Cease And Desist Order
COMMONWEALTH OF MASSACHUSETTS
Suffolk, SS.
COMMISSIONER OF BANKS
SMALL LOAN COMPANY LICENSING
MORTGAGE BROKER LICENSING
UNAUTHORIZED BANKING ACTIVITY
UNAUTHORIZED CREDIT UNION
No. 03-034
ORDER TO CEASE AND DESIST
In the Matter of
RUDOLPH KRUTOUS
TAXI DRIVERS CREDIT UNION
AUTO CLUB BOSTON
AUTO CLUB BOSTON CREDIT GROUP, INC.
ACB CREDIT GROUP, INC
214 Harvard Avenue, Allston, Massachusetts
The Commissioner of Banks ("Commissioner") having determined that RUDOLPH KRUTOUS, TAXI DRIVERS CREDIT UNION, AUTO CLUB BOSTON, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB CREDIT GROUP INC., located at 214 Harvard Avenue, Allston, Massachusetts have engaged or are about to engage in acts or practices constituting violations of General Laws chapter 140, section 96, and applicable regulations found at 209 CMR 12.00 et seq. and 209 CMR 26.00 et seq., General Laws chapter 171, section 7, General Laws chapter 167, section 37, and General Laws chapter 255E, hereby issues the following ORDER TO CEASE AND DESIST.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in small loan activities under the Massachusetts Small Loans Act, General Laws chapter 140, sections 96-114. Under section 96, persons engaged directly or indirectly in making, aiding or assisting in the making of loans of $6,000.00 or less with an interest rate in excess of 12% per annum, as set forth in said section 96, must be licensed by the Division as a small loan agency. Such loans are further subject to a maximum interest rate pursuant to section 100 of chapter 140.
The Division, through the Commissioner, has jurisdiction over the chartering and supervision of state-chartered credit unions in the Commonwealth. Under General Laws chapter 171, section 7, no persons, partnership or organization shall transact business in the manner of a credit union or use the words "credit union" in its title unless the business is chartered as a credit union under state or federal law.
General Laws chapter 167, section 37 prohibits any organization from conducting the business of a credit union, trust company, savings bank, co-operative bank, or from collecting deposits of any kind unless authorized to do so under the laws of the Commonwealth.
General Laws chapter 255E, section 2, prohibits any person from engaging in the business of a mortgage broker, as defined in section 1 of said chapter 255E, without obtaining a license from the Division.
Rudolph Krutous, Taxi Drivers Credit Union, Auto Club Boston, Auto Club Boston Credit Group, Inc., and ACB Credit Group, Inc, all entities of which are located at 214 Harvard Avenue, Allston, Massachusetts, individually or collectively, have not obtained or applied for a small loan license or a mortgage broker license from the Division.
Rudolph Krutous, Taxi Drivers Credit Union, Auto Club Boston, Auto Club Boston Credit Group, Inc., ACB Credit Group, Inc, all entities of which are located at 214 Harvard Avenue, Allston, Massachusetts, individually or collectively, have not received or applied for a charter to operate as a credit union within the Commonwealth of Massachusetts from the Commissioner or the National Credit Union Administration.
Prior to October 30, 2003, an official from the Division, during the course of her official duties, read an advertisement for the Taxi Drivers Credit Union. The advertisement is listed as Exhibit A. The advertisement describes a Taxi Drivers Credit Union that will be coming soon to 214 Harvard Avenue, Allston, Massachusetts. The advertisement lists various loan and deposit products the Credit Union offers. A telephone number with the 617 area code was provided, and encouraged potential members to visit their office to sign up.
On October 28, 2003, Division personnel noted a website for Auto Club Boston at the web address of www.boston-discount.com. Screen printouts of this site are listed as Exhibit B. The site indicates that Auto Club Boston is a club, predominately comprised of taxi drivers and taxi owner-operators. The club offers discounts to members from participating merchants. The site also contains a link to a page for ACB Credit Group, Inc, which offers assistance in financing in the purchase of taxi medallions, as well as the financing and refinancing of home mortgages. The page also offers qualified members (owner-operators) "Short Term Taxi Cab Loans", up to $6,000.00. A telephone number with the 617 area code is provided.
CONCLUSIONS OF LAW
Based on the information contained in paragraphs 5 and 8, Rudolph Krutous, Taxi Drivers Credit Union, Auto Club Boston, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB Credit Group, Inc, may have unlawfully engaged in the business of making or assisting in the making of small loans without a license from the Commissioner, in violation of the Massachusetts Small Loans Act, General Laws chapter 140, sections 96-114.
Based on the information contained in paragraphs 6 and 7, Rudolph Krutous, Taxi Drivers Credit Union, Auto Club Boston, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB Credit Group, Inc, have unlawfully conducted the business of a credit union and are soliciting business as a credit union, using the words "credit union", without a charter to operate as a credit union within the Commonwealth of Massachusetts from the Commissioner or the National Credit Union Administration, in violation of General Laws chapter 167, section 37 and General Laws chapter 171, section 7.
Based on information contained in paragraphs 5 and 8, Rudolph Krutous, Taxi Drivers Credit Union, Auto Club Boston, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB Credit Group, Inc, may have unlawfully engaged in unauthorized activity under General Laws chapter 255E governing the licensing and conduct of mortgage brokers in the Commonwealth.
ORDER TO CEASE AND DESIST
After taking into consideration the FINDINGS OF FACT and CONCLUSIONS OF LAW stated herein, it is hereby:
ORDERED that RUDOLPH KRUTOUS, TAXI DRIVERS CREDIT UNION, AUTO CLUB BOSTON, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB CREDIT GROUP INC., shall immediately cease from engaging directly or indirectly in the business of making or assisting in the making of small loans in violation of the Massachusetts Small Loans Act, General Laws chapter 140, sections 96-114, and from assisting in the making or placement of mortgage loans in violation of General Laws chapter 255E.
IT IS FURTHER ORDERED that RUDOLPH KRUTOUS, TAXI DRIVERS CREDIT UNION, AUTO CLUB BOSTON, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB CREDIT GROUP INC., shall immediately cease transacting business using the words "credit union" in violation of General Laws chapter 171, section 7 until the business is chartered under state or federal law.
IT IS FURTHER ORDERED that RUDOLPH KRUTOUS, TAXI DRIVERS CREDIT UNION, AUTO CLUB BOSTON, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB CREDIT GROUP INC., shall immediately cease conducting the business of a credit union in violation of General Laws chapter 167, section 37 and General Laws chapter 171, section 7 unless authorized to do so under the laws of the Commonwealth
IT IS FURTHER ORDERED that RUDOLPH KRUTOUS, TAXI DRIVERS CREDIT UNION, AUTO CLUB BOSTON, AUTO CLUB BOSTON CREDIT GROUP, INC. and ACB CREDIT GROUP INC., shall provide the Division with a complete accounting of all small loans it made or assisted in making and all mortgage loans placed or referred, and a separate accounting of any and all shares and deposits accepted. Both accountings must be filed with the Division on or before November 7, 2003. The records to be produced shall include, but are not limited to, the names of all individuals who have applied for such loans, the applicants' addresses, the amount of each loan, and the total fees charged on each loan, fees or other compensation received in connection with said loans, and the names and addresses of all individuals from whom any monies were accepted for deposit.
IT IS FURTHER ORDERED that this ORDER TO CEASE AND DESIST shall become effective immediately and shall remain in effect unless set aside, limited, or suspended by the Commissioner or upon court order after review under General Laws chapter 30A.
BY DIRECTIONS OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 30 th day of October 2003.
Thomas J. Curry
Commissioner of Banks