STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: TERCE GROUP INC. d/b/a STOP N GO, Administrative Proceeding Docket Number: 57725 Respondent. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against TERCE GROUP INC. d/b/a STOP N GO (‘Terce” or “Respondent”), alleging: GENERAL ALLEGATIONS 1. Pursuant to sections 560.105 and 560.109, Florida Statutes, the Office is charged with the responsibility of 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, constitutes grounds for disciplinary action. 3. At all times material hereto, Respondent is and has been a Part II] Money Services Business licensee pursuant to Chapter 560, Florida Statutes, and specifically a “money services Case No 57725 Administrative Complaint Page 1 of 9 business,” as defined in section 560.103(22), Florida Statutes, having been issued license number FT30900474. 4. At all times material, Respondent’s address of record is and has been 15000 N. W. US Hwy 441, Alachua, Florida 32615 (“address of record’) and its President is and has been Devang Chaudhari. 5. From April to November 2014, the Office conducted an examination (#52693) of Respondent’s business records and operations (“examination period”). 6. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” fine is $1,000 to $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” 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. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “C” fine is between $7,500 and $10,000; and, pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for a “C” suspension is 20 to 30 days. 9. During the examination period, Respondent conducted money services business as a check casher and cashed payment instruments, including payment instruments exceeding $1,000. COUNTI 10. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. Case No 57725 Administrative Complaint Page 2 of 9 11. During the examination period, Respondent cashed payment instruments exceeding $1,000. 12. When payment instruments of greater than $1,000 are cashed, section 560.310(2)(d), Florida Statutes, and Rule 69V-560.704(5)(a), Florida Administrative Code, require licensees to maintain a detailed electronic payment instrument (check) log that includes at least eleven categories of information. 13. Respondent failed to maintain a complete payment log in violation of section 360.310(2)(d), Florida Statutes, and Rule 69V 560.704(5)(a), Florida Administrative Code. 14. Pursuant to a Final Order issued on October 19, 2010, Respondent was previously found to have violated section 560.310(2)(d), Florida Statutes, by failing to maintain an electronic payment instrument log. In re Terce Group Inc., Admin Proceeding No. 0470/M/06/10. 15. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for the second time for failing to maintain a complete payment log is subject to a “C” fine and a “B” suspension. 16. Therefore, the Office is seeking an administrative fine of $8,600 and 15-day suspension. COUNT II 17. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 18. During the examination period, Respondent cashed payment instruments exceeding $1,000. Case No 57725 Administrative Complaint Page 3 of 9 19, When payment instruments of greater than $1,000 are cashed, section 560.310 (2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code, require licensees to secure and maintain a corresponding copy of the personal identification bearing a photograph presented by the customer cashing the payment instrument. 20. In at least 6 instances of 97 reviewed cashed payment instruments exceeding $1,000, Respondent failed to secure and maintain a statutorily acceptable corresponding copy of the personal identification bearing a photograph presented by the customer cashing the payment instrument, in violation of section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704 (4) (c), Florida Administrative Code. 21. Pursuant to a Final Order issued on October 19, 2010, Respondent was previously found to have violated section 560.310(2)(b), Florida Statutes by failing to maintain acceptable corresponding customer identifications. In re Terce Group Inc., Admin Proceeding No. 0470-M- 06/10. 22. Pursuant to Rule 69V-560.1000(96), Florida Administrative Code, a licensee cited for violating section 560.310(2)(b), Florida Statutes, for the second time is subject to a “C” fine and a “C” suspension. 23. Therefore, the Office is seeking an administrative fine of $7,700 and 21-day suspension. COUNT Ul 24. The above gencral allegations 1 through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. Case No 57725 Administrative Complaint Page 4 of 9 25. Section 560.309(2), Florida Statutes, requires that when licensees cash payment instruments, they endorse them, at the time of acceptance, with the legal name of the licensee. 26. Respondent failed to endorse, with its legal name, at the time of acceptance, payment instruments it cashed, in violation of section 560.309(2), Florida Statutes. 27. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee cited for the first time for failing to endorse payment instruments with its legal name is subject to a “B” fine and a “B” suspension. 28. Therefore, the Office is seeking an administrative fine of $7500 and a 20-day suspension. COUNT IV 29, The above general allegations 1 through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 30. Form OFR-560-01, which is incorporated by reference into Rule 69V-560.1012, Florida Administrative Code, requires license applicants to list every bank account through which registered activities are or will be conducted and notify the Office of any change in bank account information. 31. On September 7, 2007, Devang Chaudhari submitted an initial application to the Office wherein it represented that Terce had two such accounts with Capital City Bank and has submitted no other amendments to update Terce’s banking information. 32. Pursuant to section 560.126(2), Florida Statutes, and Rules 69V-560.1012, Florida Administrative Code, licensees are required to report any change in the information contained in its application form within 30 days of a change. Case No 57725 Administrative Complaint Page 5 of 9 33. At the time of Respondent’s examination, Respondent was found to have a third bank account at Capital City Bank through which money services business was conducted and which was opened since at least July 2012. 34. In violation of section 560.126(2), Florida Statutes, and Rule 69V-560.1012, Florida Administrative Code, Respondents failed to report (within 30 days) opening and closing of bank accounts. 35. Pursuant to Rule 69V-560.1000(52), Florida Administrative Code, a licensee cited for the first time for failing to report (within 30 days) openings and closing of bank accounts is subject to an “A” fine. 36. Therefore, the Office is seeking an administrative fine of $1,000. COUNT V 37. The above general allegations 1 through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 38. On August 28, 2014, the Office submitted to Respondent a copy of the issued examination #52693 report and corresponding invoice for Examination Expense pursuant to Section 560.1092, Florida Statutes, and Rule 69V-560.504, Florida Administrative Code, which included a $2,193.86 due, and which was received by Respondent on or about September 2, 2014, at its address of record. 39. Pursuant to section 560.1092(1), Florida Statutes, and Rule 69V-560.504, Florida Administrative Code, each licensee examined must pay to the Office the expenses of examination pursuant to an examination invoice. Case No 57725 Administrative Complaint Page 6 of 9 40. Respondent has failed to pay to the Office the import of expenses of examination #52693, in violation of section 560.1092(1), Florida Statutes, and Rule 69V-560.504, Florida Administrative Code and the Office has, as required, sent this invoice to collections incurring an additional $504.59 cost. 41. Pursuant to Rule 69-560.1000(3), Florida Administrative Code, a licensee cited for the first time for failing to pay to the Office the expenses of an examination at a rate adopted by tule is subject to an “A” fine and an “A” suspension. 42. Therefore, the Office is seeking payment of the $2193.86 costs of examination no 52693, an administrative fine of $3,500 and 10-day suspension. WHEREFORE, Respondent, TERCE GROUP INC. d/b/a STOP N GO is hereby notified that the Office intends to enter an Order imposing: payment of the $2193.86 invoiced costs of examination no 52693 and incurred collections cost of $504.59, a fine of $28,300 and a 66-day suspension. NOTICE OF RIGHTS Respondent is entitled to be represented by counsel or other qualified representative. The Respondent 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. 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 Case No 57725 Administrative Complaint Page 7 of 9 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 oF day ote cms DREW J. BREAKSPEAR Office of Financial Regulation Florida Bar No. 838070 401 N.W. 2™ Street, Suite N-708 Miami, FL 33128 (305) 536 — 0308; fax (305)810-1100 pury.santiago(@flofr.com Case No 57725 Administrative Complaint Page 8 of 9 CERTIFICATE OF SERVICE { 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 Respondent at 15000 N. W. US Hwy 441, Alachua, Florida 32615, this ZF day eat 2015. AsSjstant Gencral Counsel Office of Financial Regulation Fla. Bar No. 838070 401 N.W. 2" Street, Suite N-708 Miami, FL 33128 (305) 536 — 0490; fax (305)810-1100 pury.santiago@flofr.com Case No 57725 Administrative Complaint Page 9 of 9 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION ELECTION OF PROCEEDING OFR Case No: 57725 Terce Group Inc. d/b/a Stop N Go 15000 N.W. Us Hwy 441 Alachua, Florida 32615 thave received and read the Administrative Complaint, including the Notice of Rights, filed by the Office of Financial Regulation (“Office”) regarding the above-referenced licensee. As the licensee or the authorized representative of the licensee, | am requesting disposition as indicated below. (CHECK A BOX FOR NUMBER 1, 2, OR 3) i. [ ] (do not dispute any of the Office’s factual allegations and application of the jaw as stated in the Administrative Complaint. Therefore, | do not request a hearing in this matter. | 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. N (do 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 [{ ] in person, attend a hearing conducted by a Hearing Officer; OR { ) By telephone conference call, attend a hearing conducted by a Hearing Officer. w { ] | do dispute one or more of the Office’s factual allegations. | request a formal section 120.57(1), Florida Statutes 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. tf hand delivery is preferred, the physical address is: General Counsel’s Office, The Fletcher Building, Suite 118, 101 €. Gaines Street, Tallahassee, Fi 32399. Signature of Applicant 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: Election of Proceeding Page 1 of 2 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION OFR Case No: 57725 Terce Group Inc. d/b/a Stop N Go 15000 N.W. Us Hwy 441 Alachua, Ftorida 32615 **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: Signature of Licensee or Authorized Representative Date Election of Proceeding. Page 2 of 2

Docket for Case No: 15-006771