OAH  8-1003-20652-2

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

FOR THE DEPARTMENT OF COMMERCE

 

 

In the Matter of MWP Investors       

FINDINGS OF FACT,

CONCLUSIONS AND RECOMMENDATION

This matter came on for a Pre-Hearing Conference before Administrative Law Judge Eric L. Lipman August 20, 2009, at the Saint Paul offices of the Office of Administrative Hearings.

Michael J. Tostengard, Assistant Attorney General, appeared on behalf of the Minnesota Department of Commerce (Department).  There was no appearance by, or on behalf of, MWP Investors (Respondent).  Following a post-hearing submission from the Department on August 21, 2009, the hearing record closed.

STATEMENT OF THE ISSUE

Whether the Respondent failed to file and maintain a $10,000 surety bond in violation of Minn. Stat. § 53A.06 (a)(1) (2008)?

 Based upon the evidence in the hearing record, the Administrative Law Judge makes the following:

FINDINGS OF FACT

1.                  On June 25, 2009, a Notice of and Order for Hearing, Order for Prehearing Conference, Order to Show Cause and Statement of Charges (Notice of and Order for Hearing) in this matter was mailed to the Respondent at the following address: 12004 County Road 11, Burnsville, MN  55337.[1]  The Notice of and Order for Hearing indicated that a Prehearing Conference would be held in this matter on August 20, 2009.[2]

2.                  The Notice and Order for Hearing in this matter includes the following statements:

            Respondent’s failure to appear at the prehearing conference, may result in a finding that Respondent is in default, that the Department’s allegations contained in the Statement of Charges may be accepted as true, and that its proposed disciplinary action may be upheld.

….

            Under Minn. Stat. § 45.027, subd. 6 (2008), Respondent may be subject to a civil penalty not to exceed $10,000 per violation upon a final determination that Respondent violated any law, rule or order.[3]

3.                  No one appeared at the July 30, 2009 conference on behalf of MWP Investors.  No prehearing request was made for a continuance, nor was any communication received by the undersigned from MWP Investors.

4.                  The Statement of Charges alleges that:

(a)               Respondent MWP Investors, Inc. is currently licensed as a currency exchange, license number 20359708.

(b)               Minnesota Statutes Section 53A.08 (2008) requires a currency exchange license to file annually and maintain a $10,000 surety bond. 

(c)               In March 2009, the Department received notice of the cancellation of the Respondent’s bond from Hartford Fire Insurance Company.  To date, the bond has not been renewed or replaced.  

5.                  The allegations contained in the Statement of Charges are deemed proven and are incorporated into these Findings by reference.

Based upon these Findings of Fact, the Administrative Law Judge makes the following:

CONCLUSIONS

1.                  The Administrative Law Judge and the Commissioner of Commerce have jurisdiction in this matter pursuant to Minn. Stat. §§ 14.50, 45.027 and 53A.06.

2.                  Respondent received notice of the charges against him and of the time and place of the evidentiary hearing.  This matter is, therefore, properly before the Commissioner and the Administrative Law Judge.

3.                  Respondent is in default as a result of his failure, without the Administrative Law Judge’s prior consent, to appear at the scheduled Pre-Hearing Conference.

4.                  Pursuant to Minn. R. 1400.6000, a contested case may be decided adversely to a party who defaults.  Upon default, the allegations and claims set forth in the Statement of Charges may be taken as true or deemed proved without further evidence.

5.                  Based upon the facts set forth in the statement of charges, Respondent violated Minn. Stat. § 53A.06 by failing to maintain the bond required by Minn. Stat. § 53A.08.

6.                  Minn. Stat. §§ 45.027 and 53A.06 empowers the Commissioner to take disciplinary action against the Respondent, for its violations of agency orders, state statute and state rules.

7.                  The imposition of a disciplinary action against Respondent is in the public interest.

 

            Based upon these Conclusions, and for the reasons explained in the accompanying Memorandum, the Administrative Law Judge makes the following:

RECOMMENDATION

            The Administrative Law Judge recommends that disciplinary action be taken against the currency exchange license of MWP Investors.

 

Dated:  August 31, 2009

 

                                                                        __/s/ Eric L. Lipman                             _

ERIC L. LIPMAN

Administrative Law Judge

 

Reported:       Digital Recording

                        No transcript prepared


NOTICE

This report is a recommendation, not a final decision.  The Commissioner of the Minnesota Department of Commerce will make the final decision after a review of the record.  The Commissioner may adopt, reject or modify the Findings of Fact, Conclusions, and Recommendations.  Under Minn. Stat. § 14.61, the final decision of the Commissioner shall not be made until this Report has been made available to the parties to the proceeding for at least ten days.  An opportunity must be afforded to each party adversely affected by this Report to file exceptions and present argument to the Commissioner.  Parties should contact Glenn Wilson, Commissioner, Department of Commerce, 85 Seventh Place East, Suite 500, St. Paul, MN 55101 to learn about the procedure for filing exceptions or presenting argument.

 

If the Commissioner fails to issue a final decision within 90 days of the close of the record, this report will constitute the final agency decision under Minn. Stat. § 14.62, subd. 2a. The record closes upon the filing of exceptions to the report and the presentation of argument to the Commissioner, or upon the expiration of the deadline for doing so.  The Commissioner must notify the parties and the Administrative Law Judge of the date on which the record closes.

                                                                                                 

Under Minn. Stat. § 14.62, subd. 1, the agency is required to serve its final decision upon each party and the Administrative Law Judge by first class mail or as otherwise provided by law.

  

 



[1]  See, Affidavit of Jean-Anne Gates (July 1, 2009).

[2]  Notice and Order for Hearing, at 1.

[3]  Notice and Order for Hearing, at 3, ¶ 1 and 5, ¶ 10.