STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION STATE OF FLORIDA, OFFICE OF FINANCIAL REGULATION, Petitioner, Case No.: 0776-M-02/13 v. TAX ALERT MONEY SERVICES, LLC, Respondent. ADMINISTRATIVE COMPLAINT Comes now, the State of Florida, Office of Financial Regulation, (“Office’’) and files this Administrative Complaint against TAX ALERT MONEY SERVICES, LLC (“Tax Alert” or “Respondent”), alleging: GENERAL ALLEGATIONS 1. The Office is charged with the responsibility of administering and enforcing the provisions of Chapter 560, Florida Statutes, entitled “Money Services Businesses”, pursuant to section 560.105, Florida Statutes, which regulates check cashing among other things. 2. Atall times material hereto, Respondent was a Florida limited liability company that provided tax return preparation and that also cashed the customer’s tax return refund checks in Tampa, Florida. 3. At all times material hereto, Respondent has been licensed with the Office to engage in check cashing under Part III, Chapter 560, Florida Statutes, having been issued license number Case No. 0776-M-02/13 Administrative Complaint Page 1 of 8 FT340000423 on August 18, 2011. Respondent’s mailing address of record with the Office is 1001 Pond Rd., Tampa, FL 33612. 4. Atall times material hereto, Ronald Hollins (“Mr. Hollins”) was the sole owner/ member of Respondent. As such, Mr. Hollins possessed the power to direct the management or policies of Respondent. Accordingly, Mr. Hollins was an “affiliated party” of Respondent as that term is used in Section 560.103, Florida Statutes. 5. Pursuant to Section 560.109, Florida Statutes, the Office may conduct examinations and investigations to determine whether any provision of Chapter 560, Florida Statutes, has been violated. 6. On or about December 22, 2011, the Office sent Respondent a letter placing it on notice that the Office was scheduling it for examination number 29160. At that time the Office was required to examine all new licensees within 6 months of licensure pursuant to Section 560.109(1), Florida Statutes (2011).! 7. In January 2012, Respondent informed the Office that it had not done any check cashing; however, it anticipated that it would in the upcoming months as it was a tax preparer. 8. On or about September 11, 2012, the Office conducted an examination number 29160 of Respondent’s business records. At the time of the exam field work, Respondent had cashed 30 checks since licensure. ' When the exam was initiated, the Office was required to examine a new licensee within 6 months after the issuance of the license pursuant to Section 560.109(1), Florida Statutes (2011). This requirement for the Office to examine within 6 months after licensure was repealed, effective July 1, 2012, by s. 2, Ch. 2012-85, Laws of Florida. However, the Office retains its authority and responsibility to examine check cashers for the protection of the customers and in the public interest under Section 560.109, and the law requires the Office to examine each licensee at least once every 5 years. Case No. 0776-M-02/13 Administrative Complaint Page 2 of 8 COUNT I 9. The above general allegations are hereby realleged and incorporated by reference as if fully stated herein. 10. Respondent failed to maintain thumbprints of customers on some of the payment instruments that it cashed. In the 28 checks cashed by Respondent in amounts in excess of $1,000, Respondent failed to affix a thumbprint of the conductor (the person who cashed the check) to 10 of those checks, 11. A check casher is required to affix an original thumbprint of the conductor to the original of each payment instrument at the time of acceptance of all checks in amount in excess of $1,000 and maintain the record pursuant to Section 560.310(1)(b)2, Florida Statutes (2011), and Rule 69V-560.704(4)(a)&(b), F.A.C. 12. Based upon the foregoing, Respondent failed to affix an original thumbprint of the conductor to the original of each payment instrument in violation of Section 560.310(1)(b)2, Florida Statutes, and Rule 69V-560.704(4)(a) and (b), F.A.C., which is a violation of Section 560.114(1)(a), Florida Statutes, for failing to comply with a provision of Chapter 560, Florida Statutes, or its related rules. 13. Pursuant to the operation of the penalty guidelines of Rules 69V-560.1000(97), (150), and (151), Florida Administrative Code, a violation of Section 560.310(1)(b)2, Florida Statutes, for the first time subjects a person to a fine between the range of $3,500 and $7,500 and a suspension of license between the range of 10 to 20 days. (The rest of the page is intentionally left blank.) Case No. 0776-M-02/13 Administrative Complaint Page 3 of 8 COUNT II 14. The above general allegations are hereby realleged and incorporated by reference as if fully stated herein. 15. Licensees must submit quarterly reports to the Office in a format specified by rule according to Section 560.118(2), Florida Statutes. 16. Rule 69V-560.602, Florida Administrative Code provides in part: ... A completed quarterly report form shall be received by the Office no later than forty-five (45) days after the conclusion of each quarter. . . . 17. Respondent late-filed a quarterly report for one quarter during the period of time examined. Additionally, Respondent failed to file three quarterly reports altogether, and filed another one late during the time period after the examination commenced up to the present. The untimely or missing quarterly reports are for the following periods of time: Quarter ending Date received Report filed at all, yes or no 12-31-11 9-11-12 Yes 9-30-12 No 12-31-12 No 6-30-13 No 9-30-13 1-8-14 Yes 18. The two quarterly reports that were untimely filed by Respondent reflect that no check cashing activity occurred during those periods. Regardless of whether check cashing activity occurred, Respondent was required to have timely filed quarterly reports pursuant to Section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code. 2 The quarterly reports require the following information to be disclosed for each month: -Total number of checks cashed -Total dollar amount of all checks cashed -Total fees received for all checks cashed -Total verification fees received for all checks cashed Case No. 0776-M-02/13 Administrative Complaint Page 4 of 8 19. Based upon the foregoing, Respondent violated Section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code, by failing to file quarterly reports and by untimely filing quarterly reports, which is a violation of Section 560.114(1)(a), Florida Statutes, for failing to comply with a provision of Chapter 560, Florida Statutes, or related rules. 20. Pursuant to the operation of Rule 69V-560.1000(39), (150), and (151), Florida Administrative Code, a licensee cited for violating Section 560.118(2), Florida Statutes, for the first time is subject to a fine between the range of $1,000 and $3,500 and a suspension of license in the range of 3 to 10 days. COUNT HI 21. The above general allegations are hereby realleged and incorporated by reference as if fully stated herein. 22. For checks cashed in excess of $1,000, a check casher is required to maintain a log of payment instruments that must be maintained electronically as prescribed by rule. Section 560.310(1)(c), Florida Statutes (2011). The information required to be kept in the electronic log is prescribed in Rule 69V-560.704(5)(a), Florida Administrative Code. 3 (5)(a) In addition to the records required in subsections (1) and (2) for payment instruments $1,000.00 or more, the check casher shall create and maintain an electronic log of payment instruments accepted which includes, at a minimum, the following information: 1. Transaction date; 2. Payor name; 3. Payee name; 4. Conductor name, if other than the payee; 5. Amount of payment instrument; 6. Amount of currency provided; 7. Type of payment instrument; a. Personal check; b. Payroll check; c. Government check; Case No. 0776-M-02/13 Administrative Complaint Page 5 of 8 23. The Office’s examiner reviewed Respondent’s electronic payment instrument log during its examination in September of 2012. The electronic payment instrument log contained the following deficiencies: a. Respondent failed to maintain the check type, such as personal check, payroll check, government check, corporate check, third party check, or other payment instrument for each check. See Rule 69V-560.704(5)(a), F.A.C. b. Respondent failed to maintain the amount of payment provided. 24. Based upon the foregoing, Respondent failed to maintain a payment instrument log electronically as prescribed by rule in violation of Section 560.310(1)(c), Florida Statutes (2011), and Rule 69V-560.704(5)(a), F.A.C., which is a violation of Section 560.114(1)(a), Florida Statutes, for failing to comply with a provision of Chapter 560, Florida Statutes, or its related rules. 25. Pursuant to the operation of the disciplinary guidelines of Rules 69V-560.1000(98), (150), and (151), Florida Administrative Code, a violation of Section 560.310(1)(c), Florida Statutes (2011), for the first time subjects a person to a fine between the range of $3,500 and $7,500 and a suspension of license between the range of 10 to 20 days. d. Corporate check; e. Third party check; or f. Other payment instrument; 8. Fee charged for the cashing of the payment instrument; 9. Branch/Location where instrument was accepted; 10. Identification type presented by conductor; and 11. Identification number presented by conductor. Case No. 0776-M-02/13 Administrative Complaint Page 6 of 8 WHEREFORE, TAX ALERT MONEY SERVICES, LLC, is hereby notified that the Office intends to enter an Order suspending Respondent’s money transmitter license for 33 days and/or imposing a fine of $11,400, and/or imposing other penalties that may be provided for in Chapter 560, Florida Statutes. NOTICE OF RIGHTS Respondents are entitled to be represented by counsel or other qualified representative. Respondents also have the right to request a hearing pursuant to sections 120.569 and 120.57, Florida Statutes. Such request must comply with Rules 28-106.2015 and 28-106.104, Florida Administrative Code. An Election of Proceeding form is attached for your convenience. Any such request must be filed as follows: By Mail or Fax OR By Hand Delivery Office of Financial Regulation Office of Financial Regulation P.O. Box 8050 General Counsel’s Office Tallahassee, FL 32314-8050 The Fletcher Building, Suite 118 Phone: (850) 410-9987 101 East Gaines Street Fax: (850) 410-9914 Tallahassee, FL 32399-0379 Phone: (850) 410-9987 TO PRESERVE THE RIGHT TO A HEARING, A WRITTEN RESPONSE MUST BE FILED WITH THE OFFICE OF FINANCIAL REGULATION WITHIN TWENTY-ONE (21) DAYS AFTER THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. SAID RESPONSE MUST BE RECEIVED BY THE OFFICE NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. A FAILURE TO TIMELY RESPOND IN WRITING WILL CONSTITUTE A WAIVER OF THE LICENSEE’S RIGHT TO REQUEST A HEARING AND A FINAL ORDER MAY BE ENTERED WITHOUT FURTHER NOTICE. You may not make an oral request for an administrative hearing. With regard to a written request, if you fail to follow the outlined procedure, your request may be dismissed. Any request Case No. 0776-M-02/13 Administrative Complaint Page 7 of 8 for an administrative proceeding received prior to the date of this notice is deemed abandoned, and to be considered must be timely renewed in compliance with the procedure set forth above. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this_3 _ day of Mac, ,20 {4 wick & en DREW J. BREAKSPEAR Commissioner By: f William Oglo Assistant General Counsel Office of Financial Regulation Fla. Bar No. 874876 200 E. Gaines Street Fletcher Bldg., Suite #550 Tallahassee, FL 32399-0376 (850) 410-9887 (850) 410-9914 (fax) bill.oglo@flofr.com CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been furnished by certified U.S. mail, Return Receipt Requested to Ronald Hollins, Owner, Tax Alert Money Services, LLC, 1001 Pond Rd., Tampa, FL 33612, on this 4 day of My , 20 \4. ; A WILLIAM OGL ___32 7299 9992 7031 3028 9715 Assistant General Counsel Case No. 0776-M-02/13 Administrative Complaint Page 8 of 8

Docket for Case No: 14-003219