Source: https://www.dob.texas.gov/laws-regulations/order-no-2014-020
Timestamp: 2019-03-20 21:14:11
Document Index: 395642942

Matched Legal Cases: ['§ 154', '§ 154', '§ 2001', '§ 154', '§ 154', '§ 154', '§ 154', '§ 154', '§ 154']

Order No. 2014-020 | Texas Department of Banking
Order No. 2014-020
On this day, the matter of Wilson Holdings, Inc. (Wilson) located in Houston, Texas, was submitted to me, Charles G. Cooper, Banking Commissioner of the State of Texas (Commissioner), for consideration and action.
Wilson is a Texas corporation, with its principal address listed as 1929 Allen Parkway, 8th Floor, Houston, Texas 77019. Wilson holds Permit No. 1105 issued by the Texas Department of Banking (Department) to sell insurance-funded prepaid funeral benefits.
The Department has jurisdiction over Wilson and the subject matter of this proceeding pursuant to Texas Finance Code (Finance Code) Chapter 154. The Commissioner has the authority to issue this Consent Order (Order) and to assess administrative penalties pursuant to Finance Code § 154.406.
Wilson has been properly notified regarding its right to an administrative hearing under Finance Code Chapter 154 (Chapter 154). Wilson is represented in this matter by Sheri L. Sarfoh.
The statutory provisions at issue in this matter include Finance Code § 154.052, 154.101, 154.102, 154.107, and 154.406.
Any violation of this Order could subject Wilson to additional regulatory or enforcement actions authorized by Chapter 154. Nothing in this Order diminishes the regulatory or enforcement powers of the Department, the Commissioner, or the Finance Commission of Texas under Chapter 154 or other applicable law.
For purposes of this proceeding, Wilson knowingly and voluntarily waives:
a. Service upon Wilson of this Order;
b. The right to present defenses to the allegations in this proceeding;
c. Notice and hearing prior to imposition of this Order;
e. The issuance of a proposal for decision by an administrative law judge;
f. The filing of exceptions and briefs with respect to such proposal for decision;
g. Any review of this Order by the Texas Finance Commission; and
h. Judicial review of this Order as provided by Texas Government Code § 2001.171 et seq., and any other challenge to the validity of this Order.
7. Wilson agrees to this Order solely for the purpose of this proceeding, and without
admitting or denying any violations of law or regulations. This Order does not constitute an admission by Wilson that Chapter 154 or a rule adopted or order issued under Chapter 154 has been violated.
8. The Commissioner has considered the matter and finds as follows:
a. On March 6, 2014, the Department provided Wilson written notice that it had not received Wilson’s Annual Report of 2013 Prepaid Funeral Benefit Contract Activity (2014 Annual Report) by March 1, 2014 as required by the Finance Code. In that notice, the Department requested that the 2014 Annual Report be submitted no later than April 7, 2014.
b. On June 2, 2014, the Department gave Wilson written notice that its permit had expired on June 1, 2014. It informed Wilson that, absent an urgent situation, the Department would refrain from taking enforcement action against Wilson if it submitted its renewal application (2014 Renewal Application) by July 2, 2014.
c. On July 8, 2014, the Department again notified Wilson that it had still not received its 2014 Annual Report or 2014 Renewal Application. In that letter, the Department informed Wilson that action could be taken against it, including penalties, injunctive relief, cease and desist orders, and quo warranto proceedings.
d. Subsequently, on August 12, 2014, Wilson submitted its 2014 Renewal Application and 2014 Annual Report.
e. Under Finance Code § 154.052, the Department may require a permit holder that has outstanding contracts for prepaid funeral benefits to submit an annual report. Finance Code § 154.107 mandates that a seller of prepaid funeral contracts that has outstanding contracts must renew its permit until the contracts are fully discharged. Because Wilson did not submit its 2014 Annual Report to the Department until over five months past its due date and its 2014 Renewal Application was more than two months late, Wilson violated Finance Code § 154.052 and 154.107.
f. Pursuant to Finance Code § 154.406(a)(1), the Commissioner may impose an administrative penalty on a person who violates Chapter 154 and does not correct the violation before the 31st day after the date the person receives written notice of the violation from the Department.
g. As a result of this violation, the Department issued a Notice of Hearing on September 23, 2014, Docket No. BF-1402-14-195(DW), to determine whether the Commissioner should assess administrative penalties for violations of the Finance Code. The hearing was set for October 23, 2014.
h. As required by Finance Code § 154.406(c), the Commissioner has considered the seriousness of the violation, Wilson’s compliance history, and Wilson’s good faith in attempting to comply with Chapter 154. The Commissioner finds that Wilson’s extensive delay in submitting its 2014 Annual Report of over five months and 2014 Renewal Application of over two months after notice from the Department is evidence of an unsatisfactory compliance history.
i. Based on these findings, the Commissioner finds that a penalty of $7,500.00 is appropriate
Wilson shall not engage in activities in violation of Chapter 154 and shall take all actions necessary to comply with the requirements of Chapter 154.
Wilson will pay $7,500.00 to the Department as an administrative penalty under Finance Code § 154.406 for failing to timely submit its 2014 Annual Report and 2014 Renewal Application. The penalty shall be payable to the Department within 15 days of the effective date of this Order.
This Order does not restrict the Department with respect to any enforcement action or other recourse regarding any other past, current, or future violations by Wilson that come to the attention of the Department. However, nothing herein shall be construed to limit Wilson’s right to contest any future finding or determination of non-compliance.
This Order against Wilson is effective on the date signed by the Commissioner, and subject to its terms, Wilson may not appeal.
Signed on this 22nd day of October, 2014.
/s/ Gerald Wilson
/s/ Sheri L Sarfoh
Sheri L. Sarfoh
/s/ Stephanie Lowe