If You Are Facing Charges From Your Licensing Agency, Demand The Full Investigative File Before You Talk To Them!

Are you are a loan originator or loan originator and have been served with a statement of charges by the Department of Financial Institutions (DFI)? If so, be wary of the initial evidence that they provide to you as part of the investigative file. The Department of Financial Institutions has recently claimed that it may turn over some, but not all, evidence it has prior to the appointment of an administrative law judge and the prehearing conference. At that point, it claims that it need not turn over the names of witnesses it has interviewed until witness and exhibit lists are required shortly before the administrative hearing. That is simply not the case, and we are currently litigating it.DFI does not have a rule limiting the availability of discovery. The agency rules merely require that requests be made by motion to the "presiding officer." A statement of charges is issued under the authority of the director, and so he is the presiding officer in this matter until an ALJ is appointed under his authority. See, e.g., RCW 34.05.425(1)(a). Accordingly, you may ask for, and the Director must provide, all evidence upon receipt of an appropriate request for production.We have found that, upon receipt of a request for the full investigative file, the Director of DFI will immediately ask for an administrative hearing and an assistant attorney general will write demanding that you cease contacting their client. We have then had to turn around and file the same request, in motion form, with the newly appointed ALJ, who will do nothing to address the matter until the prehearing conference.In conclusion, it is best to obtain the assistance of an attorney before you speak to an investigator. It can be relatively inexpensive to have an attorney represent you early on in the proceedings and ultimately their advice and guidance could save you significant costs and problems later on.