2014 Press Releases
- 12/16/2014 - Bank, Credit Union 3rd-Quarter Earnings Up from Same Period in 2013 (PDF)
California’s state-chartered banks and credit unions in the third quarter both enjoyed increased earnings and substantial declines in delinquent loans compared to the same period in 2013, according to data released today by the state Department of Business Oversight (DBO). The DBO regulates state-chartered commercial banks, credit unions and other types of financial institutions.
- 12/12/2014 - State Alerts Consumers About Dangers of
Loans that Require Car Title as Collateral (PDF)
The state Department of Business Oversight (DBO) today alerted consumers to the
dangers of “auto title loans,” a growing credit product for which lenders can charge unlimited interest rates on most loans and some firms use devices that remotely disable car engines when borrowers miss payments.
- 11/10/2014 - State Issues Alert About Deceptive Investment Scheme Tied To Veteran Benefits (PDF)
The California Department of Business Oversight (DBO) today warned veterans and investors about a scheme that involves the deceptive sale of securities linked to military pension and disability benefits.
- 11/10/2014 - California Department Of Business Oversight Issues Advisory On Military Pension Advance Plans (HTML)
Armed services members, military retirees and potential investors should exercise caution before engaging in a pension advance plan.
- 10/10/2014 - California Obtains $10 Million Judgment for Defrauded Investors
The California Department of Business Oversight (“Department”) has obtained judgments totaling $10 million against Authotecq Systems, Inc., Paysentinel, LLC, and numerous related individuals and companies (“Defendants”) for the unlawful offer and sale of securities, fraud in the offer and sale of securities, and violating a previously issued Desist and Refrain Order.
- 07/21/2014 - California Obtains $20.4 Million
Judgment Against Oil and Gas Company
The California Department of Business Oversight (“Department”) has obtained a $20.4 million judgment against Synergy Oil, LLC and Robert Falco (“Defendants”) for illegal sales and fraudulent marketing of oil and gas investments.
- 06/13/2014 - Department of Business Oversight Seeks to Suspend the Licenses of CashCall, Inc.
The California Department of Business Oversight announced that it will seek to suspend the licenses of CashCall, Inc. for violations of the California Finance Lenders Law in connection with CashCall’s personal loan origination and servicing activity.
- 05/21/2014 - California Sanctions Utah-Based Mortgage Lender with $130,000 in Borrower Refunds and Penalties (PDF)
The California Department of Business Oversight resolved an action brought against Utah-based City First Mortgage Services, LLC, also doing business as City 1st Mortgage and City 1st Mortgage Services, for charging customers excessive interest before the disbursement of their loans. City 1st agreed to refund at least 226 California borrowers a minimum of $22,680.83 and consented to an ongoing independent audit to identify any additional refunds owed to borrowers for the period of August 2010 through April 2015.
- 04/30/2014 - California Department of Business Oversight Issues
Advisory on Virtual Currencies
The California Department of Business Oversight has issued an advisory regarding the risks associated with virtual currencies, also known as crypto-currencies, virtual money, or digital cash.
- 03/14/2014 - California Joins $2.1 Billion Settlement with Ocwen
Mortgage Loan Servicing
The California Department of Business Oversight, along with 48 other states, has reached a settlement with Ocwen Financial Corporation and Ocwen Loan Servicing (Ocwen) regarding violations of mortgage servicing laws, awarding $2.1 billion in relief to consumers.
- 03/11/2014 - California Department of Business Oversight Enters Into Settlement Awarding $17.4 Million in Restitution to Investors (PDF)
The Department of Business Oversight has entered into a settlement agreement with Saxe-Coburg Insurance Solutions, LLC; Michelle Kenen Seward; Dror Soref; and Scott Walter Foulk (the Defendants). The agreement resolves the Department’s civil action alleging the offer and sale of unqualified securities in violation of state law. The Defendants did not admit or deny the allegations in the complaint but agreed to the Court’s entry of a permanent injunction prohibiting future violations of the law and will repay investors $17.4 million.
- 02/14/2014 - Department of Business Oversight Reaches Settlement with National Residential Mortgage Lender (PDF)
The California Department of Business Oversight reached a settlement with Prospect Mortgage, LLC, (“Prospect”) including refunds to more than 12 thousand Californians totaling approximately $1.33 million. After discovering multiple violations of the California Residential Mortgage Lending Act, the Department began an enforcement action seeking penalties and suspension of Prospect’s residential mortgage lender license and finance lender license .
- 02/12/2014 - California Department of Business Oversight
Targets Illegal International Investment Scheme
The California Department of Business Oversight issued a Desist and Refrain Order against three companies: World Capital Market, Inc., WCM777, Inc., and WCM777 Limited, which collectively ran an investment scheme marketed under the name “WCM777.” In less than a year, WCM777 has taken in more than $10 million, including investments from at least 5500 Californians. The order directs WCM777 to cease all operations in California and names the principals of WCM777: Ming Xu, Zhi Liu, and salesperson, Harold Zapata.