STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION In Re: MOLLY’S PAWN & MORE, INC., Administrative Proceeding Docket DEBRA K. HALAMA, and Number: 85870 JOHN M. MAREK, Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against Molly’s Pawn & More, Inc., (““Molly’s”), Debra K. Halama, and John M. Marek, (together, “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, Molly’s is or has been a “money services business,” as defined in section 560.103(22), Florida Statutes, and specifically a Part III Money Transmitter operating as a check casher pursuant to Chapter 560, Florida Statutes, having been issued license number FT340000676. 4. At all times material, Debra K. Halama and John M. Marek are owners and officers of Molly’s, and therefore are each an “[a]ffiliated party” as defined by section 560.103(1), Florida Statutes. 5. At all times material, Respondents’ address of record is and has been 243 Key Deer Blvd., Unit B-2, Big Pine Key, FL 33043. 6. The Office commenced an examination (#70967) of Respondents’ records and business operations for the time period of December 13, 2012 through February 28, 2017 (the “examination period”). 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 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 an “A level” suspension is 3 to 10 days, and for a “B level” suspension is 10 to 20 days. COUNTI 8. The above general allegations 1 through 7 are hereby re-alleged and incorporated by reference as though fully stated herein. 9. Section 560.310(2)(c), Florida Statutes, requires a licensee to take and maintain a thumbprint of the customer taken by the licensee for payment instruments having a face value exceeding $1,000. 10. Respondents did not take and maintain thumbprints of customers for payment instruments having a face value exceeding $1,000 in 249 instances of a sample size of 250. 11. Respondents violated section 560.310(2)(c), Florida Statutes by failing to take and maintain thumbprints of customers for all payment instruments having a face value exceeding $1,000. 12. Pursuant to Rule 69V-560.1000(97), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.310(2)(c), Florida Statutes, is subject to a “B level” fine and a “B level” suspension. 13. Therefore, the Office is seeking an administrative fine of $7,500 and a license suspension of 20 days. COUNT II 14. The above general allegations 1 through 7 are hereby re-alleged and incorporated by reference as though fully stated herein. 15. Section 560.310(2)(d), Florida Statutes, requires a licensee to enter checks and necessary information into the Statewide Check Cashing Database for payment instruments accepted having a face value exceeding $1,000. 16. Respondents did not properly enter information as required for payment instruments accepted having a face value exceeding $1,000 by mislabeling the payor and issuer in 98 instances out of a sample of 98. 17. Respondents violated section 560.310(2)(d), Florida Statutes, by failure to properly enter information as required for payment instruments into the Statewide Check Cashing Database for payment instruments having a face value exceeding $1,000. 18. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.310(2)(d), Florida Statutes, is subject to a “B” level fine and a “B level” suspension. 19, Therefore, the Office is seeking an administrative fine of $7,500 and a license suspension of 20 days. COUNT II 20. The above general allegations 1 through 7 are hereby re-alleged and incorporated by reference as though fully stated herein. 21. Section 560.310(2)(b), Florida Statutes, requires a licensee to maintain a copy of the personal identification used as identification by the customer for payment instruments accepted having a face value exceeding $1,000. 22. Respondents failed to maintain a copy of the personal identification used as identification by the customer for payment instruments accepted having a face value exceeding $1,000 in 156 instances out of a sample size of 250. 23. Respondents violated section 560.310(2)(b), Florida Statutes, by failing to maintain a copy of the personal identification used as identification by the customer for payment instruments accepted having a face value exceeding $1,000. 24. Pursuant to Rule 69V-560.1000(96), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.310(2)(b), Florida Statutes, is subject to a “B” level fine and a “B level” suspension. 25. Therefore, the Office is seeking an administrative fine of $6,000 and a license suspension of 16 days. COUNT IV 26. The above general allegations 1 through 7 are hereby re-alleged and incorporated by reference as though fully stated herein. 27. Section 560.1235(1), Florida Statutes, requires a licensee to comply with all state and federal laws and rules relating to money laundering. 28. Respondents failed to register with FinCen as a money service business as required by 31 C.F.R. 1022.380. 29. Respondents violated section 560.1235(1), Florida Statutes, and 31 C.F.R. 1022.380, by failing to register with FinCen as a money services business. 30. Pursuant to Rule 69V-560.1000(43), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.1235(1), Florida Statutes, and Rule 69V- 560.602, Florida Administrative Rule, is subject to an “A level” fine and an “A level” suspension. 31. Therefore, the Office is seeking an administrative fine of $1,000 and a license suspension of 3 days. COUNT V 32. The above general allegations 1 through 7 are hereby re-alleged and incorporated by reference as though fully stated herein. 33. Section 560.126(2), Florida Statutes, requires a licensee to report to the Office all changes in an original or renewal application within 30 days of the change. 34. Respondents failed to report opening a Wells Fargo Bank account. 35. Respondents violated section 560.126(2), Florida Statutes, by failing to report the change to its banking account. 36. Pursuant to Rule 69V-560.1000(52), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.126(2), Florida Statutes, is subject to an “A level” fine. 37. Therefore, the Office is seeking an administrative fine of $1,000. WHEREFORE, Respondents Molly’s Pawn & More, Inc. Debra K. Halama and John M. Marek are hereby notified that the Office intends to enter an Order imposing an administrative fine of $23,000 and suspending license no. FT340000676 for 59 consecutive days. 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. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this <5! 7 day of , 201 DREW J. BREAKSPEAR Commissioner By: Scot! sen Assistant General Counsel Office of Financial Regulation Fla. Bar No. 994571 1313 N. Tampa St., Suite 615 Tampa, FL 33602 Telephone: 813.218.5364 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 Molly’s Pawn & More, Inc. Debra K. a, and John M. Marek, 243 Key Deer Blvd., Unit B-2, Big Pine Key, FL 33043, this 5? “day of July, 2017. . Fransen Assistant General Counsel Fla. Bar No. 994571 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Admin. Proc. #85870 Molly’s Pawn & More, 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, 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. 1 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, | 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, Signature of Licensee or Mailing Address Authorized Representative Printed Name & Title City State Zip Date E-mail Address Telephone Number Date Administrative Complaint Received: STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Admin. Proc. #85870 Molly’s Pawn & More, Inc. **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, I am disputing the following material facts: et a a Signature of Licensee or Authorized Representative Date

Docket for Case No: 17-004954