The Oregon Division of Financial Regulation (DFR) ordered Sigue Corp. to cease engaging in money transmission activities in Oregon as the company can no longer responsibly serve customers due to its declining financial position. Oregon joined a number of other states, Puerto Rico, and the District of Columbia in issuing the consent order.
Sigue is a state-regulated money transmission company licensed in Oregon and 48 other states (Nationwide Multistate Licensing System ID 915912). Over the past several months, Sigue experienced significant financial deterioration. The company failed to complete multiple money orders and transmissions and to maintain adequate net worth and permissible investments to cover outstanding liabilities, which are violations of state money transmission law. Many customers are still waiting for their funds.
Sigue maintained a surety bond with Liberty Mutual that will cover all of Sigue’s unpaid or otherwise outstanding transactions in Oregon. Individuals who paid for a money transmission or money order from Sigue that went unpaid are encouraged to file a claim directly with Liberty Mutual online by visiting this website and clicking on the link that reads “File Commercial Bond Claim.” Anyone with questions for Liberty Mutual can email hoscl@libertymutual.com or call 206-473-6700.The state surety bond claim process is designed to help make affected consumers whole.
In Oregon there are almost 200 open or unfulfilled transactions totaling $39,000 between money transmissions and money orders. Across the U.S. there were just under 25,000 open or unfulfilled transactions totaling nearly $8.6 million. Sigue stopped transmissions across the nation in January.
The order requires the company to preserve and provide access to all books and records, including information on affected customers.
“This order not only shows how Oregon’s system of regulation works to protect consumers, but also highlights the strong partnerships we have with other states, the Money Transmitter Regulators Association, and the Conference of State Bank Supervisors,” said TK Keen, DFR administrator. “Fortunately, all of Oregon’s open money orders and transmissions are covered by the surety bond Sigue was required to have with the division, which means no consumers should lose money.”
As Sigue was primarily used as a transmitter to send money from the United States to Spanish-speaking countries, the division plans additional outreach to the Spanish-speaking community through the Mexican Consulate.
Consumers who have been affected or believe they may have been affected and would like help or to file a complaint, should contact one of DFR’s consumer advocates at 888-877-4894 (toll-free) or email dfr.financialserviceshelp@dcbs.oregon.gov.
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