated herein by reference;
 
WHEREAS, the Notice alleges that, Global:  (1) engaged in the business of money transmission in Connecticut without a license, in violation of Section 36a-597(a) of the Connecticut General Statutes; (2) engaged in the business of debt adjustment in Connecticut without a license, in violation of Section 36a-656(a) of the Connecticut General Statutes, as amended by Public Act 11-216; (3) failed to cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes; (4) made a statement to the Commissioner which was, at the time and in the light of the circumstances under which it was made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes; and (5) made untrue statements of a material fact or omitted to a state material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, in violation of Section 36a-53b of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-53b of the Connecticut General Statutes, as amended by Public Act 11-216;
 
WHEREAS, on November 30, 2011, the Notice was mailed to Global by registered mail, return receipt requested (Registered Mail No. RA878574701US), and to counsel for Global by registered mail, return receipt requested (Registered Mail No. RA878574715US);
 
WHEREAS, Global received the Notice on December 5, 2011, and Global’s counsel received the Notice on December 6, 2011;
 
WHEREAS, on December 27, 2011, the Department received a request for a hearing on such Notice;
 
WHEREAS, such hearing is currently scheduled for April 11, 2012;
 
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, the Commissioner and Global now desire to resolve the matters alleged in the Notice and set forth herein;
 
WHEREAS, Global voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained herein and without any finding of liability or wrongdoing on behalf of Global that may result from any such proceeding;
 
WHEREAS, based on representations made by Global to the Commissioner, the Commissioner agrees that Global’s procurement of a license to engage in the business of money transmission in Connecticut would be sufficient licensure with the Department for Global’s current activities in Connecticut;
 
WHEREAS, Global and the Commissioner agree that the Notice may be used in construing the terms of this Consent Order, and agrees to the language of this Consent Order;
 
AND WHEREAS, Global, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to a hearing as it pertains to the allegations contained in the Notice and 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, Global, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. No later than the date this Consent Order is executed by Global, Global 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 Hundred Fifty Thousand Dollars ($150,000) as a civil penalty;
2. Global and its successors in interest shall immediately cease and desist from:  failing to cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes; making false or misleading statements to the Commissioner, in violation of Section 36a-53a of the Connecticut General Statutes; and making false or misleading statements in violation of Section 36a-53b of the Connecticut General Statutes.  No later than sixty (60) days after the date this Consent Order is executed by Global, Global and its successors in interest 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;
3.
Global and its successors in interest (for purposes of this provision, collectively, “Global”) shall institute procedures to reasonably ensure that the debt negotiation companies with which it does business in Connecticut (“DNEGs”) are either duly licensed or exempt from debt negotiation licensing in Connecticut, including, but not limited to:
 
a. No later than the date this Consent Order is executed by Global, Global shall send a notice to all DNEGs advising them that as of May 16, 2012, Global will no longer process DNEG fee disbursements on behalf of Connecticut residents who have engaged such DNEG, unless, prior to May 16, 2012, such DNEG advises Global, in writing, that it is licensed or exempt from debt negotiation licensing in Connecticut;
b. No later than May 25, 2012, Global shall provide copies of all written responses received from such DNEGs pursuant to paragraph (3)(a) to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov;
c.
Effective May 16, 2012, Global shall no longer process fee disbursements to a DNEG, unless such DNEG has advised Global, in writing, that it is licensed or exempt from debt negotiation licensing in Connecticut.  In addition, Global shall cease processing fee disbursements to a DNEG if the Commissioner notifies Global that (1) such DNEG is not licensed in Connecticut, (2) the Commissioner has issued a final decision ordering such DNEG to cease and desist from violating Section 36a-671 of the Connecticut General Statutes, or (3) the Commissioner has issued an advisory opinion indicating such DNEG is not exempt;
d. Effective ninety (90) days after the date this Consent Order is executed by Global, Global shall cease receiving its monthly service fees from the disbursement account of any Connecticut resident who is no longer actively participating in a debt settlement program as a result of Global no longer processing fee disbursements to the DNEG, pursuant to paragraph (3)(c) above, and shall promptly return all monies held in such accounts on behalf of Connecticut residents;
e. Upon execution of this Consent Order by Global, Global shall no longer accept new agreements to establish disbursement accounts and process payments on behalf of Connecticut residents who have engaged a DNEG, unless prior to such acceptance, such DNEG has advised Global, in writing, that it is licensed or exempt from debt negotiation licensing in Connecticut; and
f. For a period of eighteen (18) months from the date this Consent Order is executed by Global, Global shall provide copies of all written responses received from DNEGs advising Global that the DNEG is licensed or exempt from debt negotiation licensing in Connecticut to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov.
4.
For the three (3) month period commencing on the date this Consent Order is executed by Global, Global and its successors in interest shall waive all monthly service fees for all existing customers who are Connecticut residents and who have engaged Global or a successor in interest to establish a disbursement account and process payments in connection with a debt settlement program.
 

CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are hereby entered;
2. 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 Global based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Global 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 Global and reflected herein is subsequently discovered to be untrue;
3.
Nothing in the issuance of this Consent Order shall adversely affect the ability of Global 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
4.
This Consent Order shall become final when issued.
 

Issued at Hartford, Connecticut
this 11th day of April 2012.                ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner


 

I, Brent Hampton, state on behalf of Global Client Solutions, LLC, 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 Global Client Solutions, LLC; that Global Client Solutions, LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Global Client Solutions, LLC voluntarily agrees to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.


                                            By:  ________/s/_________
                                                   Name:  Bremt Hampton
                                                   Title:  VP & General Counsel
                                                   Global Client Solutions, LLC
                                                   
                                                   

State of:  Oklahoma
                                     
County of:  Tulsa

On this the 8th day of April 2012, before me, Maria S. Isaza, the undersigned officer, personally appeared Brent Hampton who acknowledged himself/herself to be the VP & General Counsel of Global Client Solutions, LLC, and that he/she as such VP & General Counsel, 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/herself as VP & General Counsel.

In witness whereof I hereunto set my hand.


                                         ________/s/_________
                                         Notary Public
                                         Date Commission Expires:  6-20-2015
                                         


Administrative Orders and Settlements