DOB: Heppner, Charles Thomas - CD-CP

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IN THE MATTER OF:

CHARLES THOMAS HEPPNER
NMLS # 386451
("Heppner")

COMMERCIAL LOAN
SOLUTIONS, LLC
("CLS")

    (collectively, "Respondents")

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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 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, the Commissioner, through the Consumer Credit Division of the Department of Banking (“Department”), conducted an investigation of the activities of Respondents, pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, 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 May 15, 2013, the Commissioner, acting pursuant to Sections 36a-671a(b), 36a-50(c), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued an 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 Respondents, which Order and Notice is incorporated herein by reference;
 
WHEREAS, on May 16, 2013, the Order and Notice was sent by certified mail, return receipt requested, to Heppner (Certified Mail Nos. 70121010000172645922, 70121010000172645939 and 70121010000172645984) and to CLS (Certified Mail No. 70121010000172645946);
 
WHEREAS, the Order and Notice provided Heppner with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of his receipt, the Order to Make Restitution shall remain in effect and become permanent against Heppner and the Commissioner would issue an order that Heppner cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and Section 36a-671e(b) 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 Heppner;
 
WHEREAS, the Order and Notice provided CLS with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the Order to Make Restitution shall remain in effect and become permanent against CLS and the Commissioner would issue an order that CLS cease and desist from violating Section 36a-671(b) 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 CLS;
 
WHEREAS, on May 18 and May 22, 2013, Heppner received the Order and Notice sent by Certified Mail Nos. 70121010000172645922 and 70121010000172645939;
 
WHEREAS, on May 20, 2013, CLS received the Order and Notice;
 
WHEREAS, Respondents failed to request a hearing within the prescribed time period;
 
WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that Respondents’ engaging in debt negotiation in this state without obtaining the required license constitutes violations of Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011.  Such violations form the basis to issue an order to cease and desist against each Respondent pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution against each Respondent pursuant to Sections 36a-671a(b) and 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty against each Respondent pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner further alleged in the Order and Notice, with respect to the activity described therein, that Heppner’s engaging in debt negotiation of a residential mortgage loan without being licensed as a mortgage loan originator in Connecticut constitutes a violation of Section 36a-671e(b) of the Connecticut General Statutes, which forms the basis to issue an order to cease and desist pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, issue an order to make restitution against pursuant to Sections 36a-671a(b) and 36a-50(c) of the Connecticut General Statutes, and impose a civil penalty pursuant to Sections 36a-671a(b) 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 30 days from the date the Order to Make Restitution becomes permanent, Respondents repay identified Connecticut residents a specified amount plus interest, and repay any other Connecticut resident who entered into an agreement for debt negotiation services with CLS on and after October 1, 2009, any fees paid to CLS or Heppner by such resident plus interest, and provide evidence of such repayments to the Director of the Consumer Credit Division;
 
WHEREAS, the Order to Make Restitution remains in effect and became permanent against CLS on June 4, 2013;
 
WHEREAS, the Order to Make Restitution remains in effect and became permanent against Heppner on June 2, 2013;
 
WHEREAS, neither Heppner nor CLS has provided evidence of repayments of fees to the Director;
 
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 7, 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 Respondents have engaged in acts or conduct which, pursuant to Sections 36a-671a(b) and 36a-52(a) of the Connecticut General Statutes, forms the basis to issue an order to cease and desist against each Respondent, and, pursuant to Sections 36a-671a(b) and 36a-50(a) of the Connecticut General Statutes forms the basis to impose a civil penalty upon each 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-671a(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes that:

1.
Charles Thomas Heppner CEASE AND DESIST from violating Sections 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011, and 36a-671e(b) of the Connecticut General Statutes;
2.
Commercial Loan Solutions, LLC CEASE AND DESIST from violating Section 36a-671(b) of the Connecticut General Statutes in effect prior to October 1, 2011;
3.
A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Charles Thomas Heppner 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;
4. A CIVIL PENALTY of One Hundred Thousand Dollars ($100,000) be imposed upon Commercial Loan Solutions, 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
5. This Order shall become effective when mailed.

Dated at Hartford, Connecticut
this 7th day of October 2013.
                                                            ________/s/_________
                                                            Howard F. Pitkin
                                                            Banking Commissioner



This Order was sent by certified mail,
return receipt requested, to
Respondents on October 8, 2013.


Charles Thomas Heppner                     Certified mail no. 70020860000215459939
5482 Wilshire Boulevard, Suite 1596
Los Angeles, CA 90036

Charles Thomas Heppner                     Certified mail no. 70020860000215459946
5551 West 6th Street, Suite 3117
Los Angeles, CA 90036

Charles Thomas Heppner                     Certified mail no. 70020860000215459953
16350 Ventura Boulevard, Suite 446
Encino, CA 91436

Commercial Loan Solutions, LLC            Certified mail no. 70020860000215459960
5482 Wilshire Boulevard, Suite 1596
Los Angeles, CA 90036


Administrative Orders and Settlements