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IN THE MATTER OF: TEMPO FINANCIAL U.S. ("Tempo Financial") |
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CONSENT ORDER |
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part V of Chapter 668, Sections 36a-595 to 36a-610, inclusive, of the Connecticut General Statutes, “Money Transmission Act”;
WHEREAS, on April 27, 2009, Tempo Financial filed an Application for a Money Transmission License with the Commissioner (“Application”);
WHEREAS, by letter dated February 18, 2010, Tempo Financial, in connection with its Application, represented to the Commissioner that it did not currently have any agents in Connecticut and it had not registered its fictitious name in Connecticut and that it intended to operate under the name Tempo Financial in Connecticut;
WHEREAS, on March 22, 2010, the Commissioner issued a license to Tempo Financial to engage in the business of money transmission;
WHEREAS, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Sections 36a-17 and 36a-608(a) of the Connecticut General Statutes into the activities of Tempo Financial to determine if it has violated, was violating or was about to violate the provisions of the Money Transmission Act, or whether it has acted in a manner as otherwise would justify the suspension or revocation of the license;
WHEREAS, as a result of such investigation, the Commissioner alleges that Tempo Financial failed to promptly update the information contained in its Application to reflect the fact that on April 21, 2010, it entered into an Agent Agreement with a Connecticut agent and was operating under the name “Tempo Financial US Corp. d/b/a i-transfer”, in violation of Section 36a-598(b) of the Connecticut General Statutes;
WHEREAS, Section 36a-598(b) of the Connecticut General Statutes requires a licensee to promptly notify the Commissioner, in writing, of any change in the information provided in the application for the license;
WHEREAS, the Commissioner believes that the allegation contained herein would support the initiation of enforcement proceedings against Tempo Financial, including proceedings to revoke its money transmission license pursuant to Section 36a-608(b) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, to issue a cease and desist order against Tempo Financial pursuant to Sections 36a-608(c) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty of up to one hundred thousand dollars ($100,000) per violation on Tempo Financial pursuant to Sections 36a-608(c) and 36a-50(a) of the Connecticut General Statutes;
WHEREAS, Tempo Financial has represented to the Commissioner that it has updated its internal policies, procedures and controls to ensure compliance with its obligations to promptly notify the Commissioner, in writing, of any change in the information provided in its Application or most recent renewal application for its license, consistent with Section 36a-598(b) of the Connecticut General Statutes;
WHEREAS, initiation of such enforcement proceedings would constitute a “contested case” within the meaning of Section 4-166(2) 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, both the Commissioner and Tempo Financial acknowledge the possible consequences of formal administrative proceedings, and Tempo Financial voluntarily agrees to consent to the entry of the sanction described below without admitting or denying any allegation set forth herein and solely for the purpose of obviating the need for further formal administrative proceedings concerning the allegation set forth herein;
WHEREAS, Tempo Financial specifically assures the Commissioner that the violation described herein shall not occur in the future;
AND WHEREAS, Tempo Financial, through its execution of this Consent Order, voluntarily agrees to waive its procedural rights, including a right to notice and an opportunity for hearing as it pertains to the allegation set forth herein, and voluntarily waives its rights to seek judicial review or otherwise challenge or contest the validity of this Consent Order.
CONSENT TO ENTRY OF SANCTION
WHEREAS, Tempo Financial, through its execution of this Consent Order, consents to the Commissioner’s entry of a Consent Order imposing the following sanction:
No later than the date this Consent Order is executed by Tempo Financial, Tempo Financial 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 Three Thousand Dollars ($3,000) as a civil penalty.
CONSENT ORDER
NOW THEREFORE, the Commissioner enters the following:
| 1. | The Sanction set forth above be and is 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 Tempo Financial based upon the allegation contained herein; provided that issuance of this Consent Order is without prejudice to the right of the Commissioner to take enforcement action against Tempo Financial 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 Tempo Financial and reflected herein is subsequently discovered to be untrue; |
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Nothing in the issuance of this Consent Order shall adversely affect the ability of Tempo Financial to apply for or obtain a license or renewal license under the Money Transmission Act, provided all applicable legal requirements for such license are satisfied; |
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This Consent Order shall become final when issued.
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Issued at Hartford, Connecticut
this 4th day of October 2011. ________/s/_________
Howard F. Pitkin
Banking Commissioner
I, Jon Ness, state on behalf of Tempo Financial U.S. Corporation d/b/a i-transfer, 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 Tempo Financial U.S. Corporation d/b/a i-transfer; that Tempo Financial U.S. Corporation d/b/a i-transfer agrees freely and without threat or coercion of any kind to comply with the sanctions entered herein; and that Tempo Financial U.S. Corporation d/b/a i-transfer 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:
Title:
Tempo Financial U.S. Corporation
d/b/a i-transfer
State of: Colorado
County of: Denver
On this the 29th day of September 2011, before me, Guillermo Perez-Olivares, the undersigned officer, personally appeared Jon Ness who acknowledged himself to be the CEO of Tempo Financial U.S. Corporation d/b/a i-transfer, a Delaware corporation, and that he as such CEO, being authorized so to do, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as CEO.
In witness whereof I hereunto set my hand.
________/s/_________
Notary Public
Date Commission Expires: 09/09/2013