STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION In Re: Administrative Proceeding Docket: N & R EXPRESS INC. Number: 58583 © 15 - W995 Respondent. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against N & R EXPRESS INC. (“Respondent”), alleging: GENERAL ALLEGATIONS 1. Pursuant to sections 560.105 and 560.109, Florida Statutes, the Office is charged with administering and enforcing the provisions of Chapter 560, Florida Statutes, and conducting examinations and investigations to determine whether any provision of Chapter 560, Florida Statutes, has been violated. 2. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of Chapter 560, Florida Statutes or related rule constitutes grounds for disciplinary action. 3. At all times material hereto, Respondent N & R EXPRESS INC.), is or has been a: a. Part Ill Money Transmitter licensee pursuant to Chapter 560, Florida Statutes, and specifically a “money services business,” as defined in section 560.103(22), Florida Statutes, having been issued license number FT30900370; and, b. “Check casher,” as defined in section 560.103(6), Florida Statutes. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 1 of 10 Attachment I % poy dwar ia 4. At all times material, Respondent’s address of record is and has been 5320 Falkenburg Road, Tampa, FL 33610. 5. The Office conducted an examination (#55940) for the time period of October 1, 2013 through September 30, 2014, (“examination period”) of Respondent’s business records. 6. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” level fine is between $1,000 and $3,500; and pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for an “A” suspension is 3 to 10 days. 7, Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “B” level fine is between $3,500 and $7,500; and, pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for a “B” suspension is 10 to 20 days. 8. At all times material, Respondent conducted money services business as a check casher. COUNT I 9. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 10. As part of the examination, the Office reviewed or attempted to review records of payment instruments exceeding $1,000 that were presented to Respondent for negotiation and payment during the examination period. 11. On multiple occasions, Respondent failed to maintain corresponding thumbprint records. 12. Pursuant to section 560.310(2)(c), Florida Statutes, a licensee is required to collect and maintain a customer’s thumbprint with the presentation of payment instruments exceeding $1,000. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 2 of 10 13. In contradiction to and violation of sections 560.114(1)(a) and 560.310(2)(c), Florida Statutes, and Rules 69V-560.1000(12) and 69V-560.704(4)(a), Florida Administrative Code, Respondent unlawfully failed to maintain thumbprint records. 14. Therefore, the Office is seeking an administrative fine of $7,500. COUNT IT 15. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 16, The Office determined that Respondent failed to maintain an electronic payment instrument log which reports.aggregate payment instruments exceeding $1,000. 17, More specifically, Respondent failed to maintain a complete electronic log that contained all the required information of cashed payment instruments that exceeded $1,000. 18. In contradiction to and violation of sections 560.114(1)(a) and 560.310(2)(d), Florida Statutes, and Rules 69V-560.1000(12) and 69V-560.704(5)(a), Florida Administrative Code, Respondent unlawfully failed to maintain complete electronic payment instrument logs. 19, Therefore, the Office is seeking an administrative fine of $7,500. COUNT Ul 20. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 21. As part of the examination, the Office reviewed or attempted to review records of payment instruments that were presented to Respondent for negotiation and payment during the examination period. 22. Respondent failed to maintain a complete copy of two hundred seventy-three (273) payment instruments cashed during the examination period. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 3 of 10 23. In contradiction to and violation of sections 560.114(1)(a) and 560.310(1), Florida Statutes, and Rules 69V-560.1000(12) and 69V-560.704(4)(c), Florida Administrative Code, Respondent unlawfully failed to maintain complete customer files. 24. Therefore, the Office is secking an administrative fine of $6,500. " COUNT IV 25. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 26. As part of the examination, the Office reviewed or attempted to review records of payment instruments exceeding $1,000 that were presented to Respondent for negotiation and payment during the examination period. 27. On multiple occasions, Respondent failed to maintain a copy of an acceptable form of identification used when cashing payment instruments exceeding $1,000. 28. Pursuant to section 560.310(2)(b), Florida Statutes, a licensee is required to collect and maintain a copy of the personal identification that bears a photograph of the customer used as identification and presented by the customer. 29. In contradiction to and violation of sections 560.114(1)(a) and 560.310(2)(b), Florida Statutes, and Rules 69V-560.1000 and 69V-560.704(4)(c), Florida Administrative Code, Respondent unlawfully failed to maintain personal identification records during the examination period. 30. Therefore, the Office is seeking an administrative fine of $5,000. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 4 of 10 COUNT V 31. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 32. Pursuant to section 560.1105, Florida Statutes, a licensee must maintain all books, accounts, documents, files and information (collectively “records”) necessary to determine compliance with Chapter 560, Florida Statutes. 33. More specifically, Respondent failed to maintain a record of fees charged for each payment instrument cashed. 34. Pursuant to Rule 69V-560.1000(4), Florida Administrative Code, a licensee cited for the first time for failing to provide complete records is subject to an “A” fine, 35. Therefore, .the Office is seeking an administrative fine of $3,500. COUNT VI 36. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 37. Pursuant to section 560.128(1), Florida Statutes, a money services business must provide each customer with a toll-free telephone number for the purpose of contacting the money services business or the address and telephone number of the office may be provided. 38. The Office determined that Respondent failed to provide any of the aforementioned contact information to customers. 39. Pursuant to Rule 69V-560.1000(43), Florida Administrative Code, a licensee cited for a first time failure to provide toll-free contact information is subject to an “A” fine. 40. Therefore, the Office is seeking an administrative fine of $3,500. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 5 of 10 COUNT Vi 41. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as if fully stated herein. 42. The first quarter 2014 ended on March 31, 2014; pursuant to section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code, Respondent was required to file the first quarter 2014 quarterly report by May 15, 2014. 43. Respondent filed its quarterly report with the Office on May 16, 2014. 44. Respondent’s failure to timely file a quarterly report is a violation of section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code. 45. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for the first time for failure to submit quarterly reports is subject to an “A” fine, and an “A” suspension. 46. Therefore, the Office is seeking an administrative fine of $1,600. WHEREFORE, Respondent, N & R EXPRESS INC., is hereby notified that the Office intends to enter an Order imposing an administrative fine of $35,100. NOTICE OF RIGHTS The licensee is entitled to be represented by counsel or other qualified representative. The licensee also has 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. Administrative Proceeding Docket Number 58583 Administrative Complaint Page 6 of 10 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 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 5 day of _ Ged der _» 20.8. DREW J. BREAKSPEAR Commissioner By:_z Seago aa Linje Riv Assistant General Counsel Office of Financial Regulation Fla. Bar No. 79063 101 E. Gaines Street, 550T Tallahassee, FL 32399-0379 (850) 410-9887 Linje.rivers@flofr.com Administrative Proceeding Docket Number 58583 Administrative Complaint Page 7 of 10 | CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been served by U.S. certified mail to N & R EXPRESS INC. at 5320 FALKENBURG ROAD, TAMPA, FL 33610, this 5 day of _gedr___, 20g. 7 Linje Rivers Ub 7199 9991 7034 base O575 Administrative Proceeding Docket Number 58583 Administrative Complaint Page 8 of 10 | STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION OFR Case No: 58583 N & R EXPRESS INC. 5320 FALKENBURG RD TAMPA, FL 33610 ELECTION OF PROCEEDING | have received and read the Administrative Complaint, including the Notice of Rights, filed by the ottce 8p, Financial Regulation (“Office”) regarding the above-referenced licensee. As the licensee or the authorize Gy representative of the licensee, | am requesting disposition as indicated below. (CHECK A BOX FOR NUMBER 1, 2, OR 3) 1. [ ] | go not dispute any of the Office’s factual allegations and application of the law as stated in the Administrative Complaint. Therefore, | do not request a hearing in this matter. i understand that upon my waiving the right to a hearing, the Office may enter a final order imposing a penalty as set forth in the Administrative Complaint. 2. | dg not dispute any of the Office’s factual allegations but dispute the Office’s application of the law to those factual allegations, and request disposition of this matter pursuant to Section 120.57{2), Florida Statutes. | request to (CHECK ONE OF THE FOLLOWING OPTIONS): (-] Submit a written statement with supporting documentation to a Hearing Officer in lieu of a hearing; OR { ] Inperson, attend a hearing conducted by a Hearing Officer; OR [ ] By telephone conference call, attend a hearing conducted by a Hearing Officer. 3. [ ] !do dispute one or more of the Office’s factual allegations. | request a section 120.57(1), Florida Statutes, formal hearing before the Division of Administrative Hearings. Pursuant to the requirements of Rule 28- 106.2015(5){c), Florida Administrative Code, | am attaching the material facts that | dispute (SEE PAGE 2). TO PRESERVE THE RIGHT TO A HEARING, A RESPONSE MUST BE FILED WITH THE OFFICE OF FINANCIAL REGULATION WITHIN TWENTY-ONE (21) DAYS OF THE RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE 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. The address for filing is: P.O. Box 8050, Tallahassee, Florida 32314-8050. tfhand delivery is preferred, the physical address is: Genera! Counsel’s Office, The Fletcher Building, Suite 118, 101 E. Gaines Street, Tallahassee, FL 32399. a Signature of Licensee or Mailing Address Authorized Representative of Licensee Printed Name & Title City State Zip Date E-mail Address Telephone Number Fax Number Date Administrative Complaint was Received: Administrative Proceeding Docket Number 58583 Administrative Complaint Page 9 of 10 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION OFR Case No: 58583 N & R EXPRESS INC, 5320 FALKENBURG RD TAMPA, FL 33610 **YOU ARE TO COMPLETE THE FOLLOWING ONLY IF YOU HAVE CHECKED NUMBER 3 ON THE PRECEDING PAGE. If you need more space, you may provide additional pages. As the licensee or the authorized representative of the licensee, | am disputing the following material facts: a Signature of Licensee or Authorized Representative Date Administrative Proceeding Docket Number 58583 Administrative Complaint . 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Docket for Case No: 15-006595