Petitioner: OFFICE OF FINANCIAL REGULATION
Respondent: TAX ALERT MONEY SERVICES, LLC
Judges: LINZIE F. BOGAN
Agency: Office of Financial Regulation
Locations: Tampa, Florida
Filed: Jul. 15, 2014
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Wednesday, September 3, 2014.
Latest Update: Dec. 25, 2024
STATE OF FLORIDA
OFFICE OF FINANCIAL REGULATION
STATE OF FLORIDA,
OFFICE OF FINANCIAL REGULATION,
Petitioner,
Case No.: 0776-M-02/13
v.
TAX ALERT MONEY SERVICES, LLC,
Respondent.
ADMINISTRATIVE COMPLAINT
Comes now, the State of Florida, Office of Financial Regulation, (“Office’’) and files this
Administrative Complaint against TAX ALERT MONEY SERVICES, LLC (“Tax Alert” or
“Respondent”), alleging:
GENERAL ALLEGATIONS
1. The Office is charged with the responsibility of administering and enforcing the
provisions of Chapter 560, Florida Statutes, entitled “Money Services Businesses”, pursuant to
section 560.105, Florida Statutes, which regulates check cashing among other things.
2. Atall times material hereto, Respondent was a Florida limited liability company that
provided tax return preparation and that also cashed the customer’s tax return refund checks in
Tampa, Florida.
3. At all times material hereto, Respondent has been licensed with the Office to engage
in check cashing under Part III, Chapter 560, Florida Statutes, having been issued license number
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Administrative Complaint
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FT340000423 on August 18, 2011. Respondent’s mailing address of record with the Office is
1001 Pond Rd., Tampa, FL 33612.
4. Atall times material hereto, Ronald Hollins (“Mr. Hollins”) was the sole owner/
member of Respondent. As such, Mr. Hollins possessed the power to direct the management or
policies of Respondent. Accordingly, Mr. Hollins was an “affiliated party” of Respondent as
that term is used in Section 560.103, Florida Statutes.
5. Pursuant to Section 560.109, Florida Statutes, the Office may conduct examinations
and investigations to determine whether any provision of Chapter 560, Florida Statutes, has been
violated.
6. On or about December 22, 2011, the Office sent Respondent a letter placing it on
notice that the Office was scheduling it for examination number 29160. At that time the Office
was required to examine all new licensees within 6 months of licensure pursuant to Section
560.109(1), Florida Statutes (2011).!
7. In January 2012, Respondent informed the Office that it had not done any check
cashing; however, it anticipated that it would in the upcoming months as it was a tax preparer.
8. On or about September 11, 2012, the Office conducted an examination number 29160
of Respondent’s business records. At the time of the exam field work, Respondent had cashed
30 checks since licensure.
' When the exam was initiated, the Office was required to examine a new licensee within 6 months after the issuance
of the license pursuant to Section 560.109(1), Florida Statutes (2011). This requirement for the Office to examine
within 6 months after licensure was repealed, effective July 1, 2012, by s. 2, Ch. 2012-85, Laws of Florida.
However, the Office retains its authority and responsibility to examine check cashers for the protection of the
customers and in the public interest under Section 560.109, and the law requires the Office to examine each licensee
at least once every 5 years.
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COUNT I
9. The above general allegations are hereby realleged and incorporated by reference as if
fully stated herein.
10. Respondent failed to maintain thumbprints of customers on some of the payment
instruments that it cashed. In the 28 checks cashed by Respondent in amounts in excess of
$1,000, Respondent failed to affix a thumbprint of the conductor (the person who cashed the
check) to 10 of those checks,
11. A check casher is required to affix an original thumbprint of the conductor to the
original of each payment instrument at the time of acceptance of all checks in amount in excess
of $1,000 and maintain the record pursuant to Section 560.310(1)(b)2, Florida Statutes (2011),
and Rule 69V-560.704(4)(a)&(b), F.A.C.
12. Based upon the foregoing, Respondent failed to affix an original thumbprint of the
conductor to the original of each payment instrument in violation of Section 560.310(1)(b)2,
Florida Statutes, and Rule 69V-560.704(4)(a) and (b), F.A.C., which is a violation of Section
560.114(1)(a), Florida Statutes, for failing to comply with a provision of Chapter 560, Florida
Statutes, or its related rules.
13. Pursuant to the operation of the penalty guidelines of Rules 69V-560.1000(97),
(150), and (151), Florida Administrative Code, a violation of Section 560.310(1)(b)2, Florida
Statutes, for the first time subjects a person to a fine between the range of $3,500 and $7,500 and
a suspension of license between the range of 10 to 20 days.
(The rest of the page is intentionally left blank.)
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COUNT II
14. The above general allegations are hereby realleged and incorporated by reference as if
fully stated herein.
15. Licensees must submit quarterly reports to the Office in a format specified by rule
according to Section 560.118(2), Florida Statutes.
16. Rule 69V-560.602, Florida Administrative Code provides in part:
... A completed quarterly report form shall be received by the Office no later
than forty-five (45) days after the conclusion of each quarter. . . .
17. Respondent late-filed a quarterly report for one quarter during the period of time
examined. Additionally, Respondent failed to file three quarterly reports altogether, and filed
another one late during the time period after the examination commenced up to the present. The
untimely or missing quarterly reports are for the following periods of time:
Quarter ending Date received Report filed at all, yes or no
12-31-11 9-11-12 Yes
9-30-12 No
12-31-12 No
6-30-13 No
9-30-13 1-8-14 Yes
18. The two quarterly reports that were untimely filed by Respondent reflect that no
check cashing activity occurred during those periods. Regardless of whether check cashing
activity occurred, Respondent was required to have timely filed quarterly reports pursuant to
Section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code.
2 The quarterly reports require the following information to be disclosed for each month:
-Total number of checks cashed
-Total dollar amount of all checks cashed
-Total fees received for all checks cashed
-Total verification fees received for all checks cashed
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19. Based upon the foregoing, Respondent violated Section 560.118(2), Florida Statutes,
and Rule 69V-560.602, Florida Administrative Code, by failing to file quarterly reports and by
untimely filing quarterly reports, which is a violation of Section 560.114(1)(a), Florida Statutes,
for failing to comply with a provision of Chapter 560, Florida Statutes, or related rules.
20. Pursuant to the operation of Rule 69V-560.1000(39), (150), and (151), Florida
Administrative Code, a licensee cited for violating Section 560.118(2), Florida Statutes, for the
first time is subject to a fine between the range of $1,000 and $3,500 and a suspension of license
in the range of 3 to 10 days.
COUNT HI
21. The above general allegations are hereby realleged and incorporated by reference as if
fully stated herein.
22. For checks cashed in excess of $1,000, a check casher is required to maintain a log of
payment instruments that must be maintained electronically as prescribed by rule. Section
560.310(1)(c), Florida Statutes (2011). The information required to be kept in the electronic log
is prescribed in Rule 69V-560.704(5)(a), Florida Administrative Code.
3 (5)(a) In addition to the records required in subsections (1) and (2) for payment instruments $1,000.00 or
more, the check casher shall create and maintain an electronic log of payment instruments accepted which includes,
at a minimum, the following information:
1. Transaction date;
2. Payor name;
3. Payee name;
4. Conductor name, if other than the payee;
5. Amount of payment instrument;
6. Amount of currency provided;
7. Type of payment instrument;
a. Personal check;
b. Payroll check;
c. Government check;
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23. The Office’s examiner reviewed Respondent’s electronic payment instrument log
during its examination in September of 2012. The electronic payment instrument log contained
the following deficiencies:
a. Respondent failed to maintain the check type, such as personal check, payroll
check, government check, corporate check, third party check, or other payment instrument for
each check. See Rule 69V-560.704(5)(a), F.A.C.
b. Respondent failed to maintain the amount of payment provided.
24. Based upon the foregoing, Respondent failed to maintain a payment instrument log
electronically as prescribed by rule in violation of Section 560.310(1)(c), Florida Statutes (2011),
and Rule 69V-560.704(5)(a), F.A.C., which is a violation of Section 560.114(1)(a), Florida
Statutes, for failing to comply with a provision of Chapter 560, Florida Statutes, or its related
rules.
25. Pursuant to the operation of the disciplinary guidelines of Rules 69V-560.1000(98),
(150), and (151), Florida Administrative Code, a violation of Section 560.310(1)(c), Florida
Statutes (2011), for the first time subjects a person to a fine between the range of $3,500 and
$7,500 and a suspension of license between the range of 10 to 20 days.
d. Corporate check;
e. Third party check; or
f. Other payment instrument;
8. Fee charged for the cashing of the payment instrument;
9. Branch/Location where instrument was accepted;
10. Identification type presented by conductor; and
11. Identification number presented by conductor.
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WHEREFORE, TAX ALERT MONEY SERVICES, LLC, is hereby notified that the
Office intends to enter an Order suspending Respondent’s money transmitter license for 33 days
and/or imposing a fine of $11,400, and/or imposing other penalties that may be provided for in
Chapter 560, Florida Statutes.
NOTICE OF RIGHTS
Respondents are entitled to be represented by counsel or other qualified representative.
Respondents also have 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
Case No. 0776-M-02/13
Administrative Complaint
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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_3 _ day of Mac, ,20 {4
wick
& en
DREW J. BREAKSPEAR
Commissioner
By: f
William Oglo
Assistant General Counsel
Office of Financial Regulation
Fla. Bar No. 874876
200 E. Gaines Street
Fletcher Bldg., Suite #550
Tallahassee, FL 32399-0376
(850) 410-9887
(850) 410-9914 (fax)
bill.oglo@flofr.com
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative
Complaint has been furnished by certified U.S. mail, Return Receipt Requested to Ronald
Hollins, Owner, Tax Alert Money Services, LLC, 1001 Pond Rd., Tampa, FL 33612, on this
4 day of My , 20 \4.
; A
WILLIAM OGL
___32 7299 9992 7031 3028 9715 Assistant General Counsel
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Administrative Complaint
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Docket for Case No: 14-003219
Issue Date |
Proceedings |
Sep. 03, 2014 |
Order Closing File and Relinquishing Jurisdiction. CASE CLOSED.
|
Aug. 22, 2014 |
(Petitioner's) Motion to Relinquish Jurisdiction filed.
|
Jul. 29, 2014 |
Amended Notice of Hearing by Video Teleconference (hearing set for September 18, 2014; 9:30 a.m.; Tampa and Tallahassee, FL; amended as to Date of Hearing).
|
Jul. 29, 2014 |
Order of Pre-hearing Instructions.
|
Jul. 29, 2014 |
Notice of Hearing by Video Teleconference (hearing set for September 23, 2014; 9:30 a.m.; Tampa and Tallahassee, FL).
|
Jul. 25, 2014 |
Office's Notice of Filing Certificates of Service of Discovery upon Respondent filed.
|
Jul. 23, 2014 |
(Joint) Response to Initial Order filed.
|
Jul. 16, 2014 |
Initial Order.
|
Jul. 15, 2014 |
Election of Proceeding filed.
|
Jul. 15, 2014 |
Agency referral filed.
|
Jul. 15, 2014 |
Administrative Complaint filed.
|