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The New York State Banking Department
has entered into a Settlement Agreement with Casa De Cambio Delgado, Inc., a licensed transmitter of money licensed pursuant to Article XIII-B of the New York State Banking Law.  Included in the Settlement Agreement is the payment of a $50,000 fine.

State of New York
Banking Department


In the Matter of


A Transmitter of Money Licensed Pursuant to Article XIII-B of the New York State Banking Law.




WHEREAS, A Statement of Charges (the “Statement”) against the Respondent was issued on April 25, 2001;

WHEREAS, the Statement alleged, inter alia, that the Respondent had directly and indirectly violated the laws of the State of Florida by failing to register as a money transmitter in that State;

WHEREAS, the Statement further alleged that Respondent had misled the public regarding the oversight provided by the New York State Banking Department (the “Department”) regarding the activities of Respondent and its affiliates in Florida; and

WHEREAS, the Statement further alleged that the Respondent had failed to notify the Department in filed reports of the correct number and location of a number of its offices in New York State; and

WHEREAS, because of these allegations, the Department sought the imposition of a fine and/or suspension or revocation of respondent’s money transmission license; and

WHEREAS, the issues raised by the State of Florida have been resolved and settled; and

WHEREAS, the parties hereto wish to avoid the time and expense of a hearing in this matter and wish, therefore, to resolve this matter on the terms set forth hereinafter:


THAT, (i) without admitting or denying the aforementioned allegations, and (ii) without constituting an admission, finding, or adjudication of guilt or liability concerning any factual or legal issue or charge, Respondent freely and voluntarily waives its right to a hearing on the charges made; and

THAT, Respondent agrees as follows:

  1. Respondent shall pay a fine in the amount of $50,000; such fine shall be paid upon execution of this Settlement Agreement by an electronic transfer, instructions for which are to be provided; and

  2. Respondent shall pay the accrued amount of the examination fees ($91,762.50) incurred by the Department during the enhanced monitoring of Respondent’s operations during calendar year 2001 and 2002, but shall not be required to pay any interest, penalties, late fees, or other additional fees that may have been added thereto by the Department; and

  3. Respondent agrees to surrender its license immediately at the time it or any affiliated entity shall be convicted of, or plead guilty to, any felony indictment under the laws of the United States or any State thereof. Upon the entry of any such conviction, the Respondent agrees that its license shall be summarily stricken from the records of the Department without any further action on the part of the Department.  The Respondent expressly asserts that it is waiving any rights it might otherwise have to a hearing and entry of a judgment of revocation against it prior to such revocation becoming effective. (For purposes of this agreement, the term “affiliate” shall mean any company that controls, is controlled by, or is under common control with, the Respondent.  Company shall mean any corporation, general or limited partnership or limited liability company. Control shall mean direct or indirect ownership, control, or power to vote 25 percent or more of the outstanding securities or voting rights of any company.); and

  4. Respondent further agrees that if Mr. Hector Delgado, its principal shareholder,  is ever convicted of, or pleads guilty to,  a felony involving fraud or dishonesty under the laws of the United States or any State thereof, the Respondent likewise shall immediately surrender its license as provided for in paragraph (iii.) above; and

  5. Respondent expressly acknowledges the authority of the Department to seek revocation of Respondent’s license after a hearing in the event Hector Delgado shall be convicted of, or plead guilty to, a felony other than the type set forth in the prior paragraph; and

 THAT, The Department for its part agrees that:

  1. Respondent may reduce the amount of the cash pledged to the Department to protect its customers pursuant to Section 643(3) of the New York Banking Law to the amount of $500,000, and upon execution of this Agreement, the Department shall release to Respondent the additional $2 million in security posted by Respondent in 2001; and

  2. Respondent may upon execution of this agreement terminate (i) the daily reporting to the Licensed Financial Services Division previously requested by it and (ii) any other enhanced reporting requirements imposed during the pendency of the above-captioned matter solely because of the pendency of this matter;

 THAT, Respondent agrees to comply with all requirements of law and regulation relating to its licensed money transmitter business, including without limitation those set forth in Article 13-B of the New York Banking Law;

All the provisions of this Settlement Agreement may be made a matter of public record.

Agreed to and accepted:

By: ______________________________________                                Date______________
Paul J. Fazio
Deputy Superintendent of Banks
New York State Banking Department

By: ______________________________________                                Date______________
Hector Delgado
President and Chief Executive Officer
Casa De Cambio Delgado, Inc.

Department of Financial Services


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