STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION STATE OF FLORIDA, OFFICE OF FINANCIAL REGULATION, Petitioner, Case No.: 0859-M-09/13 Ms 41 7108 2133 3938 9149 4b30 MONEY ENTERPRISES, INC., Respondent. ADMINISTRATIVE COMPLAINT. Comes now, the State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against: MONEY ENTERPRISES, INC. (“Respondent”), alleging: GENERAL ALLEGATIONS 1. Pursuant to section 560.105, Florida Statutes, the Office is charged with the responsibility of administering and enforcing the provisions of Chapter 560, Florida Statutes. 2. 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. 3. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of Chapter 560, Florida Statutes, constitutes grounds for disciplinary action. 4. Respondent was at all times material to this Administrative Complaint, a Part III Money Services Business licensee pursuant to Chapter 560, Florida Statutes, having been issued license number FT30900531. Case No 0859-M-9/13 Administrative Complaint Page 1 of 18 5. Respondent's address of record with the Office is 3595 N.W. 54" Street, Miami, Florida 33142 and its president and owner is Servilio Lezcano. 6. From about March 2013 to about September 2013, the Office conducted an examination (#42115) of Respondent’s business records that included the period of March 2011 through March 2013. COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. As part of the examination, the Office reviewed or attempted to review financial institution statements, including account holder information relative to Respondent’s activity between March 2011 and March 2013 and reviewed Respondent’s application information concerning disclosure of financial institution accounts. 9. Respondent failed to amend and update its financial information on Form 560-01 (License Application) to include its account at People’s Credit Union within thirty days of obtaining the account. The Respondent obtained the account in or about August 2012. 10. Section 560.126(2), Florida Statutes provides: A licensee must report, on a form adopted by rule, any change in the information contained in an initial license application form, any amendment to such application, or the appointment of an authorized vendor within 30 days after the change is effective, 11. Form 560-01 is adopted by Rule 69V-560.1012(1)(a), Florida Administrative Code and requires the disclosure of all accounts through which registered activities are or will be conducted. 12. Pursuant to Rule 69V-560.1000(52), Florida Administrative Code, a Case No 0859-M-9/13 Administrative Complaint Page 2 of 18 licensee cited for violating section 560.126(2), Florida Statutes, for the first time is subject to an “A” fine. 13. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” fine is between $1,000 and $3,500. 14. Thus, Respondent unlawfully failed to timely amend its financial information, in contradiction and violation of section 560.126(2), Florida Statutes. COUNT I 15. The above general allegations are hereby realleged and fully incorporated herein by reference. 16. Asa part of the examination, the Office reviewed records of quarterly reports which were filed by Respondent. 17. A quarterly report for activity conducted in the fourth quarter of 2011 was not filed within 45 days of that quarter’s end. Specifically, the quarter report was filed on February 15, 2012, one day late. 18. In 2008, the Office conducted a previous examination of Respondent's records, number EX2008060005 (‘2008 examination”). Based on the findings from that examination, Respondent entered into a Stipulation and Consent Agreement with the Office which was incorporated and accepted by Final Order in Administrative Proceeding No. 0336-M-09/09, entered on October 15, 2009 (“2009 Stipulation”). In that stipulation, Respondent consented to a finding that it failed to timely file two quarterly reports with the Office. 19. Section 560.1105, Florida Statutes, provides in part: Each licensee and its authorized vendors must maintain all books, accounts, documents, files, and information necessary for determining Case No 0859-M-9/13 Administrative Complaint Page 3 of 18 compliance with this chapter and related rules for 5 years unless a longer period is required by other state or federal law. 20. Section 560.118(2), Florida Statutes provides in part that “[eJach licensee must submit quarterly reports to the office in a format and include information as specified by rule.” 21. Rule 69V-560.602, Florida Administrative Code provides: Every money services business licensed pursuant to Chapter 560, F.S., shall submit a quarterly report to the Office by filing a completed Form OFR-560-04, Money Services Business Quarterly Report Form, which is incorporated by reference in Rule 69V-560.1012, F.A.C. A completed quarterly report form shall be received by the Office no later than forty- five (45) days after the conclusion of each quarter. Should the forty-fifth day fall on a Saturday, Sunday or holiday, the reports must be received by the Office no later than the next business day. A report is “past due” if it is received by the Office one or more days beyond the period set forth in this rule. 22. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for violating section 560.118(2), Florida Statutes, for the second time is subject to an “B” fine and an “B” suspension. 23. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “B” 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. 24. Thus, Respondent unlawfully failed to timely file its quarterly report for the fourth quarter of 2011, in contradiction and violation of section 560.118(2), Florida Statutes and Rule 69V-560.602, Florida Administrative Code. COUNT Ill 25. The above general allegations are hereby realleged and incorporated by reference as if fully stated herein. Case No 0859-M-9/13 Administrative Complaint Page 4 of 18 26. Asa part of the examination, the Office reviewed records of payment instruments exceeding $1,000.00 that were presented to Respondent for negotiation or payment, specifically including customer files. 27. In or about ten instances between March 2011 and March 2013, all required information relative to customer files associated with presentment or negotiation of corporate checks was not provided or maintained. 28. Section 560.1105, Florida Statutes, provides in part: Each licensee and its authorized vendors must maintain all books, accounts, documents, files, and information necessary for determining compliance with this chapter and related rules for 5 years unless a longer period is required by other state or federal law. 29. Section 560.310, Florida Statutes (2012) provides in part: (1) A licensee engaged in check cashing must maintain for the period specified in s. 861.1105 a copy of each payment instrument cashed. (2) If the payment instrument exceeds $1,000, the following additional information must be maintained: * ek *K (a) Customer files, as prescribed by rule, on all customers who cash corporate payment instruments that exceed $1,000. 30. Rule 69V-560.704, Florida Administrative Code further provides in part: (4) In addition to the records required in subsections (1) and (2), for payment instruments exceeding $1,000.00, the check casher shall: * * * (d) Create and maintain a customer file for each entity listed as the payee on corporate payment instruments and third party payment instruments accepted by the licensee. Each customer file must include, at a minimum, the following information: 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. Case No 0859-M-9/13 Administrative Complaint Page 5 of 18 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. Payment instruments for insurance claims where there are multiple payees shall be exempt from this provision provided that the maker of the check is an insurance company and the licensee has obtained and retained documentation as to the identity of the natural person listed as a payee on such payment instrument. (e) Review and update all active customer files at least annually. The required review and update shall be attested to by the compliance officer or their designee, and such documentation shall be maintained within each customer’s file. For purposes of this rule it shall not be necessary to update dormant customer files. Should a customer previously identified as being dormant, resume transacting business with the licensee, the customer file information shall be updated before accepting any payment instrument. 31. Pursuant to Rule 69V-560.1000(95), Florida Administrative Code, a licensee cited for violating section 560.310(1)(a).', Florida Statutes, for the first time is subject to a “B” fine and a “B” suspension. 32. 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. ' For the time period relevant to the examination, section 560.310(1)(a), FS pertaining to the required maintenance of customer files was found at section 560.310(2)(a), FS (2012). Case No 0859-M-9/13 Administrative Complaint Page 6 of 18 33. Thus, Respondent unlawfully failed properly maintain required customer files in or about ten instances between March 2011 and March 2013, where payment instruments exceeding $1,000 were presented for negotiation or payment, in contradiction of section 560.310, Florida Statutes. COUNT IV 34, The above general allegations are hereby realleged and incorporated by reference as if fully stated herein. 35. Asa part of the examination, the Office reviewed records of payment instruments exceeding $1,000.00 that were presented to Respondent for negotiation or payment, specifically including records of customer thumbprints. 36. In at least twenty-five instances of the approximately 261 checks over $1,000 between March 2011 and March 2013 that were reviewed, there were no corresponding thumbprint records maintained by Respondent. 37. Section 560.1105, Florida Statutes, provides in part: Each licensee and its authorized vendors must maintain all books, accounts, documents, files, and information necessary for determining compliance with this chapter and related rules for 5 years unless a longer period is required by other state or federal law. 38. Section 560.310, Florida Statutes (2012) provides in part: (1) A licensee engaged in check cashing must maintain for the period specified in s. 560.113 a copy of each payment instrument cashed. (2) If the payment instrument exceeds $1,000, the following additional information must be maintained: * ek * (c) A thumbprint of the customer taken by the licensee when the payment instrument is presented for negotiation or payment. Case No 0859-M-9/13 Administrative Complaint Page 7 of 18 39. Rule 69V-560.704, Florida Administrative Code further provides in part: (4) In addition to the records required in subsections (1) and (2), for payment instruments exceeding $1,000.00, the check casher shall: (a) Affix an original thumbprint of the conductor to the original of each payment instrument accepted which is taken at the time of acceptance; (b) Secure and maintain a copy of the original payment instrument, including the thumbprint of the conductor; 40. Pursuant to Rule 69V-560.1000(97), Florida Administrative Code, a licensee cited for violating section 560.310(1)(b)2.”, Florida Statutes, for the first time is subject to a “B” fine and a “B” suspension. 41. 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. 42. Thus, Respondent unlawfully failed to maintain thumbprint records in at least twenty-five instances between March 2011 through March 2013, where payment instruments exceeding $1,000 were presented for negotiation or payment, in contradiction of section 560.310, Florida Statutes. COUNT V 43. The above general allegations are hereby realleged and fully incorporated herein by reference. 44. Asa part of the examination, the Office reviewed or attempted to review ? For the time period relevant to the examination, section 560.310(1)(b)2, FS pertaining to the required maintenance of thumbprints was found at section 560.310(2)(c), FS (2012). Case No 0859-M-9/13 Administrative Complaint Page 8 of 18 records of payment instruments exceeding $1,000 that were presented to Respondent for negotiation or payment, specifically including Respondent's electronic log of payment instruments received. 45. Respondent failed to maintain an electronic payment instrument log which reported aggregate payment instruments which totaled $1,000 or greater. 46. Section 560.1105, Florida Statutes, provides in part: Each licensee and its authorized vendors must maintain all books, accounts, documents, files, and information necessary for determining compliance with this chapter and related rules for 5 years unless a longer period is required by other state or federal law. 47. Section 560.310, Florida Statutes (2012), provides in part: (1) A licensee engaged in check cashing must maintain for the period specified in s. 560.1105 a copy of each payment instrument cashed. (2) If the payment instrument exceeds $1,000, the following additional information must be maintained: * * * (d) A payment instrument log that must be maintained electronically as prescribed by rule. For purposes of this paragraph, multiple payment instruments accepted from any one person on any given day which total $1,000 or more must be aggregated and reported on the log. 48. Rule 69V-560.704(5), Florida Administrative Code provides: (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; Case No 0859-M-9/13 Administrative Complaint Page 9 of 18 7. Type of payment instrument; a. Personal check; b. Payroll check; c. Government check; 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. (b) Electronic logs shall be maintained in an electronic format that is readily retrievable and capable of being exported to most widely available software applications including Microsoft EXCEL. 49. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for violating section 560.310(1)(c)°, Florida Statutes, for the first time is subject to a “B” fine and a “B” suspension. 50. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “B” 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. 51. Thus, Respondent unlawfully failed to maintain a complete electronic log of Payment instruments accepted between March 2011 through March 2013, where instruments exceeding $1,000 were presented for negotiation or payment, in contradiction and violation of section 560.310, Florida Statutes. COUNT VI 52. The above general allegations are hereby realleged and fully incorporated herein by * For the time period relevant to the examination, section 560.3 10(1)(c), FS pertaining to the required maintenance of the electronic log was found at section 560.3 10(2)(d), FS (2012). Case No 0859-M-9/13 Administrative Complaint Page 10 of 18 reference. 53. Asa part of the examination, the Office reviewed records of financial transactions involving currency or other payment instruments with a value greater than $10,000 and the licensee’s reporting of such transactions. 54. In 2008, the Office conducted a previous examination of Respondent’s records, number EX2008060005 (“2008 examination”). Based on the findings from that examination, Respondent entered into a Stipulation and Consent Agreement with the Office which was incorporated and accepted by Final Order in Administrative Proceeding No. 0336-M-09/09, entered on October 15, 2009 (“2009 Stipulation”). In that settlement, Respondent consented to a finding that it failed to timely file at least ninety-seven (97) required CTR’s with FinCEN. 55. Respondent failed to timely file a Currency Transaction Report (“CTR”) in approximately thirty-six instances for transactions between March 2011 and March 2013. The noted CTR’s were each filed between approximately 5 and 55 days late. 56. Section 560.123(3)(c), Florida Statutes, requires a money service business to file a report concerning each financial transaction which it knows to involve currency or other payment instrument with a value greater than $10,000 and deems the requirement fulfilled when the money services business files the information on a CTR with FinCEN. 57. Section 560.1235(1), Florida Statutes provides that “[a] licensee and authorized vendor must comply with all state and federal laws and rules relating to the detection and Case No 0859-M-9/13 Administrative Complaint Page 11 of 18 prevention of money laundering, including, as applicable, s. 560.123, and 31 C.F.R. ss. 103.20, 103.22, 103.23, 103.27, 103.28, 103.29, 103.33, 103.37, and 103.41." 58. 31 C.F.R. section 103.22(b)(1) provides in part: Each financial institution other than a casino shall file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution which involves a transaction in currency of more than $10,000, except as otherwise provided in this section. 59. 31 CFR. section 103.27(a)(1) provides that “a report required . . . shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred.” 60. Pursuant to Rules 69V-560.1000(41) and (43), Florida Administrative Code, a licensee cited for violating section 560.123(3) and/or 560.1235(1), Florida Statutes, respectively, for the second time is subject to a “B” fine, a “B” suspension and/or revocation of its license. 61. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “B” 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. * On March 1, 2011, FinCEN transferred its regulations from 31 CFR Part 103 to 31 CFR Chapter X as part of an ongoing effort to increase the efficiency and effectiveness of its regulatory oversight. 31 CFR Chapter X is organized by generally applicable regulations and by industry-specific regulations. There have been no substantive changes made to the underlying regulations as a result of this transfer and reorganization. For example, 31 C.F.R. s.103.22(6)(1) is now known as 31.C.F.R. s. 1022.311. Citations throughout this complaint shall be to pre- transferred references. A complete listing of transferred citations can be accessed at: http://www. fincen.gov/statutes_regs/ChapterX/ChapterX Calculator.html?fi=msb. Case No 0859-M-9/13 Administrative Complaint Page 12 of 18 62. Thus, Respondent unlawfully failed to timely file approximately thirty-six required CTRs for transactions between March 2011 and March 2013, in contradiction and violation of sections 560.123(3) and 560.1235(1), Florida Statutes. COUNT VII 63. The above general allegations are hereby realleged and fully incorporated herein by reference. 64. As part of the examination, the Office reviewed or attempted to review endorsements on payment instruments cashed by Respondent between March 2011 and March 2013. 65. A review of payment instruments which were obtained for March 2011 through March 2013 revealed that Respondent failed to endorse all payment instruments which it accepted. 66. Section 560.309(2), Florida Statutes provides: “[a]t the time a licensee accepts a payment instrument that is cashed by the licensce, the payment instrument must be endorsed using the legal name under which the licensee is licensed.” 67. Rule 69V-560.704, Florida Administrative Code, provides in part: (2) Every check casher shall maintain legible records of all payment instruments cashed. The records shall include the following information with respect to each payment instrument accepted by the registrant: (a) A copy of all payment instruments accepted and endorsed by the licensee to include the face and reverse (front and back) of the payment instrument. Copies shall be made after each payment instrument has been endorsed with the legal name of the licensee. Endorsements on all payment instruments accepted by the check casher shall be made at the time of acceptance. 68. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee Case No 0859-M-9/13 Administrative Complaint Page 13 of 18 cited for violating section 560.309(2), Florida Statutes, for the first time is subject to a “B” fine and a “B” suspension. 69. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “B” 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. 70. Thus, Respondent unlawfully failed to endorse all payment instruments accepted between March 2011 and March 2013, in contradiction and violation of section 560.309(2), Florida Statutes and Rule 69V-560.704(2)(a), Florida Administrative Code. COUNT Vil 71. The above general allegations are hereby realleged and fully incorporated herein by reference. 72. As part of the examination, the Office reviewed or attempted to review records summarizing each day’s activities and reconciling cash on hand at the close of business for the period of March 2011 through March 2013. 73. Respondent failed to provide a complete daily cash reconciliation summarizing each day’s check cashing activities and reconciling cash on hand at the close of business for the period of March 2011 through March 2013. 74. Section 560.114(1)(e), Florida Statutes provides that the following action bya money services business or affiliated party also constitutes grounds for discipline as specified in section 560.114(1), Florida Statutes: Failure to maintain, preserve, keep available for examination, and produce all books, accounts, files, or other documents required by this chapter or related rules or orders, by 31 C.F.R. ss. 103.20, 103.22, 103.23, 103.27, Case No 0859-M-9/13 Administrative Complaint Page 14 of 18 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125, or by any agreement entered into with the office. 75. Section 560.1105, Florida Statutes further provides in part: Each licensee and its authorized vendors must maintain all books, accounts, documents, files, and information necessary for determining compliance with this chapter and related rules for 5 years unless a longer period is required by other state or federal law. (1) The records required under this chapter may be maintained by the licensee at any location identified in its license application or by amendment to the application. The licensee must make such records available to the office for examination and investigation in this state within 3 business days after receipt of a written request. 76. Rule 69V-560.704(3)(b), Florida Administrative Code provides in part: (3) The following additional information shall be maintained: * * * (b) A daily summary of the business activities including the following documents: * k * 3. A daily cash reconciliation summarizing each day’s activities and reconciling cash on hand at the close of business. The daily cash reconciliation shall be sufficiently detailed to provide an audit trail of each day’s business activity. Where the licensee provides multiple business services through the same legal entity the daily cash reconciliation shall be maintained in such manner as to separate business activities such as check cashing. 77, Pursuant to Rule 69V-560.1000(5)(16), Florida Administrative Code, a licensee cited for violating section 560.1105 or 560.114(1)(e), Florida Statutes for the first time is subject to an “A” fine, and “A” suspension and/or revocation 78. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” fine is $1,000 - $3,500; and pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for an “A” suspension is 3 to 10 days. Case No 0859-M-9/13 Administrative Complaint Page 15 of 18 79. Thus, Respondent unlawfully failed to a complete daily cash reconciliation, in contradiction and violation of sections 560.1105 and 560.1 14(1)(e), Florida Statutes and Rule 69V-560.704(3)(b), Florida Administrative Code. WHEREFORE, Respondent, MONEY ENTERPRISES, INC. is hereby notified that the Office intends to enter an Order to Cease and Desist; revoking its license; and imposing a fine of $32,300. 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. Case No 0859-M-9/13 Administrative Complaint Page 16 of 18 You may not make an oral request for an administrative hearing. With regard to a written Tequest, if you fail to follow the outlined procedure, your Tequest 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 _25!" day of February, 2014. DREW J. BREAKSPEAR Commissioner By Aa Y Dass Scott A. Tavoliert Assistant General Counsel Office of Financial Regulation Fla. Bar No. 090239 400 W. Robinson St., S-225 Orlando, Florida 32801-1799 (407) 245-0608; fax (407) 245-0806 scott.tavolieri@flofr.com Case No 0859-M-9/13 Administrative Complaint Page 17 of 18 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, Retum Receipt Requested to Money Enterprises, Inc., attention Servilio Lezcano, president, at 3595 N.W. 54” Street, Miami, Florida 33142, this 254 day of February, 2014. Sy Assistant General Counsel Office of Financial Regulation Fla. Bar No. 090239 400 W. Robinson St., S-225 Orlando, Florida 32801-1799 (407) 245-0608; fax (407) 245-0806 scott.tavolieri@flofr.com Case No 0859-M-9/13 Administrative Complaint Page 18 of 18 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION 0859-M-09/13 MONEY ENTERPRISES, INC. 3595 N.W. 54™ STREET MIAMI, FL 33142 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) se [ ] | do not dispute any of the Office’s factual allegations and application of the law as stated in the Administrative Complaint. Therefore, | do not request a hearing in this matter. | 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, and/or imposing an administrative fine. | do not dispute any of the Office’s factual allegations but dispute the Office’s application of the law to those factual allegations, and request disposition of this matter pursuant to Section 120.57(2), Florida Statutes. | request to (CHECK ONE OF THE FOLLOWING OPTIONS): { ] Submit a written statement and supporting documents to an Office of Financial Regulation Hearing Officer in lieu of an informal proceeding; OR [ ] In person, attend an informal proceeding conducted by an Office of Financial Regulation Hearing Officer in Tallahassee, Florida; OR [ ] By telephone conference call, attend an informal proceeding conducted by a Hearing Officer. [ ]! do dispute one or more of the Office’s factual allegations. | request a formal hearing pursuant to section 120.57(1), Florida Statutes, 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 YOUR RIGHTS, A RESPONSE FROM YOU MUST BE RECEIVED BY THE OFFICE OF FINANCIAL REGULATION NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST (21) DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing your response 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 Authorized Mailing Address 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 0859-M-09/13 MONEY ENTERPRISES, INC. 3595 N.W. 54™ STREET MIAMI, FL 33142 **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 as they were set forth in the Administrative Complaint: (CHECK ONLY ONE BOX BELOW) As the licensee or the authorized representative of the licensee, | am requesting that the Office: [ ] Immediately send the dispute to the Division of Administrative Hearings for resolution; or [ ] immediately designate a representative to engage in settlement negotiations. As such, | understand that at any time, the Office may cease negotiating and immediately send the dispute to the Division of Administrative Hearings for resolution or; at any time, the licensee may cease negotiating and, in writing, request the Office immediately send the dispute to the Division of Administrative Hearings for resolution. Signature of Authorized Representative Date Election of Proceeding Page 2 of 2

Docket for Case No: 14-003725