_________________________________________________________________________________ ORDER IMPOSING PENALTIES PURSUANT FINANCIAL CODE SECTION 1740812345678910111213141516171819202122232425262728State of California –Department of Business OversightMARY ANN SMITHDeputy Commissioner SEAN M. ROONEYAssistant Chief Counsel JUDY L. HARTLEY (State Bar No. 110628) Senior Counsel Department of Business Oversight320 West 4th Street, Suite 750 Los Angeles, California 90013-2344 Telephone: (213) 576-7604 Facsimile: (213) 576-7181 Attorneys for Complainant BEFORE THE DEPARTMENT OF BUSINESS OVERSIGHTOF THE STATE OF CALIFORNIAIn the Matter of: THE COMMISSIONER OF BUSINESS OVERSIGHT, Complainant, v. NEVAEH’S ESCROW, INC., Respondent. ))))))))))))))ESCROW LICENSE NO.: 963-2636 ORDER IMPOSING PENALTIES PURSUANT FINANCIAL CODE SECTION 17408TO:NEVAEH’S ESCROW, INC.12139 Mount Vernon Avenue, Suite 102 Grand Terrace, California 92313 The Commissioner of Business Oversight finds that: 1. Respondent Nevaeh’s Escrow, Inc. (NEI) is an escrow agent licensed by the Commissioner of Business Oversight (Commissioner) pursuant to the Escrow Law of the State of California (Fin. Code § 17000 et seq.) (Escrow Law). NEI has its principal place of business located at 12139 Mt. Vernon Avenue, Suite 102, Grand Terrace, California 92313. 2. Pursuant to Financial Code section 17406, all licensees under the Escrow Law are required to file an annual audit report containing audited financial statements (annual audit report) -2- _________________________________________________________________________________ ORDER IMPOSING PENALTIES PURSUANT FINANCIAL CODE SECTION 1740812345678910111213141516171819202122232425262728State of California –Department of Business Oversightwithin one hundred and five (105) days after the close of their fiscal year. NEI’s fiscal year end is September 30. Accordingly, NEI was required to file its audit report for the fiscal year end September 30, 2018 (2018 annual audit report) on or before January 15, 2019. 3. On or about August 27, 2018, the Commissioner notified NEI in writing that its 2018 annual audit report was due January 15, 2019. NEI failed to file the 2018 annual audit report by January 15, 2019.4. On or about January 24, 2019, a follow up letter was sent to NEI concerning its failure to file the 2018 annual audit report. NEI was notified in the letter that failure to file to the 2018 annual audit report within ten days of the date of the letter could result in assessment of penalties, a special examination and/or administrative action.5. On or about February 8, 2019, an email was sent to NEI at its designated email address notifying NEI once again that the Department of Business Oversight (Department) had not received NEI’s 2018 annual audit report. A copy of the January 24, 2019 letter was attached to the email.6. On or about February 8, 2019, NEI responded that it would get together with its CPA and bookkeeper. NEI was urged to file the 2018 annual audit report as soon as possible as NEI was being assessed penalties in the amount of $100.00 a day for the first 5 days the annual audit report was overdue and thereafter, at a rate of $500.00 a day for each day the annual audit report was overdue.7. On or about February 21, 2019, NEI requested an extension until April 1, 2019 to submit its 2018 annual audit report. On or about February 22, 2018, the Department notified NEI in writing that its request for an extension was denied because NEI had already been allowed an extension to February 4, 2019. 8. NEI has yet to file its 2018 annual audit report as required by Financial Code section 17406.1. 9. Financial Code Section 17408, subdivisions (b) – (e) provides as followsb)The commissioner may impose, by order, a penalty on any person who fails, within the time specified in any written demand of the commissioner, (1) to make and file with the commissioner any report required by law or requested by the commissioner.. . . The amount of the -3- _________________________________________________________________________________ ORDER IMPOSING PENALTIES PURSUANT FINANCIAL CODE SECTION 1740812345678910111213141516171819202122232425262728State of California –Department of Business Oversightpenalty shall be one hundred dollars ($100) for each day for the first five days the report or information is overdue and, thereafter, five hundred dollars ($500) for each day the report or information is overdue.(c)If, after an order has been made under subdivision (b), a request for hearing is filed in writing within 30 days of the date of service of the order by the person to whom the order was directed, a hearing shall be held in accordance with the Administrative Procedure Act, Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the GovernmentCode, and the commissioner shall have all the powers granted under that chapter.(d)If the person fails to file a written request for a hearing within 30 days of the date of service of the order, the order imposing the penalty shall be deemed a final order of the commissioner, and the penalty shall be paid within five business days. (e)If a hearing is requested, the penalty shall be paid within five business days after the effective date of any decision in the case ordering payment to be paid.NOW THEREFORE the Commissioner having found that Nevaeh’s Escrow, Inc. failed to file its annual audit report containing audited financial statements for its fiscal year ended September 30, 2018 as required by Financial Code section 17406; Nevaeh’s Escrow, Inc. is hereby ordered, pursuant to Financial Code section 17408, to pay to the Commissioner the sum of $6,000.00, plus an additional $500.00 a day for each day after March 6, 2019 that the annual audit report is not filed. Dated: April 4, 2019Los Angeles, CA JAN LYNN OWEN Commissioner of Business Oversight By_____________________________ Mary Ann Smith Deputy Commissioner Enforcement Division
b)The commissioner may impose, by order, a penalty on any person who fails, within the time specified in any written demand of the commissioner, (1) to make and file with the commissioner any report required by law or requested by the commissioner.. . . The amount of the 
