Regulatory Alerts2026-08-21
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Bulletin 3261 - August 21, 2026
Clarity Debt Resolution, Inc. entered into a Consent Order on August 14, 2026, agreeing to pay a $7,600 civil penalty and $2,400 in back licensing fees for engaging in activity in violation of Section 36a-671(b) of the Connecticut General Statutes. Separately, on August 18, 2026, a Temporary Order to Cease and Desist, Order to Make Restitution, Order to Provide Disgorgement, and Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing were issued against CDS Debt Relief LLC, David Lugo, and Kevin Lugo. These actions allege that CDS Financial engaged in unlicensed debt negotiation, debt adjustment, and money transmission with Connecticut debtors, charged excessive fees, failed to include required disclosures, misappropriated funds, and failed to cooperate with an investigation. The control persons, David Lugo and Kevin Lugo, are also alleged to have failed in their supervisory duties regarding compliance with applicable laws and regulations.
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