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Department Accepts the Surrender of the License of SunnyMTG.com 866-768-CASH, LLC and Issues Order Against its Owner, Sumit Gaddh

Department Accepts the Surrender of the License of SunnyMTG.com 866-768-CASH, LLC and Issues Order Against its Owner, Sumit Gaddh

January 7, 2009


Atlanta, GA ~ On December 18, 2008, the Georgia Department of Banking and Finance (“Department”) agreed to a settlement with SunnyMTG.com 866-768-CASH, LLC (“SunnyMTG”), License Number 20422, located at 1910 East Oakland Park Boulevard, Fort Lauderdale, FL 33306, and its owner Sumit Gaddh, to resolve alleged violations of the Georgia Residential Mortgage Act and agency rules.

On May 15, 2008, the Department issued a Notice of Intent to Revoke Annual License to SunnyMTG for alleged violations of the Georgia Residential Mortgage Act.   On this same day, the Department issued a Cease and Desist Order to Sumit Gaddh, the president of SunnyMTG, for alleged violations of the Georgia Residential Mortgage Act.  A hearing was timely requested to contest the Notice of Intent to Revoke Annual License issued to SunnyMTG and the Cease and Desist Order issued to Mr. Gaddh. 

The Department filed Motions for Summary Determination in both of these matters before the Office of State Administrative Hearings (“OSAH”).   On November 5, 2008, OSAH entered Orders concluding that SunnyMTG had violated O.C.G.A. §§ 7-1-1002 and 7-1-1004(d) and that Mr. Gaddh had violated O.C.G.A. §§ 7-1-1002 and 7-1-1004(d).  (See Attachments A and B below).   A hearing regarding the appropriateness of the sanction imposed by the Department against SunnyMTG, as well as the validity of the Cease and Desist Order issued to Mr. Gaddh, was scheduled for December 18, 2008, before OSAH. 

Prior to the hearing, the parties discussed the issues raised by the Notice of Intent to Revoke Annual License and Cease and Desist Order and agreed to a resolution of those matters in their entirety as follows:

  • The voluntary surrender of SunnyMTG’s mortgage lender license is effective as of December 18, 2008.  SunnyMTG can never apply to the Department for another license to be a mortgage broker or lender.
     
  • SunnyMTG will not accept any new loan applications after 5:00 p.m. on December 31, 2008, and will cease all of its remaining mortgage lender activities by no later than March 1, 2009.
     
  • The Cease and Desist Order issued by the Department to Mr. Gaddh on May 15, 2008, became final on December 18, 2008.   (See Attachment C below).

The terms of the settlement were put on the record before OSAH.  (See Attachment D below for a copy of the transcript).  As a result of the announced settlement, OSAH dismissed these matters.  (See Attachment E below).

Pursuant to state law that was in effect when the violations underlying the Order to Cease and Desist were committed, the Department may revoke the license of a mortgage broker or lender that employs an individual against whom a final Order to Cease and Desist has been issued within the preceding five years if the Order resulted from conducting mortgage business with an unlicensed person or committing prohibited acts.  

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Attachments:

Contact
Rod Carnes, Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
E-mail: rodc@dbf.state.ga.us