Banking Department Issues Temporary Suspension Order to Uribea Realty Corporation
April 28, 2004
State of New York Banking Department
New York, New York
In the Matter of
URIBEA REALTY CORP.
A Check Casher licensed
Pursuant to Article IX-A of the
New York State Banking Law
ORDER OF SUSPENSION
PURSUANT TO SECTION 373(2) OF THE NEW YORK BANKING LAW
Whereas, URIBEA REALTY CORPORATION (“Uribea Realty Corporation” or "Licensee"), having its principal place of business at 143 West 72nd Street, New York, New York 10023, was granted a license on October 1, 1996 to engage in the check cashing business under Article IX-A of the New York Banking Law (“Banking Law”); and
Whereas, the Licensee and Cashpoint Network Services, Inc. (“Cashpoint”), located at 143 West 72nd Street, New York, New York 10023 and licensed to engage in the business of money transmission under Article XIII-B of the Banking Law until its suspension on April 21, 2004, are under common ownership; and
Whereas, Cashpoint 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, Cashpoint 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 Cashpoint; and
Whereas, Cashpoint has failed to maintain its books and records in a condition that would allow the Superintendent of Banks to determine whether Cashpoint 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, on April 21, 2004, pursuant to Section 642(6) of the Banking Law, the Superintendent of Banks of the State of New York (“Superintendent”) suspended the money transmission license of Cashpoint based on a finding that Cashpoint has defaulted or is likely to default in performing its financial obligations; and
Whereas, on April 22, 2004, pursuant to Section 39 of the Banking Law, the Superintendent ordered Cashpoint not to “divert, waste, transfer, sweep, appropriate or otherwise move, make use of or dissipate the funds and assets maintained or controlled by Cashpoint or any of its agents or subagents as of April 22, 2004, without the express written consent of the Banking Department;” and
Whereas, based on the foregoing circumstances and the fact that Cashpoint and Licensee are under common ownership, the Superintendent has no confidence that Licensee’s books and records are in such condition that would allow the Superintendent to determine whether Licensee or any of its agents or subagents are in compliance with Article IX-A of the Banking Law and Part 400.3 of the Superintendent’s Regulation, and further, that it is likely that Licensee will default in performing its financial obligations; and
Whereas, Section 373 (2) of the Banking Law authorizes the Superintendent to temporarily suspend the license of a check casher for a period not to exceed ninety days upon a finding that such suspension is in the public interest; and
Whereas, based on the foregoing, the Superintendent finds that it is in the public interest to temporarily suspend the check cashing license of URIBEA REALTY CORPORATION for a period of ninety days from the date of this Order pending an investigation or a hearing for the suspension or revocation of said license.
NOW, THEREFORE, it is hereby ORDERED that the check cashing license of URIBEA REALTY CORPORATION is temporarily suspended for a period of ninety days from the date of this Order.
Witness, my hand and official seal of the Banking Department at the City of New York, this 28th day of April two thousand four.
Deputy Superintendent of Banks