California DFPI Enforcement Actions - September 2025

CA DFPI Monthly Actions & Orders Summary

Filed September 2nd, 2025

Detected February 12th, 2026

Summary

The California Department of Financial Protection and Innovation (DFPI) issued 14 enforcement actions in September 2025. These actions targeted individuals and firms for violations including unlawful broker-dealer activity, investment adviser misconduct, and illegal digital financial asset activities.

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What changed

The California Department of Financial Protection and Innovation (DFPI) has released a summary of 14 enforcement actions taken in September 2025. These actions include Desist and Refrain Orders, Accusations to Bar individuals from employment in the financial industry, Notices of Intent to Levy Administrative Penalties, and Consent Orders. Violations cited span unlawful broker-dealer activity, investment adviser misconduct, digital financial asset law violations, mortgage loan originator license revocations, debt collection law violations, and California Financing Law violations.

These enforcement actions indicate active regulatory oversight by the DFPI in the financial sector. Regulated entities and individuals involved in broker-dealer activities, investment advising, digital assets, mortgage lending, debt collection, and financing must review these actions to understand the types of violations being prosecuted and the potential penalties. While specific compliance deadlines are not detailed for these past actions, the broad range of violations underscores the need for robust compliance programs to avoid similar enforcement measures, which can include barring individuals from the industry and imposing administrative penalties.

What to do next

Review DFPI September 2025 enforcement actions for relevant entities and individuals.
Assess current compliance programs against cited violations, particularly concerning broker-dealer and investment adviser conduct.
Ensure adherence to California Financing Law and digital financial asset regulations.

Penalties

Administrative Penalties, Bar from employment/management/control of financial entities, Revocation of licenses, Desist and Refrain Orders.

Source document (simplified)

SUMMARY OF ENFORCEMENT ACTIO NS AND NON-ENFORCEMENT ISSUED ACT IONS (ADMINISTRATI VE AND CIVIL) BY T HE CALIFORNIA DE PARTMENT OF FINANCIAL PROTECTION AND INNO VATION September 20 25 ENFORCEMENT ACTI ONS VIOLATIO NS & CHARGING SECTIONS SUBJECT ACTION Fei Mu Havenor San Marcos, California Desist and Refrai n Order; Notice of I ntent to Le vy Administrativ e Penalties; a nd Accusation to Bar Fei Mu Havenor from any Position of Employ ment, Manage ment or Control of any Broker-Dealer September 2, 2025 Unlawful Broker-Dealer Activity (Corporations Code Sections 25212, 25213, 25210, 25216, 25252(b) and 25532) Ty ler William Platt Expungement Order De nied September 4, 2025 Unlawful Broker-Dealer Activity (Corporations Code Sections 25003, 25004 and 25241) 1

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS Caris Investm ent P artners, Inc. Darren J. Caris Encinitas, California 1. Accusation in Support of Order to Revoke Caris I nvestment Partners, Inc.'s I nvestm ent Adv iser C ertificat e; 2. Accusation to Bar Darren J. Caris from any Position of Employ ment, Manage ment or Control of any I nvestment Adviser, Broker-De aler or Commodity Adviser; 3. Statement in Support of Order L evy ing Admin istrative Pena lties; 4. Desist and Refrain Orde r; and 5. Claim for Ancillary Relie f September 10, 2025 Unlawful I nvestment Adviser Activity (Corporations Code Sections 25232, 25232.1, 25252 and 25532) ANH Management LL C dba Herme sBitcoin 1) Desis t and R efrain Order 2) Claim for Ancillary Relie f 3) Notice of I ntent to I ssue an Order Asses sing Pen alties September 18, 2025 Unlawf ul Digital F inancial Assets L aw Ac tivity (Financial Code S ection s 90003(a)(1) and (2), 90012(b)(3) and 90015(c)) 2

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS Hugo Fa bian Flores Flores 1. Accusation to Revoke Mortg age Mortgag e Loa n Originator Valley Grove Financial L oan Originator L icense of Hug o Fabian Flor es Flores License Santa Ana, California 2. Accusation to Bar Hugo Fabian Flores Flor es 3. Desist and Refrain Orde r September 19, 2025 (Financial Code S ection s 50327(a), 50318(a)(1), 22172(a), 50141(a)(3), 50513(a), 22100, 22155(a), 22161(a)(7), 22712, 22109.1(a)(3), 22169(a)(1) and 22170(b)) Francodollar, L L C Consent Order Unlawful California Financ ing L aw Activity Watsonville, Ca lifornia September 22, 2025 (Financial Code S ection s 22712(a), 22304.5 and 22308) Debt Recovery Attorney s, A Profe ssional Corporation I rvine, California Settl ement A greement September 23, 2025 Unlawf ul Debt Collection L aw Activity (Financial Code S ection s 90015(d), 90003(a)(1), 100021(a) and 90003(a)(2)) 3

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS L una Capital Investments L L C L una Capital Fund, LP Michael Mazz ota Travis Gough San Francisco, Califor nia San Diego, California 1. Accusation in Support of Order to Bar Mich ael Maz zota an d Travis Gough from any Position of Employ ment, Management or Control of any I nvestment Adviser, Broker-D ealer or Commodity Adviser; 2. Notice of I ntent to I ssue Order L evy ing Admin istrative Pena lties; 3. Desist and Refrain Orde r; and 4. Claim for Ancillary Relie f September 24, 2025 Unlawful I nvestment Adviser Activity (Corporations Code Sections 25232.1, 25252 and 25532) I Fund Cities LL C Notice of Petition for Reins tatement Unlawful California Financ ing L aw Activity Philadelphia, Pennsy lvania September 26, 2025 (Government Code Section 11522) MidCap Financial I nvestment Corporation New York, New York Consent Order September 30, 2025 Unlawful California Financ ing L aw Activity (Financial Code S ection s 22712 and 22100(a)) 4

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS William Merritt O wens 1. Accusation in Support of Order to Bar William Merritt Owe ns from Unlawful I nvestment Adviser Activity Encinitas, California any Position of Employ ment, Manage ment or Control of any I nvestment Adviser, Broker-De aler or Commodity Adviser; 2. Notice of I ntent to I ssue Order L evy ing Admin istrative Pena lties; 3. Desist and Refrain Orde r; and 4. Claim for Ancillary Relie f September 30, 2025 (Corporations Code Sections 25232.1, 25252 and 25532) Kevin Christopher Michaels Kevin Christopher Mendez Winner's Edge Futures Trading Menlo Park, California 1. Accusation in Support of Order to Bar Kevin Christopher Micha els from any Position of Employ ment, Manage ment or Control of any I nvestment Adviser, Broker-De aler or Commodity Adviser; 2. Notice of I ntent to I ssue Order L evy ing Admin istrative Pena lties; 3. Desist and Refrain Orde r; and 4. Claim for Ancillary Relie f September 30, 2025 Unlawful I nvestment Adviser Activity (Corporations Code Sections 25232.1, 25252 and 25532) 5

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS Safeguard Met als LL C Final Judg ment Order ing Restitution Unlawf ul California Commod ity Jeffrey I kahn ak a and a Ci vil Mo netary Penalty Against L aw Activity Jeffrey S. Sant ulan aka Defendant s Jeff Hil l (Corporations Code Section September 30, 2025 29536) NON-ENFORCEMENT ACT IONS VIOLATIO NS & CHARGING SECTIONS SUBJECT ACTION Dmetri Mic hael Stratton Chula Vista, California Consent Order Granting Conditional M LO Li c e n s e September 3, 2025 Mortgag e Loa n Originator License (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) Ahmad Masih Rashid Westminster, Ca lifornia Consent Order Granting Conditional M LO Li c e n s e September 5, 2025 Mortgag e Loa n Originator License (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) 6

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS Gregory Ly nn Harrison Consent Orde r Granting Conditional M LO Li c e n s e Mortgag e Loa n Originator License Mesa, Arizona September 9, 2025 (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) Lily Marie Lucas Consent Order Granting Conditional M LO Li c e n s e Mortgag e Loa n Originator License Phoenix, Arizona September 10, 2025 (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) Peninsula Eq uity Capital L LC Order Summarily Revoking I nvestment Advis er Certific ate of Unlawful I nvestment Adviser Activity San Carlos, California Peninsula Eq uity Capital L LC September 17, 2025 (Corporations Code Sections 25242(b)) Employ ee Funding of A merica, L LC Dania, Florida Order Revoking California Financin g L aw License September 22, 2025 Unlawful California Financ ing L aw Activity (Financial Code S ection 22714) 7

VIOLATIO NS & SUBJECT ACTION CHARGING SECTIONS Metro P hoenix Finan cial S ervices, LLC Phoenix, Arizona Order Revoking California Financin g L aw License September 22, 2025 Unlawful California Financ ing L aw Activity (Financial Code S ection 22714) Trans Uni ted Fin ancial S ervices, Inc. Tustin, California Order Revoking California Financin g L aw License September 22, 2025 Unlawful California Financ ing L aw Activity (Financial Code S ection 22714) Jesu s A. Nevarez Lizarraga Phoenix, Arizona Consent Order Granting Conditional M LO Li c e n s e September 26, 2025 Mortgag e Loa n Originator License (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) Brandon Marc us Powell Consent Order Granting Conditional M LO Li c e n s e Mortgag e Loa n Originator License Phoenix, Arizona September 30, 2025 (Financial Code S ection s 50141, 50144, 22109.1 and 22109.4) 8