Securities Department orders California firm to cease activities in Arkansas

by Talk Business & Politics staff ([email protected]) 2,522 views 

The Arkansas Securities Department ordered Sigue Corp. of San Fernando, Calif., to cease engaging in money transmission activities in Arkansas.

The state regulatory agency said the company can no longer responsibly serve customers due to its declining financial position. Arkansas joins 39 states, Puerto Rico, and the District of Columbia to issue the consent order.

Sigue is a state-regulated money transmission company licensed in Arkansas and 48 other states. Over the past several months, Sigue experienced significant financial deterioration.

The company failed to complete multiple money orders and transmissions as well as maintain adequate net worth and permissible investments to cover outstanding liabilities, both of which are violations of state money transmission law.

“I applaud the staff of the Securities Department’s quick work in leading the negotiation of this settlement that allows us to assist affected Arkansans in obtaining prompt relief,” said Securities Commissioner Susannah T. Marshall. “This settlement is a great example of coordinated efforts between state regulatory agencies to provide a consistent supervisory response across state lines.”

The consent order requires the company to preserve and provide access to all books and records, including information on impacted customers. States will use the company’s signed declarations to file bond claims on behalf of impacted customers. The state surety bond claim process is designed to help make impacted consumers whole.

Consumers with outstanding, unpaid transactions with Sigue should visit www.securities.arkansas.gov to learn more.