Business ProfileforContrade

December 19, 2023-

The Commissioner of Financial Protection and Innovation (Commissioner) finds that: 1. The Commissioner is authorized to pursue administrative actions and remedies against persons who engage in violations of the California Financing Law (Cal. Fin. Code §§ 22000 – 22780.1) (CFL). 2. At all relevant times, Contrade Finance is a business entity of unknown form doing business in California, using the business address 333 Clay Street, Houston, TX 77002; an email address of [email protected] and a telephone number of 832-617-6730. There is no record of any corporate filings for an entity named Contrade Finance in California. 3. Contrade Finance maintains a website at contradefinance.com where it offers business loans with interest rates “as low as 3.16%” and personal loans as “a flexible and convenient way to get the money you need for any purpose…” In addition to business loans and personal loans, Contrade Finance offers equity financing, debt consolidation and “real estate deals” on its website. 4. At all relevant times, Derek Sapp (Sapp) is an employee of Contrade Finance, with an email address of [email protected]. Sapp represented himself to loan applicants as the senior loan officer for Contrade Finance. 5. Beginning in at least 2023, Contrade Finance and Sapp engaged in the business of a finance lender and/or broker in California by accepting loan applications from prospective borrowers and entering into a loan agreement with at least one California resident. The loan agreement was for $3,000,000 at 3.16% interest. Sapp was the point of contact at Contrade Finance for the applicants and oversaw the application process. 6. Contrade Finance and Sapp advertised lending services through Facebook groups formed for small business owners. Once borrowers showed interest, Sapp communicated with the applicants via phone and email and encouraged prospective borrowers to fill out a loan application. 7. On or around July 14, 2023, Contrade Finance approved at least one application for a loan and requested various fees as prerequisites to receiving loan funds. Such fees included an appraisal fee of $1,050, insurance premium fees of $6,800 paid to Contrade Finance’s own purported insurance department, and closing fees of $18,600. To date, the borrower has neither received the loan, nor, despite numerous requests, any money paid back for the appraisal fee, credit insurance premiums, and closing costs. 8. California Financial Code section 22100(a) provides, “No person shall engage in the business of a finance lender or broker without obtaining a license from the commissioner.” 9. Contrade Finance has not been issued a license by the Commissioner authorizing it to engage in the business of a finance lender and/or broker under the California Financing Law. 10. Contrade Finance is not exempt from the licensing requirements of California Financial Code section 22100. Based on the foregoing findings, the Commissioner is of the opinion that Contrade Finance has engaged in the business of finance lender and/or broker without a license from the Commissioner in violation of California Financial Code section 22100. Pursuant to California Financial Code section 22712, Contrade Finance is hereby ordered to desist and refrain from engaging in the business of a finance lender and/or broker in the State of California without first obtaining a license from the Commissioner, or otherwise being exempt. This Order is necessary, in the public interest, for the protection of consumers and is consistent with the purposes, policies and provisions of the California Financing Law.