Cease Directive  Cafeta Foods, LLC d/b/a El Pikante Foods

Date:	09/18/2019
Organization:	Division of Banks
Location:	Framingham, Massachusetts

Commissioner of Banks
Check Casher Licensing

In the Matter of Cafeta Foods, LLC d/b/a El Pikante Foods, Framingham, Massachusetts

WHEREAS the Commissioner of Banks (Commissioner), having determined that Cafeta Foods, LLC d/b/a El Pikante Foods (Cafeta Foods or Company), located at 40 Union Avenue, Framingham, Massachusetts have engaged, or are engaged in, or are about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 169A and applicable regulations found at 209 CMR 45.00 et seq.,

The Commissioner hereby issues the following ORDER TO CEASE AND DESIST pursuant to General Laws chapter 169A, section 2.

CEASE DIRECTIVE

FINDINGS OF FACT

1. The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in the business of a foreign transmittal agency pursuant to Massachusetts General Laws chapter 169.
2. According to the Division’s records, Cafeta Foods has been an authorized foreign transmittal agent location for foreign transmittal companies Intermex Wire Transfer, LLC and Continental Exchange Solutions, Inc. since 2017.  As an authorized agent, Cafeta Foods is only authorized to transmit consumer funds through Intermex Wire Transfer, LLC and Continental Exchange Solutions, Inc.
3. The Division of Banks (“Division”), through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in check cashing activity pursuant to Massachusetts General Laws chapter 169A.
4. Cafeta Foods has never obtained a check casher license from the Commissioner pursuant to General Laws chapter 169A, section 3, to engage in the business of a casher of checks for consideration in excess of one dollar per item at 40 Union Avenue, Framingham.
5. On August 1, 2019 an examiner for the Division entered Cafeta Foods.
6. The examiner identified himself as working for the Division and spoke with the store clerk.
7. The store clerk referred the examiner to the store manager, Edgar Baltazar, and called Mr. Baltazar on the phone.
8. During the phone conversation with the examiner, Mr. Baltazar acknowledged that Cafeta Foods charges a 2 percent fee for cashing checks.  The check cashing service is provided to consumers that are conducting money transfer transactions at Cafeta Foods.
9.  The Company has not implemented practices or procedures that would have prohibited the Company from charging consideration in excess of one dollar per item. 

CONCLUSIONS OF LAW

10. Based upon the information contained in paragraphs 2 through 7, Cafeta Foods is acting as a  “casher of checks” as that term is defined by the Division’s regulation 209 CMR 45.02.
11. Based upon the information contained in paragraphs 2 through 7, Cafeta Foods has unlawfully acted as a check casher for consideration in excess of one dollar per transaction without a license from the Commissioner, in violation of General Laws chapter 169A, section 2.
12. Based upon the information contained in paragraphs 1 through 9, the Commissioner has determined that Cafeta Foods has engaged, or is about to engage in, acts or practices which warrant the belief that the Company is not operating honestly, fairly, soundly, and efficiently in the public interest in violation of standards governing the licensing and conduct of a check casher including, but not limited to, the provisions under General Laws chapter 169A and the Division’s regulations at 209 CMR 45.00 et seq.

CEASE DIRECTIVE

After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:

13. Cafeta Foods shall immediately cease from engaging directly or indirectly in the business of cashing checks, drafts, or money orders for consideration in excess of one dollar per item, or otherwise acting as a casher of checks, without a license from the Commissioner, in violation of General Laws chapter 169A, section 2.
14. Cafeta Foods must submit a response within five (5) days of receipt of this Directive.  The response submitted by Cafeta Foods must also include a signed copy of the enclosed affidavit, attesting that Cafeta Foods will immediately cease from acting as a casher of checks in Massachusetts.
15. Cafeta Foods shall within five (5) days of the effective date of this Directive provide the Division with a complete accounting of all checks, drafts, and money orders cashed at its place of business January 1, 2018 through the effective date of this Directive.
16. Cafeta Foods shall reimburse all persons for whom a check, draft, or money order was cashed at 40 Union Avenue, Framingham, Massachusetts without a license from the Commissioner.  Reimbursements shall be made to each person on a per transaction basis in an amount equal to the total fee charged on the transaction less one dollar.  A record shall be provided to the Division of the names and addresses of all individuals for whom the Company has cashed a check, draft, or money order for consideration in excess of one dollar, the amount of each check, draft, or money order, the total fees charged on each transaction, check numbers of payments issued by the Company to evidence reimbursements made to consumers, and the amount reimbursed to each individual.
     

NOTICE OF RIGHT TO A HEARING

17. Cafeta Foods has the right to request a hearing to contest the charges described herein.  In order to request a hearing, Cafeta Foods or its authorized representative is required to file a notice of claim for an Adjudicatory Proceeding within thirty (30) days of the effective date of this Cease Directive, pursuant to the Standard Adjudicatory Rules of Practices and Procedures, 801 CMR 1.01(6)(b) and (c).  If requested, the hearing would be conducted according to General Laws, chapter 30A, sections 10 and 11, and the Standard Adjudicatory Rules of Practice and Procedure, 801 CMR 1.01 and 1.03.  If Cafeta Foods does not file a notice of claim for an Adjudicatory Proceeding within thirty (30) days of the effective date of this Cease Directive, the Company will permanently lose the right to contest the charges described herein.

 

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 18th day of September, 2019.

 

Mary L. Gallagher
Commissioner of Banks