Department of Financial Institutions enters into a Settlement Agreement with Groupex Financial Corporation
San Francisco – California Department of Financial Institutions (DFI) Acting Commissioner Michael A. Kelley announced today that he has entered into a Settlement Agreement with Groupex Financial Corporation (“Groupex”), a licensed money transmitter. Groupex received a license from DFI on August 22, 2003, to engage in business as a money transmitter pursuant to Financial Code Chapter 14 (Section 1800).
DFI and Groupex mutually agreed to enter into the Settlement Agreement (“Agreement”) in recognition of their common goals to ensure safety and soundness and compliance with applicable laws, rules and regulations.
The Agreement was based on an investigation by DFI’s Examinations and Legal Divisions. Groupex has paid $25,000 to the Department, and the Acting Commissioner has agreed to release Groupex from any liability resulting from alleged violations of the California Financial Code related to the use of unapproved receipts and inaccurate reporting.
DFI supervises over 700 financial institutions with assets totaling over $290 billion. The Department is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, savings associations, trust companies, offices of foreign banks, issuers of travelers’ checks and payment instruments (money orders), and transmitters of money abroad. DFI reports to Business, Transportation & Housing Agency Secretary Sunne Wright McPeak and Gov. Arnold Schwarzenegger.