Consent Order  Abbott Mortgage Corporation and Semyon Karasik, individually

Date:	08/06/2009
Organization:	Division of Banks
Docket Number:	2009-002-CO

Abbott Mortgage Corporation and Semyon Karasik, individually, Woburn, MA - Consent Order

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2009-002-CO

CONSENT ORDER

In the Matter of
ABBOTT MORTGAGE CORPORATION
Mortgage Broker License No. MB0170

and

SEMYON KARASIK, individually
Mortgage Loan Originator License No. MLO18734

WHEREAS, ABBOTT MORTGAGE CORPORATION and SEMYON KARASIK (collectively, "Abbott Mortgage" or the "Licensee"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2 and a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, respectively, 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 August 6 ^th, 2009, whereby, solely for the purpose of settling this matter, Abbott Mortgage and Semyon Karasik agree to the issuance of this CONSENT ORDER ("Consent Order") by the Commissioner of Banks ("Commissioner");

WHEREAS, the Division of Banks ("Division"), through the Commissioner, has jurisdiction over the licensing and regulation of those engaged in the business of a mortgage broker in Massachusetts pursuant to Massachusetts General Laws chapter 255E, section 2 and the Division's regulations 209 CMR 42.00 et seq.;

WHEREAS, the Division, through the Commissioner, has jurisdiction over the licensing and regulation of persons engaged in the business of a mortgage loan originator in Massachusetts pursuant to Massachusetts General Laws chapter 255F, section 2 and the Division's regulations 209 CMR 41.00 et seq.;

WHEREAS, Semyon Karasik at all relevant times was the President and 100% owner of Abbott Mortgage;

WHEREAS, on or about November 4, 2008, pursuant to the authority granted under Massachusetts General Laws chapter 255E, section 8, the Division commenced an examination/inspection (the "2008 examination/inspection") of the books, accounts, papers, records, and files maintained by Abbott Mortgage;

WHEREAS, the Division's Report of Examination/Inspection on Consumer Compliance (the "Report"), which was issued to Abbott Mortgage on or about March 27, 2009, presented the findings of the 2008 examination/inspection and alleged significant failures to comply with applicable state and federal laws, rules, regulations, and regulatory bulletins governing the conduct of those engaged in the business of a mortgage broker in Massachusetts;

WHEREAS, on or about March 27, 2009, based upon the findings of the 2008 examination/inspection, the Division issued a FINDINGS OF FACT AND TEMPORARY ORDER TO CEASE AND DESIST (the "Temporary Order"), Docket No. 2009-002, against Abbott Mortgage and Semyon Karasik, individually;

WHEREAS, Paragraph 44 of the Temporary Order provides, in pertinent part, that, "Semyon Karasik, Abbott Mortgage, its officers, directors,…shall immediately cease engaging in the activities of a mortgage broker, as those activities are defined under Massachusetts General Laws chapter 255E, section 1 relative to any residential property in Massachusetts, not otherwise expressly permitted by the terms of this Temporary Order";

WHEREAS, on or about April 16, 2009, Semyon Karasik, on behalf of Abbott Mortgage, filed a response to the Temporary Order with the Division whereby he reserved the right to proceed to an administrative hearing in accordance with Massachusetts General Laws chapter 30A;

WHEREAS, on or about April 16, 2009, Semyon Karasik appeared at the Division's offices for an informal conference to discuss the matters raised by the Temporary Order and requested reconsideration of certain provision(s) of the Temporary Order;

WHEREAS, the parties now seek to resolve by mutual agreement, the matters identified in the Temporary Order;

WHEREAS, without this Consent Order constituting an admission by Abbott Mortgage or Semyon Karasik 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, Abbott Mortgage and Semyon Karasik hereby waive all rights to complete the hearing process relative to this proceeding and Semyon Karasik, individually, affirms that he is willing to take all necessary action as set forth in this Consent Order; and

WHEREAS, in recognition of the Division and Semyon Karasik 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 6 ^th day of August, 2009.

ORDER

NOW COME the parties in the above-captioned matter, the Division and Semyon Karasik, and stipulate and agree as follows:

1. Immediately upon the execution of this Consent Order, Semyon Karasik will refrain from negotiating, soliciting, arranging, providing or accepting any Massachusetts residential mortgage loan application, or assisting any consumer in completing such application, or otherwise engage in the mortgage loan originator business, as that term is defined under General Laws chapter 255F, section 1.
2. Immediately upon the execution of this Consent Order, Semyon Karasik will surrender Abbott Mortgage's Massachusetts mortgage broker license MB0170 by: (a) returning the original license certificate to the Division at One South Station, 3 ^rd Floor, Boston, Massachusetts 02110; and (b) submitting a " Request to Surrender" filing to the Division, on behalf of Abbott Mortgage, through the Nationwide Mortgage Licensing System (NMLS).
3. Immediately upon the execution of this Consent Order, Semyon Karasik will surrender his Massachusetts mortgage loan originator license no. MLO18734 by submitting a " Request to Surrender" filing to the Division through the NMLS.
4. Semyon Karasik will refrain from submitting an application to obtain a mortgage loan originator license from the Commissioner for a period of twenty-four (24) months from the effective date of the Temporary Order.
5. To the extent that Semyon Karasik wishes to resume business as a mortgage loan originator at the expiration of the 24-month term as set forth above, Semyon Karasik shall be required to submit a completed application to obtain the relevant license from the Commissioner. Unless the Commissioner, in his sole discretion, agrees to accept such an application earlier, Semyon Karasik agrees not to submit such an application until the expiration of the 24-month term. The Commissioner shall have all of the discretion set forth within General Laws chapter 255F, section 4 and the Division's regulation 209 CMR 41.00 et seq. in determining whether to issue a license to Semyon Karasik to conduct the licensed business, provided however, that any such application shall not be denied solely on the basis of the Temporary Order.
6. The provisions of this Consent Order shall not limit, estop, or otherwise prevent any other state agency or department, from taking any other action affecting Abbott Mortgage or Semyon Karasik.
7. This Consent Order shall become effective immediately upon the date of its issuance.
8. In accordance with the terms of the Consent Agreement entered by Semyon Karasik and the Commissioner, Abbott Mortgage and Semyon Karasik have waived all rights of appeal that they may have relative to the Temporary Order and this Consent Order or any of its provisions.
9. 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.
10. This Consent Order and the Consent Agreement are the complete documents representing the resolution of this matter.

BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.

Dated at Boston, Massachusetts, this 6th day of August, 2009

By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts

COMMONWEALTH OF MASSACHUSETTS

Suffolk, SS.

COMMISSIONER OF BANKS
MORTGAGE LOAN
ORIGINATOR LICENSING
Docket No. 2009-002-CO

STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER

In the Matter of
ABBOTT MORTGAGE CORPORATION
Mortgage Broker License No. MB0170

and

SEMYON KARASIK, individually
Mortgage Loan Originator License No. MLO18734

Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF A CONSENT ORDER ("Consent Agreement") by the Commissioner of Banks ("Commissioner"), it is hereby stipulated and agreed by and between the Commissioner and ABBOTT MORTGAGE CORPORATION and SEMYON KARASIK (collectively, "Abbott Mortgage" or the "Licensee"), a licensed mortgage broker under Massachusetts General Laws chapter 255E, section 2 and a licensed mortgage loan originator under Massachusetts General Laws chapter 255F, section 2, respectively, as follows:

1. Abbott Mortgage has been advised of its rights pursuant to Massachusetts General Laws chapter 255E, section 7 and chapter 255F, section 7.
2. Abbott Mortgage, solely for the purpose of settling this proceeding and without admitting any allegations or implications of fact or the existence of any violations of the mortgage lender and mortgage broker and/or mortgage loan originator law, General Laws chapters 255E and 255F and their implementing regulations, 209 CMR 42.00 et seq. and 209 CMR 41.00 et seq., or other laws and regulations, including but not limited to the Office of the Attorney General's regulation at 940 CMR 8.00, et seq., hereby consents and agrees to the issuance of the CONSENT ORDER ("Consent Order") by the Commissioner in the form submitted to Abbott Mortgage on this date. Abbott Mortgage further stipulates and agrees that such Consent Order shall be deemed to be a final order for the purposes of General Laws chapter 255E, section 7 and 255F, section 7, and that said Consent Order shall become effective immediately upon its issuance by the Commissioner and fully enforceable by the Commissioner pursuant to its provisions.
3. In the event that the Commissioner accepts this Consent Agreement and issues the Consent Order, it is agreed that no action to enforce said Consent Order in the Superior Court will be taken by the Commissioner unless Abbott Mortgage or Semyon Karasik has violated or is about to violate any provision of the Consent Order.
4. Abbott Mortgage and Semyon Karasik hereby waive, solely for purposes for settling this proceeding:
5. 1. The receipt of Notice specifying the allegations (the "Charges") which form the basis for issuance of the Consent Order;
   2. All defenses to the issuance of the Consent Order;
   3. A hearing under General Laws chapter 255E, section 7 and chapter 255F, section 7, for the purpose of taking evidence on such alleged Charges;
   4. The filing of proposed findings of fact and conclusions of law;
   5. A written decision of the Commissioner;
   6. Exceptions and briefs with respect to such written decision; and
   7. Review of this Consent Agreement and the Consent Order pursuant to General Laws chapter 30A.

Agreed to this 22nd day of July, 2009

Abbott Mortgage Corporation
Woburn, Massachusetts

By its duly authorized officer, and individually
Semyon Karasik

Approved this 6th day of August, 2009

Commonwealth of Massachusetts Division of Banks

By: Steven L. Antonakes
Commissioner of Banks