COMMONWEALTH OF MASSACHUSETTS
COMMISSIONER OF BANKS
MOTOR VEHICLE SALES
Docket No. 2009-11-OTSC
DIVISION OF BANKS, Petitioner
FAFAMA AUTO SALES, INC., Respondent
Motor Vehicle Sales Finance Company License No. MV0548
Petitioner Division of Banks ("Division") and Respondent Fafama Auto Sales, Inc. ("Fafama") hereby submit this Joint Stipulation and proposed Order for the Administrative Hearing Officer's approval.
WHEREAS, on April 27, 2010, the Division issued an Order to Show Cause and Notice of Intent to Revoke Motor Vehicle Sales Finance Company License against Fafama ("Order to Show Cause"), Docket No. 2009-11-OTSC, based on Fafama's failure to comply with the terms of an executed Stipulation and Consent to the Issuance of a Consent Order entered into by the Division and Fafama on February 27, 2009;
WHEREAS, a status conference was held regarding this matter on June 22, 2010;
WHEREAS, for the purpose of settlement of all alleged violations and charges set forth in the Order to Show Cause, Fafama hereby waives its right to complete the formal adjudicative hearing process relative to this matter and waives further appeals to any court in regard to the terms and conditions of this joint stipulation.
NOW COME the parties in the above-captioned matter, the Division and Fafama, and stipulate and agree as follows:
- Fafama attests that it and any and all officers, directors, managers, employees, independent contractors, and/or agents, operating on behalf of it, have ceased, and will continue to cease, engaging in the activity of a motor vehicle sales finance company in Massachusetts, as that term is defined under General Laws chapter 255B, section 1.
- Fafama shall reimburse the consumers identified in the "Fafama-Overcharged Refund Reporter" ("Refund Reporter") prepared as of August 10, 2009 by Ronald Masiello, CPA (attached as Exhibit A) for all overcharges collected by Fafama as specifically set forth in the Refund Reporter.
- Fafama shall make the consumer reimbursement payments referenced above in nine (9) monthly installments totaling approximately $3,073.00 each month.
- Fafama shall reimburse the consumers identified in the Refund Reporter by mailing a check to each consumer for the appropriate amount(s) as set forth in the Refund Reporter. Fafama shall send the reimbursement checks by certified mail to each consumer using the address listed in Fafama's records. If the checks are undeliverable, Fafama shall make a good faith effort to locate updated address information. For the purposes of this Section of the Joint Stipulation, running a whitepages.com ( http://www.whitepages.com/) search by consumer name shall represent a sufficient good faith effort. If the whitepages.com service is unavailable, Fafama shall utilize similar such free, publically available online resources.
- On or before the last business day of each month following the date of this Joint Stipulation, Fafama shall submit monthly progress reports to the Division of Banks, 1000 Washington Street, 10 th Floor, Boston, Massachusetts, 02118, Attn: Valerie Carbone, Esq. Such progress reports shall include: the names and account numbers of the consumers to whom reimbursement checks were sent; copies of the checks; certified mail receipts to illustrate the consumers' receipt of the reimbursements; evidence of undeliverable mail and description of Fafama's efforts to locate current addresses, including a printout of the results of the online address search referenced in Section 2(b) of the Joint Stipulation.
- Upon completion of all reimbursements set forth in Section 2 of this Joint Stipulation, as determined by the Division, Fafama will surrender its Massachusetts motor vehicle sales finance company license MV0548 by returning the original license certificate to the Division.
- In recognition of the parties having agreed on the terms of this Joint Stipulation to resolve the matters raised by the Order to Show Cause, the Division will terminate the Order to Show Cause immediately upon entry of this Joint Stipulation as an Order by the Administrative Hearing Officer.
- If Fafama fails to comply with the terms of this Joint Stipulation, as determined by the Division's legal counsel, the Division will request that the Hearing Officer issue an order revoking Fafama's motor vehicle finance company license.
- This Joint Stipulation represents the resolution of this matter. There are no other agreements, promises, representations, or warranties other than those set forth in this Joint Stipulation, which replaces and supersedes all prior agreements between Fafama and the Division.
- The undersigned representatives certify that they are fully authorized by the party whom they represent to enter in to the terms and conditions of this Joint Stipulation and legally to bind such party thereto. The undersigned parties consent to the submission of this Joint Stipulation to the Administrative Hearing Officer for approval and entry.
Respectfully submitted this 15th of July, 2010.
Valerie M. Carbone
Division of Banks
On behalf of the Petitioner
Fafama Auto Sales, Inc.
IT IS SO ORDERED
Aimee Desai, Esq.
Administrative Hearing Officer