By the Division of Banks

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL AGENCY LICENSING
No. 2006-016

FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST


In the Matter of

MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC
Worcester, Massachusetts

Foreign Transmittal Agency License No. FT 3905


The Commissioner of Banks ("Commissioner") having determined that Milton Miranda, and Express Remittance Transfer, LLC, located at 557 West Boylston Street, Worcester, Massachusetts have engaged, or are engaged in, or are about to engage in, acts or practices constituting violations of Massachusetts General Laws chapter 169, and applicable regulations found at 209 CMR 44.00 et seq., hereby issues the following ORDER TO CEASE AND DESIST pursuant to General Laws chapter 169, section 13(b).

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. Milton Miranda, individually, is the owner/officer of Express Remittance Transfer, LLC ("ERT" or the "Company"). ERT's office, at which records for the Company are maintained, is located at 557 West Boylston Street, Worcester, Massachusetts.
  3. ERT obtained the above-captioned license from the Division to operate as a foreign transmittal agency at 557 West Boylston Street, Worcester, Massachusetts on April 28, 2005.
  4. Pursuant to Massachusetts General Laws chapter 169, section 10, the Division conducted an inspection of the books, accounts, papers, records, and files of ERT on June 20, 2006 (the "examination/inspection").
  5. In reviewing ERT's records at the Company's office at 557 West Boylston Street, Worcester, Massachusetts, the Division's examiners concluded ERT has failed to preserve its books and records for transactions conducted by ERT as required by 209 CMR 44.05 . Specifically, ERT was unable or unwilling to provide customer information, dates of transactions, and amounts transmitted for customers.
  6. ERT failed to provide the Company's interim financial statements including a balance sheet and income statement during the examination/inspection in order to permit the examiners to determine whether ERT continued to satisfy financial responsibility requirements contained in 209 CMR 44.03(2).
  7. ERT failed to file its Annual Report with the Commissioner which was due to be submitted by January 31, 2006 as required by 209 CMR 44.06.
  8. During the examination/inspection, ERT could not or would not provide evidence of compliance with the applicable provisions of 31 CFR 103, Financial Recordkeeping and Reporting of Currency and Foreign Transactions.
  9. On June 21, 2006, ERT surrendered its foreign transmittal agency license by presenting the original license to the Division's examiners. ERT failed to deliver written notice of the surrender of its license, as required pursuant to General Laws chapter 169, section 12.

    CONCLUSIONS OF LAW

  10. Based on the information contained in paragraphs 2 through 9, MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC have failed to demonstrate the financial responsibility, character, reputation, integrity, and general fitness that would warrant the belief that the business will operated honestly, fairly, and soundly in the public interest in violation of Massachusetts General Laws chapter 169, section 6 and the Division's regulation 209 CMR 44.03.
  11. Based upon the information contained in paragraphs 2 through 9, MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC, failed to report the volume of foreign transmittals conducted by the Company in an Annual Report required by the Division in order to determine the Company's bond requirement in violation of General Laws chapter 169, section 9 and the Division's regulation 209 CMR 44.06.
  12. Based upon the information contained in paragraphs 2 through 9, MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC failed to maintain records, sufficient to enable the Commissioner to determine the Company's level of compliance with the applicable rules and regulations pertaining to the conduct of a foreign transmittal agency, in violation of General Laws chapter 169, section 10 and 209 CMR 44.05.
  13. Based upon the information contained in paragraphs 2 through 9, MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC., failed to produce complete and accurate trust account records in violation of the Division's regulation 209 CMR 44.07(3).
  14. Based upon the information contained in paragraphs 2 through 9, MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC, have failed to demonstrate compliance with the applicable provisions of 31 CFR 103, Financial Recordkeeping and Reporting of Currency and Foreign Transactions
  15. Based upon the information contained in paragraphs 2 through 9, the Commissioner has determined that:
    1. Express Remittance Transfer, LLC 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 foreign transmittal agency including, but not limited to, the provisions under General Laws chapter 169 and the Division's regulations at 209 CMR 44.00 et seq.
    2. The public interest will be irreparably harmed by delay in issuing an ORDER TO CEASE AND DESIST to EXPRESS REMITTANCE TRANSFER, LLC.
  16. Based upon the information contained in paragraphs 2 through 9, had the facts and conditions found therein existed at the time of EXPRESS REMITTANCE TRANSFER, LLC's original foreign transmittal agency license application, the Commissioner would have been warranted in refusing to issue such license.

    ORDER TO CEASE AND DESIST

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

  17. IT IS FURTHER ORDERED that MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC shall immediately cease from engaging directly or indirectly in the business of a foreign transmittal agency.
  18. IT IS FURTHER ORDERED that MILTON MIRANDA and EXPRESS REMITTANCE, LLC shall provide the Division with a complete record of all monies received and transmitted domestically, foreign, or both during the period from its time of initial licensure of April 28, 2005 through the effective date of this TEMPORARY ORDER. Such records shall have been audited by an independent Certified Public Accountant and shall be submitted to the Division by September 30, 2006. The records to be produced shall include, but are not limited to, the names and addresses of all individuals who have deposited money for the purpose of transmitting the same or equivalents thereof to foreign countries, the amount of each transmittal, and the total fees charged on each transaction.
  19. IT IS FURTHER ORDERED that MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC shall provide the Division with a complete record of all deposits in excess of three thousand dollars ($3,000.00) that were received between April 28, 2005 and the effective date of this TEMPORARY ORDER, for the purpose of transmitting the same, or equivalents thereof, to foreign countries. The records to be produced shall include, but are not limited to, the names and addresses of all individuals who have deposited money in a sum in excess of $3,000.00 for the purpose of foreign transmittal, the amount of each transmittal, and the total fees charged on each transaction. The records required by this Section shall be submitted to the Division within twenty (20) days of the effective date of this TEMPORARY ORDER.
  20. IT IS FURTHER ORDERED that MILTON MIRANDA and EXPRESS REMITTANCE TRANSFER, LLC continue in full its bond with United Casualty and Surety Insurance Company, Bond Number MS1820, for $50,000 for one year from the date of the surrender of its license.
  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 pursuant to 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 the Licensee 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 22th day of August 2006.

Steven L. Antonakes
Commissioner of Banks