STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding AJ NICK INC d/b/a GRAB N GO, NIDAL Docket Number: 93543 SAADEH, and FAROUK DIB, Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against AJ NICK INC d/b/a GRAB N GO, NIDAL SAADEH, and FAROUK DIB, (together as “Respondents”), alleging: GENERAL ALLEGATIONS 4. 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 hereto, Nidal Saadeh was President, Compliance Officer, and co-owner of AJ Nick Inc. 3: At all times material hereto, Farouk Dib was Vice President and co-owner of AJ Nick Inc. 4. At all times material hereto, Nidal Saadeh and Farouk Dib were affiliated parties of AJ Nick Inc as that term is defined in section 560.103(1), Florida Statutes. 5. At all times material hereto, Respondents were licensed by the Office as a money services business under Part III of chapter 560, Florida Statutes, to operate as a check casher and held license No. FT340000843. 6. At all times material hereto, Respondents’ business address of record as reported to the Office was 11380 West Sample Road, Coral Springs, Florida 33065. Ds In March 2018, the Office conducted an examination (No. 89259) of Respondents’ business records and operations for the period of May 15, 2014 through December 31, 2017 (“examination period”). 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 a ground for disciplinary action. 9. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the ranges for an administrative fine imposed by this rule are $1,000 to $3,500 for an “A” fine and $3,500 to $7,500 for a “B” fine. 10. Pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the ranges for suspension. imposed by this rule are 3 to 10 days for an “A” suspension and 10 to 20 days for a “B” suspension. COUNT I 11. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 12. 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 anti-money laundering program (“AML”). 13. Respondents’ 2014 and 2015 AML manuals state an “independent review [of their AML] will be conducted on an annual basis. The results of these reviews will be made readily available to their financial institutions as well as any governing Federal or State agency... AJ Nick, Inc., d/b/a Grab N Go will retain the service of an AML certified outside independent consultant to perform the attestation function of the anti-money laundering program...Copies of all independent reviews and any documented corrective actions taken in response will be retained for five years.” 14. Respondents’ AML policy stated they would conduct an independent review on an annual basis. Pursuant their AML policy, Respondents’ should have conducted an independent review in 2015. Consultant J2M & Associates LLC conducted Respondents’ independent review in January 2016 for the period of May 2014 to December 31, 2015. Respondents did not have an independent review in 2015. 15. Respondents’ failed to have an independent review performed in 2015 and as such Respondents failed to implement the independent review policy as stated in their AML, in violation of section 560.114(1)(y), Florida Statutes, and 31 C.F.R. §1022.210. 16. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for failing to comply with section 560.114(1)(y), Florida Statutes, is subject to a “B” fine and a “B” suspension or license revocation. 17. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day suspension. COUNT I 18. | The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 19. Pursuant to section 560.126(2), Florida Statutes, licensees must report on a form adopted by rule, 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. The information contained in an initial license application or any amendment thereto is added to a licensee’s record with the Office. 20. An Application for Licensure as a Money Services Business (“Form OFR-560- 01”), as adopted and incorporated by reference by Rule 69V-560.1012(1)(a), Florida Administrative Code, is to be used to amend an existing licensee’s record, including any changes to the list of accounts at financial institutions (“banks”) through which a licensee conducts or will conduct registered activities. See Rule 69V-560.102, Florida Administrative Code. 21. During the examination, the Office found Respondents opened and used bank accounts at Wells Fargo and SunTrust for check cashing, but they did not report the account openings to the Office within thirty (30) days, 22. Respondents failed to report to the Office, within 30 days, bank accounts they opened and used at Wells Fargo and SunTrust, in violation of section 560.126(2), Florida Statutes. 23. Pursuant to Rule 69V-560.1000(52), Florida Administrative Code, a licensee cited for failing to comply with section 560.126(2), Florida Statutes, or related rule, is subject to an “A” fine. 24. Therefore, the Office is seeking an administrative fine of $2,000. COUNT Itt 25. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 26. Pursuant to section 560.310(1), Florida Statutes, and Rule 69V-560.704(2), Florida Administrative Code, licensees are required to maintain copies of the face and reverse (front and back) of all payment instruments cashed. 27. The Office found for some transactions Respondents' records did not contain copies of payment instruments cashed, or copies did not include the reverse or (back) of the payment instrument. 28. Respondents failed to maintain copies of payment instruments cashed in the manner required by rule and statute, in violation of section $60.114(1)(a), Florida Statutes. 29. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for failing to comply with section 560.114(1)(a), Florida Statutes, is subject to a “B” fine, and a “B” suspension or license revocation. 30. Therefore, the Office is seeking an administrative fine of $3,600 and a 10-day suspension. COUNT IV 31. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 32. | When payment instruments with a face value of more than $1,000 are cashed section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code, require licensees to maintain a copy of legible acceptable personal identification ("ID") that bears the signature and a photograph of the customer cashing the payment instrument. Acceptable IDs are limited to a: valid driver license; state identification card issued by any state of the United States (“U.S.”) or its territories or the District of Columbia; U.S. Government Resident Alien Identification Card; passport; or U.S. Military identification card. 33. As part of the examination, the Office reviewed a sample of Respondents’ copies of payment instruments cashed with a face value of more than $1,000, and their corresponding copies of customer IDs. The Office found Respondents’ records contained copies of invalid or illegible IDs. The Office also found Respondents’ records did not contain a copy of a corresponding customer ID for some payment instruments cashed. 34. Respondents failed to maintain copies of acceptable and legible personal IDs, in violation of sections 560.114(1)(a) and 560.310(2)(b), Florida Statutes, and Rule 69V- 560.704(4)(c), Florida Administrative Code. 35. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for failing to comply with section 560.114(1)(a), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. 36. Therefore, the Office is seeking an administrative fine of $4,900 and a 14-day suspension. COUNT 5 37. The above general allegations and paragraphs 12 and 32-34 are hereby re-alleged and incorporated by reference as if fully stated herein. 38. Respondents’ 2016 and 2017 AML manuals direct employees to obtain a copy of customer identification. The manuals list the acceptable forms of identification as a “valid and current: U.S. driver’s license, U.S. state ID card, passport, resident alien card (green card), and U.S. military ID card.” During the examination period, for some transactions, Respondents did not obtain customer identification, or they obtained copies of invalid customer identifications. 39. Respondents failed to implement the customer identification acceptance and collection policy as stated in their AML, in violation of section 560.114(1)(y), Florida Statutes, and 31 C.F.R. §1022.210. 40. _ Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for failing to comply with section 560.114(1)(y), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. 41. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day suspension, COUNT VI 42. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 43. Pursuant to section 560.309(2), Florida Statutes, and Rule 69V-560.704(2)(a), Florida Administrative Code, at the time a licensee accepts and cashes a payment instrument, it must be endorsed using the licensee’s legal name. 44. Respondents’ records for the examination period contained copies of payment instruments that the licensee cashed, but were not endorsed by the licensee. 45. 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. 46. 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. 47. Therefore, the Office is seeking an administrative fine of 3,800 and an 11-day suspension. COUNT Vil 48. | The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 49. | Whena payment instrument of greater than $1,000 is cashed, section 560.310(2)(c), Florida Statutes, requires a licensee to affix the conductor’s thumbprint to the original payment instrument accepted and to maintain a record of such payment instrument. 50. The Office reviewed Respondents’ records of payment instruments over $1,000 which were cashed during the examination period, and found their records contained copies of original payment instruments that had no thumbprint affixed. 51. | Respondents failed to affix thumbprints of the conductor to the original payment instruments, in violation of section 560.310(2)(c), Florida Statutes. 52. 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. 53. Therefore, the Office is seeking an administrative fine of $3,600 and a 10-day suspension. COUNT VU 54. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 55. 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 with a face value of $1,000 or more, to the Florida Statewide Check Cashing Database ("CCDB"). 56. During the examination period, in some check cashing transactions Respondents did not submit payment instrument information into the CCDB; or they did not submit the information within the time required by law; and in other transactions Respondents did not submit accurate payment instrument information into the CCDB for payors or conductors. 7: Respondents failed to submit information about payment instruments into the CCDB in accordance with the requirements as prescribed by statute and rule, in violation of section 560.114(a), Florida Statutes, and Rule 69V-560.704(6), Florida Administrative Code. 58. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for failing to comply with section 560.114(1)(a), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. 59. Therefore, the Office is seeking an administrative fine of $5,100 and a 14-day suspension. WHEREFORE, Respondents, AJ NICK INC d/b/a GRAB N GO, NIDAL SAADEH, and FAROUK DIB are hereby notified that the Office intends to enter an Order imposing an administrative fine of $30,000 and a 79-day suspension. 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. 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, 101 East Gaines Street, Tallahassee, Suite 118, Florida 32399-0379, phone: (850) 410-9889, or by email: agency.clerk@flofr.com. DATED and SIGNED on this the Sth day of April, 2019. RONALD L. RUBIN Commissioner by: /s/ Melissa-Rose A. Stafford Assistant General Counsel Florida Bar No. 0096522 Office of Financial Regulation The Rohde Building 401 N.W. 2™ Avenue, Suite N-708 Miami, Florida 33128-1740 telephone (305) 536-0308 facsimile (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 AJ NICK INC d/b/a GRAB N GO, NIDAL SAADEH, and FAROUK DIB, at 11380 West Sample Road, Coral Springs, Florida 33065-7055, on thisthe ‘ST day of April, 2019. /s/ Melissa-Rose A. Stafford 9171599 99591 7039 5642 4Ob4 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION Case Number 93543 In Re: AJ Nick Inc d/b/a Grab N Go, Nidal Saadeh, and Farouk Dib 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. [ ] | donot 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. Ido 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 93543 In Re: AJ Nick Inc d/b/a Grab N Go, Nidal Saadeh, and Farouk Dib **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

Docket for Case No: 20-002311