| * * * * * * * * * * * * * * * * * * * *
IN THE MATTER OF: SQUIRE INDUSTRIES, INC. |
* * * * * * * * * |
CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part IV of Chapter 668, Sections 36a-580 to 36a-589, inclusive, of the Connecticut General Statutes, “Check Cashing Services”, and Sections 36a-585-1, 36a-588-1, 36a-588-3 and 36a-588-4 of the Regulations of Connecticut State Agencies (“Regulations”);
WHEREAS, Squire is a Connecticut corporation licensed to operate a general facility to engage in the business of cashing checks, drafts or money orders, which license was summarily suspended by the Commissioner by Order of Summary Suspension dated May 27, 2011;
WHEREAS, Claude A. Narracci (“Narracci”) is President and sole shareholder of Squire;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36a-17 of the Connecticut General Statutes into the activities of Squire to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes and Regulations within the jurisdiction of the Commissioner;
WHEREAS, as a result of such investigation, on May 27, 2011, the Commissioner, acting pursuant to Sections 4-182(c), 36a-587(a), 36a-587(a)(3), subsections (a) and (b) of Section 36a-51, Sections 36a-587(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes, issued an Order of Summary Suspension, Notice of Intent to Revoke Check Cashing Service 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 “Order”) against Squire, which Order is incorporated herein by reference;
WHEREAS, the Order alleges that Squire failed to promptly notify the Commissioner of a pending charge of grand larceny in the second degree against Narracci, a felony in New York, in violation of Section 36a-581(f) of the Connecticut General Statutes, which would be sufficient grounds for the Commissioner to revoke Squire’s check cashing service license pursuant to Section 36a-587(a)(3) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and would form a basis to issue an order to cease and desist pursuant to Sections 36a-587(b) and 36a-52(a) of the Connecticut General Statutes and impose a civil penalty pursuant to Section 36a-587(b) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, the Order also alleges that as a result of the conduct of Narracci, an officer and shareholder of Squire, the Commissioner is unable to find that Narracci is in all respects properly qualified and of good character, which constitutes grounds for the Commissioner to deny an application for a check cashing service license pursuant to Section 36a-581(e)(3) of the Connecticut General Statutes and would be sufficient grounds for the Commissioner to revoke Squire’s check cashing service license pursuant to Section 36a-587(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, the Order also alleges that such conduct by Narracci demonstrates incompetency or untrustworthiness to act as a licensed check cashing service by a licensee’s officer or shareholder, which would be sufficient grounds for the Commissioner to revoke Squire’s check cashing service license pursuant to Section 36a-587(a)(4) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes;
WHEREAS, on March 28, 2011, Narracci pled guilty to the felony in New York;
WHEREAS, on May 27, 2011, the Order was mailed to Squire by registered mail, return receipt requested (Registered Mail No. RB028020138US);
WHEREAS, on June 1, 2011, Squire received the Order;
WHEREAS, on June 8, 2011, the Department received from Squire an Appearance and Request for Hearing, which hearing is currently scheduled for a date to be determined;
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, Section 36a-51(c) of the Connecticut General Statutes, as amended by Public Act 11-216, states, in pertinent part, that “[a]ny licensee may surrender any license issued by the commissioner under any provision of the general statutes by surrendering the license to the commissioner in person or by registered or certified mail . . . . If, prior to receiving the license, . . . the commissioner has instituted a proceeding to . . . revoke . . . such license, such surrender . . . will not become effective except at such time and under such conditions as the commissioner by order determines”;
WHEREAS, the Commissioner, Squire and Narracci now desire to resolve the matters alleged in the Notice and set forth herein;
WHEREAS, Squire and Narracci voluntarily agree to consent to the entry of the sanctions described below without admitting or denying any allegation contained in the 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 Order and set forth herein;
WHEREAS, Squire herein represents to the Commissioner that it has not engaged in the business of cashing checks, drafts and money orders for consideration since receipt of the Order dated May 27, 2011;
WHEREAS, Narracci was convicted of grand larceny in the second degree in New York on June 30, 2011;
WHEREAS, the Commissioner acknowledges that as a result of such conviction, Narracci will be on probation in New York for a period of five (5) years and will make restitution in the amount of $150,000 for the benefit of his victims;
WHEREAS, Squire and Narracci agree that the Order may be used in construing the terms of this Consent Order, and agree to the language of this Consent Order;
WHEREAS, Squire, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including Squire’s right to hearing as it pertains to the allegations set forth herein, and voluntarily waives its right to seek judicial review or otherwise challenge or contest the validity of this Consent Order;
AND WHEREAS, Narracci, through his execution of this Consent Order, voluntarily agrees to waive his procedural rights, a right to notice and an opportunity for hearing as it pertains to the allegations set forth herein, and voluntarily waives his right to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTIONS
WHEREAS, Squire and Narracci, through their execution of this Consent Order, consent to the Commissioner’s entry of a Consent Order imposing the following sanctions:
| 1. | No later than the date this Consent Order is executed by Squire, Squire shall remit to the Department of Banking by cashier’s check, certified check or money order made payable to “Treasurer, State of Connecticut”, the sum of Two Hundred Fifty Dollars ($250) as a civil penalty; |
| 2. | No later than the date this Consent Order is executed by Squire, Squire shall surrender, pursuant to Section 36a-51(c) of the Connecticut General Statutes, as amended, and Section 36a-583 of the Connecticut General Statutes, its license to engage in the business of cashing checks, drafts or money orders for consideration in Connecticut; and |
| 3. |
Commencing on the date this Consent Order is executed by the Commissioner, Narracci shall be PERMANENTLY BARRED from acting as an officer, director, authorized agent, member, or shareholder owning ten percent or more of the outstanding stock, of any entity that engages in the business of cashing checks, drafts or money orders for consideration in Connecticut in a manner requiring licensure pursuant to Sections 36a-580 to 36a-589, inclusive, of the Connecticut General Statutes. |
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, the surrender of the license of Squire to engage in the business of cashing checks, drafts or money orders for consideration in Connecticut shall become effective; |
| 3. |
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 Squire or Narracci based upon the allegations contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Squire or Narracci 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 Squire or Narracci and reflected herein is subsequently discovered to be untrue; |
| 4. |
This Consent Order shall become final when issued.
|
Dated at Hartford, Connecticut
this 24th day of October 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Claude Narracci, state on behalf of Squire Industries, Inc., 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 Squire Industries, Inc., that Squire Industries, 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 Squire Industries, Inc., 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: Claude Narracci
Title: President
Squire Industries, Inc.
State of: Connecticut
County of: New Haven
On this the 18th day of October 2011, before me, Thomas J. Daly, the undersigned officer, personally appeared Claude Narracci who acknowledged himself/herself to be the President of Squire Industries, Inc., a corporation, and that he/she 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/herself as President.
In witness whereof I hereunto set my hand.
________/s/_________
Thomas J. Daly
Commissioner of the Superior Court
I, Claude A. Narracci, 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 sanction entered and the terms and conditions ordered herein; 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.
By: ________/s/_________
Claude A. Narracci
State of: Connecticut
County of: New Haven
On this the 18th day of October 2011, before me, Thomas J. Daly, the undersigned officer, personally appeared Claude A. Narracci, 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/_________
Thomas J. Daly
Commissioner of the Superior Court