DOB: Namakan Capital, LLC - CD-CP

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IN THE MATTER OF:

NAMAKAN CAPITAL, LLC

    ("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”, and the regulations adopted thereunder (Sections 36a-570-1 to 36a-570-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondent, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner;

WHEREAS, on April 1, 2013, the Commissioner, acting pursuant to Sections 36a-52(b), 36a-50(c), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order to Make Restitution (“Order to Make Restitution”), Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively “Order and Notice”) against Respondent, which Order and Notice is incorporated herein by reference;
 
WHEREAS, on April 2, 2013, the Order and Notice was sent by certified mail, return receipt requested, to Respondent (Certified Mail No. 70121010000172645816), and to Respondent’s counsel (Certified Mail No. 70121010000172645823);
 
WHEREAS, the Order and Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested by Respondent within 14 days of Respondent’s receipt, the Order to Make Restitution shall remain in effect and become permanent against Respondent and the Commissioner would issue an order that Respondent cease and desist from violating Sections 36a-555 and 36a-573(a) of the Connecticut General Statutes, 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 April 5, 2013, Respondent’s counsel received the Order and Notice; and on April 16, 2013, the Order and Notice sent to Respondent was returned to the Department marked “Return to Sender – Attempted – Not Known – Unable to Forward”, and no request for a hearing was received by the Commissioner;
 
WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that Respondent’s offering and making at least one loan in Connecticut without obtaining the required license constitutes a violation of Section 36a-555 of the Connecticut General Statutes.  Such violation 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 pursuant to Section 36a-50(a) of the Connecticut General Statutes.  

WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that Respondent’s contracting for and charging an interest rate greater than 12% on a loan to a Connecticut resident in an amount less than $15,000 constitutes a violation of Section 36a-573(a) of the Connecticut General Statutes.  Such violation forms the basis to issue an order to cease and desist pursuant to Sections 36a-573(c) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Sections 36a-573(c) and 36a-50(a) of the Connecticut General Statutes.  
 
WHEREAS, also in the Order and Notice, the Commissioner ordered, pursuant to Section 36a-50(c) of the Connecticut General Statutes, that not later than 45 days from the date the Order to Make Restitution becomes permanent, Respondent repay any interest in excess of 12% received by Respondent, on or after October 1, 2009, from the Connecticut resident identified in Exhibit A to the Order and Notice or from any other Connecticut resident in connection with a consumer loan, and provide evidence of such repayment to the Director of the Consumer Credit Division; 
 
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Respondent on April 20, 2013;
 
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, in pertinent part, 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 Order and 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 Order and 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-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-50(a) of the Connecticut General Statutes, forms the basis to impose a civil penalty upon Respondent.
3.
The Commissioner finds that the Order and Notice was given in compliance with Section 36a-52(a), subsections (a) and (c) of Section 36a-50 and Section 4-177 of the Connecticut General Statutes.


III.  ORDER

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

1.
Namakan Capital, LLC CEASE AND DESIST from violating Sections 36a-555 and 36a-573(a) of the Connecticut General Statutes;
2.
A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Namakan Capital, LLC 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 16th day of May 2013.                       ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner



This Order was sent by certified mail,
return receipt requested, to Respondent
and Respondent’s counsel
on May 16, 2013.


Namakan Capital, LLC                              Certified Mail No. 70123050000216929492
2601 Madison Avenue
Kansas City, Missouri 64108

Namakan Capital, LLC                              Certified Mail No. 70123050000216929508
c/o John Mullen, Esq.
Franke, Schultz & Mullen
8900 Ward Parkway
Kansas City, Missouri 64114


Administrative Orders and Settlements