California Department of Corporations-Desist and Refrain Order

State of California - Department of Corporations

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STATE OF CALIFORNIA

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BUSINESS, TRANSPORTATION AND HOUSING AGENCY

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DEPARTMENT OF CORPORATIONS

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6 TO: Cohen Financial Group LLC

Cohen Commercial Equity

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John D. Cohen

Clarissa Marie Cohen

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1637 Chasseral Way

Manteca, California 95337 9

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and

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1608 Sunrise Avenue, Suite 4 Modesto, California 95350

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DESIST AND REFRAIN ORDER

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(For violations of the California Finance Lenders Law, Financial Code Section 22100

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and the California Residential Mortgage Lending Act, Financial Code Section 50002)

17 The California Corporations Commissioner finds that:

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1. At all relevant times, Cohen Financial Group LLC ("Cohen Financial") is a California

19 limited liability company whose principal place of business is located at 1637 Chasseral Way,

20 Manteca, California 95337. Cohen Financial is in the business of acting as a finance lender or

21 broker, it maintains a website at . On its website, Cohen Financial

22 states that it "will meet and exceed your Residential and Commercial Lending needs. We will fund

23 your difficult loans in record time." Cohen Financial also offers "Foreclosure Bailout Loans"

24 purportedly to assist members of the general public who are facing foreclosure and in need of a loan.

25 They offer "up to 80% financing of property value," with loans closing within seven days, a loan size

26 of $100,000 to $8,000,000 at rates from 9-15%. The website also states "Cohen Financial Group

27 LLC is now Cohen Commercial Equity."

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-1DESIST AND REFRAIN ORDER

State of California - Department of Corporations

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2. At all relevant times, Cohen Commercial Equity describes itself as a provider of "Fast

2 Hard Money Loans, Commercial Lending, Short Term Mortgages and Private Money Financing on

3 real estate property ... Lending in all 50 States and International." Cohen Commercial Equity lists

4 its principal place of business as 1608 Sunrise Avenue, Suite 4, Modesto, California 95350. It

5 maintains a website at . On its website, it indicates that Cohen

6 Commercial Equity is a Division of Cohen Financial Group. In addition, it claims to offer members

7 of the general public "100% financing" for "qualifying projects," including but not limited to

8 company expansions, operating funds, bailing out companies in trouble, real estate developments,

9 hotels, resorts, and apartment buildings. The loan amount is advertised as being from $1,000,000 to

10 $500,000,000.

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3. At all relevant times, John D. Cohen ("John Cohen") is the Chief Executive Officer and a

12 partner of Cohen Financial and Cohen Commercial Equity.

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4. At all relevant times, Clarissa Marie Cohen ("Clarissa Cohen") is a partner and principal

14 of Cohen Financial and Cohen Commercial Equity.

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5. On or about June 3, 2010, Cohen Commercial Equity engaged in the business of a finance

16 lender or broker when it agreed to serve as the placement agent in connection with the acquisition of

17 loan financing. It entered into a contract referred to as a Stand By Letter of Credit ("SBLC") with at

18 least one California resident. The SBLC stated that the California resident "hires Cohen Commercial

19 Equity to secure funding with Joint Venture Group" in the amount of $2,000,000 for an upfront

20 retainer fee of $37,500.

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6. The Commissioner has not issued a license to Cohen Financial, Cohen Commercial

22 Equity, John Cohen, or Clarissa Cohen to engage in the business of a finance lender or broker as

23 required by California Financial Code section 22100.

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7. Moreover, the Commissioner has not issued a license to Cohen Financial, Cohen

25 Commercial Equity, John Cohen, or Clarissa Cohen to engage in the business of making residential

26 mortgage loans or servicing residential mortgage loans, in this state, as required by California

27 Financial Code section 50002.

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-2DESIST AND REFRAIN ORDER

State of California - Department of Corporations

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Based on the foregoing findings, the California Corporations Commissioner is of the opinion

2 that Cohen Financial Group LLC, Cohen Commercial Equity, John D. Cohen, and Clarissa Marie

3 Cohen have engaged in the business of a finance lender and/or broker in violation of the California

4 Finance Lenders Law, Financial Code section 22100. Pursuant to Financial Code section 22712,

5 Cohen Financial Group LLC, Cohen Commercial Equity, John D. Cohen, and Clarissa Marie Cohen

6 are hereby ordered to desist and refrain from engaging in the business of a finance lender or broker in

7 the State of California without first obtaining a license from the Commissioner.

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Further, the California Corporations Commissioner is of the opinion that Cohen Financial

9 Group LLC, Cohen Commercial Equity, John D. Cohen, and Clarissa Marie Cohen engaged in the

10 business of making or servicing residential mortgage loans in violation of the California Residential

11 Mortgage Lending Act, Financial Code section 50002. Pursuant to Financial Code section 50320,

12 Cohen Financial Group LLC, Cohen Commercial Equity, John D. Cohen, and Clarissa Marie Cohen

13 are hereby ordered to desist and refrain from engaging in the business of making and servicing

14 residential mortgage loans in the State of California without first obtaining a license from the

15 Commissioner, or otherwise being exempt.

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This Order is necessary, in the public interest, for the protection of borrowers and consistent

17 with the purposes, policies, and provisions of the California Finance Lenders Law and the California

18 Residential Mortgage Lending Act.

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20 Dated: 21

April 14, 2011 Los Angeles, California

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PRESTON DuFAUCHARD

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California Corporations Commissioner

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By

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ALAN S. WEINGER

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Deputy Commissioner

Enforcement Division

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-3DESIST AND REFRAIN ORDER

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