STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket Number: M. M. B. ENTERPRISES, INC. and MICHAEL 68782 BRILL, Respondents ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against M. M. B. ENTERPRISES, INC. and MICHAEL BRILL (“Respondents”), 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, M. M. B. Enterprises, Inc. is or has been a Part III 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 FT340000201. Page 1 of 7 4. Atall times material hereto, Respondent M. M. B. Enterprises, Inc.’s business address of record is and has been 2360 S. E. Rivergate Pkwy, Port St. Lucie, FL 34952 and its 100% owner of record with the Office is and has been Michael Brill. 5. The Office conducted an examination (#64193) of Respondents’ business records and operations for the time period of January 1, 2014 to December 31, 2015, (“examination period”). 6. During the examination period, Respondents cashed payment instruments of various amounts, up to and exceeding $1,000.00. 7. During said examination, the Office reviewed, or attempted to review, all of Respondents’ business records for the examination period material to their money services business activities, including but not limited to records regarding all payment instruments cashed by Respondents. 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” 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” suspension is 10 to 20 days. 10. 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. COUNT I 1. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Page 2 of 7 2. Section 560.309(2) and Rule 69V-560.704(2)(a), Florida Administrative Code, state that at the time a licensee accepts a payment instrument for cashing, the licensee shall endorse the payment instrument and maintain said endorsement. 3. In a sample size of 335 payment instruments, Respondents failed to endorse all 335 of those payment instruments at time of acceptance, and further failed to maintain those endorsed payment instruments, in violation of section 560.309(2), Florida Statutes and Rule 69V-560.704(2)(a), Florida Administrative Code. 4. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee who fails to endorse a payment instrument is subject to a “B” fine and/or a “B” suspension. 5. Therefore, the Office is seeking a fine of $7,500 and a 20-day suspension. COUNT I 6. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 7. Section 560.118(2), Florida Statutes and Rule 69V-560.602, Florida Administrative Code, require a licensee to file quarterly reports, which must be received by the Office within 45 days of conclusion of the quarter. 8. Respondents failed to timely file their quarterly report for the fourth quarter of 2015, such that the Office did not receive it within 45 days of conclusion of the quarter, in violation of section 560.118(2), Florida Statutes and Rule 69V-560.602, Florida Administrative Code. 9, Pursuant to Rule 69V-560.1000(39) a licensee who fails to timely submit a quarterly report is subject to an “A” fine, and/or an “A” suspension. 10. Therefore, the Office is seeking a fine of $1,000 and a 4-day suspension. Page 3 of 7 COUNT III 11. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 12. Section 560.126(2), Florida Statutes, requires a licensee to report any change in the information contained in an initial license application form, or any amendment to such application, within 30 days after the change is effective. 13. Respondents’ initial license application, dated February 16, 2010, required Respondents to provide a list of accounts through which registered activities would be conducted. Respondents reported one account at Wachovia bank. 14. Respondents failed to timely report the opening of three bank accounts at Commerce West Bank, through which registered activities were conducted, in violation of section 560.126(2). 15. Pursuant to Rule 69V-560.1000(52), a licensee who fails to timely report any change in application information is subject to an “A” fine. 16. Therefore, the Office is seeking a fine of $2,000. COUNT IV 17. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 18. Section 560.310(2)(d), Florida Statutes, and Rule 69V-560.704(5), Florida Administrative Code, require a licensee, for payment instruments cashed over $1,000, to create and maintain an electronic log with eleven different fields of information. Page 4 of 7 19. Respondents did not create and maintain all of the required information for two of the eleven fields, specifically the payment instrument type and ID number, in violation of section 560.310(2)(d), Florida Statutes and Rule 69V-560.704(5), Florida Administrative Code. 20. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee who fails to create and maintain an electronic log is subject to a ‘B’ fine, and/or a ‘B’ suspension. 21. Therefore, the Office is seeking a fine of $4,200 and a 12-day suspension. WHEREFORE, Respondents, M. M. B. ENTERPRISES, INC. and MICHAEL BRILL are hereby notified that the Office intends to enter an Order imposing an administrative fine of $14,700 and a thirty-six day suspension. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Page 5 of 7 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 Facsimile OR By Hand Delivery Agency Clerk Agency Clerk Office of Financial Regulation Office of Financial Regulation P.O. Box 8050 General Counsel’s Office Tallahassee, Florida 32314-8050 The Fletcher Building, Suite 118 Phone: (850) 410-9889 101 East Gaines Street Fax: (850) 410-9663 Tallahassee, Florida 32399-0379 Phone: (850) 410-9889 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. Page 6 of 7 DATED and SIGNED this2“|_ dayor__ ae tAN_,20 mA of Financial Regulation ~ Bar No. 0506877 ‘400 W. Robinson St., S-225 Orlando, Florida 32801-1799 (407) 245-0601; fax (407) 245-0806 jennifer.lozano@flofr.com 47199 9991 70356 9904 43356 Page 7 of 7

Docket for Case No: 17-002560