Department of Financial Institutions doesn't want to hear from you!

The Department of Financial Institutions (DFI) used to talk to its licensees before it cut off dialogue and asked for an administrative law judge to be appointed. In the past, after a statement of charges was issued, the DFI would not immediately ask for an administrative law judge (ALJ) to be appointed. That allowed a licensee to attempt to negotiate a settlement directly with the DFI. DFI would provide access to its investigative file on an informal basis – that is, without a formal request – and this served to facilitate settlement in an efficient manner.Recently, the DFI has changed its approach. It started when DFI asserted that “informal discovery” meant that it did could provide some, but not all, of its investigative file prior to the appointment of an ALJ. The DFI would then reveal additional evidence as needed, including information to refute assertions made during settlement negotiations. Attorneys at the Rosenberg Law Group, PLLC responded by writing to the Director of DFI, the presiding officer prior to the delegation to an administrative law judge, and asking for full discovery. In return, the DFI now asks for the assignment of an administrative law judge as soon as a hearing is requested by the licensees. The upshot of all of this is that an important opportunity to resolve charges is lost. No one is served by this development.As it stands now, it is critical for a licensee to be represented by a competent attorney as soon as possible. The DFI’s position is that you have to play settlement by ambush or they won’t talk to you. The department seems to forget that it is meant to serve the public and not simply prosecute its licensees at any cost.