Regulatory Alerts2021-04-30
Added · Updated
Bulletin 2984 - April 30, 2021
The Connecticut Department of Banking issued an Order to Cease and Desist and a $100,000 civil penalty against Jonathan Michael Kelley for engaging in unlicensed debt negotiation. Additionally, a Consent Order was entered with BitGo Trust Company, Inc., requiring the payment of $2,250 in back licensing fees for conducting unlicensed money transmission since May 2019. Written comments regarding these actions must be submitted to the Banking Commissioner within ten business days of the bulletin's date.
State of Connecticut Department of Banking
The Department of Banking News Bulletin
Bulletin # 2984 - Week Ending April 30, 2021
This bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be in writing to Jorge L. Perez, Banking Commissioner, Department of Banking, 260 Constitution Plaza, Hartford, CT 06103-1800. Written comments will be considered only if they are received within ten business days from the date of this bulletin.
CONSUMER CREDIT DIVISION ACTIVITY
Order to Cease and Desist and Order Imposing Civil Penalty
On April 23, 2021, the Commissioner issued an Order to Cease and Desist and Order Imposing Civil Penalty (“Order”) in the Matter of: Jonathan Michael Kelley d/b/a Advocate Processing Services (“Kelley”). The basis of the Order was that Kelley’s engaging or offering to engage in debt negotiation in this state without obtaining the required license constitutes a violation of Section 36a 671(b) of the Connecticut General Statutes, in effect prior to October 1, 2017. The Commissioner ordered Kelley to cease and desist from violating Section 36a-671(b) of the Connecticut General Statutes, and imposed a civil penalty in the amount of $100,000 upon Kelley. In addition, the Order to Make Restitution issued against Respondents on January 8, 2021, remains in effect and became permanent on March 12, 2021.
Consent Order
On April 21, 2021, the Commissioner entered into a Consent Order with BitGo Trust Company, Inc. d/b/a BitGo (NMLS # 1817802) (“Bitgo”), Sioux Falls, South Dakota. The Consent Order was based on an investigation by the Consumer Credit Division. As a result of such investigation, the Commissioner alleged that Bitgo engaged in the business of money transmission in this state without the required license since at least May 2019, in violation of Section 36a-597(a) of the Connecticut General Statutes. As part of the Consent Order, BitGo paid $2,250 for back licensing fees.
Dated: Tuesday, May 4, 2021
Jorge L. Perez Banking Commissioner