ALJDEC decisions subject to certification as final

19F-BD001-BNK-RES · Arizona Department of Financial Institutions · 2019-04-09

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 20, 2019 APPEARANCES: Assistant Attorney General Roberto Pulver appeared on behalf of the Arizona Department of Financial Institutions. Respondent Monica Marsh did not appear. ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson _____________________________________________________________________ 1. On January 28, 2019, the Arizona Department of Financial Institutions, (“Department”), issued a Notice of Hearing setting the above- captioned matter for hearing at 1:00 p.m. on March 20, 2019. 2. The Notice of Hearing provided that the hearing issue was, “whether grounds exist to exclude Respondent from participating in any of the affairs of financial institutions or enterprises; to order any to her remedy necessary or proper enforcement of statutes and rules regulating loan processors in Arizona under A.R.S. §§ 6-123 and 6-131; and if needed, to impose upon Respondent a civil money penalty under A.R.S. § 6-132.” 3. A hearing was held on March 20, 2019. 4. At hearing, the Department presented the testimony of Nicole Abraham, Senior Vice President of Academy Mortgage, and Richard Burgess, Senior Examiner at the Department. The Department submitted exhibits 1 through 40; A and B. 5. Respondent did not request to appear telephonically at the hearing or that the hearing be continued. Although the duly noticed hearing lasted for approximately one hour and fourteen minutes, Respondent did not appear, personally or through an attorney. Consequently, Respondent did not present any evidence. 6. At all relevant times, Respondent Monica Marsha worked as a mortgage loan processor for Academy Mortgage Corporation (“Academy Mortgage”). Academy Mortgage was a licensed mortgage broker in the state of Arizona. 7. In January of 2018, the Department was informed by Academy Mortgage that it suspected that Ms. Marsh and other employees located at the Williams Circle office in Tucson, Arizona, engaged in illegal and improper business practices to help mortgage applicants qualify for loans. At all times relevant to this matter, Nabel Mohamed supervised Ms. Marsh. 8. The Department conducted an investigation into the alleged illegal activity. The Department found that Ms. Marsh had altered and forged documents in connection with twelve different mortgage loan applications within the time period of twelve months. 9. On or about November 8, 2016, Ms. Marsh uploaded a copy of an altered Child Support Order issued by the Superior Court of Arizona to Academy Mortgage’s computer system. The authentic copy of the order contained the birth dates of the children of mortgage loan applicant, Rodriguez. The dates reflected for Rodriguez’s children in the authentic copy are March 1995 for the oldest child, and December 1998 for the youngest child. The Child Support Order that Ms. Marsh uploaded to Academy Mortgage’s computer system listed the oldest child’s birthdate as March 2003, and the youngest child’s birthdate as December 2005. 10. On or about May 30, 2017, Academy Mortgage funded a mortgage loan for applicant Rodriguez. 9. On or about December 1, 2017, Ms. Marsh uploaded to Academy Mortgage’s computer system a marriage certificate for Rodriguez and Rivera (“Rodriguez-Rivera”) which showed a marriage date of June 25, 2015. The authentic marriage certificate showed a marriage date of June 25, 2011. 11. On or about December 6, 2017, Academy Mortgage funded the loan for the Rodriguez-Rivera file. 12. On or about March 14, 2017, Ms. Marsh uploaded a bank statement showing different ending balance amounts at the end of the statement cycle. On or about April 18, 2017 Academy Mortgage funded the loan associated with the fraudulent bank statement uploaded on Mach 14, 2017. 13. On or about October 17, 2017, Ms. Marsh uploaded altered social security income letters for applicant Wilson. At Academy Mortgage, employees cannot delete information received but can place it in the trash bin. Ms. Marsh placed three social security letters for three separate for children in the trash folder in Academy Mortgage’s computer system. Two of the three children were twins. On of the letters stated that the child’s application for social security benefits was still pending. Another letter, regarding one of the twins, stated that the child was eligible for $721.57 per month while the other letter stated that the child was eligible for $735 in social security benefits per month. However, applicant Wilson’s 2016 Earned Income Credit Form showed that she is not the mother of twins and does not have a child with a disabilty. 14. With regard to the Wilson file, Ms. Marsh also uploaded a proof of receipt of the social security income. According to the document, the social security income was deposited on a Walmart Money Card. However, the holder of the Walmart Money Card was Rebecca Castaneda and she was not involved with Wilson’s mortgage application. 15. On or about December 6, 2017, Academy Mortgage funded the loan for Wilson. 16. In the course of its investigation, the Department discovered that Ms. Marsh had submitted false documents regarding the child support income of its mortgage applicants. The Department also discovered that Ms. Marsh submitted false marriage licenses and bank accounts into its computer system. 17. The Department contended that the facts outlined in its Notice of Hearing and Complaint be deemed true and admitted by Ms. Marsh because she failed to file an answer within 20 days of the date of service and notice of the complaint. CONCLUSIONS OF LAW The Superintendent has jurisdiction over Respondent and the subject matter in this case. Pursuant to A.R.S. § 41-1092.07(G)(2) and A.A.C. R2-19-119(B), the Department has the burden of proof in this matter. The standard of proof is by a preponderance of the evidence. See A.A.C. R2-19-119(A). The preponderance of the evidence shows that Respondent submitted forged and altered documents to Academy Mortgage, which is a violation of A.R.S. § 6-947(L). The preponderance of the evidence shows that Respondent made false promises, misrepresentations, and concealed material facts to Academy Mortgage, which is a violation A.R.S. § 6-161(A)(1) and A.R.S. § 6-947(L), which is a violation of A.R.S. § 6-161(A)(6). Pursuant to A.R.S. § 6-132, the Department is authorized to impose a civil penalty of not more than $5,000.00 for each violation for each day. Based on the specific circumstances, the Administrative Law Judge believes that a $2,500.00 civil penalty is appropriate for Ms. Marsh’s misconduct. ORDER IT IS ORDERED that Monica Marsh is immediately suspended from participating in any of the affairs of a financial institution or enterprise for a period of five years. IT IS FURTHER ORDERED, within 15 days of the effective date of the Order entered in this matter, Monica Marsh shall pay to the Department a civil penalty in the amount of $2,500.00, and such payment shall be made by cashier’s check or money order made payable to the Department. In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order shall be five days from the date of the certification. Done this day, April 9, 2019.

/s/ Velva Moses-Thompson Administrative Law Judge

Transmitted electronically to:

Keith A. Schraad, Interim Director Arizona Department of Financial Institutions

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Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826