Mortgage and Credit Solutions Consent

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IN THE MATTER OF:

MORTGAGE AND CREDIT
SOLUTIONS, LLC
("MACS")

SEAN PATRICK MORIARTY
("MORIARTY")

(Collectively "Respondents")

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CONSENT ORDER

DOCKET NO. CF-2010-870-B

I. PRELIMINARY STATEMENT

WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672c of the General Statutes of Connecticut, the Connecticut Business Opportunity Investment Act (“Act”);

WHEREAS, the Commissioner, through the Securities and Business Investments Division (“Division”) of the Department of Banking, conducted an investigation pursuant to Section 36b-71(a) of the Act into the activities of MACS, its officers, agents, representatives and employees, and Moriarty to determine if any of them had violated, were violating or were about to violate provisions of the Act (“Investigation”);

WHEREAS, as a result of the Investigation, on January 11, 2011, the Commissioner, acting pursuant to Section 36b-72 of the Act, issued an Order to Cease and Desist (“Order”), Notice of Intent to Fine and Notice of Right to Hearing against Respondents (collectively “Notice”), which Notice is incorporated by reference herein;

WHEREAS, the Notice alleged that on at least one occasion Respondents offered and sold an unregistered business opportunity to purchaser-investors in Connecticut in violation of Section 36b-67 of the Act;

WHEREAS, the Notice stated that the Order shall remain in effect and become permanent against any Respondent that fails to request a hearing within the prescribed time period or fails to appear at such hearing, and that the Commissioner may order that the maximum fine be imposed upon any Respondent that fails to request a hearing within the prescribed time period or fails to appear at any such hearing;

WHEREAS, on January 20, 2011, the Notice was received by Respondents;

WHEREAS, on February 3, 2011, Respondents requested a hearing on the matters alleged in the Notice (“Hearing”);

WHEREAS, Respondents and the Division requested continuances of the Hearing;

WHEREAS, the Hearing has been continued so that the parties may engage in settlement discussions;

WHEREAS, Section 36b-72(d) of the Act provides, in relevant part, that “[a]ny time after the issuance of an order or notice provided for in subsection (a) or (b) of this section, the commissioner may accept an agreement by any respondent named in such order or notice to enter into a written consent order in lieu of an adjudicative hearing”;

WHEREAS, an administrative proceeding initiated under Section 36b-72 of the Act would constitute a “contested case” within the meaning of Section 4-166(2) of the General Statutes of Connecticut;

WHEREAS, Section 4-177(c) of the General Statutes of Connecticut 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, Respondents and the Commissioner now desire to resolve the matters alleged in the Notice without the need for further administrative proceedings;

WHEREAS, Respondents agree that the Notice may be used in construing the terms of this Consent Order and agree to the language in this Consent Order;

AND WHEREAS, Respondents have represented to the Commissioner that they are experiencing financial difficulty and have submitted evidence demonstrating economic hardship, such that the Commissioner believes that Respondents are financially incapable of paying any fine that otherwise would have been assessed against them pursuant to the Notice.

II. CONSENT TO WAIVER OF PROCEDURAL RIGHTS

WHEREAS, Respondents, through their execution of this Consent Order, voluntarily waive the following rights:

1.	To be afforded an opportunity for a hearing within the meaning of Section 36b-72 of Act and Section 4-177(a) of the General Statutes of Connecticut;
2.	To present evidence and argument and to otherwise avail themselves of Section 36b-72 of the Act and Section 4-177c(a) of the General Statutes of Connecticut;
3.	To present their position in a hearing in which they are represented by counsel;
4.	To have a written record of the hearing made and a written decision issued by a hearing officer; and
5.	To seek judicial review of, or otherwise challenge or contest the matters described herein, including the validity of this Consent Order.

III. ACKNOWLEDGEMENT OF THE COMMISSIONER'S ALLEGATIONS

WHEREAS, Respondents, through their execution of this Consent Order, acknowledge and admit the following allegations of the Commissioner, which are sufficient for the Commissioner to enter an order to cease and desist and an order imposing an administrative fine against Respondents:

From at least June 2008 to the present, Respondents sold unregistered MACS business opportunities to at least one purchaser-investor in Connecticut in violation of Section 36b-67 of the Act, which constitutes a basis for an order to cease and desist pursuant to Section 36b-72(a) of the Act, and an order imposing fine pursuant to Section 36b-72(b) of the Act.

WHEREAS, the Commissioner would have the authority to enter findings of fact and conclusions of law after granting Respondents an opportunity for a hearing;

WHEREAS, Respondents acknowledge the possible consequences of an administrative hearing and voluntarily consent to the entry of the sanctions described below;

AND WHEREAS, Respondents specifically assure the Commissioner that none of the violations alleged in the Notice shall occur in the future.

IV. 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 on them the following sanctions:

1.	The Order to Cease and Desist set forth in the Notice shall become permanent upon the issuance of this Consent Order;
2.	For a period of seven (7) years commencing on the date this Consent Order is issued by the Commissioner, Respondents are barred from offering or selling any “business opportunity”, as defined in Section 36b-61(2) of the Act, in this state within the meaning of Section 36b-75 of the Act; and
3.	After the expiration of the seven (7) year bar referenced in paragraph 2 of Section IV of this Consent Order and prior to the offer or sale of a business opportunity in or from Connecticut by Respondents, their affiliates or successors in interest, Respondents shall retain counsel familiar with the regulation of business opportunities to ensure that their activities comply with business opportunity laws and regulations, including, but not limited to, the Act and its registration requirements.

V. CONSENT ORDER

NOW THEREFORE, the Commissioner enters the following:

1.	The Sanctions set forth above be and are hereby entered;
2.	Entry of this Consent Order by the Commissioner is without prejudice to the right of the Commissioner to take enforcement action against Respondents 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 representations made by Respondents and reflected herein are subsequently discovered to be untrue; and
3.	This Consent Order shall become final when issued.

Issued at Hartford, Connecticut,		_______/s/____________
this 22nd day of June 2011.		Howard F. Pitkin
		Banking Commissioner

CONSENT TO ENTRY OF ORDER

I, Sean Patrick Moriarty, state on behalf of Mortgage and Credit Solutions, 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 Mortgage and Credit Solutions, LLC; that Mortgage and Credit Solutions, LLC agrees freely and without threat or coercion of any kind to comply with the terms and conditions stated herein; and that Mortgage and Credit Solutions, LLC voluntarily consents to the issuance of this Consent Order.

	Mortgage and Credit Solutions, LLC


By:	______/s/_________________
	Sean Patrick Moriarty
	Managing Member

State of: Colorado

County of: Larimer

On this the 17 day of June 2011, before me, Sean Patrick Moriarty [sic], the undersigned officer, personally appeared Sean Patrick Moriarty, who acknowledged himself to be the Managing Member of Mortgage and Credit Solutions, LLC, a limited liability company, and that he, as such Managing Member, being authorized to do so, executed the foregoing instrument for the purposes therein contained, by signing the name of the limited liability company by himself as Managing Member.

In witness whereof I hereunto set my hand.

______/s/_________________________
Cynthia Gilabert
Notary Public
State of Colorado
Date Commission Expires: 6/29/2013

CONSENT TO ENTRY OF ORDER

I, Sean Patrick Moriarty, 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 terms and conditions stated herein; and I consent to the issuance of this Consent Order.

______/s/____________

Sean Patrick Moriarty

State of: Colorado

County of: Larimer

On this the 17 day of June 2011, before me, Sean Patrick Moriarty [sic], the undersigned officer, personally appeared Sean Patrick Moriarty, 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/_________________________
Cynthia Gilabert
Notary Public
State of Colorado
Date Commission Expires: 6/29/2013

Administrative Orders and Settlements

State of Connecticut Department of Banking