BISMARCK, N.D. – The North Dakota Department of Financial Institutions (DFI) has issued a cease and desist order against Banker Healthcare Group LLC doing business as BHG Financial LLC (BHG) for conducting unlicensed activities in the state, engaging in deceptive practices in interactions with customers, and other activity contrary to North Dakota Century Code chapter 13-04.1. DFI also has imposed civil money penalties against the company and denied its money broker license application.

Through an investigation, DFI determined that BHG had engaged in unlicensed money brokering activity by mailing solicitations to and brokering several hundred loans with North Dakota residents. DFI also determined that some of these loans did not meet the requirements of North Dakota law. Following the investigation, DFI issued an order requiring BHG to cease and desist all unlicensed money brokering activity within the state and denied BHG’s application for a money broker license. DFI also imposed civil money penalties of $7.3 million for violations of state law. BHG may appeal the order.

“It is important for the public to be aware that any non-bank 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.”

The North Dakota Department of Financial Institutions is an executive branch agency overseen by Commissioner Lise Kruse. DFI is responsible for chartering and regulating state banks and credit unions, and for licensing and regulating nearly 1,700 non-bank financial services companies, including more than 400 licensed money brokers. North Dakota residents who have questions about the Order should contact DFI at dfi@nd.gov or (701) 328-9933. Residents can also visit NMLS Consumer Access to verify that a company is licensed to do business in North Dakota.