DOB: Falcon Funding LLC - CO

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IN THE MATTER OF:

FALCON FUNDING LLC
NMLS # 842865
("Falcon Funding")
 
DEBORAH ANN MOXAM
NMLS # 74194
("Moxam")

IAN M. WILLIAMS
NMLS # 93397
("Williams")

      (collectively "Respondents")
   
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CONSENT ORDER        

WHEREAS, Falcon Funding is a Connecticut limited liability company which is licensed as a mortgage broker in Connecticut, which license was summarily suspended on March 7, 2016 pursuant to an Order of Summary Suspension;

WHEREAS, Moxam is an individual who is licensed as a mortgage loan originator in Connecticut, which license was summarily suspended on March 7, 2016 pursuant to an Order of Summary Suspension;

WHEREAS, Williams is an individual who is licensed as a mortgage loan originator in Connecticut, which license was summarily suspended on March 7, 2016 pursuant to an Order of Summary Suspension;

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part I of Chapter 668, Sections 36a-485 to 36a-534c, inclusive, of the Connecticut General Statutes, “Mortgage Lenders, Correspondent Lenders, Brokers and Loan Originators”;

WHEREAS, the Commissioner, through the Consumer Credit Division of the Department of Banking, investigated the activities of Respondents pursuant to Sections 36a-17 and 36a-498f 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, as a result of such investigation, on March 7, 2016, the Commissioner issued a Temporary Order to Cease and Desist, pursuant to Section 36a-52(b) of the Connecticut General Statutes, Order of Summary Suspension, pursuant to Sections 36a-51(a) and 4-182(c) of the Connecticut General Statutes, Notice of Intent to Revoke Mortgage Broker License, pursuant to Sections 36a-494(a)(1), 36a-494(a)(1)(B) and 36a-494(a)(1)(C) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, Notice of Intent to Revoke Mortgage Loan Originator Licenses, pursuant to Section 36a-494(a)(2) of the 2016 Supplement to the General Statutes and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, Notice of Intent to Issue Order to Cease and Desist, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-52(a) of the Connecticut General Statutes, and Notice of Intent to Impose Civil Penalty, pursuant to subdivisions (1), (2) and (3) of Section 36a-494(b) of the 2016 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes, and Notice of Right to Hearing (collectively “Order and Notice”) against Respondents;

WHEREAS, pursuant to Section 36a-1-22 of the Regulations of Connecticut State Agencies, the Commissioner found that additional facts warranted the issuance of an Amended and Restated Temporary Order to Cease and Desist, Amended and Restated Order of Summary Suspension, Amended and Restated Notice of Intent to Revoke Mortgage Broker License, Amended and Restated Notice of Intent to Revoke Mortgage Loan Originator Licenses, Amended and Restated Notice of Intent to Issue Order to Cease and Desist, and Amended and Restated Notice of Intent to Impose Civil Penalty (collectively, “Amended and Restated Order and Notice”) against Respondents, which Amended and Restated Order and Notice was issued on May 2, 2016, and which is incorporated herein by reference;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding failed to produce loan files during an examination, in violation of Section 36a-498f(f) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Moxam, as an owner, control person, qualified individual and as a mortgage loan originator at Falcon Funding, failed to produce loan files during an examination, in violation of Section 36a-498f(f) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Williams, as an owner, control person and as a mortgage loan originator at Falcon Funding, failed to produce loan files during an examination, in violation of Section 36a-498f(f) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding, through Moxam and Williams, altered loan file documents, thereby directly or indirectly misleading borrowers or lenders and engaging in an unfair or deceptive practice, in violation of Sections 36a-498e(1) and 36a-498e(2), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding, through Moxam and Williams, altered loan file documents, thereby employing a scheme to defraud and engaging in an act which operates as a deceit upon a person, in violation of Sections 36a-53b(1) and 36a-53b(3), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Moxam altered loan file documents, thereby directly or indirectly misleading borrowers or lenders and engaging in an unfair or deceptive practice, in violation of Sections 36a-498e(1) and 36a-498e(2), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Moxam altered loan file documents, thereby employing a scheme to defraud and engaging in an act which operates as a deceit upon a person, in violation of Sections 36a-53b(1) and 36a-53b(3), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Williams altered loan file documents, thereby directly or indirectly misleading borrowers or lenders and engaging in an unfair or deceptive practice, in violation of Sections 36a-498e(1) and 36a-498e(2), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Williams altered loan file documents, thereby employing a scheme to defraud and engaging in an act which operates as a deceit upon a person, in violation of Sections 36a-53b(1) and 36a-53b(3), respectively, of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding failed to provide requested examination related information, constituting a failure to make or compile reports or other information as directed by the Commissioner, in violation of Section 36a-498f(b) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding’s failure to produce loan files during an examination and its failure to provide requested examination related information constitute a failure by Falcon Funding to cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Moxam’s failure to produce loan files during an examination of Falcon Funding, as its owner, control person, qualified individual and as a mortgage loan originator at Falcon Funding, constitutes a failure to cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Williams’s failure to produce loan files during an examination of Falcon Funding, as an owner and control person, and as a mortgage loan originator at Falcon Funding, constitutes a failure to cooperate with the Commissioner, in violation of Section 36a-17(d) of the Connecticut General Statutes;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Falcon Funding’s conduct, through Moxam and Williams, renders the Commissioner unable to continue to find that Falcon Funding, its control persons and the qualified individual having supervisory authority demonstrate the character and general fitness such as to command the confidence of the community and to warrant a determination that Falcon Funding will operate honestly, fairly and efficiently, within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Falcon Funding’s mortgage broker license in Connecticut;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Moxam’s conduct renders the Commissioner unable to continue to find that she demonstrates the character and general fitness such as to command the confidence of the community and to warrant a determination that she will operate honestly, fairly and efficiently, within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Moxam’s mortgage loan originator license in Connecticut;

WHEREAS, the Commissioner alleged in the Amended and Restated Order and Notice that Williams’s conduct renders the Commissioner unable to continue to find that he demonstrates the character and general fitness such as to command the confidence of the community and to warrant a determination that he will operate honestly, fairly and efficiently, within the purposes of Sections 36a-485 to 36a-498f, inclusive, 36a-534a and 36a-534b of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Williams’s mortgage loan originator license in Connecticut;

WHEREAS, on March 7, 2016, the Order and Notice was mailed to Falcon Funding by certified mail, return receipt requested (Certified Mail No. 70142120000036974114), and to Falcon Funding’s registered agents (Certified Mail Nos. 70142120000036974138, 70142120000036974152 and 70142120000036974176);

WHEREAS, on March 7, 2016, the Order and Notice was mailed to Moxam by certified mail, return receipt requested (Certified Mail Nos. 70142120000036974121 and 70142120000036974183);

WHEREAS, on March 7, 2016, the Order and Notice was mailed to Williams by certified mail, return receipt requested (Certified Mail No. 70142120000036974169);

WHEREAS, examiners from the Division also hand delivered the Order and Notice to Falcon Funding, Moxam and Williams on March 8, 2016, after an examination;

WHEREAS, the Department received an Appearance and Request for Hearing form submitted by Respondents’ counsel on March 11, 2016, in which Respondents requested a hearing on the Order and Notice;

WHEREAS, on March 14, 2016, each Respondent received the Order and Notice sent by certified mail;
 
WHEREAS, pursuant to an agreement between the parties, on May 3, 2016 the Amended and Restated Order and Notice was submitted to counsel for Respondents by e-mail and certified mail, return receipt requested (Certified Mail No. 70123050000069975851);

WHEREAS, the hearing on the Amended and Restated Order and Notice was adjourned and is currently scheduled for June 6, 2016;

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, both the Commissioner and Respondents now desire to resolve the matters alleged in the Amended and Restated Order and Notice and set forth herein;

WHEREAS, Respondents voluntarily agree to consent to the entry of the sanctions described below without admitting or denying any allegation contained herein or in the Amended and Restated Order and Notice and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegations in the Amended and Restated Order and Notice and set forth herein;

WHEREAS, Respondents acknowledge that this Consent Order is a public record and is a reportable event for purposes of the Nationwide Mortgage Licensing System and Registry, as applicable;

AND WHEREAS, Respondents, through their execution of this Consent Order, voluntarily agree to waive their procedural rights, including a right to a hearing as it pertains to the allegations contained in the Amended and Restated Order and Notice and set forth herein, and voluntarily waive their right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.


CONSENT TO ENTRY OF SANCTIONS

WHEREAS, Respondents, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing the following sanctions:

1. Commencing on the date this Consent Order is issued by the Commissioner, Falcon Funding LLC, and any successor in interest, shall be BARRED from acting as a mortgage broker in Connecticut or in any other capacity which requires a license or registration from the Commissioner;
2. Commencing on the date this Consent Order is issued by the Commissioner, Deborah Ann Moxam shall be BARRED from acting as a mortgage loan originator or loan processor or underwriter in Connecticut and from acting as a control person of a mortgage broker, mortgage lender or mortgage correspondent lender in Connecticut;
3. Commencing on the date this Consent Order is issued by the Commissioner, Ian M. Williams shall be BARRED from acting as a mortgage loan originator or loan processor or underwriter in Connecticut and from acting as a control person of a mortgage broker, mortgage lender or mortgage correspondent lender in Connecticut;
4. Notwithstanding the foregoing, Moxam or Williams may, for good cause shown, request that the Commissioner relieve them from their respective bars contained in paragraphs 2 and 3 above by submitting a written application to the Commissioner setting forth the basis of the request.  The Commissioner shall review the request and may, in his sole discretion, grant, deny or condition the relief sought pursuant to this paragraph.


CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1. The Sanctions set forth above be and are hereby entered;
2. Upon issuance of this Consent Order by the Commissioner, this matter will be resolved and the Commissioner will not take any future enforcement action against any Respondent based upon the allegations contained in the Amended and Restated Order and Notice and set forth herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against any Respondent 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 any Respondent is subsequently discovered to be untrue;
3. This Consent Order shall become final when issued.


Issued at Hartford, Connecticut
this 8th day of June 2016.              ______/s/__________
                                                     Jorge L. Perez
                                                     Banking Commissioner

I, Ian Williams, state on behalf of Falcon Funding LLC 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 Falcon Funding LLC; that Falcon Funding LLC agrees freely and without threat or coercion of any kind to comply with the sanctions entered and terms and conditions ordered herein; and that Falcon Funding LLC 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:  Ian Williams
                                                    Title:  Owner
                                                    Falcon Funding LLC


State of:  Connecticut

County of:  New Haven


On this the 2nd day of June 2016, before me, Miriam J. James, the undersigned officer, personally appeared Ian Williams who acknowledged herself/himself to be the Owner of Falcon Funding LLC, a Connecticut limited liability company, a member managed/manager managed limited liability company, and that she/he as such Owner, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by herself/himself as Owner.

In witness whereof I hereunto set my hand.


                                                   __________/s/________
                                                   Notary Public  
                                                   Date Commission Expires:  March 31, 2017 

I, Deborah Ann Moxam, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                   ________/s/_________
                                                   Deborah Ann Moxam

State of:  Connecticut

County of:  New Haven


On this the 2nd day of June 2016, before me, Miriam James, the undersigned officer, personally appeared Deborah Ann Moxam, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.
                                                  

                                                  _________/s/_________
                                                  Notary Public
                                                  Date Commission Expires:  March 31, 2017


I, Ian M. Williams, state that I have read the foregoing Consent Order; that I know and fully understand its contents; that I agree freely and without threat or coercion of any kind to comply with the provisions of this Consent Order; and that I voluntarily agree to enter into this Consent Order, expressly waiving the procedural rights set forth herein as to the matters described herein.

                                                   _________/s/_________
                                                   Ian M. Williams


State of:  Connecticut

County of:  New Haven


On this the 2nd day of June 2016, before me, Miriam James, the undersigned officer, personally appeared Ian M. Williams, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same for the purposes therein contained.

In witness whereof I hereunto set my hand.


                                                  __________/s/________   
                                                  Notary Public
                                                  Date Commission Expires:  March 31, 2017


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