COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
FOREIGN TRANSMITTAL
AGENCY LICENSING
Docket No. 2013-018

FINDINGS OF FACT AND
TEMPORARY ORDER TO
CEASE AND DESIST

In the Matter of
INTERTRANSFERS, INC.
Miami, Florida

Foreign Transmittal Agency License No(s): FT5682 et al

The Commissioner of Banks (Commissioner) having determined that INTERTRANSFERS, INC. (InterTransfers or the Corporation) located at 25 SE 2nd Avenue, Suite 516, Miami, Florida has engaged in, or is engaged in, or is 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 Massachusetts 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 and entities engaged in the foreign transmittal business in Massachusetts pursuant to Massachusetts General Laws chapter 169, and applicable regulations found at 209 CMR 44.00 et seq., which are administered by the Commissioner.
  2. InterTransfers is, and at all relevant times has been, a foreign corporation conducting business in the Commonwealth of Massachusetts. InterTransfers' main office is located at 25 SE 2nd Avenue, Suite 504, Miami, Florida.
  3. According to the Division's records, Iraci R. Oliveira is the 100% percent shareholder of InterTransfers.
  4. InterTransfers is licensed by the Commissioner as a foreign transmittal agency under Massachusetts General Laws chapter 169. According to records maintained on file with the Division, the Commissioner initially issued a foreign transmittal license to InterTransfers on or about August 3, 2007, with license number FT5682. License number FT5682 currently authorizes InterTransfers to operate as a foreign transmittal agency at 25 SE 2nd Avenue, Miami, Florida. 5
  5. InterTransfers maintains a total of twenty-six (26) additional foreign transmittal agency licenses for 26 agents, for locations operated in the Commonwealth from which the Corporation conducts its foreign transmittal business.
  6. InterTransfers transmits money received from Massachusetts consumers primarily to Brazil. According to information reflected on the Corporation's 2012 annual report filed with the Division, InterTransfers transmitted $26,808,665 for calendar year 2012.
  7. According to the Division's records, InterTransfers owns 100% of Global Money Remittance, Inc., (Global Money) who maintains at least twenty-seven (27) foreign transmittal agency licenses in Massachusetts.
  8. InterTransfers is a money service business within the meaning of The Bank Secrecy Act and its implementing regulation at 31 C.F.R. Chapter X.

    A. Failure to Transmit Funds
  9. Massachusetts General Laws chapter 169, section 8 states, in part: All money received for transmission to a foreign country by any licensee shall be forwarded to the person to whom the same is directed within seven days following receipt thereof…
  10. The Division's regulation 209 CMR 44.10(5) states: Grounds for license revocation under M.G.L. c. 169, § 12 and the issuance of cease and desist orders under M.G.L. c. 169, § 13 shall include, but are not limited to, the following prohibited acts and practices by Licensees: (5) failing to forward all money received for transmission to a foreign country to the person to whom the same is directed within seven days following receipt thereof.
  11. On or about April 4, 2013, the Division became aware through a licensed agent that beginning on or about March 18, 2013 and continuing through the effective date of this Temporary Order, InterTransfers failed to transmit funds for at least nine (9) transactions to multiple beneficiaries in a foreign country within seven days following the receipt thereof.
  12. Based upon information reviewed by the Division, the licensed agent received funds for transmission through InterTransfers in the amount of approximately $13,386.00 for transmittal of those funds to beneficiaries located in Brazil.
  13. On or about April 8, 2013, the Division became aware through a second licensed agent that beginning on or about March 20, 2013 and continuing through the effective date of this Temporary Order, InterTransfers failed to transmit funds for at least forty (40) transactions to beneficiaries in a foreign country within seven days following the receipt thereof
  14. Based upon information reviewed by the Division, the licensed agent received funds for transmission through InterTransfers in the amount of approximately $68,027.99 for transmittal of those funds to beneficiaries located in a foreign country.
  15. On or about April 9, 2013, the Division became aware through a third licensed agent that beginning on or about March 19, 2013 and continuing through the effective date of this Temporary Order, InterTransfers failed to transmit funds for at least fifty-three (53) transactions to beneficiaries in a foreign country within seven days following the receipt thereof.
  16. Based upon information reviewed by the Division, the licensed agent received funds for transmission through InterTransfers in the amount of approximately $150,117.61 for transmittal of those funds to beneficiaries located in a foreign country.

    B. Failure To Demonstrate the Financial Responsibility, Character, Reputation Integrity, and General Fitness to Maintain a Foreign TRansmittal Agency License
  17. Massachusetts General Laws chapter 169, section 12 relevant to the licensing of foreign transmittal agencies states: The commissioner may suspend or revoke any license issued pursuant to this chapter if he finds that: (a) the licensee has violated any provision of this chapter or any rule or regulation adopted hereunder or any other law applicable to the conduct of such business; or (b) any fact or condition exists which, if it had existed at the time of the original application for such license, would have warranted the commissioner to refuse to issue such license.
  18. The Division's regulation at 209 CMR 44.04(2) states in part:

    (a) The Commissioner may deny an application to engage in the business of foreign transmittal agency, if the Commissioner upon review of the application and other relevant information, determines that the Applicant has not satisfied the requirements of M.G.L. c. 169 or 209 CMR 44.03.

    (b) The Commissioner may also deny such an application if the Applicant has:

    1. violated any provision of M.G.L. c. 169 or 209 CMR 44.00;
    2. violated or engaged in a pattern of violations of any state or federal law applicable to the conduct of the business of a foreign transmittal agency and any rule, regulation or administrative order or directive promulgated thereunder;
    3. conducted, or will conduct, its business in an unsafe and unsound manner…
  19. On April 9, 2013, representatives of the Division contacted Erik Rodriquez, Compliance Officer at Global Money Remittance to discuss the information in paragraphs 9 to 16 of this Temporary Order.
  20. During the April 9, 2013 teleconference, the Corporation's representative, notified the Division that InterTransfers was aware of the failure to remit funds and was having financial difficulties.
  21. During the April 9, 2013 teleconference, the Corporation's representative notified the Division's representatives that InterTransfers would only be refunding any outstanding consumer funds that had been collected upon a formal request by the affected consumer and furthermore that all pending transmittals would likely be transmitted within three days.
  22. InterTransfer's representatives were unable to assure the Division's representatives that the Corporation had the financial capacity to transmit the consumer funds previously collected for transmittal.
  23. Based upon information and belief as of the date of this Temporary Order, InterTransfers has failed to forward Massachusetts consumers funds received for transmittal to foreign countries. It is unknown how many Massachusetts consumers have been affected by InterTransfers' failure to transmit such funds, or if the practice is continuing to date.
  24. On the effective date of this Temporary Order, pursuant to Massachusetts General Laws chapter 169, section 13(b), the Division issued a Temporary Order to Cease and Desist (Order) against Global Money Remittance, Inc., Docket number 2013-019 based upon the information referenced in Paragraphs 9 through 23 of this Temporary Order. The Order issued by the Division alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory guidelines governing the conduct of Global Money Remittance, Inc., and is incorporated herein by reference.

    CONCLUSIONS OF LAW
  25. Based on the information contained in Paragraphs 1 through 24, InterTransfers has 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, the Division's regulation 209 CMR 44.03, and the Division's regulation 209 CMR 44.04.
  26. Based on the information contained in Paragraphs 1 through 24, InterTransfers failed to remit funds received for transmissions to a foreign country within seven days of receipt thereof in violation of M.G.L. chapter 169 section 8 and the Division's regulation 209 CMR 44.10(5).
  27. Based upon the information contained in Paragraphs 1 through 24, had the facts and conditions found therein existed at the time of InterTransfers' original foreign transmittal agency license application for license number FT5682, the Commissioner would have been warranted in refusing to issue such license.
  28. Based upon the information contained in Paragraphs 1 through 24, the public interest will be harmed by delay in issuing an Order to Cease and Desist under General Laws chapter 169, section 13(b) because, upon information and belief, InterTransfers has failed to remit funds collected from Massachusetts consumers. As of the date of this Temporary Order, InterTransfers has failed to demonstrate that those funds received for transmissions from several Massachusetts consumers were remitted within seven days or at all, and it is unknown if this is a continuing practice, that could possibly affect a growing number of Massachusetts consumers.
  29. Based upon the information contained in Paragraphs 1 through 24, the Commissioner has determined that:

    1. InterTransfers has engaged, or is about to engage in, acts or practices which warrant the belief that the Corporation 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 against InterTransfers.
    ORDER TO CEASE AND DESIST

    After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:
  30. ORDERED that InterTransfers, any and all officers, directors, employees, independent contractors, or agents operating on behalf of InterTransfers, and their successors or assigns, shall immediately cease engaging directly or indirectly in the business of a foreign transmittal agency in Massachusetts, as defined in General Laws chapter 169, section 1, except as otherwise expressly permitted by the terms of this Temporary Order or by the Commissioner.
  31. IT IS FURTHER ORDERED that InterTransfers shall notify all independent contractors, or agents operating on behalf of InterTransfers to immediately cease engaging directly or indirectly in the business of a foreign transmittal agency on behalf of InterTransfers.
  32. IT IS FURTHER ORDERED that InterTransfers shall immediately secure all records, files, and documents (Records) relative to the Corporation's foreign transmittal agency. InterTransfers is prohibited from destroying, altering, and/or modifying any of the referenced Records. The provisions of this Paragraph require InterTransfers to ensure that all agents operating on behalf of InterTransfers are directed to preserve all Records pursuant to the provisions of this Paragraph. The Records shall be available to the Commissioner in their entirety upon request.
  33. IT IS FURTHER ORDERED that InterTransfers shall immediately process and remit all transmittal orders for funds received from Massachusetts consumers with no loss to the consumer. It being understood that "no loss to the consumer" shall mean that if the Corporation is unable to remit funds collected for transmittal, the consumer shall be entitled to a refund of all funds and any fees collected by InterTransfers. InterTransfers shall submit a detailed record to evidence compliance of this Paragraph in conjunction with the Report submitted to the Division as outlined in Paragraph 35 of this Temporary Order. Evidence of compliance shall include but not be limited to: receipts confirming the transmittal of funds; check numbers of payments issued by the Corporation to evidence reimbursements made to consumers, and the amount reimbursed to each individual.
  34. IT IS FURTHER ORDERED that within two (2) days of the effective date of this Temporary Order, InterTransfers shall submit to the Commissioner:

    1. A detailed record, prepared as of the date of submission, of the Corporation's accounting of the number and amount of Massachusetts transactions as of March 1, 2013 through the date of submission, of all transmittal orders for funds received from Massachusetts consumers. The report submitted to the Division shall include:

      1. Transactions that were processed, including those transactions that were paid out, cancelled, voided, and/or reissued through another licensed money transmitter or remain unresolved. If the transactions were processed through another money transmitter, the Corporation shall submit receipts of all transactions processed through the money transmitter.
      2. The Corporation's record shall also include the names and addresses of all Massachusetts consumers from whom funds were collected for transmission. Additionally, the record shall include the dollar amount of all transmittal orders for funds received from Massachusetts consumers and a detailed list of any fees collected by the Corporation for the transmissions.
      (b) A detailed record, prepared as of the date of submission, of an accounting of any monetary damages caused to any Massachusetts consumers or any intended recipient of monies or monetary value received for transmission as a result of InterTransfers' failure to remit funds, including but not limited to, any late charges incurred or penalties imposed on accounts.
  35. IT IS FURTHER ORDERED that within five (5) days of the effective date of this Temporary Order, InterTransfers shall reimburse all fees collected by the Corporation for any transaction in which the Corporation received funds which were not transmitted within seven days following receipt thereof as required by Massachusetts General Laws chapter 169, section 8. Reimbursements shall be made to each person on a per transaction basis in an amount equal to the entire portion of the fee retained by the Corporation for such transaction. A record shall be provided to the Division of the names and addresses of all individuals whom the Corporation charged a fee, the total fees charged on each transaction, and check numbers of payments issued by the Corporation to evidence reimbursements made to consumers, and the amount reimbursed to each individual.
  36. 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.
  37. 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 10th day of April 2013.
By:
David J. Cotney
Commissioner of Banks