DOB: Envios Gomez, LLC - NOI RefRen

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IN THE MATTER OF:

ENVIOS GOMEZ, LLC
  
   ("Respondent")

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NOTICE OF INTENT TO REFUSE TO
RENEW CHECK CASHING SERVICE
LICENSE

                      AND

NOTICE OF RIGHT TO HEARING


I.  LEGAL AUTHORITY AND JURISDICTION

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 (“Regulations”).
 
Pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has investigated the activities of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner. 
 
Section 36a-17(a) of the 2012 Supplement to the General Statutes provides 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.
Subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes provide, in pertinent part, that:
(a)  The commissioner may . . . refuse to renew any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee 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 licensee 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, [or] regulations . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice.  If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . refusal to renew.
(b)  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 licensee fails to appear at the hearing.  After the hearing, the commissioner shall . . . refuse to renew the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . refusal to renew.  If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . refuse to renew the license.
Section 4-182 of the Connecticut General Statutes provides, in pertinent part, that:
(b)  When a licensee has made timely and sufficient application for the renewal of a license . . . , the existing license shall not expire until the application has been finally determined by the agency . . . .
(c)  No revocation, suspension, annulment or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license.
 
II.  MATTERS ASSERTED
 
1.
Respondent is a Connecticut limited liability company with its main office at 557 Park Street, Hartford, Connecticut.
2.
At all times relevant hereto, Respondent has been licensed to operate a general facility to engage in the business of cashing checks, drafts or money orders.
3.
At all times relevant hereto, Dennis Gomez (“Gomez”) has been the managing partner of Respondent.
4.
On August 31, 2011, Respondent filed a Renewal of Check Cashing Service License – Main Office General Facility application for the October 1, 2011 to September 30, 2013 renewal period (“Renewal Application”).
5.
On March 15, 2012, the Division sent a letter by certified mail to Respondent, pursuant to Section 4-182(c) of the Connecticut General Statutes, giving Respondent an opportunity to show compliance with all lawful requirements for the retention of its check cashing service license (“Compliance Letter”).  As part of the Compliance Letter, Respondent was requested to provide, among other things, a financial statement prepared by a CPA, including balance sheet and income statement for year end 2009 and 2010, no later than April 27, 2012.  Respondent received the Compliance Letter on March 16, 2012.
6. On May 16, 2012, an examiner with the Division spoke with Gomez by telephone and advised Respondent that it had until May 21, 2012 to provide the financial statements requested in the Compliance Letter.
7.
To date, the Commissioner has not received any of the financial statements requested, as more fully described in paragraph 5 above.
 
 
III.  STATUTORY AND REGULATORY BASIS FOR REFUSAL
TO RENEW OF CHECK CASHING SERVICE LICENSE
 
Section 36a-587(a) of the Connecticut General Statutes provides, in pertinent part, that:
The commissioner may . . . refuse to renew any license issued pursuant to section 36a-581 or take any other action, in accordance with the provisions of section 36a-51, . . . if the commissioner finds that the licensee or any owner, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following:  . . . (3) violated any provision of sections 36a-580 to 36a-589, inclusive, or any regulation promulgated under said sections; . . . .
Section 36a-588-4 of the Regulations provides that:
Each licensee shall annually file with the commissioner, an unaudited unconsolidated financial statement, including the licensee’s balance sheet and receipts and disbursements for the preceding year, prepared by an independent certified public accountant.  The statement shall be in a form of compilation or review and contain information satisfactory to the commissioner.  The commissioner may also require additional reports as deemed necessary including an audited unconsolidated financial statement.
Respondent’s failure to submit its financial statements to the Commissioner, as more fully described in paragraphs 5 through 7, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-588-4 of the Regulations, which constitutes sufficient grounds for the Commissioner to refuse to renew Respondent’s check cashing service license pursuant to Section 36a-587(a)(3) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes.
 
 
IV.  NOTICE OF INTENT TO REFUSE TO RENEW CHECK CASHING
SERVICE LICENSE AND NOTICE OF RIGHT TO HEARING
 
WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to refuse to renew Respondent’s check cashing service license pursuant to Section 36a-587(a)(3) of the Connecticut General Statutes and subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes.
 
NOW THEREFORE, notice is hereby given to Respondent that the Commissioner intends to REFUSE TO RENEW Respondent’s check cashing service license, subject to its right to a hearing on the allegation set forth above.
 
A hearing will be granted to 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 its receipt of this Notice of Intent to Refuse to Renew Check Cashing Service License and Notice of Right to Hearing as set forth in subsections (a) and (b) of Section 36a-51 of the 2012 Supplement to the General Statutes.  This Notice of Intent to Refuse to Renew Check Cashing Service License 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 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 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, August 28, 2012, 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 Respondent fails to appear at the requested hearing.  At such hearing, Respondent 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 Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order refusing to renew Respondent’s check cashing service license in Connecticut.
 
 
Issued at Hartford, Connecticut
this 25th day of June 2012.              ________/s/_________
                                                   Howard F. Pitkin
                                                   Banking Commissioner
 
 
CERTIFICATION
 
I hereby certify that on this 26th day of June 2012, the foregoing Notice of Intent to Refuse to Renew Check Cashing Service License and Notice of Right to Hearing was sent by certified mail, return receipt requested, to Envios Gomez, LLC, Attention:  Dennis Gomez, Managing Partner, 557 Park Street, Hartford, Connecticut 06106, certified mail no. 70110470000225730126.
 
 
                                                   ________/s/_________
                                                   Doniel Kitt
                                                   Prosecuting Attorney
 

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