STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION In Re: RAPID ENVIOS, STEVEN J. KOHLMAN, Administrative Proceeding and MICHELE A. KOHLMAN, Docket Number: 69211 Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against Rapid Envios (“Licensee”), Steven A. Kohlman, and Michele A. Kohlman, (collectively, “Respondents”) 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, Rapid Envios is or has been a Part II 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 FT20700103. Steven J. Kohlman and Michele A. Kohlman are each general partners, and are each Page 1 of 11 EXHIBIT ae! an “[a]ffiliated party” as defined by section 560.103(1), Florida Statutes. Michele A. Kohlman is also the compliance officer for Rapid Envios. 4. Atall times material, Respondents’ address of record is and has been Rapid Envios, 9-B SW 107" Ave., Miami, FL 33174. 5. On or about November 2, 2015, the Office commenced an examination (#63099) of Respondents’ records and business operations, for the time period of October 1, 2013 through September 30, 2015 (the “examination period”). 6. Pursuant to Rule 69V-560(147)(a), Florida Administrative Code, the Office may impose an administrative fine, suspension of license, revocation of license, or any combination thereof, depending on the severity and repetition of violations. 7. Pursuant to Rule 69V-560(147)(d), Florida Administrative Code, the Office will consider the licensee’s disciplinary history for the past five years in determining an appropriate penalty, and may impose a more severe penalty when the disciplinary history includes past violations. 8. 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” level suspension is 3 to 10 days. 9. 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” level suspension is 10 to 20 days. 10. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “C” level fine is between $7,500 and $10,000; and pursuant to 69V-560.1000(151), Florida Administrative Code, the range for a “C” level suspension is 20 to 30 days. Page 2 of 11 COUNT I 11. The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 12. Section 560.118(1), Florida Statutes, requires that annual financial audit reports be filed with the Office. 13. A licensee must obtain an annual financial audit and submit the same to the Office within 120 days after the end of the licensee’s fiscal year. Rule 69V-560.606, Florida Administrative Code. 14. Rapid Envios’ fiscal year ends December 31 of each year, and therefore its annual financial audit was due not later than April 30, 2016. 15. In violation of sections 560.118(1), 560.209(2), Florida Statutes, and Rule 69V- 560.606, Florida Administrative Code, Rapid Envios failed to submit an annual financial audit to the Office for the year 2015 within 120 days after the end of the licensee’s fiscal year. As of July 30, 2016, that is, 90 days after the annual report was last due, Rapid Envios had not filed its annual financial audit for the year 2015. 16. This is a repeat violation, in that Rapid Envios was cited in an Administrative Complaint, Docket No. 58693 on March 27, 2015 for failure to timely submit annual financial audit reports within 120 days for fiscal years ended 12/31/2013 and 12/31/2014, and a Final Order entered July 15, 2015 for the violation. 17. Pursuant to Rule 69V-560.1000(38), Florida Administrative Code, a licensee cited for the second time for failure to comply with section 560.118(1), Florida Statutes, is subject to a “C” level fine, and if later than 90 days from its due date, revocation of its license. Page 3 of 11 18. Therefore, the Office seeks an administrative fine of $10,000 and revocation of Rapid Envios license, FT20700103. COUNT I 19. The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 20. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of chapter 560, or related rule or order is grounds for the denial, suspension or revocation of a license, or any other action within the authority of the office. 21. In violation of section 560.114(1)(a), Florida Statutes, Rapid Envios failed to comply with the Final Order docketed July 15, 2016 by its failure to timely file the 2015 annual audited financial statement. 22. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for the first time for failure to comply with section 560.114(1)(a), Florida Statutes, is subject to a “B” level fine, “B” level suspension, and revocation of its license. 23. Therefore, the Office seeks an administrative file of $7,500 and revocation of Rapid Envios license, FT20700103. COUNT UI 24, The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 25; Section 560.1235(2), Florida Statutes, requires a licensee to comply with all state and federal anti-money laundering laws, rules and regulations, specifically including maintaining, reviewing and updating its anti-money laundering program. Page 4 of 11 26. ‘In violation of section 560.1235(2), Florida Statutes, Respondents failed to provide proof that training was provided to all employees who conducted money service business activity. 27. Pursuant to Rule 69V-560.1000(44), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.1235(2), Florida Statutes, is subject to an “A” level fine, an “A” level suspension, and/or revocation of its license. 28. Therefore, the Office is seeking an administrative fine of $1,600 and revocation of Rapid Envios’ license, FT20700103. COUNT IV 29. The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 30. Pursuant to section 560.2085(2)(b), Florida Statutes, when a licensee contracts with a vendor, the contract must be in writing and include the requirements set forth in sections 560.2085(2)(b)(1) through (2)(b)(8), Florida Statutes. 31. In violation of section 560.2085(2)(b), Florida Statutes, 37 vendors’ contracts were missing 4 of the 8 required elements. 32. Pursuant to Rule 69V-560.1000(61), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.1235(2), Florida Statutes, is subject to an “A” level fine. 33. Therefore, the Office is seeking an administrative fine of $2,300. COUNT V 34. | The above general allegations | through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. Page 5 of 11 35. Pursuant to section 560.211(1), Florida Statutes, a licensee is required to maintain all records required by s.560.211 for 5 years. 36. In violation of section 560.211(1), Florida Statutes, Respondents failed to take or maintain all beneficiaries’ addresses and all customers’ addresses for 5 years. 37. Pursuant to Rule 69V-560.1000(71), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.211(1), Florida Statutes, is subject to a “B” level fine, and a “B” level suspension. 38. Therefore, the Office seeks an administrative fine of $4,000, and an 11-day license suspension. COUNT VI 39. The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 40. Pursuant to section 560.118(2), Florida Statutes, a licensee is required to submit quarterly reports in the format specified by rule. 41. Pursuant to Rule 69v-560.602, Florida Administrative Code, quarterly reports must be filed within 45 days of the end of each calendar quarter. 42. In violation of section 560.118(2), Florida Statutes, and Rule 69v-560.602, Florida Administrative Code, Respondents failed to file quarterly reports within 45 days of the end of the quarters ending June 30, 2014 and March 31, 2015. 43. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for the first time for failure to comply with section 560.118(2), Florida Statutes, is subject to an “A” level fine and an “A” level suspension. Page 6 of 11 44. Therefore, the Office seeks an administrative fine of $1,600 and a 5-day license suspension. COUNT VII 45. The above general allegations 1 through 10 are hereby re-alleged and incorporated by reference as though fully stated herein. 46. Section 560.1105, Florida Statutes, requires a licensee to maintain all books and records necessary to determine compliance with chapter 560 and, or, related rule for 5 years. 47. In violation of section 560.1105, Florida Statutes, Respondents failed to maintain all books and records necessary to determine compliance with chapter 560, Florida Statutes, and, or, related rule for 5 years. 48. Pursuant to Rule 69V-560.1000(4), Florida Administrative Code, a licensee cited for the first time for failure to comply with section 560.1105, Florida Statutes is subject to an “A” level fine and an “A” level suspension. 49. Therefore, the Office seeks an administrative fine of $3,500 and a 10-day license suspension. WHEREFORE, the Office seeks administrative fines in the sum of $30,500, and revocation of Rapid Envios’ license, FT20700103. [THIS SPACE INTENTIONALLY BLANK] Page 7 of 11 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. 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. Page 8 of 11 Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this eg day of felernany 201 DREW J. BREAKSPEAR Commissioner By: Scott R. Fransen Assistant General Counsel Office of Financial Regulation Fla. Bar No. 094571 200 E. Gaines Street Tallahassee, FL 32399-0379 850.410.9554 scott.fransen@flofr.com CERTIFICATE OF SERVICE Complaint has been served by U.S. certified mail to Rapid Env teven J, Kohlman, and Michele I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative A. Kohlman, 9-B SW 107" Ave., Miami, FL 33174, this A ay of pty 942017. _ T7159 4991 7035 oasza 25b7 ———, Page 9 of 11 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Admin. Proc. #69211 Rapid Envios ELECTION OF PROCEEDING 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, 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, I 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. I do 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, Iam 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 Counse]’s Office, The Fletcher Building, Suite 118, 101 E. Gaines Street, Tallahassee, FL 32399. Signature of Licensee or Mailing Address Authorized Representative Printed Name & Title City State Zip Date E-mail Address Telephone Number Fax Number Date Administrative Complaint Received: Page 10 of 11 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Admin. Proc. #69211 Rapid Envios **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, 1 am disputing the following material facts: Signature of Licensee or Authorized Representative Date Page 11 of 11 == (A 91 7199 9991 7035 0432 2567 RETURN SERVICE REQUESTED . . Rapid Envios, Steven J. Kohlman, and Michele A. Kohlman 9-B SW 107" Avenue Miami, FL 33174

Docket for Case No: 17-002296