DOB: Geneva-Roth Ventures, Inc. - CD-CP

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IN THE MATTER OF:

GENEVA-ROTH VENTURES, INC.
a/k/a GENEVA-ROTH CAPITAL, INC.
d/b/a LOAN POINT USA

    ("Respondent")

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ORDER TO CEASE AND DESIST

AND

ORDER IMPOSING CIVIL PENALTY


I.  PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part III of Chapter 668, Sections 36a-555 to 36a-573, inclusive, of the Connecticut General Statutes, “Small Loan Lenders”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the 2012 Supplement to the Connecticut General Statutes, 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 August 22, 2012, the Commissioner, acting pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes and Sections 36a-52(a), 36a-52(b) 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 Respondent, which Notice is incorporated herein by reference;
 
WHEREAS, on August 22, 2012, the Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail Nos. 70110470000225730607 and 70110470000225730614), Respondent’s attorney (Certified Mail No. 70110470000225730621) and Respondent’s registered agent (Certified Mail No. 70110470000225730751);
 
WHEREAS, the Notice provided Respondent with the opportunity for a hearing and stated that if a hearing was not requested within 14 days of its receipt, the Commissioner would issue an order that Respondent cease and desist from violating Section 36a-555 of the Connecticut General Statutes and Section 36a-573(a) of the Connecticut General Statutes, in effect prior to October 1, 2011, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent;
 
WHEREAS, on August 24, 2012, the Notice was received by Respondent’s agent; on August 25, 2012, the Notice was received by Respondent; and on August 27, 2012, the Notice was received by Respondent’s attorney;
 
WHEREAS, no request for a hearing has been received by the Commissioner;
 
WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondent’s offering and making at least two loans in Connecticut without obtaining the required license constitutes two violations of Section 36a-555 of the Connecticut General Statutes, which 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 upon Respondent pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner also alleged in the Notice, with respect to the activity described therein, that Respondent’s charging Connecticut residents an interest rate of greater than 12% on loans in amounts less than $15,000 constitutes two violations of Section 36a-573(a) of the Connecticut General Statutes, in effect prior to October 1, 2011, which forms the basis to issue an order to cease and desist pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and impose a civil penalty upon Respondent pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f 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”;
 
WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f 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”;
 
WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”;
 
AND WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”.


II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

1.
The Commissioner finds that the matters asserted, as set forth in paragraphs 1 through 4, inclusive, of Section II of the Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions, as set forth in paragraphs 1 and 2 of Section III of the Notice shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations of Connecticut State Agencies.
2.
The Commissioner finds that Respondent has engaged in acts or conduct which, pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against Respondent, and, pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Respondent.
3.
The Commissioner finds that the Notice was given in compliance with Sections 36a-52(a), 36a-50(a) and 4-177 of the Connecticut General Statutes.


III.  ORDER

Having read the record, I HEREBY ORDER, pursuant to Section 36a-573(c) of the 2012 Supplement to the General Statutes, and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, that:

1.
Geneva-Roth Ventures, Inc. a/k/a Geneva-Roth Capital, Inc. d/b/a Loan Point USA CEASE AND DESIST from violating Section 36a-555 of the Connecticut General Statutes and Section 36a-573(a) of the Connecticut General Statutes, in effect prior to October 1, 2011;
2.
A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed against Geneva-Roth Ventures, Inc. a/k/a Geneva-Roth Capital, Inc. d/b/a Loan Point USA, to be remitted to the Department of Banking by cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than thirty (30) days from the date this Order is mailed; and
3.
This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 6th day of February 2013.                   ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner



This Order was sent by certified mail,
return receipt requested, to Respondent, its attorney
and its registered agent on February 7, 2013


Geneva-Roth Ventures, Inc.                      Certified Mail No. 70110470000225729601
a/k/a Geneva-Roth Capital, Inc.
d/b/a Loan Point USA
6950 W. 56th Street
Mission, KS 66202

Geneva-Roth Ventures, Inc.                      Certified Mail No. 70110470000225729618
a/k/a Geneva-Roth Capital, Inc.
d/b/a Loan Point USA
1338 S. Foothill Drive, Suite 325
Salt Lake City, UT 84108

Robert J. Hoffman, Esq.                            Certified Mail No. 70110470000225729625
Bryan Cave LLP
One Kansas City Place
1200 Main Street, Suite 3500
Kansas City MO 64105-2100

National Registered Agents, Inc.                Certified Mail No. 70121010000172645540
160 Greentree Drive, Suite 101
Dover, DE 19904


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