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ARIZONA DEPARTMENT OF FINANCIAL INSTITUTIONSIn the Matter of the Collection Agency License of:SCOTTSDALE COLLECTION SERVCIES,LLC AND RICHARD BARTLETT2501 W. Dunlap Ave., Suite 240Phoenix, AZ 85021Petitioners.No. 09F-BD029-BNKCONSENT ORDEROn September 29, 2008, the Arizona Department of Financial Institutions ("Department")issued a Notice of Hearing alleging that Petitioners had violated Arizona law. Wishing to resolvethis matter in lieu of an administrative hearing, Petitioners do not contest the following Findings ofFact and Conclusions of Law, and consent to the entry of the following Order.FINDINGS OF FACT1. Petitioner Scottsdale Collection Services, LLC ("SCS") is an Arizona corporationauthorized to transact business in Arizona as a collection agency license number CA0905222 withinthe meaning of A.R.S. §§ 32-1001, et seq. The nature of SCS's business is that of soliciting claimsfor collection and collection of claims owed, due, or asserted to be owed, or due, within, themeaning of A.R.S. § 32-1001(a)(2)(a).2. SCS is not exempt from licensure as a collection agency within the meaning ofA.R.S. § 32-1004(A).3. Petitioner Richard Bartlett ("Mr. Bartlett") is the President of SCS and is authorizedto transact business in Arizona as a collection agency within the meaning of A.R.S. §§ 32-1001,seq.4. SCS and Mr. Bartlett are not exempt from licensure as a collection agency within themeaning of A.R.S. § 32-1004(A).
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5. On March 12, 2008, the Department conducted an examination of SCS's businessaffairs. As a result of the examination, the Department discovered that SCS and Mr. Bartlett:a. Failed to maintain a positive trust account balance as evidenced by trustshortages during eleven months of the twelve-month review period endingFebruary 28, 2008; specifically:i. Petitioners failed to maintain the trust account by over transferringtrust funds to the operating account to pay company expenses whichcaused company trust shortages;ii. The previous exam also noted small trust shortages; andiii. However, Petitioners deposited $100,000.00 to the trust account inearly March, 2008, to cure the trust shortage.6. Based upon the above findings, the Department issued and served upon SCS andMr. Bartlett, an Order to Cease and Desist; Notice of Opportunity For Hearing; Consent to Entry ofOrder ("Cease and Desist Order") on August 28,2008.7. On September 4, 2008, the Department received Petitioners' request for a hearing toappeal the Cease and Desist Order.CONCLUSIONS OF LAW8. Pursuant to A.R.S. §§ 32-1001, et seq., the Superintendent has the authority and theduty to regulate all persons engaged in the collection agency business and with the enforcement ofstatutes, rules, and regulations relating to collection agencies.9. By the conduct set forth above, SCS and Mr. Bartlett violated the following:a. A.R.S. § 32-1055(D) by failing to leave monies dueto clients in the trustaccount until those monies or equivalent monies were remitted to clients asevidenced by trust shortages during eleven months of the twelve-monthreview period; and A.A.C. R20-4-1505(C), (E) and (F) by depositing trust
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fonds received from clients to the SCS operating account, which iscommingling of trust funds into the operating accounts, and then payingORDER10. The violations, set forth above, constitute grounds for: (1) the issuance of an orderpursuant to A.R.S. § 6-137 directing Petitioners to cease and desist from the violative conduct and totake the appropriate affirmative actions, within a reasonable period of time prescribed by theSuperintendent, to correct the conditions resulting from the unlawful acts, practices, andtransactions; (2) the imposition of a civil monetary penalty pursuant to A.R.S. § 6-132; (3) thesuspension or revocation of Petitioners' license pursuant to A.R.S. § 32-1053; and (4) an order orany other remedy necessary or proper for the enforcement of statutes and rules regulating collectionagencies pursuant toA.R.S. §§6-123 and 6-131.1. SCS and Mr. Bartlett shall immediately stop the violations set forth in the Findings ofFact and Conclusions of Law. SCS and Mr. Bartlett:a. Shall maintain sufficient funds in the trust account to meet their responsibilityto clients at all times; andb. Shall not over transfer trust funds to pay Company operating expenses, andshall not commingle trust funs with Company funds.2. SCS and Mr. Bartlett shall immediately pay to the Department a civil money penaltyin the amount of two thousand five hundred dollars ($2,500.00). SCS and Mr. Bartlett are jointlyliable for payment of the civil money penalty.3. The provisions of this Order shall be binding upon the Petitioners, their employees,agents, and other persons participating in the conduct of the affairs of the Petitioners.4. This Order shall become effective upon service, and shall remain effective andenforceable until such time as, and except to the extent that, it shall be stayed, modified, terminated,or set aside.
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SO ORDERED this ^-f day of <P c -/-*, &^^ 2008.Felecia A. RotelliniSuperintendent of Financial InstitutionsBy: _Robert D. CharltonAssistant SuperintendentCONSENT TO ENTRY OF ORDER1. Petitioners acknowledge that they have been served with a copy of the foregoingFindings of Fact, Conclusions of Law, and Order in the above-referenced matter, have read thesame, are aware of their right to an administrative hearing in this matter, and have waived the same.2. Petitioners admit the jurisdiction of the Superintendent and consent to the entry of theforegoing Findings of Fact, Conclusions of Law, and Order.3. Petitioners state that no promise of any kind or nature has been made to induce themto consent to the entry of this Order, and that they have done so voluntarily..4. Petitioners agree to cease from engaging in the violative conduct set forth above inthe Findings of Fact and Conclusions of Law.5. Petitioners acknowledge that the acceptance of this Agreement by the Superintendentis solely to settle this matter and does not preclude this Department, any other agency or officer ofthis state or subdivision thereof from instituting other proceedings as may be appropriate now or inthe future.6. Mr. Bartlett on behalf of SCS and himself, represents that he is the President, andthat, as such, has been authorized by SCS to consent to the entry of this Order on its behalf.7. Petitioners waive all rights to seek judicial review or otherwise to challenge or contestthe validity of this Cease and Desist Order.
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DATED this^^fday of /%£<-?<**>- 2008.?farcKBártlett, PresidentScottsdale Collection Services, LLCORIGINAL of the foregoing filed this ¿^day of (§)cMbM , 2008, in the office of:Felecia A. Rotellini, Superintendent of Financial InstitutionsArizona Department of Financial InstitutionsATTN: Susan L. Longo2910 N. 44th Street, Suite 310Phoenix, AZ 85018COPY mailed same date to:Lewis Kowal, Administrative Law JudgeOffice of the Administrative Hearings1400 West Washington, Suite 101Phoenix, AZ 85007Craig A. Raby, Assistant Attorney GeneralOffice of the Attorney General1275 West WashingtonPhoenix, AZ 85007Robert Charlton, Assistant SuperintendentJack E. Watson, Senior ExaminerArizona Department of Financial Institutions2910 N. 44th Street, Suite 310Phoenix, AZ 85018AND COPY MAILED SAME DATE byCertified Mail, Return Receipt Requested, to:Richard Bartlett, President and Statutory Agent for:Scottsdale Collection Services, LLC2501 W. Dunlap Ave., Suite 240Phoenix, AZ 85021PetitionersDoc Ü 317416; PHX- AGN-20Û8-039&?