Texas Banking Commissioner Cease and Desist Order

ORDER NO. 2 009 -050 IN THE MATTER OF: § BEFORE THE BANK ING CHILD SUPPORT SE RVICES, I NC., § A NEVADA CORPO RATION § AND § CHILD SUPPORT SE RVICES OF § COMMISSIO NER OF TEXAS ATLANTA, INC., § A GEORGIA CORPO RATION § AND § STUART CLAY COLE § AUSTIN, TRAV IS COUNTY, TEXAS Emergency Cease and D esist Order On this day, the matte r of Child S upport Se rvices, Inc. (“CSS”), a N evada corp oration; Ch ild Support Services of Atlanta, Inc. (“CSS of Atlanta”), a Georgia corporation; and Stuart Clay Cole (“Cole”), a resident of Florida, was submitted t o me, Charles G. Cooper, Banking Commissioner of the State of Texas, for consideration and action. I. Facts Based upon the records of the Texas Department of Banking (“Department”), the Department's investigation, and other credible evid ence, I find that: 1. CSS is a Nevada corporation. CSS of Atlanta is a Georgia c orporation. Cole is an individual who is believed to be an owner and manager of CSS and CSS of Atlanta. 2. On February 4, 2009, a resident of Houston, Texas signed a contract with CSS to collect delinquent child support. In paragraph 7 of the contract, the other party to the contr act is referred to a s CSS of Atlanta. She returned the application to CSS, and received three checks from CSS in July and August, 2009, but she has not received any further checks. She has attempted to call CS S but its number has been disconnected. On September 28, 2009, the resident cal led the De partment to complain abo ut CSS. The Department revie wed the documents supplied by the resident and determined that CS S was a Nevada corporation and was not registered with the Department as a private child support enforcement agency (“PCSEA”). 3. On October 13, 2009, one of the Department’s attorneys wrote via f irst class and registered mail to t he president of CSS at the address on file with the Nevada S ecretary of State and demanded t hat CSS registe r with th e Department a s a PCSEA. On October 23, 2009, the Department’s first class lett er was received back at the Dep artment, with the notation

“r efused.” On October 26, 2009, t he Department’s certified letter was received back at the Department, with the not ation “refus ed.” 4. The Department then inv estigated CSS and discovered that the United States Posta l Service (“USPS”) has a proceeding pending against CSS of Atlanta and “Child Support Services” and Cole for violating 39 US.C. § 3005 by conducting a scheme for obtaining money through the mail by false represent ations. In support of that proceeding, the USPS obtained a preliminary injunct ion on September 16, 2009, in the case of United States Postal Service v. Child Support Services of Atlanta, Inc. in the Unite d States Dist rict Court fo r the Middle District o f Georgia. The prelimin ary injunction directs the U SPS to detain the ma il of CSS of Atlanta addressed to fourteen pos t office boxe s in fourteen d ifferent states. One of those post office boxes is the one listed in the resident’s contract with CSS, P.O. Box 1712, Carson City, Nevada 89702. 5. In support of its ap plication for a prelimina ry injunction, the USPS submitted a twenty - two page affidavit from a postal inspector rega rding her inve stigation (the “Aff idavit”). The investigato r interviewed several current a nd former employ ees of CSS of Atla nta. One way CSS of Atlanta sol icits clie nts is by setting up mall kiosks. One employee who was still employed by CSS of Atlanta stated that CSS of Atlanta was looking into setting up mall kiosks in Texas to gain new cli ents. 6. The Departmen t's recor ds reflect th at CSS, CS S of Atlanta, and Cole a r e not registered a s a PCSEA with the State of Tex as. 7. The Departmen t’s inves tigation reve als that: a. CSS has a registered agent, Silver Shield Services, Inc., P.O. Box 3540, Silver Springs, Nevada 89429. CSS has no known office or street address in Nevada. b. C SS of Atlanta has a registered agent, M ichael Canty, at 4 08 Force Street, Valdo sta, Georgia 31601. The Affidavit states that Mr. Canty is dece ased, but the records of the Georgia Secre tary of State sti ll list him as the registered agent. CSS of Atlanta’s last known physical address is 206 Lakes Blvd., Lake Park, Georgia, 31636 -5006. CSS of Atlanta has also received mail at 3645 Market Place Blvd., Suite 130, Atlanta, Georgia 30344-5748.

c. Cole’s last known address is 2651 E. Vina Del Mar Blvd., St. Pete Be ach, Florida 33706. Pleadings filed in the proceeding in the Georgia federal district court state that he has a n email address of ___________. II. Conclusions Based upon the facts set out above, I find that: 1. CSS, CSS of Atlanta, and Cole are engaging in the business of child support enforcement in Texas without being registered, in violation of Texas Finance Code § 396.101. 2. Without intervention, CSS, CSS of Atlanta, and Cole are likely to continue to engage in the business of child support enforcement in Texas in violation of Texas Finance Code § 396.101. 3. The continuation of this unregistered child support enforcement business in Texas by CSS, CSS of Atlanta, and Cole is fraudule nt or threate ns immediate and irreparable publ ic harm; and justifies the issuance of an emergency cease a nd desist order. III. Order Now, Therefore, under the authority vested in me by Texas Finance Code, § 35.208, I ORDER Child Support Services, Inc.; Child Support Services of Atlanta, Inc; Stuart Clay Cole; and all principa ls, agents, employees an d representativ es of any or all of them, to immediately CEAS E AND DESIST f rom: 1. representing in any manner that Child Support Services, Inc., Child Support Services of Atlanta, Inc, and/or Stua rt Clay Cole are legally authorized b y t he State of Texas to engage in the business of child support enforcement in the State of Texas, unless an d until Child Support Services, In c., Child Su pport Servic es of Atlan ta, Inc, and /or Stuart Cl ay Cole, a re registered to do so with the Texas Departmen t of Banking; and 2. engaging in the business of child support enforcement in Texas, unless authorized to do so under the laws of the State of T exas. IV. Effective D ate and Right to Hearing This Order is effective immediately. The Order will become final and nonappealable as to Chil d Support Services, Inc., Child Support Services of Atlanta, Inc, and S tuart Clay Cole if no hearing is requested by the respective parties in accordance with Tex as Finance Code, § 35.208. Under § 35.208, a party may request a hearing on the issuance of an emergency cease and desist order by submitting a w ritten request for he aring, direc ted to me and receiv ed by the Depa rtment no late r

than the 11th day after the date the order is served. The request must state th e grounds for setting aside or modifying the o rder. V. Service This Order is served on October 30, 2009 as follows: 1. On Child Support Services, Inc. by certified mail, return receipt requested, and by fi rst class mail, to its registered agent, Silver Shield Services, Inc., P.O. Box 3540, Silver Springs, Nevada 89429. 2. On Child Support Services of Atlanta, Inc. by ce rtified mail, return receipt requested, and by first class mail, to: a. its registered agent, Michael Canty, 408 Force Street, Valdosta, Georgia 31601; b. its last known physical address, 206 Lakes Blvd., Lake Park, Georgia, 31636; and. c. its mailing address at 3645 Market Place Blvd., Suite 130, Atlanta, Georgia 30344-5748. 3. On Stuart Clay Cole: a. by cert ified mail, re turn receip t requested, and by first c lass mail, to h is last know n address at 2651 E. Vina Del Mar Blvd., St. Pete Beach, Florida 33706; and b. as an attachment to an emai l to his email address at _______. Signed at Austin, Travis County, Texas, this 20th day of October, 2009, at 10:30 o'clock a.m. /s/ Charles G. Cooper Charles G. Cooper Texas Banking Commissioner