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Appearance for Respondent:
Naren Chaganti, Esq.
713 The Hamptons Lane
Town & Country, MO 63017
Appearing for the Division of Banks:
Valerie Carbone, Esq.
Massachusetts Division of Banks
1000 Washington Street, 10 th Floor
Boston, MA 02118
Designated Administrative Hearing Officer of the Commissioner of Banks:
Aimee Desai, Esq.
THIS MATTER was scheduled for hearing before the Office of the Commissioner of Banks ("Commissioner") on September 20, 2010, pursuant to Massachusetts General Laws chapter 30A, sections 10 and 11 and the Standard Adjudicatory Rules of Practice and Procedure 801 CMR 1.01 et seq., upon a Notice of Hearing which was mailed to the parties on August 24, 2010.
On September 15, 2010, American Lending Group, Inc., ("American Lending" or "Respondent") through its counsel filed a motion requesting that the Corporation be excused from appearance at the hearing and indicated that: American Lending was no longer in business; American Lending had no funds to pay counsel for his time or travel; American Lending did not have any funds to pay for any witness to appear on its behalf; and American Lending had been administratively dissolved in Missouri.
In addition, on September 17, 2010, American Lending filed a Motion to Submit the Case on the Documents on File and having received no objection to ruling on the Motions and Documents filed from Division of Banks ("Division" or "Petitioner") the following ruling is made on the Motions and Documents previously filed by the parties pursuant to 801 CMR 1.01(10)(c).
The Motions and Documents submitted by the parties include:
Exhibit 1: Temporary Order to Cease and Desist issued by the Petitioner.
Exhibit 2: Order to Show Cause and Notice of Right to a Hearing issued by the Petitioner.
Exhibit 3: Letter sent by the Respondent Exercising its Right to a Hearing.
Exhibit 4: Respondent's January 8, 2010 response to the Order to Show Cause and Notice of Right to a Hearing.
Exhibit 5: Request to Appear by Telephone filed by American Lending.
Exhibit 6: Written Argument of American Lending filed on August 5, 2010.
Exhibit 7 Division's response to the Respondent's Written Argument with three attachments:
Attachment 1: Respondent's Licensing History.
Attachment 2: Letter dated October 14, 2009 from American Lending requesting reconsideration of Administrative Penalty.
Attachment 3: Letter dated November 12, 2009 issued by the Division denying American Lending's request for reconsideration.
Exhibit 8: American Lending's response to the Division's response with three attachments:
Attachment 1: Letter dated October 14, 2009 from American Lending requesting reconsideration of Administrative Penalty.
Attachment 2: Letter dated November 12, 2009 issued by the Division denying American Lending's request for reconsideration.
Attachment 3: Electronic mail correspondence from the Division to American Lending.
Exhibit 9: American Lending's Request to Excuse Appearance at the Administrative Hearing.
Exhibit 10: American Lending's Motion to Submit the Case on Documents on File.
The Division has requested that the Commissioner make a final decision addressing the following matters:
American Lending has maintained that the relief requested by the Division is unwarranted because of the business turmoil that American Lending has endured, a lack of notification from the Division of the changes in regulations requiring a surety bond and furthermore that American Lending had offered to surrender its licenses in the final weeks of 2008 that would have made the regulatory action issued by the Division unnecessary.
THEREFORE, based upon the Motions and all Documents previously filed and the arguments of the parties and counsel, the Commissioner makes the following Findings of Fact and Conclusions:
FINDINGS OF FACT
Failure to File Annual Report and Imposition of Administrative Penalty
Each licensee shall annually, on or before a date determined by the commissioner, file a report with the commissioner containing such information as said commissioner may require concerning the business and operations conducted by the licensee in the commonwealth during the preceding calendar year. A licensee neglecting to file such report or failing to amend the same within fifteen days of notice from said commissioner directing the same shall, unless such neglect or failure is due to justifiable cause and not due to willful neglect, pay to the commonwealth fifty dollars for each day during which such neglect or failure continues.
By March 31, each Licensee shall file an annual report with the Commissioner in such form as the Commissioner shall prescribe for the preceding calendar year. The annual report shall be in writing, subscribed by the Licensee under the pains and penalty of perjury.
Surety Bond Requirement
License Requirements. An Applicant shall be required to submit detailed information supporting the following general requirements:
a bond in a sum to be based on the amount of the Applicant's aggregate mortgage loans, as determined by the Commissioner, but in no event shall the sum of the bond be less than $100,000, up to a maximum of $500,000…
a bond of $75,000 in such form and with such sureties as may be approved by the Commissioner...
ORDER AND DECISION
BY ORDER AND DIRECTION OF THE COMMISSIONER OF BANKS.
Dated at Boston, Massachusetts, this 18TH day of November, 2010
By: Steven L. Antonakes
Commissioner of Banks
Commonwealth of Massachusetts