MADISON, Wis. — The Wisconsin Department of Financial Institutions (DFI) today announced it has reached a final agreement with money transmitter Sigue Corp., for failing to fulfill its obligations to customers during its collapse last year.
The agreement with Sigue comes one year after financial regulatory agencies from 39 states, Puerto Rico, and the District of Columbia ordered the company to cease engaging in any further money transmission activities due to its declining financial position (NMLS ID 915912). The company failed to complete multiple money orders and transmissions and to maintain adequate net worth and permissible investments to cover outstanding liabilities, both violations of state money transmission law.
As Sigue’s financial condition deteriorated, the company was unable to satisfy customer obligations including money orders and remittances for consumers in Wisconsin and in other states. Under the final agreement, Wisconsin customers who wish to file a claim should contact the DFI’s Licensed Financial Services Bureau by calling (608) 261-7578 or emailing DFI_LFS@dfi.wisconsin.gov.
“Once again, under the umbrella of networked supervision, states have worked together and shared resources to identify and take action against a money transmitter in order to protect consumers,” said DFI Division of Banking Administrator Kim Swissdorf. “We will continue to join other states in enforcing the laws under the Money Transmission Modernization Act for the benefit of Wisconsin consumers.”
The agreement requires Sigue Corporation and its owner, Guillermo de la Viña, to resolve Sigue’s failure to meet its outstanding liabilities. The agreement also contains provisions relating to GroupEx Financial Corporation, a subsidiary of Sigue and a licensed money transmitter.
Under the terms of the agreement, Sigue and GroupEx’s money transmitter licenses have been surrendered. Additionally, de la Viña has agreed to refrain from any position of management, control, or employment of any money transmitter unless first approved by the DFI. Sigue will pay a $27,777.78 penalty if it fails to comply with the terms of the order or provide information needed to process customer bond claims.
Sigue will maintain its public website for two years, providing information to direct consumers on how to file a complaint on unpaid transactions with their regulator.
