Order to Cease and Desist and Civil Penalty Against Healthcare Finance Direct, LLC

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IN THE MATTER OF: *

• ORDER TO CEASE AND DESIST HEALTHCARE FINANCE * DIRECT, LLC * AND NMLS # 2529645 *
• ORDER IMPOSING CIVIL PENALTY (“Respondent”) *

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I. PRELIMINARY STATEMENT WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Part III of Chapter 668, Sections 36a-555 to 36a-573, inclusive, of the Connecticut General Statutes, “Small Loan Lending and Related Activities,” and the regulations promulgated thereunder, Sections 36a-570-1 to 36a-570-17, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”); WHEREAS, pursuant to the authority granted by Section 36a-17 of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division of the Department of Banking, conducted an investigation of the activities of Respondent to determine if it had violated, was violating or was about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner; WHEREAS, as a result of such investigation, on April 10, 2025, the Commissioner issued a Temporary Order to Cease and Desist, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively, “Order and Notice”) against Respondent, which Order and Notice is incorporated herein by reference;

• 2 - WHEREAS, on April 15, 2025, the Order and Notice was caused to be mailed by certified mail, return receipt requested, to Respondent (Certified Mail No. 70222410 000095982647); WHEREAS, the Order and Notice provided Respondent with the opportunity for a hearing, and stated that if a hearing was not requested within 14 days of its receipt, the allegations would be deemed admitted, and the Commissioner would issue an order that Respondent cease and desist from violating subdivision (4) of Section 36a-556(a) and Section 36a-17(e) of the Connecticut General Statutes, and may order a civil penalty in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent; WHEREAS, on April 24, 2025, Respondent received the Order and Notice; WHEREAS, Respondent failed to request a hearing within the prescribed time period; WHEREAS, the Commissioner alleged in the Order and Notice, with respect to the activity described therein, that Respondent’s engaging in small loan activity by receiving payments of principal and interest in connection with small loans made to Connecticut borrowers without obtaining the required license, in violation of Section 36a-556(a)(4) of the Connecticut General Statutes, in effect at such time. Such violation forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-570(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Respondent pursuant to Sections 36a-570(b) and 36a-50(a) of the Connecticut General Statutes;. WHEREAS, the Commissioner also alleged in the Order and Notice, with respect to the activity described therein, that Respondent’s failing to provide information requested during the investigation, in violation of Section 36a-17(e) of the Connecticut General Statutes. Such violation forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-570(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Respondent pursuant to Sections 36a-570(b) and 36a-50(a) of the Connecticut General Statutes; WHEREAS, Section 36a-52(a) of the Connecticut General Statutes provides, in pertinent part, that “[i]f the person does not request a hearing within the time specified in the notice. . . , the commissioner

• 3 - shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54”; WHEREAS, Section 36a-50(a)(2) of the Connecticut General Statutes provides, in pertinent part, that “[i]f such person does not request a hearing within the time specified in the notice . . ., the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person”; WHEREAS, Section 36a-50(a)(3) of the Connecticut General Statutes provides that “[e]ach action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54”; AND WHEREAS, Section 36a-1-31(a) of the Regulations provides, in pertinent part, that “[w]hen a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted. Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies”. II. FINDINGS OF FACT AND CONCLUSIONS OF LAW

1. The Commissioner finds that the matters asserted, as set forth in paragraphs 7 through 14, inclusive, of Section II of the Order and Notice, shall constitute findings of fact within the meaning of Section 4-180(c) of the Connecticut General Statutes, and that the conclusions, as set forth in paragraphs 15 and 16 of Section III of the Order and Notice, shall constitute conclusions of law within the meaning of Section 4-180(c) of the Connecticut General Statutes and Section 36a-1-52 of the Regulations.
2. The Commissioner finds that Respondent has engaged in acts or conduct which forms the basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-570(b), and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Respondent pursuant to Sections 36a-570(b) and 36a-50(a) of the Connecticut General Statutes.

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3. The Commissioner finds that the Order and Notice was given in compliance with Sections 36a-52(a), 36a-50(a), and 4-177 of the Connecticut General Statutes. III. ORDER Having read the record, I HEREBY ORDER, pursuant to Sections 36a-570(b), 36a-52(a) and 36a-50(a) of the Connecticut General Statutes that:
4. Healthcare Finance Direct, LLC shall CEASE AND DESIST from violating subdivision (4) of Section 36a-556(a) of the Connecticut General Statutes and Section 36a-17(e) of the Connecticut General Statutes;
5. A CIVIL PENALTY of One Hundred Thousand Dollars ($200,000) be imposed upon Healthcare Finance Direct, LLC to be remitted to the Department of Banking by electronic funds transfer, cashier’s check, certified check or money order, made payable to “Treasurer, State of Connecticut”, no later than forty-five (45) days from the date this Order is mailed; and
6. This Order shall become effective when mailed. Dated at Hartford, Connecticut, this 23rd day of June 2025. /s/______________________________________ Jorge L. Perez Banking Commissioner This Order was sent by certified mail, return receipt requested, to Respondent on June 24, 2025. Healthcare Finance Direct, LLC Certified Mail No. 70222410000095982821 1707 Eye Street Bakersfield, California 93301