North Dakota regulator issues cease-and-desist order against BHG Financial

The North Dakota Department of Financial Institutions issued a cease-and-desist order against financial firm BHG Financial for reportedly conducting unlicensed money brokering in the state..BHG Financial allegedly mailed solicitations to customers and brokered several hundred loans in the state, some of which DFI deemed illegal. The Fort Lauderdale, Fla.-based company also engaged “in deceptive practices in interactions with customers,” according to the Department of Financial Institutions. The regulator also fined BHG Financial $7.1 million and denied its money broker license application. The company can appeal the order. “It is important for the public to be aware that any nonbank lender must be licensed in North Dakota to solicit and lend to North Dakota residents,” said DFI Commissioner Lise Kruse. “Financial service companies must abide by North Dakota law to prevent consumers from falling victim to these types of unlawful lending practices.”BHG Financial, formerly Bankers Healthcare Group, provides large personal and business loans, and services professionals and small business owners. The company was established in 2001. BHG Financial immediately appealed the order, said a spokesperson from the company. “We have requested a meeting with the commissioner to clear up factual inaccuracies and find a positive resolution,” the spokesperson stated.“BHG Financial takes our obligations to comply with regulations throughout the nation seriously, as evidenced by our positive track record over the past 24 years, our deep bench of compliance professionals, and regular examinations from the FDIC and Tennessee Department of Financial Institutions for the past decade. We are deeply committed to following the regulations of North Dakota and treating North Dakotans fairly.”