By the Division of Banks


 

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
DEBT COLLECTOR LICENSING
Docket No. 2013-009 CO

CONSENT ORDER

In the Matter of

DELBERT SERVICES CORPORATION
JOHN P. REDDAM, Individually


Debt Collector License No(s). DC112059-100 et al.

Las Vegas, Nevada


WHEREAS, DELBERT SERVICES CORPORATION, (Delbert Services or the Corporation),  a licensed debt collector under Massachusetts General Laws chapter 93, section 24A and 209 CMR 18.00 et seq., and JOHN P. REDDAM, the sole owner of Delbert Services, have been advised of their right to Notice and Hearing pursuant to Massachusetts General Laws Chapter 30A, section 10 and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER (Consent Agreement) with representatives of the Division of Banks (Division) dated October 27, 2015  whereby, solely for the purpose of settling this matter, Delbert Services and John P. Reddam agree to the issuance of this CONSENT ORDER (Consent Order) by the Commissioner of Banks (Commissioner);

WHEREAS, the 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, sections 24 through 28 and 209 CMR 18.00 et seq.;

WHEREAS, Delbert Services is, and at all relevant times has been, a foreign corporation conducting business in the Commonwealth with its main office located at located at 7125 Pollock Drive, Las Vegas, Nevada;

WHEREAS, John P. Reddam is, according to the Division’s records, is the sole owner of Delbert Services;

WHEREAS, on November 27, 2012, pursuant to Massachusetts General Laws chapter 93, section 24D, the Division commenced an examination of the books, accounts, papers, records, and files maintained by Delbert Services to evaluate the Corporation’s compliance with Massachusetts and federal statutes and regulations governing the conduct of a debt collector in Massachusetts (2012 examination);

WHEREAS, the Division's Report of Examination (Report) which was issued to Delbert Services on April 4, 2013, presented the findings of the 2012 examination and alleged failures to comply with applicable state and federal statutes, rules, and regulations governing the conduct of those engaged in the business of a debt collector in Massachusetts;

WHEREAS, on, April 4, 2013, based on the findings of the 2012 examination, the Division issued a TEMPORARY ORDER TO CEASE AND DESIST (Temporary Order), Docket No. 2013-009 against Delbert Services and John P. Reddam;

WHEREAS, on or about April 23, 2013, Delbert Services filed a notice with the Division reserving the Corporation’s right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about May 8, 2013, Delbert Services filed a response to the findings in the Report, whereby the Corporation disputed certain of the Division's findings contained in the 2012 Report;

WHEREAS, in recognition of the Division, Delbert Services and John P. Reddam having reached the following mutual agreement under this Consent Order to resolve the matters raised by the Temporary Order, the Commissioner has terminated the Temporary Order on this October 27, 2015.

ORDER

NOW COME the parties in the above-captioned matter, the Division, Delbert Services and John P. Reddam stipulate and agree as follows:

  1. Delbert Services and any and all officers, directors, employees, or managers or their successors or assigns operating on behalf of Delbert Services, will immediately cease engaging in the activity of a debt collector in Massachusetts, as that terms is defined under General Laws chapter 93, section 24, and the Division’s regulation 209 CMR 18.00, et.  seq.
  2. Immediately upon the execution of this Consent Order, the Massachusetts debt collector license (DC112059-100 et al) status of Delbert, as reflected in the Nationwide Multi-state Licensing System and Registry (NMLS), will be changed to “Terminated-Ordered to Surrender.”   
  3. Delbert Services and John P. Reddam will be prohibited from submitting an application to obtain a debt collector license or any other license from the Division at any time in the future.  
  4. John P. Reddam is prohibited from taking an ownership position in any entity licensed and/or regulated by the Division, including by not limited to, a debt collection company licensed and regulated under Massachusetts General Laws chapter 93, section 24 and 209 CMR 18.00, et seq.  John P. Reddam is prohibited from acting as a control person of any such entity.  For the purposes of this Consent Order, “control” shall be defined as the power, directly or indirectly, to direct the management or policies of a company, whether as an officer or director, or through ownership of securities, by contract, or otherwise.
  5. This Consent Order shall become effective immediately upon the date of its issuance.
  6. The provisions of this Consent Order shall be binding upon Delbert Services, John P. Reddam and its directors, officers, managers, and their successors and assigns.
  7. In accordance with the terms of the Consent Agreement entered by Delbert Services, John P. Reddam and the Commissioner, Delbert Services and John P. Reddam have waived all rights of appeal that they may have relative to the Temporary Order.
  8. The provisions of this Consent Order shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this Consent Order shall have been modified, terminated, suspended, or set aside by the Commissioner or upon an order of a court of competent jurisdiction.
  9. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter.  There are no other agreements, promises, representations, or warranties other than those set forth in this Consent Order. 
  10. This Consent Order shall become effective immediately upon the date of its issuance.      

 

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 27th day of October, 2015

By: David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts