DLLR Investigation Leads to Cease and Desist Order

BALTIMORE (9/14/2007) - Department of Labor, Licensing and Regulation Secretary Thomas E. Perez today announced a cease and desist order has been issued to a mortgage loan officer doing business in Maryland without a license.

Fredrick Lee Jr. and the Financial Independence Group received the legal order Thursday, September 13, 2007, following a six month investigation by DLLR's Division of Financial Regulation Enforcement Unit.

An individual connected to the Financial Independence Group called DLLR's Enforcement Unit in February of 2007, and requested an investigation into possible scam activity in the organization. That investigation uncovered that Fredrick Lee Jr. was originating loans through 1st Continental Mortgage. Over the course of nine months, Mr. Lee originated 42 loans that closed in Maryland without a license.

"Engaging in unauthorized mortgage lending is not only illegal, but also harms many Maryland consumers who believe that they are doing business with a licensed originator," said Financial Regulation Commissioner Sarah Bloom Raskin. "The State of Maryland will not tolerate such blatant illegality."

"This recent action on behalf of the Commissioner is part of the broader goal at DLLR to ensure consumer protection for all Marylanders and safeguard them from these unscrupulous individuals," said Secretary Perez.

Mr. Lee has15 days to file for a hearing. In the event he fails to file, the Commissioner may:

• Issue a final cease and desist order,
• Issue a penalty order imposing a civil penalty of up to $1,000.00 for first violation, and $5,000.00 for each subsequent violation, or
• Take any combination of the above actions.

The investigation into Fredrick Lee Jr. and the Financial Independence Group remains ongoing.

Updated July 30, 2009