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 Setauket Financial Center - Settlement Agreement

State of New York Banking Department


In the Matter of

Setauket Financial Center

A Registered Mortgage Broker Pursuant to
Article XII-D of the New York Banking Law

SETTLEMENT AGREEMENT


This Settlement Agreement ("Agreement") is made and entered into by and between Setauket Financial Center (“Setauket”) and the State of New York Banking Department (“Banking Department”), collectively (“the Settling Parties”), evidencing an agreement between the Settling Parties to resolve, without a hearing, the violations cited herein by  Setauket of Section 591-a (3) of the Banking Law and Part 410 Section 410.14 of the Superintendent’s Regulations, upon and subject to the terms and conditions hereof.

I. RECITALS

  1. Setauket, headquartered at 30 Brookfield Lane, South Setauket, NY 11720 was granted a registration by the Banking Department on May 9, 1989 to engage in the business of a mortgage broker pursuant to Article XII-D of the New York Banking Law (“Banking Law”).

  2. Section 44.1(a) of the Banking Law provides, in part, that the New York Superintendent of Banks (“the Superintendent”) may, in a proceeding after notice and a hearing, require a registered mortgage broker to pay to the people of this State a penalty for a violation of the Banking Law and any regulation promulgated there under. 
  3. Part 38 Section 38.8 of the General Regulations of the Banking Board, provides that a mortgage broker may be subject to disciplinary action by the Banking Department for, among other things, violations of Article 12-D of the Banking Law, the regulations promulgated thereunder, or violations of state or federal law indicating that the entity is unfit to engage in the business of a mortgage broker.
  4. The Department received a letter from Nova Casualty Company indicating the cancellation of the Setauket’s $10,000 corporate surety bond, effective September 10, 2009;
  5. On August 12, 2009, the Department sent a letter to Setauket requiring Setauket to obtain a replacement bond or have the cancelled bond reinstated on or before September 10, 2009.
  6. On September 22, 2009, the Department sent a letter to Setauket advising that, its failure to obtain a replacement bond or have the cancelled bond reinstated is a violation of Part 410.10 of the Superintendent’s Regulations.
  7. On December 8, 2009, the Registrant provided the Department with a $10,000 replacement corporate surety bond issued by NGM Insurance Co., effective October 21, 2009.
  8. On December 9, 2009, the Banking Department sent a letter to Setauket by certified mail with return receipt, advising Setauket that it operated without an active surety bond from September 10 to October 21, 2009, and should immediately secure a surety bond retroactive to September, 2009, or obtain a deposit agreement of not less than $10,000.
  9. Accordingly, Setauket violates Section 591-a (3) of the Banking Law and Part 410 Section 410.14 of the Superintendent’s Regulations, which requires each mortgage broker to obtain a corporate surety bond or enter into a deposit agreement and maintain such surety or deposit agreement as a condition for retention of the mortgage broker registration.

II. SETTLEMENT TERMS AND CONDITIONS

  1. Setauket understands the terms and conditions of the Settlement Agreement, freely and voluntarily waives its right to a hearing on the charges made and any and all appeal relating to this matter.

  2. Setauket agrees to pay a fine of $500, payable in five monthly installments of $100, with the first installment due upon execution of this Agreement.  The remaining four payments are due by the 15th of each month until the fine is fully paid.  The installments shall be made in electronic transfers, immediately available funds, pursuant to transfer instructions received from the Banking Department.  Failure to make timely payment on any of the installments shall result in immediate revocation of Registrant’s registration.

  3. Setauket agrees to take all necessary steps to ensure its compliance with Section 591-a (3) of the Banking Law and Part 410 Section 410.14 of the Superintendent’s Regulations.

III. MISCELLANEOUS TERMS AND CONDITIONS

  1. The Settling Parties acknowledge that Setauket’s failure to comply with the settlement terms and conditions of this Agreement may result in the Banking Department taking action to revoke Setauket’s registration to engage in the business of a mortgage broker under Article 12-D of the Banking Law. 
  2. The Settling Parties acknowledge that entering into this Agreement shall not bar, estop, or otherwise prevent the Superintendent, or any state, federal or local agency or department or any prosecutorial authority from taking any other action affecting Setauket, any of its current or former owners, officers, directors, employees, or insiders, or their successors.  
  3. This Agreement may not be altered, modified or changed unless in writing signed by the Superintendent or his designee.
  4. This Agreement shall be enforceable and remain in effect unless stayed or terminated in writing by the Superintendent or his designee.
  5. The effective date of this Agreement is the date on which it is executed by the Deputy Superintendent of Banks for Mortgage Banking.
  6. All written communications to the Banking Departmentl regarding this Agreement should be sent as follows.
  7. Agreement should be sent as follows.

    Attention:

      Rholda L. Ricketts
      Deputy Superintendent of Banks
      Mortgage Banking Division
      State of New York Banking Department
      One State Street,
      New York, New York 10004

  8. All written communications to Newlife Financial regarding this Agreement should be sent as follows.
  9. Attention:

      Mr.  Michael Joseph Toner
      Setauket Financial Center
      30 Brookfield Lane 
      South Setauket, NY 1172

  10. This Agreement is not confidential; therefore it is available to the public.

WHEREFORE, the Settling Parties hereto have caused this Agreement to be executed.

By:_____________________
Mr.  Michael Joseph Toner, CEO
Setauket Financial Center

Dated:                                         

By:                                               
Rholda L. Ricketts
Deputy Superintendent of Banks
State of New York Banking Department
Dated: