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{{Infobox Company |
{{Infobox Company |
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| name = Money Management International |
| name = Money Management International |
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| logo = [[File: |
| logo = [[File:Money Management International, Inc., logo.svg]] |
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| type = [[501(c)#501.28c.29.283.29|501(C)(3)]] [[Corporation]] |
| type = [[501(c)#501.28c.29.283.29|501(C)(3)]] [[Corporation]] |
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'''Money Management International''' (MMI) is a Houston-based [[credit counseling]] agency offering services in 23 US states and the District of Columbia, as well as nationally via a toll-free hotline.<ref name="AboutUs">[http://www.moneymanagement.org/AboutUs/ MMI Website - About US]</ref><ref>[http://www.moneymanagement.org/Locations/ MMI Website - Locations]</ref> It does business under a variety of names, including: Consumer Credit Counseling Services;<ref>[http://www.moneymanagement.org/Locations/ MMI Website - Locations]</ref> Centers for Financial Education;<ref>[http://www.crediteducation.org/ CFE Website]</ref>; Credit Counseling Network; and Money Management International Financial Education Foundation. <ref>[http://www.creditcounselingnetwork.org/ Credit Counseling Website]</ref> A nonprofit agency, MMI is funded in part by public agencies and corporate sponsors. It also receives income from fees charged to consumers for certain services, as well as contributions from creditors when it helps them recover receivable debt. <ref>[http://www.corp.ca.gov/ENF/pdf/2005/MoneyManagement.pdf CA Dept of Corporations Order - PDF] </ref> Services include personal credit counseling, debt management (through [[debt management plans]], or DMPs), foreclosure prevention, financial education, and bankruptcy counseling. <Ref>[http://www.moneymanagement.org/Programs/ MMI Website - Programs]</ref> MMI bills itself as "the largest nonprofit, full-service credit counseling agency in the United States." <ref>[http://www.moneymanagement.org/AboutUs/ MMI Website - About Us]</ref> |
'''Money Management International''' (MMI) is a Houston-based [[credit counseling]] agency offering services in 23 US states and the District of Columbia, as well as nationally via a toll-free hotline.<ref name="AboutUs">[http://www.moneymanagement.org/AboutUs/ MMI Website - About US]</ref><ref>[http://www.moneymanagement.org/Locations/ MMI Website - Locations]</ref> It does business under a variety of names, including: Consumer Credit Counseling Services;<ref>[http://www.moneymanagement.org/Locations/ MMI Website - Locations]</ref> Centers for Financial Education;<ref>[http://www.crediteducation.org/ CFE Website]</ref>; Credit Counseling Network; and Money Management International Financial Education Foundation. <ref>[http://www.creditcounselingnetwork.org/ Credit Counseling Website]</ref> A nonprofit agency, MMI is funded in part by public agencies and corporate sponsors. It also receives income from fees charged to consumers for certain services, as well as contributions from creditors when it helps them recover receivable debt. <ref>[http://www.corp.ca.gov/ENF/pdf/2005/MoneyManagement.pdf CA Dept of Corporations Order - PDF] </ref> Services include personal credit counseling, debt management (through [[debt management plans]], or DMPs), foreclosure prevention, financial education, and bankruptcy counseling. <Ref>[http://www.moneymanagement.org/Programs/ MMI Website - Programs]</ref> MMI bills itself as "the largest nonprofit, full-service credit counseling agency in the United States." <ref>[http://www.moneymanagement.org/AboutUs/ MMI Website - About Us]</ref> |
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Credit counseling in the US was developed in the early 1950s by a trade group of retail lenders (i.e., a group representing the creditors themselves). The trade group was known at that time as the National Foundation for Consumer Credit. (The NFCC changed its name to the National Foundation for Credit Counseling in 2000.) It initially monitored legislative and regulatory activity for its members.<ref>[http://waysandmeans.house.gov/hearings.asp?formmode=printfriendly&id=991 Ways and Means Cmte Statement ] </ref> Expansion in the use of consumer credit and in the problems related to it prompted the NFCC to create the first Consumer Credit Counseling Service (CCCS) in 1951.<ref>[http://www.cccscentralnj.com/ CCCS of Central New Jersey]</ref> Over time, CCCS would grow to comprise more than 1,440 offices in the US, Canada, and Puerto Rico, operated by a number of independent agencies (e.g., CCCS of Central New Jersey, CCCS of the Gulf Coast Area, etc.). |
Credit counseling in the US was developed in the early 1950s by a trade group of retail lenders (i.e., a group representing the creditors themselves). The trade group was known at that time as the National Foundation for Consumer Credit. (The NFCC changed its name to the National Foundation for Credit Counseling in 2000.) It initially monitored legislative and regulatory activity for its members.<ref>[http://waysandmeans.house.gov/hearings.asp?formmode=printfriendly&id=991 Ways and Means Cmte Statement ] </ref> Expansion in the use of consumer credit and in the problems related to it prompted the NFCC to create the first Consumer Credit Counseling Service (CCCS) in 1951.<ref>[http://www.cccscentralnj.com/ CCCS of Central New Jersey]</ref> Over time, CCCS would grow to comprise more than 1,440 offices in the US, Canada, and Puerto Rico, operated by a number of independent agencies (e.g., CCCS of Central New Jersey, CCCS of the Gulf Coast Area, etc.). |
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Various independent CCCS agencies have been merging with MMI since 2000. On its website, MMI credits its former President and CEO, Terry M. Blaney, for spearheading a merger with CCCS of the Gulf Coast Area in September of that year. Blaney had previously worked as President and CEO of CCCS of the Gulf Coast Area. <ref>[http://www.moneymanagement.org/AboutUs/ MMI Website - About Us]</ref> |
Various independent CCCS agencies have been merging with MMI since 2000. On its website, MMI credits its former President and CEO, Terry M. Blaney, for spearheading a merger with CCCS of the Gulf Coast Area in September of that year. Blaney had previously worked as President and CEO of CCCS of the Gulf Coast Area. <ref>[http://www.moneymanagement.org/AboutUs/ MMI Website - About Us]</ref> |
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MMI has also previously done business as Money Management by Mail. <ref>[http://www.corp.ca.gov/ENF/pdf/2005/MoneyManagement.pdf CA Dept of Corporations] </ref> |
MMI has also previously done business as Money Management by Mail. <ref>[http://www.corp.ca.gov/ENF/pdf/2005/MoneyManagement.pdf CA Dept of Corporations] </ref> |
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==Controversy== |
==Controversy== |
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===KHOU Story=== |
===KHOU Story=== |
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MMI said in response that KHOU had been "misinformed by an ex-employee." |
MMI said in response that KHOU had been "misinformed by an ex-employee." |
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The story went on to note that MMI executives earned substantially higher salaries than their counterparts at larger charities, such as [[Special Olympics]] or [[Habitat for Humanity]].{{ |
The story went on to note that MMI executives earned substantially higher salaries than their counterparts at larger charities, such as [[Special Olympics]] or [[Habitat for Humanity]].{{Fact|date=January 2009}} President and CEO Ivan L. Hand, Jr. earned a salary of $301,453 and an additional $286,996 in deferred compensation and other benefits in 2006, according to IRS filings.<ref name="Tax990-2006"> [http://www.guidestar.org/FinDocuments/2006/541/837/2006-541837741-03bb92fe-9.pdf MMI 990 Filing]</ref> |
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===Revocation of BBB Membership=== |
===Revocation of BBB Membership=== |
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==Projects== |
==Projects== |
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* http://www.regiftable.com/ |
* http://www.regiftable.com/ |
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* http://www.nationalregiftingday.com/ |
* http://www.nationalregiftingday.com/ |
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{{reflist|2}} |
{{reflist|2}} |
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<div style="text-align:center;height:3em;"> </div> |
<div style="text-align:center;height:3em;"> </div> |
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{{US-finance-company-stub}} |
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[[Category:Debt]] |
[[Category:Debt]] |
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[[Category:Credit]] |
[[Category:Credit]] |
Revision as of 11:18, 4 January 2009
File:Money Management International, Inc., logo.svg | |
Company type | 501(C)(3) Corporation |
---|---|
Founded | 1997[1] or 1981[2] or 1958[3] |
Founder | Terry M. Blaney[4] |
Headquarters | Houston, Texas, United States |
Services | Personal Credit Counseling, Debt Management Services, Housing Services, Financial Education Services, Bankruptcy Counseling |
Total equity | $56,209,575 in 2006[5] |
Website | http://www.moneymanagement.org/
http://es.moneymanagement.org/ http://www.mmintl.org/ http://www.mmifoundation.org/ |
Money Management International (MMI) is a Houston-based credit counseling agency offering services in 23 US states and the District of Columbia, as well as nationally via a toll-free hotline.[4][6] It does business under a variety of names, including: Consumer Credit Counseling Services;[7] Centers for Financial Education;[8]; Credit Counseling Network; and Money Management International Financial Education Foundation. [9] A nonprofit agency, MMI is funded in part by public agencies and corporate sponsors. It also receives income from fees charged to consumers for certain services, as well as contributions from creditors when it helps them recover receivable debt. [10] Services include personal credit counseling, debt management (through debt management plans, or DMPs), foreclosure prevention, financial education, and bankruptcy counseling. [11] MMI bills itself as "the largest nonprofit, full-service credit counseling agency in the United States." [12]
History
MMI has been in operation since 1958 according to its website, which provides little additional detail on the agency's history. [13]
Credit counseling in the US was developed in the early 1950s by a trade group of retail lenders (i.e., a group representing the creditors themselves). The trade group was known at that time as the National Foundation for Consumer Credit. (The NFCC changed its name to the National Foundation for Credit Counseling in 2000.) It initially monitored legislative and regulatory activity for its members.[14] Expansion in the use of consumer credit and in the problems related to it prompted the NFCC to create the first Consumer Credit Counseling Service (CCCS) in 1951.[15] Over time, CCCS would grow to comprise more than 1,440 offices in the US, Canada, and Puerto Rico, operated by a number of independent agencies (e.g., CCCS of Central New Jersey, CCCS of the Gulf Coast Area, etc.).
Various independent CCCS agencies have been merging with MMI since 2000. On its website, MMI credits its former President and CEO, Terry M. Blaney, for spearheading a merger with CCCS of the Gulf Coast Area in September of that year. Blaney had previously worked as President and CEO of CCCS of the Gulf Coast Area. [16]
MMI has also previously done business as Money Management by Mail. [17]
Market Position
According to the federal Government Accountability Office in 2006 MMI was one of the three largest credit counseling providers in the United States. From January to October of that year, MMI and the two other largest agencies - Consumer Credit Counseling Service of Greater Atlanta and GreenPath Debt Solutions - delivered more than half of all the certified BAPCPA bankruptcy prefiling credit counseling in the nation. [18]
Operations
According to 2006 statements by CEO Ivan Hand at an American Bankruptcy Institute discussion of BAPCPA, 92 percent of the individuals engaging MMI's counseling services related to bankruptcy have already engaged the services of an attorney.[19]
Controversy
KHOU Story
On December 1, 2005, the local CBS affiliate in Houston, KHOU-TV, reported that MMI was misleading consumers into paying fees they didn't have to pay. The story characterized MMI as profit-driven, quoting a former MMI spokesperson who called it "one of the most profitable non-profit agencies I know."[20]
The story said MMI clients are asked to pay fees if they choose a Debt Management Plan. These fees are supposed to be voluntary, the story said, in keeping with MMI's tax-exempt, nonprofit status; but clients were given the impression they had no alternative but to pay. The story broadcast a recorded conversation between a debt-strapped client and an MMI counselor who said the fees were required "by law" and could not be waived.
MMI issued a statement calling the recorded conversation "an isolated incident that has been resolved internally."[21]. It declined an on-camera interview.
Former MMI spokesperson Bill Litwin, a 12-year veteran of the company, disagreed that the case was isolated. He said debt counselors were under "extreme amounts of pressure" to sell debt-management services. Litwin traced the practice to the MMI-CCCS merger, saying that CCCS used to offer free debt-management service before it joined forces with Money Management. "The attitude of management has shifted from a service organization to a revenue-generating organization," he said.
MMI said in response that KHOU had been "misinformed by an ex-employee."
The story went on to note that MMI executives earned substantially higher salaries than their counterparts at larger charities, such as Special Olympics or Habitat for Humanity.[citation needed] President and CEO Ivan L. Hand, Jr. earned a salary of $301,453 and an additional $286,996 in deferred compensation and other benefits in 2006, according to IRS filings.[5]
Revocation of BBB Membership
In March, 2006, the Better Business Bureau of Metropolitan Houston revoked MMI's membership. The BBB said in its letter of revocation that MMI had failed to meet a basic standard for charitable accountability. It said specifically that some of MMI's solicitations or informational materials were inaccurate, false or misleading.[22]
CA Desist and Refrain Order
In July, 2005, the California Department of Corporations ordered MMI to cease operations in the state, citing several violations. The Desist and Refrain Order said MMI "overcharged for its services to California consumers by collecting amounts from its clients in excess of the statutory limit of thirty-five dollars ($35) per month authorized by the California Legislature..."[23]
In 2007 the Department of Corporations filed a civil complaint seeking restitution and penalties. The complaint was settled out-of-court. In the Settlement Agreement MMI acknowledged no liability but agreed to pay $3 million to the state and to refund fees to California clients.
Major Contributors
In its 2007 Annual Report, MMI identifies the following major contributors:[24]
- American Express
- American Standard
- Bank of America
- Capital One
- Cardholder Management Services
- Citigroup
- Colorado Housing Finance Authority
- Comerica Bank
- CompuCredit
- Contra Costa County
- County of San Diego
- Department of Housing and Urban Development
- Discover Financial Services
- EMC Mortgage
- EverBank Reverse Mortgage, L.L.C.
- Financial Freedom Senior
- Funding Corporation
- First Bankcard
- GE Capital
- HSBC
- JP Morgan Chase
- Maine State Housing Authority
- Pennsylvania Housing Finance Authority
- Retailers National Bank
- Rhode Island Housing
- USAA Federal Savings Bank
- US Bank
- Wachovia
- Washington Mutual
- Wells Fargo
- World Alliance Financial
- World Financial Network
- National Bank
Projects
- http://www.regiftable.com/
- http://www.nationalregiftingday.com/
- http://www.crediteducation.org/
- http://www.bankruptcy.org/
- http://www.bankruptcycertificate.com/
- http://www.financialliteracymonth.com/
- http://www.saveorspend.com/
- http://www.mmifoundation.org/
- http://asksusan.org/
Financial and Taxation Information
Money Management International/IRS form 990 table
References
- ^ Records available on the Texas State Comptroller web site for the various organization names associated with MMI list 1997 as the earliest registration with the Texas Secretary of State, for MONEY MANAGEMENT BY MAIL INC. MMI itself, though not registered until 2002, is mentioned as early as November 2000 in this press release (archive) on the http://www.cccsintl.org/ - Consumer Credit Counseling Service of the Gulf Coast Area, Inc. web site.
Money Management International File:Money Management International, Inc., logo.svg Company type 501(C)(3) Corporation Founded 1997 or 1981 or 1958 Founder Terry M. Blaney Headquarters Houston, Texas, United States Services Personal Credit Counseling, Debt Management Services, Housing Services, Financial Education Services, Bankruptcy Counseling Total equity $56,209,575 in 2006 Website http://www.moneymanagement.org/ http://es.moneymanagement.org/ http://www.mmintl.org/
http://www.mmifoundation.org/Money Management International (MMI) is a Houston-based credit counseling agency offering services in 23 US states and the District of Columbia, as well as nationally via a toll-free hotline. It does business under a variety of names, including: Consumer Credit Counseling Services; Centers for Financial Education;; Credit Counseling Network; and Money Management International Financial Education Foundation. A nonprofit agency, MMI is funded in part by public agencies and corporate sponsors. It also receives income from fees charged to consumers for certain services, as well as contributions from creditors when it helps them recover receivable debt. Services include personal credit counseling, debt management (through debt management plans, or DMPs), foreclosure prevention, financial education, and bankruptcy counseling. MMI bills itself as "the largest nonprofit, full-service credit counseling agency in the United States."
History
MMI has been in operation since 1958 according to its website, which provides little additional detail on the agency's history.
Credit counseling in the US was developed in the early 1950s by a trade group of retail lenders (i.e., a group representing the creditors themselves). The trade group was known at that time as the National Foundation for Consumer Credit. (The NFCC changed its name to the National Foundation for Credit Counseling in 2000.) It initially monitored legislative and regulatory activity for its members. Expansion in the use of consumer credit and in the problems related to it prompted the NFCC to create the first Consumer Credit Counseling Service (CCCS) in 1951. Over time, CCCS would grow to comprise more than 1,440 offices in the US, Canada, and Puerto Rico, operated by a number of independent agencies (e.g., CCCS of Central New Jersey, CCCS of the Gulf Coast Area, etc.).
Various independent CCCS agencies have been merging with MMI since 2000. On its website, MMI credits its former President and CEO, Terry M. Blaney, for spearheading a merger with CCCS of the Gulf Coast Area in September of that year. Blaney had previously worked as President and CEO of CCCS of the Gulf Coast Area.
MMI has also previously done business as Money Management by Mail.
Market Position
According to the federal Government Accountability Office in 2006 MMI was one of the three largest credit counseling providers in the United States. From January to October of that year, MMI and the two other largest agencies - Consumer Credit Counseling Service of Greater Atlanta and GreenPath Debt Solutions - delivered more than half of all the certified BAPCPA bankruptcy prefiling credit counseling in the nation.
Operations
According to 2006 statements by CEO Ivan Hand at an American Bankruptcy Institute discussion of BAPCPA, 92 percent of the individuals engaging MMI's counseling services related to bankruptcy have already engaged the services of an attorney.
Controversy
KHOU Story
On December 1, 2005, the local CBS affiliate in Houston, KHOU-TV, reported that MMI was misleading consumers into paying fees they didn't have to pay. The story characterized MMI as profit-driven, quoting a former MMI spokesperson who called it "one of the most profitable non-profit agencies I know."
The story said MMI clients are asked to pay fees if they choose a Debt Management Plan. These fees are supposed to be voluntary, the story said, in keeping with MMI's tax-exempt, nonprofit status; but clients were given the impression they had no alternative but to pay. The story broadcast a recorded conversation between a debt-strapped client and an MMI counselor who said the fees were required "by law" and could not be waived.
MMI issued a statement calling the recorded conversation "an isolated incident that has been resolved internally.". It declined an on-camera interview.
Former MMI spokesperson Bill Litwin, a 12-year veteran of the company, disagreed that the case was isolated. He said debt counselors were under "extreme amounts of pressure" to sell debt-management services. Litwin traced the practice to the MMI-CCCS merger, saying that CCCS used to offer free debt-management service before it joined forces with Money Management. "The attitude of management has shifted from a service organization to a revenue-generating organization," he said.
MMI said in response that KHOU had been "misinformed by an ex-employee."
The story went on to note that MMI executives earned substantially higher salaries than their counterparts at larger charities, such as Special Olympics or Habitat for Humanity.[citation needed] President and CEO Ivan L. Hand, Jr. earned a salary of $301,453 and an additional $286,996 in deferred compensation and other benefits in 2006, according to IRS filings.
Revocation of BBB Membership
In March, 2006, the Better Business Bureau of Metropolitan Houston revoked MMI's membership. The BBB said in its letter of revocation that MMI had failed to meet a basic standard for charitable accountability. It said specifically that some of MMI's solicitations or informational materials were inaccurate, false or misleading.
CA Desist and Refrain Order
In July, 2005, the California Department of Corporations ordered MMI to cease operations in the state, citing several violations. The Desist and Refrain Order said MMI "overcharged for its services to California consumers by collecting amounts from its clients in excess of the statutory limit of thirty-five dollars ($35) per month authorized by the California Legislature..."
In 2007 the Department of Corporations filed a civil complaint seeking restitution and penalties. The complaint was settled out-of-court. In the Settlement Agreement MMI acknowledged no liability but agreed to pay $3 million to the state and to refund fees to California clients.
Major Contributors
In its 2007 Annual Report, MMI identifies the following major contributors:
- American Express
- American Standard
- Bank of America
- Capital One
- Cardholder Management Services
- Citigroup
- Colorado Housing Finance Authority
- Comerica Bank
- CompuCredit
- Contra Costa County
- County of San Diego
- Department of Housing and Urban Development
- Discover Financial Services
- EMC Mortgage
- EverBank Reverse Mortgage, L.L.C.
- Financial Freedom Senior
- Funding Corporation
- First Bankcard
- GE Capital
- HSBC
- JP Morgan Chase
- Maine State Housing Authority
- Pennsylvania Housing Finance Authority
- Retailers National Bank
- Rhode Island Housing
- USAA Federal Savings Bank
- US Bank
- Wachovia
- Washington Mutual
- Wells Fargo
- World Alliance Financial
- World Financial Network
- National Bank
Projects
- http://www.regiftable.com/
- http://www.nationalregiftingday.com/
- http://www.crediteducation.org/
- http://www.bankruptcy.org/
- http://www.bankruptcycertificate.com/
- http://www.financialliteracymonth.com/
- http://www.saveorspend.com/
- http://www.mmifoundation.org/
- http://asksusan.org/
Financial and Taxation Information
Money Management International/IRS form 990 table
References
<references></references> - ^ Some circa 2004 press releases on the http://www.cccsintl.org/ - Consumer Credit Counseling Service of the Gulf Coast Area, Inc. claim that MMI has been providing services "since 1981." example, archive
- ^ The MMI web site as of January 2009 and some circa 2006-2007 press releases on the http://www.cccsintl.org/ - Consumer Credit Counseling Service of the Gulf Coast Area, Inc. claim that MMI has been providing services "since 1958." example, archive
- ^ a b MMI Website - About US
- ^ a b MMI 990 Filing
- ^ MMI Website - Locations
- ^ MMI Website - Locations
- ^ CFE Website
- ^ Credit Counseling Website
- ^ CA Dept of Corporations Order - PDF
- ^ MMI Website - Programs
- ^ MMI Website - About Us
- ^ MMI Website - About Us
- ^ Ways and Means Cmte Statement
- ^ CCCS of Central New Jersey
- ^ MMI Website - About Us
- ^ CA Dept of Corporations
- ^ Jones, Yvonne D. (2007), Bankruptcy Reform: Value of Credit Counseling Requirement Is Not Clear (GAO-07-203), Washington, D.C.: Government Accountability Office, p. 14, OCLC 156274430 LCCN 20-7
- ^ Oversight of the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act : hearing before the Subcommittee on Administrative Oversight and the Courts of the Committee on the Judiciary, United States Senate, One Hundred Ninth Congress, second session, December 6, 2006, Washington, D.C.: G. P. O., 2006, p. 68, ISBN 9780160786556, OCLC 131477164 LCCN 20-7
- ^ KHOU-TV story
- ^ MMI Statement
- ^ BBB Letter
- ^ CA Dept of Corporations
- ^ MMI Annual Report
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