Banking Department Issues Temporary Suspension Order to Cashpoint Network Services, Inc.
April 21, 2004
State of New York Banking Department
New York, New York
In the Matter of
CASHPOINT NETWORK SERVICES, INC.
A Transmitter of Money licensed
Pursuant to Article XIII-B of the
License Number 1600063
ORDER OF SUSPENSION
PURSUANT TO SECTION 642(6) OF THE BANKING LAW
Whereas, CASHPOINT NETWORK SERVICES, INC. ("Licensee"), located at 143 West 72nd Street, New York, New York 10023 was granted a license on May 1, 1996 to engage in the business of money transmission under Article XIII-B of the Banking Law; and
Whereas, the Licensee has informed the Banking Department that it has failed to pay approximately $13 million that is due and owing to a New York State chartered bank; and
Whereas, the Licensee has further informed the Banking Department that it owes approximately $20 - 25 million to other creditors, including monies due and owing to beneficiaries of money transmission transactions conducted by the Licensee; and
Whereas, the Licensee has failed to maintain its books and records in a condition that would allow the Superintendent of Banks to determine whether the Licensee or any of its agents or subagents are in compliance with Article XIII-B of the Banking Law and Part 406.9 of the Superintendent’s Regulation; and
Whereas, Section 642(6) of the Banking Law allows the Superintendent of Banks to suspend a license when a licensee has defaulted or is likely to default in performing its financial engagements; and
Whereas, based on the foregoing, the Superintendent of Banks finds that the Licensee has defaulted or is likely to default in performing its financial obligations; and
Whereas, based on the foregoing, the Superintendent of Banks finds that it is in the public interest to temporarily suspend the Licensee’s license for a period of thirty days from the date of this Order pending an investigation or hearing for the suspension or revocation of CASHPOINT NETWORK SERVICES INC.’s license.
NOW, THEREFORE, it is hereby ORDERED that the money transmitter license of CASHPOINT NETWORK SERVICES, INC. is temporarily suspended for a period of thirty days from the date of this Order.
Witness, my hand and official seal of the Banking Department at the City of New York, this 21st day of April two thousand four.
Deputy Superintendent of Banks