STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION STATE OF FLORIDA, OFFICE OF FINANCIAL REGULATION, Petitioner, Case No.: 0807-M-05/13 v. DOVEN INC., Respondent. ADMINISTRATIVE COMPLAINT Comes now, the State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against DOVEN 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, or related rule or order, or any written agreement entered into with the Office, 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 FT340000109. Respondent had a prior Part If] Money Services Business license, license number FT30700765, which expired on December 31, 2008. Page 1 of 7 5. Respondent’s address of record with the Office is 4388 Lake Worth Road, Lake Worth, Florida 33467 and its President and 100% owner is Rafael Diaz 6. On or about February 7, 2013, the Office conducted an examination (#39039) of Respondent's business records that included the period of November 1, 2011 through December 31, 2012. COUNT I 7. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 8. Between November 1, 2011 and December 31, 2012, Respondent cashed payment instruments over $1,000. 9. As apart of the examination, the Office reviewed or attempted to review records of payment instruments exceeding $1,000 that were presented to Respondent for negotiation or payment between November 1, 2011 through December 31, 2012, specifically including Respondent's electronic log of payment instruments received. 10. Respondent failed to create or maintain an electronic log for payment instruments over $1,000 received between November 1, 2011 and December 31, 2012. 11. On February 7, 2013, the Office made a written request to licensee for a copy of their electronic log for payment instruments for $1,000 or more received between November 1, 2011 and December 31, 2012. Respondent acknowledged receipt of the written request on February 7, 2013. 12. Respondent failed to provide the requested records within 3 business days. 13. 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 Page 2 of 7 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. 14. Section 560.310(2)(d), Florida Statutes', provides in part: (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. 15. Rule 69V-560.704(5)(a)(b), Florida Administrative Code (2009) provides: (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; 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 ; Formerly numbered as section 560.310(1 (c), Florida Statutes Page 3 of 7 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. 16. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for failing to maintain an electronic payment instrument log for the first time is subject to a “B” fine and a “B™ suspension. 17. 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. 18. Thus, Respondent unlawfully failed to maintain an electronic log in an electronic format that is readily retrievable and capable of being exported, in contradiction and violation of section 560.310, Florida Statutes and Rule 69V-560.704(5)(b), Florida Administrative Code. COUNT IH 19. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 20. As part of the examination, the Office reviewed or attempted to review endorsements on payment instruments cashed by Respondent between November 1, 2011 and December 31, 2012. 21. In a sample of 888 payment instruments, Respondent failed to properly endorse approximately 10 of them with their legal name. 22. 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 Page 4 of 7 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. 23. Section 560.309(2), Florida Statutes provides: “[a]t the time a licensee accepts a payment instrument that is cashed by the licensee, the payment instrument must be endorsed using the legal name under which the licensee is licensed.” 24. Rule 69V-560.704(2)(a), Florida Administrative Code (2009), 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. 25. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee cited for failing to endorse a payment instrument that is accepted or cashed by the licensee using the legal name under which the licensee is licensed for the first time is subject to a “B™ fine and a “B” suspension. 26. 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. 27. Thus, Respondent unlawfully failed to endorse all payment instruments accepted between November 1, 2011 and December 31, 2012, in contradiction and violation of section 560.309(2), Florida Statutes and Rule 69V-560.704(2)(a), Florida Administrative Code. Page 5 of 7 WHEREFORE, Respondent, DOVEN INC., is hereby notified that the Office intends to impose a fine of $11,000 and an order to Cease and Desist from further violations of Chapter 560, Florida Statutes. 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 2-6 day of _. | AZ 201 Page 6 of 7 DREW J. BRESKSPEAR ) Commissioner’ ‘ _/-#sistant General Counsel Office of Financial Regulation Fla. Bar No. 0506877 400 W. Robinson St., $-225 Orlando, Florida 32801-1799 (407) 245-0601; fax (407) 245-0806 jennifer.lozano@flofr.com CERTIFICATE OF SERVICE 1 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 Doven Inc., attention Rafael Diaz, President, at 4388 Lake Worth Road, Lake Worth, Bpate atk, this L& dayof_Cl\¢ 02,20 \.° \ 9L 7199 9991 7034 3459 6940 Assistant General Counsel ee Office of Financial Regulation Fla. Bar No. 0506877 400 W. Robinson St., S-225 Orlando, Florida 32801-1799 (407) 245-0601; fax (407) 245-0806 jennifer.lozano@flofr.com Page 7 of 7

Docket for Case No: 14-003748