STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket EVERI PAYMENTS INC., Number: 65773 Pa ~ j ly iz = = : = x Respondent. | lp 3 1 Be Ba } ae m Pod nfo = mao S = 2 = ADMINISTRATIVE COMPLAINT S ~ cad The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against Everi Payments Inc., (“Respondent”), and alleges: 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 is or has been a money services business licensee pursuant to Chapter 560, Florida Statutes, and specifically a “money transmitter,” as defined in section 560.103(23), Florida Statutes, having becn issued license number FT230000010. Page 1 of 9 4. At all times material, Respondent conducted a money services business. At all times material, Respondent’s address of record is and has been 7250 S. Tampa Way, #100, Las Vegas, NV 89113. 5. As a matter of course, the Office conducts examinations of licensees to determine whether a person has violated any provision of Chapter 560 and related rules, or of any practice or conduct that creates the likelihood of material loss, insolvency, or dissipation of the assets of a money services business, or otherwise materially prejudices the interests of their customers. Section 560.109, Florida Statutes. 6. Beginning January 1, 2014 through March 24, 2016, the Office conducted an examination of Respondent’s business records and operations, examination no. 13404. 7. 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-1000(151), Florida Administrative Code, the range for an “A” level suspension is 3 to 10 days. 8. 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-1000(151), Florida Administrative Code, the range for a “B” level suspension is 10 to 20 days. COUNT I 9. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as though fully stated herein. 10. Section 560.2085(1), Florida Statutes, and Rule 69V-560.107, Florida Administrative Code, require a licensee to file with the Office information regarding Page 2 of 9 commencement or termination of an authorized vendor of the licensee within 60 days of commencement and, or, termination of the authorized vendor. 11. In violation of section 560.2085(1), Florida Statutes, and Rule 69V-560.107, Florida Administrative Code, Respondent failed to notify the Office within 60 days after an authorized vendor commenced or terminated licensed activity. 12. The Office determined that this violation, failure to notify the Office within 60 days after an authorized vendor commenced or terminated licensed activity is a second violation of this statute within 5 years, and as such constitutes an aggravating circumstance that warrants an increased penalty for this violation. Rule 69V-560.1000(147)(d), Florida Administrative Code. 13. Pursuant to Rule 69V-560,1000(148), Florida Administrative Code, the Office has considered that the licensee was previously cited for failing to comply with section 560.2085(1), Florida Statutes, within the past 5 years, failed to institute corrective measures to avoid the recurrence of this violation, and failed to implement reasonable supervisory, operational or technical procedures or controls to avoid the violation. 14. Pursuant to section 560.114(7), Florida Statutes, the Office may, in addition to or in lieu of suspension or revocation of a license, impose a fine of at least $1,000 but not more than $16,008 for each viciation. 15. Therefore, the Office is seeking an administrative fine of $7,500. COUNT TT 16. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as though fully stated herein. Page 3 of 9 17. — Section 560.1235(1), Florida Statutes requires a licensee to comply with anti- money laundering requirements, which includes those set forth in 31 CFR section 1022.380. 18. 31 CER section 1022.380 mandates Money Services Business registration with FinCen, which registration includes listing states where the licensee conducts money services business. 19. In violation of section 560.1235(1), Florida Statutes, and 31 CFR section 1022.380, Respondent failed as required to list Florida as one of the states where Respondent conducts a money services business. 20. Pursuant to section 560.114(7), Florida Statutes, the Office may, in addition to or in lieu of suspension or revocation of a license, impose a fine of at least $1,000 but not more than $10,000 for each violation. 21. Therefore, the Office is seeking an administrative fine of $3,500, and a 10-day suspension. COUNT UI 22. The above general allegations 1 through 8 are hereby re-alleged and incorporated by reference as though fully stated herein. 23. Section 560.126(3), Florida Statutes, and Rule 69V-560.102(4), Florida Adminis'rative Code, require a licensee to report to the Office after a change of officers or responsible persons of the licensee within 30 days of the change. 24, In violation of section 560.126(3), Florida Statutes, and Rule 69V-560.102(4), Florida Administrative Code, Respondent failed to report a change of its AML Compliance Officers, Kacy Drury and Michael Stein, who are responsible persons as defined by section $60.103(32), Florida Statutes. Page 4 of 9 25. Pursuant to Rule 69V-560.1000(53), Florida Administrative Code, a first violation of section 560.126(3) is subject to an “A” level fine in the sum of $1,000 for each violation. 26. Therefore, the Office is seeking an administrative fine in the sum of $2,000, which is $1,000 for each of two failures to report the change of its AML Compliance Officer. WHEREFORE, Respondent Everi Payments Inc., is hereby notified that the Office intends to enter an Order imposing an administrative fine of $13,000, and a license suspension of 10 days. Page 5 of 9 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 §§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 TC 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. Page 6 of 9 Mediation of this matter pursuant to §120.573, Florida Statutes, is not available. th DATED and SIGNED this_/3 ~“day of May, 2016. DREW J. BREAKSPEAR Commissioner By: Scott R. Fransen Assistant General Counsel Office of Financial Regulation Fla. Bar No. 0994571 200 E. Gaines Street Tallahassee, FL 32399-0379 850.410.9554 scott.fransen@flofr.com 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 Everi Payments Inc., 7250 8. Tenaya Way, #100, Las Vegas, NV 89113, this | 5 “day of May, 2016. cott R. Fransen SL 7199 F991 7039S 0831 27bb Page 7 of 9 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Admin. Proc. #65773 Everi Payments Inc. ELECTION OF PROCEEDING I have 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, I am requesting disposition as indicated below. (CHECK A BOX FOR NUMBER 1, 2, OR 3) 1. [ ] Ido not dispute any of the Office’s factual allegations and application of the law. Therefore, J do not request a hearing. I understand that upon my waiving the right to a hearing, the Office may enter a final order adopting the Administrative Complaint and imposing the sanctions authorized by Florida law, including, but not limited to, suspending or revoking the license, as appropriate. 2. Ido not dispute any of the Office’s factual allegations but dispute the Office’s application of the law. I 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. 3. [ ] Ido dispute one or more of the Office’s factual allegations. I 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 I 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. If hand delivery is preferred, the physical address is: General Counsel’s Office, The Fletcher Building, Suite 118, 101 E. Gaines Street, Tallahassee, FL 32399. eee nent net enn Mailing Address: Signature of Licensee or Authorized Representative Printed Name & Title City State Zip Email: Tel. number: Fax number: Date Administrative Complaint Received: Page 8 of 9 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION **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, J am disputing the following material facts: Signature of Licensee or Authorized Representative Date Page 9 of 9 SLL68 AN ‘seba, se] OO L# ‘Aen eAeual “Ss OSZL ‘oul s}uaWwAed M8aAq GaLSANDSY ADIANAS NYN.LSY Fide TERO SEOe Thbb bbTe Tb vm 92ZE0-66EZE Ta ‘eesseyel|eL yeas SeUled “3 007 FONVNId YSWNSNOD AO NOISIAIO

Docket for Case No: 16-003522