STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket Number: 89510 FIESTA CHECKS & MORE LLC and SOHIL N. JIVANI, Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against FIESTA CHECKS & MORE LLC and SOHIL N. JIVANI (together as “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. At all times material, Sohil N. Jivani was the sole owner of Fiesta Checks & More LLC. 3. At all times material hereto, Sohil N. Jivani was an affiliated party of Fiesta Checks & More LLC, as that term is defined in section 560.103(1), Florida Statutes. 4. At all times material hereto, Respondents were licensed as a money services business by the Office under Part III of chapter 560, Florida Statutes, and held license number FT30900520. 5. At all times material hereto, Fiesta Checks & More LLC operated as a check casher at 10530 Rosemary Drive, Bonita Springs, Florida 34135-5139. EXHIBIT 6. In June 2017, the Office conducted an examination (No. 71486) of Respondents’ business records and operations for the period of January 1, 2015 to December 31, 2016 (“examination period”). 7. During the examination period, Respondents cashed payment instruments (checks) that exceeded $1,000. 8. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of chapter 560, Florida Statutes, or related rule, by a money services business, authorized vendor, or affiliated party, constitutes grounds for disciplinary action. 9. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” fine is $1,000 to $3,500; and, $3,500 to $7,500 for a “B” fine. 10. Pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for for an “A” suspension is 3 to 10 days; and, for a “B” suspension 10 to 20 days. COUNT I 11. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 12. Section 560,123(3), Florida Statutes, requires money services businesses to keep a record of financial transactions involving currency or payment instruments having a value greater than $10,000. 13. Section 560.123(3)(c), Florida Statutes, requires money services businesses to file reports of such transactions, as required by administrative rule. 14, Rule 69V-560.608, Florida Administrative Code, requires money services businesses to file said reports with the Financial Crimes Enforcement Network ("FinCEN") using the FinCEN Form 104, incorporated by reference in Rule 69V-560.1012, Florida Administrative Code. 15. Pursuant to FinCEN Form 104, a Currency Transaction Report ("CTR") is to be filed by the 15" calendar day after the transaction. 16. During the period examined, Respondents cashed payment instruments with a face value greater than $10,000. ea As part of its examination, the Office reviewed Respondents’ records of financial transactions with a face value greater than $10,000 and records of the CTRs filed. 18. The Office found that during the examination period, Respondents engaged in financial transactions involving currency or payment instruments having a value greater than $10,000 where no CTR was filed within the prescribed 15 days. The Office found other CTRs that were filed with inaccurate information. 19. Respondents failed to file CTRs in conformance with the requirements of FinCEN Form 104, in violation of section 560.123(3)(c), Florida Statutes. 20. Pursuant to Rule 69V-560.1000(41), Florida Administrative Code, a licensee cited for violating section 560.123(3)(c), Florida Statutes, is subject to an "A" fine, and an "A" suspension or revocation. 21. Therefore, the Office is seeking an administrative fine of $1,400 and a 4-day suspension. COUNT II 22. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 23. | When payment instruments greater than $1,000 are cashed, section 560.310(2)(a), Florida Statutes, and Rule 69V-560.704(4)(d), Florida Administrative Code, require among other things, that licensees create and maintain customer files for each entity listed as the payee on corporate payment instruments accepted by the licensee, and that these files include the following: 1) documentation from the Florida Secretary of State verifying registration of each entity as a corporation; 2) Articles of Incorporation or other such documentation establishing a legal entity; 3) documentation of the business license/occupational license, business tax receipt or equivalent; 4) a copy of the search results screen from the Department of Financial Services - Division of Workers' Compensation website; and 5) documentation of individuals authorized to negotiate payment instruments on the corporation’s behalf. 24. As part of its examination, the Office reviewed transactions where the payee was an entity and the transaction exceeded $1,000. Once the payees were identified, the Office requested, and Respondents produced, the corresponding customer files. 25. The Office reviewed the customer files and found instances where customer files were missing the required information. 26. Respondents failed to maintain complete customer files for accepted corporate payment instruments, in violation of section 560.310(2)(a), Florida Statutes, and Rule 69V- 560.704(4)(d), Florida Administrative Code. 27. Pursuant to Rule 69V-560.1000(95), Florida Administrative Code, a licensee cited for failing to maintain complete customer files for accepted corporate payment instruments is subject to a "B" fine and a "B" suspension. 28. Therefore, the Office is seeking an administrative fine of $6,700 and an 18-day suspension. COUNT I 29. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 30. Section: 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code, require licensees to maintain copies of acceptable personal identification ("ID") that bear the signature and a photograph of the customer cashing the payment instrument. Acceptable [Ds are limited to a valid driver license; a state identification card issued by any state of the U.S. or its territories or the District of Columbia; a U.S. Government Resident Alien Identification Card; a passport; or a U.S. Military identification card. 31. As a part of the examination, the Office reviewed a sample of Respondents’ copies of the payment instruments they cashed and the corresponding copies of customers’ IDs, and found instances in which Respondents maintained copies of invalid IDs [i.e. United States of America Permanent Resident cards that have no last name] and for other transactions, Respondents records did not include corresponding IDs. 32. Respondents failed to maintain copies of acceptable personal IDs, in violation of section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code. 33. Pursuant to Rule 69V-560.1000(96), Florida Administrative Code, a licensee cited for failing to comply with section 560.310(2)(b), Florida Statutes, is subject to a “B” fine and a “B” suspension. 34. Therefore, the Office is seeking an administrative fine of $5,000 and a 14-day suspension. COUNT IV 35. The above general allegations and paragraphs 12-19 are hereby re-alleged and incorporated by reference as if fully stated herein. 36. Pursuant to section 560.1235(2), Florida Statutes, a licensee must maintain an anti-money laundering program ("AML") in accordance with 31 C.F.R. §1022.210. 37. Pursuant to section 560.114(1)(y), Florida Statutes, a money services business is prohibited from violating 31 C.F.R. §1022.210, which requires each money services business to develop, implement, and maintain an effective AML. 38. | Respondents provided two AML manuals which were effective during various time periods within the examination period. 39. In each of the AML manuals Respondents stated that they would review “all CTR’s, SAR’s and other reports for accuracy and completeness before filing them with the IRS or any other appropriate regulatory agency.” and “a Currency Transaction Report (CTR Form #104) must be filed with the IRS (within 15 days).” 40. As a part of the examination, the Office reviewed a sample of payment instruments Respondents cashed and the corresponding CTR filings, and found CTRs that were not filed within 15 days, and CTRs that were filed with inaccurate information. 41. Respondents failed to implement their AML by failing to file timely and accurate CTRs, in violation of section 560.114(1)(y), Florida Statutes, and 31 C.F.R. §1022.210. 42. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for violating section 560.114(1)(y), Florida Statutes is subject to a "B" fine, and a "B" suspension or revocation. 43. Therefore, the Office is seeking an administrative fine of $7,500 and a 20-day suspension. COUNT V 44. The above general allegations and paragraphs 23-26 and 36-38 are hereby re- alleged and incorporated by reference as if fully stated herein. 45. In each of the AML manuals Respondents stated the following: Prior to cashing or any commercial checks, FIESTA CHECKS & MORE LLC D/B/A FIESTA CHECKS requires the following documentation: 1. Documentation from the Secretary of State verifying registration as a corporation or fictitious entity showing the listed officers and FEID registration number. If a sole proprietor uses a fictitious name or is a natural person, then the customer file shall include the social security number of the business owner and documentation of the fictitious name filing with the Secretary of State. 2. Articles of Incorporation or other such documentation which establishes a legal entity in whatever form authorized by law. For purposes of this rule a sole proprietor operating under a fictitious name registered with the Secretary of State shall not have to present such documentation. 3. Documentation of the occupational license from the county where the entity is located. 4. A copy of the search results screen page from Compliance Proof of Coverage Query Page webpage from the Florida Department of Financial Services — Division of Workers’ Compensation website (http://www.fldfs.com/WCAPPS/Compliance _POC/wPages/query.asp). 5. Documentation of individuals authorized to negotiate payment instruments on the corporation or fictitious entity’s behalf including corporate resolutions or powers of attorney. 46. Asa part of the examination, the Office reviewed a sample of copies of payment instruments Respondents cashed which were made out to corporate payees, and found that the corresponding customer files were missing one or more of the documents required by their AML. 47. Respondents failed to implement their AML by failing to keep complete customer files, in violation of section 560.114(1)(y), Florida Statutes, and 31 C.F.R. §1022.210. 48. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for violating section 560.114(1)(y), Florida Statutes is subject to a "B" fine, and a "B" suspension or revocation. 49. Therefore, the Office is seeking an administrative fine of $7,500 and a 20-day suspension. COUNT VI 50. The above general allegations and paragraphs 30-32 and 36-38 are hereby re- alleged and incorporated by reference as if fully stated herein. 51. Respondents’ AML manuals says “the customer should always be required and able to provide to Fiesta Checks & More LLC d/b/a Fiesta Checks, one (1) acceptable means of identification. This is especially true when opening a new account and/or cashing a check for $1,000 or higher, or a group of checks that when added together are $1,000 or higher”, and further says “acceptable primary identification is valid driver’s license with signature; valid military ID with signature; valid passport with photo and signature valid state ID with signature (use with caution); or valid alien registration card.” 52. Asa part of the examination, the Office found Respondents maintained copies of invalid IDs [e.g. United States of America Permanent Resident cards that had no last name] and for other transactions, Respondents records did not include corresponding IDs. 53. ~ Respondents failed to implement their AML by failing to maintain a copy of acceptable customer identifications, in violation of section 560.114(1)(y), Florida Statutes, and 31 C.F.R. §1022.210. 54. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for violating section 560.114(1)(y), Florida Statutes is subject to a "B" fine, and a "B" suspension or revocation. 55. Therefore, the Office is seeking an administrative fine of $7,500 and a 20-day suspension. COUNT VII 56. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 57. Pursuant to Rule 69V-560.704(6), Florida Administrative Code, every check casher must, in accordance with section 560.310(2), Florida Statutes, submit information for each payment instrument cashed with a face value of $1,000 or more, to the Florida Statewide Check Cashing Database ("CCDB"). 58. During the examination period, in numerous instances, Respondents did not submit payment instrument information to the CCDB. 59. During the examination period Respondents failed to submit required payment instrument information into the CCDB, in violation of section 560.114(a), Florida Statutes, and Rule 69V-560.704(6), Florida Administrative Code. 60. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for failing to submit payment instrument information into the CCDB, is subject to a “B” fine and a “B” suspension. 61. Therefore, the Office is seeking an administrative fine of $4,800 and a 13-day suspension. COUNT VOI 62. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 63. At the time a licensee accepts and cashes a payment instrument, it must be endorsed using the licensee’s legal name, pursuant to section 560.309(2), Florida Statutes, and Rule 69V-560.704(2)(a), Florida Administrative Code. 64. Respondents’ records for the examination period contained multiple copies of payment instruments accepted and cashed that were not endorsed. 65. Thereby, the Office determined Respondents failed to endorse payment instruments in the manner set forth by statute and rule, in violation of section 560.309(2), Florida Statutes, and Rule 69V-560.704(2)(a), Florida Administrative Code. 66. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee cited for failing to comply with section 560.309(2), Florida Statutes, is subject to a “B” fine and a “B” suspension. 67. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day suspension. COUNT IX 68. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 69. When a payment instrument of greater than $1,000 is cashed, section 560.310(2)(c), Florida Statutes, requires a licensee to affix a thumbprint of the conductor to the original of the payment instrument accepted and maintain a record of such payment instrument. 10 70. As part of its examination, the Office reviewed Respondents’ records of payment instruments over $1,000 which were cashed during the examination period and instances in which no thumbprint had been affixed to the original payment instrument. 71. Respondents failed to affix thumbprints of the conductor to the original payment instruments, in violation of section 560.310(2)(c), Florida Statutes. 72. Pursuant to Rule 69V-560.1000(97), Florida Administrative Code, a licensee cited for failing to comply with section 560.310(2)(c), Florida Statutes, is subject to a "B" fine and a “B” suspension. 73. Therefore, the Office is seeking an administrative fine of $3,800 and an 11-day suspension. WHEREFORE, Respondents, FIESTA CHECKS & MORE LLC and SOHIL N. JIVANI are hereby notified that the Office intends to enter an Order imposing an administrative fine of $47,700 and a 130-day suspension. ist NOTICE OF RIGHTS In 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 Phone: (850) 410-9989 101 East Gaines Street, Suite 118 Fax: (850) 410-9663 Tallahassee, FL 32399-0379 _ Phone: (850) 410-9989 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. 12 NOTICE TO RESPONDENTS In accordance with the Americans with Disabilities Act, persons with disabilities needing a special accommodation to participate in this proceeding should contact the Agency Clerk no later than seven (7) days prior to the filing deadline or proceeding, at the Office of Financial Regulation, The Fletcher Building, Suite 118, 101 East Gaines Street, Tallahassee, Florida 32399-0379, phone: (850) 410-9889, or by email: agency.clerk@flofr.com. a — DATED and SIGNED on this the QS — dayof January, 2019. PAMELA P. EPTING Interim Comissioner By: /s/ Melissa-Rose A. Stafford Assistant General Counsel Office of Financial Regulation Florida Bar Number 0096522 401 N.W. 2" Avenue, Suite N-708 Miami, Florida 33128-1740 (305) 536-0308 fax (305) 810-1100 melissa-rose.stafford@flofr.com CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been sent for service by certified U.S. mail to FIESTA CHECKS & MORE LLC and SOHIL N. JIVANI, at 10530 Rosemary Drive, Bonita Springs, Florida 34135-5139, on this the ans day of Sannary , 2019. /s/ Melissa-Rose A. Stafford 91 7199 9991 70359 Sb8e2 0525 13 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Case Number 89510 In Re: Fiesta Checks & More LLC and Sohil N. Jivani ELECTION OF PROCEEDING | 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, | am requesting disposition as indicated below. (CHECK A BOX FOR NUMBER 1, 2, OR 3) 1. [ ] | do not dispute any of the Office’s factual allegations and application of the law. Therefore, | do not request a hearing. | 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. 1do not dispute any of the Office’s factual allegations but dispute the Office’s application of the law. | 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. [ ] | 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. 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 Fax Number Date Administrative Complaint Received: Election of Proceeding Page 1 of 2 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Case Number 89510 In Re: Fiesta Checks & More LLC and Sohil N. Jivani **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 EEE ARE td UAC be eS eee DIVISION OF CONSUMER FINANCE 200 East Gaines Street Tallahassee, FL 32399-0376 4 7499 F49L 7034 Sb82 0523 RETURN SERVICE REQUESTED FIESTA CHECKS & MORE LLC, and SOHIL N. JIVANI 10530 Rosemary Drive Bonita Springs, Florida 34135-5139

Docket for Case No: 19-002940