By the Division of Banks
COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
Docket No. 2016-001
In the Matter of
Foreign Transmittal Agency License No.: FT1071851
WHEREAS, POAPAY LLC, Birmingham, Alabama (“PoaPay” or the “Corporation”), a licensed foreign transmittal agency under Massachusetts General Laws chapter 169 has been advised of its right to Notice and Hearing pursuant to General Laws chapter 169, section 13, 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 July 13, 2016, whereby, solely for the purpose of settling this matter, and without admitting any allegations or implications of fact or the existence of any violation of state or federal laws and regulations governing the conduct and operation of a foreign transmittal agency, PoaPay agrees to the issuance of this CONSENT ORDER (“Consent Order”) by the Commissioner of Banks (“Commissioner”);
WHEREAS, an examination/inspection of PoaPay was conducted pursuant to General Laws chapter 169, section 10, as of July 2, 2015 (the “2015 examination/inspection”) to assess the Corporation’s level of compliance with applicable state and federal laws, rules, regulations and regulatory bulletins governing the conduct of those engaged in the business of a foreign transmittal agency in the Commonwealth;
WHEREAS, the Report of Examination/Inspection (the “Report”) issued pursuant to the Division’s examination/inspection of PoaPay as of July 2, 2015 alleged PoaPay’s failure to comply with applicable state and federal laws, rules, regulations, and regulatory guidelines governing the Corporation’s conduct as a foreign transmittal business maintaining foreign transmittal agency license number FT1071851;
WHEREAS, on April 28, 2016, pursuant to General Laws chapter 169, section 12 the Commissioner issued an ORDER TO SHOW CAUSE AND NOTICE OF RIGHT TO A HEARING, Docket No. 2016-001 (the “Order to Show Cause”), against PoaPay;
WHEREAS, without this Consent Order constituting an admission by PoaPay of any allegations made or implied by the provisions of the Temporary Order; solely for the purpose of settlement of all alleged violations without protracted administrative proceedings and judicial review, PoaPay hereby waives its right to complete the hearing process relative to this proceeding and affirms that it is willing to take all necessary action as set forth in this Consent Order; and
WHEREAS, in recognition of the Division and PoaPay having reached the following mutual agreement under this Consent Order to fully resolve the matters raised by the Order to Show Cause, the Commissioner has terminated the Order to Show Cause on this 13th day of July 2016.
NOW COME the parties in the above-captioned matter, the Division and PoaPay, and stipulate and agree as follows:
- Immediately upon the execution of this Consent Order, PoaPay will refrain from engaging in the foreign transmittal business in Massachusetts, as that term is defined under Massachusetts General Laws chapter 169, the Division’s regulations 209 CMR 44.00 et seq.
- Immediately upon the execution of this Consent Order, PoaPay will surrender the Corporation’s Massachusetts foreign transmittal agency license, by returning the original license certificates to the Division at 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400. It being understood that any pending foreign transmittal agency license applications filed with the Division will be terminated upon the effective date of this Consent Order.
- PoaPay will refrain from submitting an application to obtain a license from the Commissioner for a period of one hundred and twenty (120) months from the effective date of the Temporary Order.
- To the extent that PoaPay wishes to resume business as a foreign transmittal agency at the expiration of the 120-month term as set forth above, PoaPay shall be required to submit a completed application to obtain the relevant license from the Commissioner. The Commissioner shall have all of the discretion set forth within General Laws chapter 169 and the Division's regulation 209 CMR 44.00 et seq. in determining whether to issue a license to PoaPay to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Order to Show Cause.
- PoaPay shall pay a civil money penalty in the amount of two hundred thousand dollars ($200,000). Payment shall be made as follows:
- The civil money penalty shall be due in equal quarterly installments on or before the last day of each quarter for a period of twenty-four (24) months until the civil money penalty is satisfied in full. The first payment shall be due on or before September 30, 2016, and the second payment shall be due on or before December 31, 2016.
- The payment shall be made payable to the “Commonwealth of Massachusetts”, and mailed to the Office of the Commissioner of Banks, Attn: Non-Depository Institution Supervision, 1000 Washington Street, 10th Floor, Boston, Massachusetts 02118-6400.
- The provisions of this Consent Order shall not limit, estop, or otherwise prevent the Division, or any other state agency or department, from taking any other action affecting PoaPay, its successors or assigns, if it fails to fully and promptly comply with the above provisions.
- This Consent Order shall become effective immediately upon the date of its issuance.
- The provisions of this Consent Order shall be binding upon PoaPay, its officers and directors, their successors and assigns, and those persons in active participation with it, directly or indirectly, acting individually or through any corporate or other entity.
- In accordance with the terms of the Consent Agreement entered by PoaPay and the Commissioner, PoaPay has waived all rights of appeal that it may have relative to this Consent Order or any of its provisions.
- 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.
- 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.
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 13th day of July, 2016
By: David J. Cotney
Commissioner of Banks
Commonwealth of Massachusetts