Ohio Division of Financial Institutions reaches final agreement with Sigue Corp
The Ohio Department of Commerce Division of Financial Institutions, along with 35 states and Washington, D.C., has reached a final agreement with money transmitter Sigue Corp., related to its failing to fulfill customer obligations during its collapse last year.
The agreement with Sigue comes one year after financial regulatory agencies across the nation ordered the company to cease engaging in money transmission activities due to its declining financial position (Nationwide Mortgage Licensing System ID No. 915912). The company failed to complete multiple money orders and transmissions, as well as to maintain adequate net worth and permissible investments to cover outstanding liabilities, both of which are violations of state money transmission law.
As Sigue’s financial condition deteriorated, the company was unable to satisfy customer obligations, including money orders and remittances for consumers in Ohio and in other states. At the time operations ceased last year, Sigue’s internal records showed there was approximately $191,000 in outstanding money orders and transmission liability owed to about 800 Ohio consumers.
Last spring, the Division mailed notices to each of those 800 customers alerting them to the potential for monetary recovery. As part of this final agreement, impacted customers in Ohio are encouraged to reach out to the Division here for instructions on how they might recoup any losses.
The agreement requires Sigue Corporation and owner Guillermo de la Viña to resolve Sigue’s failure to meet the outstanding liabilities. The agreement also contains provisions relating to GroupEx Financial Corporation, a subsidiary of Sigue and a licensed money transmitter.
Under the terms of the agreement, Sigue and GroupEx’s money transmitter licenses have been surrendered. Additionally, de la Viña has agreed to refrain from any position of management, control, or employment of any money transmitter unless first approved by the Division. In the event that Sigue fails to comply with the terms of the order or provide information needed to process customer bond claims, it will be responsible for paying a $23,300 penalty.
The Sigue website, located at sigue.com, will be available for two years, providing information to direct consumers on how to file a complaint on unpaid transactions with their regulator.
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