Unlicensed check-cashing firms cited

When Steven Kondrup was named acting commissioner of the state's Financial Institutions Division in early December, one of his goals was more aggressive regulation.

Cracking down on unlicensed check-cashing businesses has been one of Kondrup's priorities, and the Financial Institutions Division this month issued cease-and-desist orders to five businesses in northern Nevada.

Four locations of Check for a Check owned by Jennifer Velasquez were cited in Winnemucca, Ely, Minden and Elko.

In Reno, the Lakeside Market, owned by Preetmohinder Dhanjal, was cited after a customer became suspicious of the store's operations and filed a complaint with Kondrup's office.

"The state requires a license for anyone cashing checks and charging a fee over $2," Kondrup says. "Some of these entities were cashing checks and charging a percentage of the check amount. When you go into an establishment, that business' license has to be posted, as well as its fees."

Kondrup says Dhanjal immediately stopped cashing checks and applied for a license. Check-cashing companies must secure a surety bond of $50,000 and an additional $5,000 bond for each additional branch.

Six businesses in southern Nevada also drew cease-and-desist orders in the crackdown.