On March 22, a group of 39 states, Puerto Rico, and the District of Columbia (participating states) entered an interim consent order against Sigue Corporation, a licensed money transmitter corporation, ordering it to cease operations due to deteriorating financial conditions. Sigue reported approximately $4.9 million in outstanding liabilities related to regulated money transmission transactions originating in the participating states and New York. The corporation is currently in the process of surrendering its money transmission licenses and winding-down.
The interim consent order stated that on becoming aware of the deteriorating financial condition of Sigue, the participating states commenced an investigation into the facts and circumstances leading up to the winddown and evaluating the consumer impact. The stated intention of the interim consent order is to stop Sigue from engaging in further money transmissions while the investigation continues and Sigue engages in its winddown. Sigue has allegedly failed to satisfy outstanding money transmission obligations when they became due and payable, violating each participating states’ money transmission laws. It has also allegedly failed to maintain adequate net worth to remain qualified to be licensed and has failed to maintain permissible investments sufficient to cover the outstanding obligations.
In addition to the cease and desist provision, the interim consent order provides that Sigue will:
- Preserve all books and records during the course of the investigation.
- Make all books and records available as required by the participating states’ money transmission regulators and timely respond to all requests for information and documentation.
- Provide each participating states’ money transmission regulators with any information needed to file a bond claim for consumers with outstanding transmission liabilities in their state, including furnishing a signed declaration.
