DOB: The Mortgage Law Group, LLP - CO

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IN THE MATTER OF:

THE MORTGAGE LAW GROUP, LLP   
a/k/a THE LAW FIRM OF MACEY,
ALEMAN & SEARNS
     ("Mortgage Law Group")

ATTORNEY PROCESSING
SOLUTIONS, LLC
     ("Attorney Processing Solutions")       

     (collectively, "Respondents")

   
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CONSENT ORDER        

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Sections 36a-671 to 36a-671e, inclusive, of the Connecticut General Statutes contained in Part II of Chapter 669 of the Connecticut General Statutes, “Debt Adjusters and Debt Negotiation”;

WHEREAS, Mortgage Law Group is a Nevada limited liability partnership with offices at Willis Tower, 233 South Wacker Drive, Suite 5150, Chicago, Illinois; and 17767 North Perimeter Drive, Suite B101, Scottsdale, Arizona;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation pursuant to Section 36a-17(a) of the 2012 Supplement to the General Statutes into the activities of Respondents to determine if they had violated, were violating or were about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, on April 24, 2012, the Commissioner, acting pursuant to Section 36a-52(b) of the Connecticut General Statutes, Section 36a-671a(b) of the 2012 Supplement to the General Statutes 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 Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Notice”) against Respondents, which Notice is incorporated herein by reference;

WHEREAS, on April 24, 2012, the Notice was sent by certified mail, return receipt requested, to Mortgage Law Group (Certified Mail No. 70112000000247358284), Mortgage Law Group’s registered agent (Certified Mail No. 70112000000247358291) and Mortgage Law Group’s attorney (Certified Mail No. 70112000000247358321);

WHEREAS,
on April 24, 2012, the Notice was sent by certified mail, return receipt requested, to Attorney Processing Solutions (Certified Mail No. 70112000000247358307) and to Attorney Processing Solutions’ registered agent (Certified Mail No. 70112000000247358314);

WHEREAS, the Notice provided Respondents with the opportunity for a hearing, and stated that if a hearing was not requested by a Respondent within 14 days of each Respondent’s receipt, the Commissioner would issue an order that such Respondent cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, may issue an order of repayment of fees, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon such Respondent;

WHEREAS, on April 25, 2012, Mortgage Law Group’s attorney received the Notice; on April 27, 2012, Mortgage Law Group’s agent received the Notice; and on May 8, 2012, Mortgage Law Group received the Notice.  On May 3, 2012, Mortgage Law Group requested a hearing, which hearing is currently subject to an open-ended continuance;

WHEREAS, on April 26, 2012, Attorney Processing Solutions’ agent received the Notice and on April 30, 2012, Attorney Processing Solutions received the Notice, and no request for a hearing has been received by the Commissioner from Attorney Processing Solutions;

WHEREAS, the Commissioner alleged in the Notice, with respect to the activity described therein, that Respondents’ engaging in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011.  Such violation forms the basis to issue an order to cease and desist pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, Mortgage Law Group maintains that it is exempt from such licensure and denies that it has violated any Connecticut laws;
 
WHEREAS, as part of the Temporary Order, the Commissioner ordered, pursuant to Section 36a-52(b) of the Connecticut General Statutes, that not later than 10 days from receipt of the Notice, that Respondents provide to Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov, a list of all Connecticut residents with whom they had entered into agreements for debt negotiation services to date where such agreements were entered into on and after October 1, 2009, including (a) a copy of each agreement, and (b) each debtor’s name and address and full itemization of each debtor’s payments made pursuant to the agreement, specifying the dates, amounts and to whom such payments were made;
 
WHEREAS, under cover of letters dated July 26 and July 31, 2012, Mortgage Law Group provided copies of retainer agreements that it has entered into with thirty-nine (39) Connecticut residents;
 
WHEREAS, on September 12, 2012, the Commissioner, acting pursuant to Section 36a-671a(b) of the 2012 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued an Order to Cease and Desist and Order Imposing Civil Penalty against Attorney Processing Solutions;
 
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 Mortgage Law Group now desire to resolve the matters alleged against it in the Notice and set forth herein;
 
WHEREAS, Mortgage Law Group voluntarily agrees to consent to the entry of the settlement 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 allegation against it contained in the Notice and set forth herein;
 
WHEREAS, Mortgage Law Group herein represents that as of November 7, 2012, Mortgage Law Group completed the servicing of its final Connecticut-resident client, and from and after such date ceased and desisted from engaging or offering to engage in debt negotiation in this state;
 
WHEREAS, Mortgage Law Group agrees 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, Mortgage Law Group, 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 allegation against it 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 AND SETTLEMENT AGREEMENT

WHEREAS, Mortgage Law Group, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order as follows:
 
1. No later than the date this Consent Order is executed by Mortgage Law Group, Mortgage Law Group 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 Seven Thousand Five Hundred Dollars ($7,500);
2. Mortgage Law Group shall immediately cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, in effect prior to October 1, 2011, and Section 36a-671(b) of the 2012 Supplement to the General Statutes; and
3. No later than sixty (60) days following the date this Consent Order is executed by Mortgage Law Group, Mortgage Law Group shall repay monies to the Connecticut residents in the amounts identified in Exhibit A attached hereto, and shall provide evidence of such repayments to Carmine Costa, Division Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Agreement set forth above be and is hereby entered;
2. Upon issuance of this Consent Order by the Commissioner, this Consent Order will constitute a complete settlement and release on behalf of the Department of Banking against Mortgage Law Group and its equity-holders, partners, employees and attorneys with respect to all claims, causes of action, penalties and costs that were or could have been asserted prior to the effective date of this Consent Order, and relating to or based upon the subject matter of this Consent Order; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Mortgage Law Group 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 Mortgage Law Group and reflected herein is subsequently discovered to be untrue;
3. Nothing contained herein may be construed as an admission of any violation of law, or of any liability or wrongdoing by Mortgage Law Group or any of its equity-holders, partners, employees or attorneys.  This Consent Order constitutes the settlement of disputed claims.  It does not and shall not constitute an admission of liability by Mortgage Law Group and shall not be used by the Department of Banking or any other person or entity in any litigation or proceeding for that purpose.  Mortgage Law Group’s equity-holders, partners, employees and attorneys shall be included in this Consent Order only to the extent that they continue to comply with all applicable laws, and there has been no finding of liability against them; and
4.
This Consent Order shall become final when issued.



Issued at Hartford, Connecticut
this 27th day of March 2013.              ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Jeffrey Aleman, state on behalf of The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns, 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 The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns; that The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns agrees freely and without threat or coercion of any kind to comply with the sanction entered and terms and conditions ordered herein; and that The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns 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:  Jeffrey Aleman
                                                     Title:  Partner
                                                     The Mortgage Law Group, LLP a/k/a The Law Firm
                                                     of Macey, Aleman & Searns


                                                    
State of:  Illinois

County of:  Cook


On this the 19th day of March 2013, before me, Virginia Uriostegui, the undersigned officer, personally appeared Jeffrey Aleman, who acknowledged himself to be the Partner of The Mortgage Law Group, LLP a/k/a The Law Firm of Macey, Aleman & Searns, and that he, as such Partner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the law firm by himself as Partner.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  6/21/15



Administrative Orders and Settlements