DOB: AmerAssist A/R Solutions, Inc. - Mod CO

* * * * * * * * * * * * * * * * * * * * *

IN THE MATTER OF:

AMERASSIST A/R SOLUTIONS, INC.

     ("AmerAssist")

* * * * * * * * * * * * * * * * * * * * *

*
*
*
*
*
*
*
*
*

 MODIFICATION TO CONSENT ORDER
DATED AUGUST 20, 2013                    

("Consent Order Modification")          

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder (Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”);

WHEREAS, AmerAssist is a Nevada corporation with its main office at 445 Hutchinson Avenue, Suite 500, Columbus, Ohio;

WHEREAS, AmerAssist held a license to act as a consumer collection agency in this state (License No. 16826), and surrendered its license to the Department of Banking on June 17, 2013;
 
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an examination of AmerAssist pursuant to 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, as a result of such examination, on May 1, 2013, the Commissioner, acting pursuant to Section 36a-804, subsections (a) and (b) of Section 36a-52, subsections (a) and (b) of Section 36a-51, and Sections 4-182(c) and 36a-50(a) of the Connecticut General Statutes, issued a Temporary Order to Cease and Desist, Order of Summary Suspension, Order to Make Restitution, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing against AmerAssist (collectively “Notice”), which Notice is incorporated by reference herein;
 
WHEREAS, on August 20, 2013, the Commissioner issued a Consent Order against AmerAssist to resolve the matters alleged in the Notice (“August Consent Order”);
 
WHEREAS, the August Consent Order required, among other sanctions, that:

1.  AmerAssist shall remit to the Department of Banking the sum of Forty Thousand Dollars ($40,000) as a civil penalty by cashier's check, certified check or money order made payable to "Treasurer, State of Connecticut" in three installments as follows:  (a) The first payment of Ten Thousand Dollars ($10,000) shall be remitted no later than the date this Consent Order is executed by AmerAssist; (b) the second payment of Fifteen Thousand Dollars ($15,000) shall be remitted no later than thirty (30) days after the date this Consent Order is issued by the Commissioner; and (c) the third payment of Fifteen Thousand Dollars ($15,000) shall be remitted no later than sixty (60) days after the date this Consent Order is issued by the Commissioner.  Failure to remit such payments shall be cause for the Commissioner to not accept AmerAssist's surrender pursuant to paragraph (3) below;. . .
 
3.  AmerAssist’s surrender of its license shall only become effective upon remittance of all payments required pursuant to paragraph (1) above and the issuance of an Order Accepting Surrender by the Commissioner;

WHEREAS, upon AmerAssist’s execution of the August Consent Order, AmerAssist made the first payment of $10,000, but has failed to make the next two payments of $15,000;
 
WHEREAS, the August Consent Order also stated, in pertinent part, that:

[I]ssuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action 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 herein is subsequently discovered to be untrue;

WHEREAS, the Commissioner alleges that AmerAssist, by executing the August Consent Order in which it agreed to make two payments of $15,000 but then subsequently failing to do so, made a misrepresentation and statement which was, at the time and in the light of the circumstances under which it is made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke AmerAssist’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections(a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner also alleges that AmerAssist’s failure to make the two payments of $15,000 required by the August Consent Order constitutes a violation of an order of the Commissioner, which forms the basis to issue an order to cease and desist pursuant to Section 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty pursuant to Section 36a-50(a) of the Connecticut General Statutes;
 
WHEREAS, the Commissioner also alleges that such conduct demonstrates that AmerAssist lacks the good moral character and financial responsibility required of licensees pursuant to Section 36a-801(b)(1) of the Connecticut General Statutes, as amended by Public Act 13-253, which constitutes sufficient grounds for the Commissioner to revoke AmerAssist’s consumer collection agency license in Connecticut pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
 
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, AmerAssist has represented that, despite its best efforts, it has insufficient financial resources to make the payments required by the August Consent Order and has requested a modification thereof;
 
WHEREAS, the Commissioner and AmerAssist now desire to resolve the matters alleged in the Notice, the August Consent Order and set forth herein;
 
WHEREAS, AmerAssist agrees that the Notice and August Consent Order may be used in construing the terms of this Consent Order Modification and agrees to the language of this Consent Order Modification;
 
WHEREAS, AmerAssist voluntarily agrees to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the Notice, the August Consent Order and set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations contained in the Notice, the August Consent Order and set forth herein;
 
AND WHEREAS, AmerAssist, through its execution of this Consent Order Modification, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegations and sanctions set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order Modification.


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, AmerAssist, through its execution of this Consent Order Modification, consents to the Commissioner’s entry of a consent order imposing the following sanctions:

1.  Paragraph (1) of the "Consent to Entry of Sanctions" within the August Consent Order is
     hereby modified to require that:

     a.  AmerAssist shall remit to the Department of Banking the sum of Forty Thousand
          Dollars ($40,000) as a civil penalty by cashier's check, certified check or money order
          made payable to "Treasurer, State of Connecticut" in six installments as follows:
          (a) The first payment of Ten Thousand Dollars ($10,000) shall be remitted no later  
          than the date the August Consent Order is executed by AmerAssist; (b) a payment
          of Ten Thousand Dollars ($10,000) shall be remitted no later than the date this
          Consent Order Modification is executed by AmerAssist; (c) a payment of Five
          Thousand Dollars ($5,000) shall be remitted no later than January 3, 2014; (e) a
          payment of Five Thousand Dollars ($5,000) shall be remitted no later than
          February 28, 2014; and (f) a payment of Five Thousand Dollars ($5,000) shall be
          remitted no later than March 31, 2014; and

     b.  In the event that AmerAssist fails to remit any of the payments required pursuant to
          paragraph (a) above, AmerAssist's license to act as a consumer collection agency in
          Connecticut shall be SUMMARILY REVOKED, without any further notice or 
          opportunity for hearing.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are hereby entered as a modification to Paragraph 1 of the “Consent to Entry of Sanctions” within the August Consent Order;
2. All other terms and conditions of the August Consent Order shall remain in effect;
3. Upon issuance of this Consent Order Modification by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against AmerAssist based upon the allegations contained herein; provided that issuance of this Consent Order Modification is without prejudice to the right of the Commissioner to take enforcement action based upon a violation of this Consent Order Modification or the matters underlying its entry, including, but not limited to, action pursuing collection of the civil penalty ordered herein, if the Commissioner determines that compliance with the terms herein is not being observed or if any representation made herein is subsequently discovered to be untrue; and
4. This Consent Order Modification shall become final when issued.


Issued at Hartford, Connecticut
this 13th day of December 2013.   

_______/s/_________
Howard F. Pitkin
Banking Commissioner



I, Kenneth E. Monnett, state on behalf of AmerAssist A/R Solutions, Inc., that I have read the foregoing Consent Order Modification; that I know and fully understand its contents; that I am authorized to execute this Consent Order Modification on behalf of AmerAssist A/R Solutions, Inc.; that AmerAssist A/R Solutions, Inc. agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that AmerAssist A/R Solutions, Inc. voluntarily agrees to enter into this Consent Order Modification, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                 By:  ________/s/________
                                                        Name:  Kenneth E. Monnett
                                                        Title:  President
                                                        AmerAssist A/R Solutions, Inc..

State of:  Ohio

County of:  Franklin


On this the 6th day of December 2013, before me, a Notary Public, the undersigned officer, personally appeared Kenneth E. Monnett who acknowledged himself to be the President of AmerAssist A/R Solutions, Inc., a Nevada corporation, and that he, as such President, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as AmerAssist A/R Solutions, Inc.

In witness whereof I hereunto set my hand.


                                                       _________/s/_________
                                                       Notary Public  
                                                       Date Commission Expires:  01/24/2015


Administrative Orders and Settlements