California Department of Corporations Preston DuFauchard $60,000, Internet
A shameful backroom deal by the California Department of Corporations sells out consumers.
A $60,000 backroom Settlement Agreement between Dealer Services Corporation and the California Department of Corporations was hatched by attorney Mark Gillett of MORRISON FOERSTER LLP. Mr. Gillett was previously appointed by the Commissioner to an Advisory Committee for changes in the California Finance Lenders Law.
Commissioner Preston DuFauchard falsely claims on the June 23, 2009 settlement that he only became aware of unlicensed lending by DSC after DSC applied for a license.
A complaint regarding DSCs unlicensed lending was made prior to the DOC receiving the April 1, 2008 application by Dealer Services Corporation.
RECITALS:This Agreement is made with reference to the following facts:
After Discovers decision to submit an application to obtain a lenders license under the California Finance Lenders Law at Financial Code sections 22000 et seq. (CFLL), it came to the attention of the Commissioner that Discover has engaged in commercial lending in California prior to the issuance of a Finance Lenders License to Discover.
Settlement: Discover further agrees that it shall pay a settlement of sixty thousand dollars ($60,000) to the California Department of Corporations.