By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
DEBT COLLECTOR LICENSING
No. 2006-24

FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST


In the Matter of

GO-MORE FINANCIAL, INC.
Buffalo, Minnesota

Debt Collector License No. DC 0835


The Commissioner of Banks ("Commissioner") having determined that GO-MORE FINANCIAL, INC. ("Go-More" or the "Corporation"), located at 605 Highway 55E, Suite C Buffalo, Minnesota 55313 have engaged, or are engaged in, or are about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 93, and applicable regulations found at 209 CMR 18.00 et seq., hereby issues the following FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST ("TEMPORARY ORDER") pursuant to General Laws chapter 93, section 24(J).

FINDINGS OF FACT

  1. The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons and entities engaged in the business of a debt collector in Massachusetts pursuant to Massachusetts General Laws chapter 93, section 24A.
  2. Go-More is, and at all relevant times, has been a corporation doing business in the Commonwealth of Massachusetts. Go-More is licensed by the Commissioner as a debt collector as required by Massachusetts General Laws chapter 93, section 24A. The Commissioner issued Go-More's initial license to engage in the business of a debt collector at 605 Highway 55E, Suite C Buffalo, MN 55313 on January 9, 2004, according to records maintained on file with the Division. The original license number is DC0835.
  3. On August 30, 2006, the Division became aware that the Minnesota Department of Commerce issued a Notice of Revocation, Order for Revocation, Statement of Charges, and Notice of Right to Hearing to Go-More dated August 29, 2006 (the "Minnesota Order").
  4. The Minnesota Order alleged that Go-More:
    1. Commingled money collected for customers with Go-More's operating funds and used customer's money in the conduct of Go-More's business;
    2. Falsified its records and filings with the intent to deceive governmental agencies;
    3. Engaged in a pattern of financial mismanagement and misconduct that demonstrates they are untrustworthy, financially irresponsible, or otherwise incompetent or unqualified to act under the licenses granted by the Commissioner of the Minnesota Department of Commerce;
    4. Violated a June 19, 2006 Minnesota Consent Order executed on August 16, 2006 by implementing a financial decision in contradiction to the acting financial officer's directives, in violation of the provisions of the Consent Order and in violation of Minn. Stat. s. 45.027, subd 7(a)(2) and (4)(2004).
  5. On August 30, the Division become aware that the State of Connecticut Department of Banking issued an Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to a Hearing dated August 29, 2006 (the "Connecticut Order").
  6. The Connecticut Order states that the Connecticut Banking Commissioner has reason to believe that Go-More engaged in conduct that would constitute sufficient grounds to revoke the Corporation's license to act as within Connecticut as a consumer collection agency. Specifically, the Connecticut Order asserts that:
    1. the Internal Revenue Service filed a federal tax lien against Go-More for nonpayment of federal taxes, in the amount of $482,808.06;
    2. Go-More owes the Minnesota Department of Revenue unpaid withholding taxes in the amount of $24,433, plus penalties and interest; and
    3. Go-more commingled money collected for creditors with its own funds, used creditors' money for the conduct of the Corporation's business and overdrew the trust fund established to hold money collected for creditors.
  7. On August 30, 2006, the Division became aware that on August 28, 2006, the State of Wisconsin Department of Financial Institutions Division of Banking denied Go-More's application for renewal of its collection agency license (the "Wisconsin License Denial").
  8. The Findings set forth in the Wisconsin License Denial include the following:
    1. Go-More violated a Wisconsin Consent Order, which was issued on November 14, 2005 and required financial reporting and maintenance of certain minimal net equity and net working capital;
    2. Go-More failed to demonstrate financial responsibility;
    3. Go-More failed to disclose certain disciplinary actions in its annual report;
    4. Go-More entered into a Consent Order with the State of Minnesota, in which it was alleged that Go-More commingled client funds with operating accounts and otherwise operated in a manner hazardous to applicant's clients and the public;
    5. Initial Audit Findings reported by the State of Minnesota indicate that Go-More does not have the required character and general fitness and financial responsibility;
    6. The Minnesota Initial Audit Findings report revealed that Go-More owed the Internal Revenue Service approximately $554,000 as of June 26, 2006; and
    7. Go-More failed to file the collection agency renewal application and pay the annual license fee prior to the statutory deadline.
  9. On August 30, 2006, the Division became aware that on August 29, 2006, the State of Maine Department of Professional and Financial Regulation Office of Consumer Credit Regulation denied Go-More's renewal of its Maine Debt Collector License (the "Maine License Denial").
  10. The Maine License Denial was based on the following factors:
    1. Go-More failed to submit a renewal application;
    2. Go-More failed to submit certain required financial documents in support of its 2005 renewal application, despite requests from the Maine Office of Consumer Credit Regulation; and
    3. As of December 31, 2005, Go-More had a negative equity of over $162,000 and negative working capital of over $175,000. In addition, Go-More owes approximately $550,000 to the Internal Revenue Service and $24,000 to the Minnesota Department of Revenue in taxes.
  11. On August 30, 2006, the Division became aware that, on August 28, 2006, the State of Colorado Department of Law Office of the Attorney General denied Go-More's application to renew its Colorado collection agency license (the "Colorado License Denial").
  12. The Colorado License Denial was based on the following reasons:
    1. Go-More provided false information in its renewal application regarding bank account information;
    2. Go-More failed to notify the Colorado Department of changes in trust account information;
    3. Go-More failed to maintain a positive net worth and owes the Internal Revenue Service approximately $550,000 and the Minnesota Department of Revenue approximately $30,000 in unpaid taxes;
    4. Go-More failed to disclose legal, disciplinary, or administrative actions or proceedings by other state or regulatory authorities; and
    5. Go-More entered into a Consent Order with the State of Minnesota, in which it was alleged that Go-More commingled client funds with operating accounts.
  13. The Division's regulation at 209 CMR18.08(1) states, in part, that:

    A Debt Collector, or registered third party loans servicer, if applicable shall notify the Commissioner immediately, and in writing within one business day, of the occurrence of any of the following significant developments: . . . (c) Notification of the institution of license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action, in any state against the debt collector or registered third party loan servicer, and the reasons thereof.

  14. As of the effective date of this TEMPORARY ORDER, the Division has not received notification from GO-MORE of the occurrence of the events referenced above in Sections 3 through 13 of this TEMPORARY ORDER.

    CONCLUSIONS OF LAW

  15. Based upon the information contained in paragraphs 1 through 14, Go-More failed to notify the Commissioner in writing, within one business day, that its license had been revoked by the State of Minnesota, in violation of the Division's regulation 209 CMR 18.08(1)(c).
  16. Based upon the information contained in paragraphs 1 through 14, GO-MORE FINANCIAL SERVICES, Inc. has failed to demonstrate the character, reputation, integrity, and general fitness that would warrant the belief that the business will be operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 93, section 24B (a) and the Division's regulation 209 CMR18.04 (2) (g)).
  17. Based upon the information contained in paragraphs 1 through 14, the Commissioner has determined that:
    1. GO-MORE FINANCIAL, INC. has engaged, or is about to engage in, acts or practices which warrant the belief that they are not operating honestly, fairly, soundly and efficiently in the public interest in violation of standards governing the licensing and conduct of a debt collector including, but not limited to, the provisions of the Division's regulations at 209 CMR 18.00 et seq.; and
    2. The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to GO-MORE FINANCIAL, INC.
  18. Based upon the information contained in paragraphs 1 through 14, had the facts and conditions found therein existed at the time of original debt collector license application, the Commissioner would have been warranted in refusing to issue such license. Further, the facts and conditions set forth in paragraphs 1 through 14 present sufficient grounds for the revocation of GO-MORE FINANCIAL, INC.'s debt collector license, number DC0835, pursuant to Massachusetts General Laws chapter 93, section 24I.

    ORDER TO CEASE AND DESIST

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

  19. ORDERED that GO-MORE FINANCIAL, INC. and any and all employees, independent contractors, or agents operating on behalf of GO-MORE, and their successors or assigns, shall immediately cease engaging in the activities of a debt collector, as defined under Massachusetts General Laws chapter 93 section 24, not otherwise expressly permitted by the terms of this TEMPORARY ORDER. Therefore, GO-MORE FINANCIAL, INC. is ordered to immediately cease soliciting or accepting, either directly or indirectly, any third party debt collection accounts for any debtors located within Massachusetts.
  20. IT IS FURTHER ORDERED that GO-MORE FINANCIAL, INC. shall immediately cease collecting any consumer collection accounts from debtors located within Massachusetts.
  21. IT IS FURTHER ORDERED that this TEMPORARY ORDER shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under Massachusetts General Laws chapter 30A.
  22. IT IS FURTHER ORDERED that a hearing will be scheduled on this matter to determine whether or not such TEMPORARY ORDER shall become permanent and final only upon receipt of a written request for such a hearing from GO-MORE FINANCIAL, INC. within twenty (20) days of the effective date of this TEMPORARY ORDER. If no hearing is requested within this twenty (20) day period, this TEMPORARY ORDER shall become permanent and final until it is modified or vacated by the Commissioner.

By ORDER AND direction of the Commissioner of Banks.

Dated at Boston, Massachusetts, this 12th day of September 2006.

Steven L. Antonakes
Commissioner of Banks