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 Oliver G. Zhou - Settlement Agreement

State of New York Banking Department


In the Matter of

Oliver G. Zhou

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 Oliver G. Zhou (the “Registrant”) 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  The Registrant 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. The Registrant, with principal office at 41 Elizabeth Street, Suite 505  New York, NY 10013, was granted a registration by the Banking Department on September 25, 1997 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 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. On June 2, 2008, the Department received a letter signed May 14, 2008 from Hartford Fire Insurance Company (“Hartford”) notifying the Department of the cancellation of the Registrant’s $10,000 corporate surety bond, #83BSBEL1528, effective June 23, 2008.
  5. On June 17, 2008, we sent out a letter to the Registrant advising it of the above cancellation, and requested a duplicate original copy of the above bond, since we did not have it on file.  Additionally, the letter required the Registrant to submit a reinstatement notice or a replacement on or before July 1, 2008.
  6. On July 14, 2008, the Department received a reinstatement notice dated July 8, 2008, for the above bond, from Hartford Fire Insurance Company.
  7. On October 10, 2008, the Department received the duplicate original bond #83BSBEL1528, effective February 26, 2007.
  8. On April 27 and May 29, 2009, Department sent letters to the Registrant advising that it operated without an active surety bond from November 19, 2005 through February 26, 2007, in violation of the Superintendent’s Regulations.  Additionally, the letter directed the Registrant to secure a bond immediately, retroactive November 19, 2005, or obtain a deposit agreement of not less than $10,000.  Furthermore, the letter advised the Registrant that the Department might also consider the imposition of a penalty of not less than $10,000 on it for operating without a surety bond.
  9. Accordingly, the Registrant 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

The Registrant is willing to resolve the violation cited herein by entering into the Agreement and freely and voluntarily waives its right to a hearing under Banking Law Sections 44 and 595 of such violations.  Therefore, in consideration of the promises and covenants set forth herein, the Settling Parties agree, as follows:

  1. The Registrant 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. The Registrant agrees to pay a fine of $1,500.00 and to transfer the status of the registration from active to inactive.
  3. The Registrant 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 the Registrant’s failure to comply with the settlement terms and conditions of this Agreement may result in the Banking Department taking action to revoke The Registrant’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 the Registrant, 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. This 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 Department regarding this Agreement should be sent as follows:
  7.      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 the Banking Department regarding this Agreement should be sent as follows:

         Attention:
                                                    Mr. Oliver G. Zhou
                                                    Oliver G. Zhou  
                                                    41 Elizabeth Street, Suite 505 
                                                    New York, NY 10013

  9. 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. Oliver G. Zhou
Oliver G. Zhou
Dated:                                         

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