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, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Russo to determine if he had violated, was violating or was about to violate the provisions of the Connecticut General Statutes within the jurisdiction of the Commissioner;

WHEREAS, as a result of such investigation, on August 3, 2010, the Commissioner, acting pursuant to Section 4-182(c) of the Connecticut General Statutes, Section 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, Section 36a-494(b) of the 2010 Supplement to the General Statutes and Sections 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued an Order of Summary Suspension, Temporary Order to Cease and Desist, Notice of Intent to Revoke and Refuse to Renew Mortgage Broker License, Notice of Intent to Revoke Mortgage Loan Originator License, 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, among others, Russo, which Notice is incorporated herein by reference;

WHEREAS, the Notice alleged that the filing of (1) a Criminal Complaint in the United States District Court for the District of Connecticut (Case No. 3:10-mj-00097-EBB), charging that Russo, among others, conspired to defraud the United States in connection with mortgages insured by the Federal Housing Administration (“FHA”), in violation of 18 U.S.C. 371, and conspired to commit wire fraud in violation of 18 U.S.C. 1349 (“Criminal Complaint”) and (2) a Superseding Indictment in the United States District Court for the District of Connecticut, in which the Grand Jury charged that beginning in at least February 2007 through May 2010, Russo, among others, conspired to defraud the United States by impairing, impeding, obstructing and defeating, through deceitful and dishonest means, the governmental functions of the Department of Housing and Urban Development and FHA in connection with mortgage loan insurance issued by FHA in violation of 18 U.S.C. 371; committed wire fraud in violation of 18 U.S.C. 1343; and knowingly and willfully made and caused to be made materially false, fictitious and fraudulent statements and representations involving FHA-insured mortgage loans in violation of 18 U.S.C. 1001 (“Indictment”), constitutes a basis for the Commissioner to conclude that Russo fails to demonstrate that the financial responsibility, character and general fitness of Russo are such as to command the confidence of the community and to warrant a determination that Russo will operate honestly, fairly and efficiently within the purposes of Sections 36a-485 to 36a-498f, inclusive, and 36a-534a and 36a-534b of the Connecticut General Statutes.  Such failure constitutes grounds for the Commissioner to deny Russo’s application for a mortgage loan originator license pursuant to Sections 36a-489(a)(1) and 36a-489(a)(1)(C) of the 2010 Supplement to the General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Russo’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes;

WHEREAS, the Notice also alleged that Russo’s failure to inform the Commissioner of the Criminal Complaint, Indictment and a June 21, 2010, Emergency Order In the Matter of:  Nathan M. Russo issued by the State of Rhode Island and Providence Plantations, Department of Business Regulation suspending his mortgage loan originator license in Rhode Island based upon the filing of the Criminal Complaint (“Russo Order”) constitutes a violation of Section 36a-490(d)(2) of the 2010 Supplement to the General Statutes.  Such violation constitutes sufficient grounds for the Commissioner to revoke Russo’s mortgage loan originator license in Connecticut pursuant to Section 36a-494(a)(2) and subsections (a) and (b) of Section 36a-51 of the 2010 Supplement to the General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-494(b) of the 2010 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-494(b) of the 2010 Supplement to the General Statutes and Section 36a-50(a) of the Connecticut General Statutes;

WHEREAS, on August 5, 2010, Russo received the Notice, and on August 23, 2010, the Commissioner received a request for a hearing, which hearing is currently scheduled for December 2, 2010;

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 agreed settlement, unless precluded by law;

WHEREAS, Russo voluntarily agrees to enter into this Settlement Agreement without admitting or denying any allegations contained in the Notice and set forth herein, and solely for the purpose of obviating the need for formal administrative proceedings concerning the allegations contained in the Notice and this Settlement Agreement;

AND WHEREAS, Russo, through his execution of this Settlement Agreement, voluntarily agrees to waive any rights to a hearing upon the allegations contained in the Notice and this Settlement Agreement, and waives the right to seek judicial review or otherwise challenge or contest the validity of this Settlement Agreement.

NOW THEREFORE, the Commissioner and Russo enter into this Settlement Agreement as follows:

IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to be executed by each of them or their duly authorized representatives on the dates hereinafter subscribed.

Dated at Hartford, Connecticut
this 30th day of November 2010.         ________/s/_________
                                                     Howard F. Pitkin
                                                     Banking Commissioner



I, Nathan M. Russo, state that I have read the foregoing Settlement Agreement; that I know and fully understand its contents; and that I agree freely and without threat or coercion of any kind to comply with the terms and conditions stated herein.                          

                                            
                                    By:  ________/s/___________________
                                           Nathan M. Russo

State of:  Rhode Island

County of:  Providence

On this the 24th day of November, before me, Diane L. Patry, the undersigned officer, personally appeared Nathan Russo, known to me (or satisfactorily proven) to be the person whose name Nathan Russo 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.

Administrative Orders and Settlements