Continuing education fraudster Danny Yen settles with state regulators for $75K

Danny Yen, who organized a fraudulent further education scheme involving hundreds of loan officers, has agreed to settle with state financial regulators for $ 75,000.

In the village of California Department of Financial Protection and Innovation (DFPI), Office of the Maryland Commissioner for Financial Regulation and Oregon Financial Regulation DivisionDanny Ian, owner of Mortgage Training Courses in Carlsbad, CA Real estate education servicesalso agreed to a lifetime ban on teaching any mortgage-related content.

In addition, the Yen family will fully cooperate in any government investigations – including by testifying – regarding mortgages. The yen also agreed to give signed declarations “stating the facts concerning their interaction with the MLO, the completion of PE and CE courses and the provision of bank credit hours,” the lawsuit said.

Under the agreement, the Jena family must pay a civilian cash fine of $ 75,000, divided between state financial regulators in California, Maryland and Oregon. Earlier, government regulators said the fines would be up to $ 3.4 million.

If the Yen family violates the terms of the settlement, the family will have to pay a fine of $ 15 million for non-compliance, which will be distributed equally among the participating states, the settlement said.

In mid-January, an investigation in 26 states led by DFPI found inconsistencies in the use of the Investigation Performance Tool National Mortgage Licensing System requirements. (NMLS requires each LO to spend an average of eight hours each year to re-certify their national license.)

The investigation found that more than 600 LOs, all of whom paid for educational programs with REES, did not meet the CE requirement for re-certification.

Regulators have accused Jena and members of his family of attending classes for LO in exchange for compensation or giving LO class credit without requiring them to attend classes. Part of the penalty is that REES offers online courses – such as a three-hour course on fair housing and discrimination laws – but a license to conduct personal lessons only.

LOs in 42 states that have settled with state regulators will have to pay an average of about $ 2,700 each – $ 1,000 for each state in which they are licensed – for skipping an annual eight-hour course. They must also pass a three-month license and undergo additional educational programs.

To date, only 441 LOs have settled with state regulators out of 608 LOs that have not met their requirements. However, state regulators are still continuing to act on 167 LPs that have not calculated.

“This settlement will allow California and other regulators to discipline the remaining creditors, while lifelong learning restrictions send a strong message that we will not allow fraud,” said Clotilde Hewlett, DFPI Commissioner.

The settlement also says Ian is fighting a separate administrative action from California on Jan. 14 that calls for the lifting of court injunctions as well as fines for violating rules stemming from education fraud schemes. Ian filed a request for an administrative hearing to challenge the lawsuit, and a five-day trial began this week at the Los Angeles Office of Administrative Hearings.

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