V. The Settlement

The settlement provides as follows:




· Commonwealth agrees to pay $20,000 for each of seven violations of Section 394(b)(8) for failing to report, in its registration application, sanctions imposed during the previous 10 years on its then-President, Chairman and Chief Executive Officer, Fredric M. Bloom (Bloom). The amount of the fine is $140,000.




· Commonwealth agrees that if Bloom returns in any capacity, or former President David Mensch returns as a director, officer or employee within Commonwealth or any of its subsidiaries, it will file an application with the Commission for re-registration under Section 394.1(a) disclosing the resumed relationship.




· Commonwealth agrees to pay $500 per violation of Section 394.5(a) for each of 159 supplemental bills sent to its customers and documented by CSD. The amount of the fine is $79,500.




· Commonwealth agrees to repay all customers who received supplemental bills the amount each paid less any amounts previously repaid. Any amounts that cannot be returned to the customers will be turned over to the State Controller for the escheat process. The total amount of the restitution is approximately $649,000.




· CSD will audit the restitution process.




· Commonwealth agrees to pay the Commission $37,000 in fees owed to the CSD's independent auditor which assisted CSD in its audit of Commonwealth's billing records.




· Commonwealth agrees to cooperate with CSD in any future audit of its billing records.




· Commonwealth agrees to cooperate with CSD, the Commission's Energy Division and/or any state or federal regulatory or law enforcement investigation of Bloom's activities while he served as an officer of Commonwealth.