Index: STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket E-Z PAYDAY, INC. Number: 54249F-F Respondent. ADMINISTRATIVE COMPLAINT Comes now, the State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against E-Z PAYDAY, 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 FT30900461. Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 1 of 7 5. Respondent’s address of record with the Office is 1002 20" Place, Vero Beach, Florida 32960 and its mailing address of record is 3630 Gardens Parkway, Suite 1001, Palm Beach Gardens, Florida 33410. The owner is Dominic Giambona. 6. On or about November 21, 2013, the Office conducted an examination (#47689) of Respondent’s business records that included the period of September 1, 2008 through September 30, 2013. COUNT I 7. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 8. As part of the examination, the Office reviewed or attempted to review records regarding all payment instruments cashed by Respondent starting September 1, 2008 through September 30, 2013. 9. For transactions involving payment instruments exceeding $1000, Respondent failed to provide in an electronic log the conductor name from the payment instruments cashed and the branch or location where the payment instrument was accepted. 10. 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 or submitted: (d) The office shall, at a minimum, require licensee to submit the following information to the check cashing database or electronic log, before entering into each check cashing transaction for each payment instrument being cashed, in such format as required by rule: 1. Transaction date. 2. Payor name as displayed on the payment instrument. 3. Payee name as displayed on the payment instrument. 4. Conductor name, if different from the payee name. 5. Amount of the payment instrument. 6. Amount of currency provided. Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 2 of 7 7. Type of payment instrument, which may include personal, payroll, government, corporate, third-party, or another type of instrument. 8. Amount of the fee charged for cashing of the payment instrument. 9. Branch or location where the payment instrument was accepted. 10. The type of identification and identification number presented by the payee or conductor. 11. Payee’s workers’ compensation insurance policy number or exemption certificate number, if the payee is a business. 12. Such additional information as required by rule. [Emphasis added. ] 11. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for failing to maintain an electronic payment instrument log which reports aggregate payment instruments whose total cashed is greater than $1,000 is subject to a “B” fine, and a “B” suspension. 12. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “B” fine is $3,500 - $7,500; and pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for a “B” suspension is 10 to 20 days. 13. Thus, from September 1, 2008 through September 30, 2013, Respondent failed to maintain an electronic payment instrument log which reports aggregate payment instruments whose total cashed is greater than $1,000, in contradiction and violation of sections 560.1105 Florida Statutes and section 560.310, Florida Statutes. COUNT Il 14. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 15. As part of the examination, the Office reviewed or attempted to review complete copies of all payment instruments cashed by Respondent between September 1, 2008 and September 30, 2013. Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 3 of 7 16. Ina sample of 189 checks reviewed from 2011, 2012, and 2013, Respondent failed to provide copies of the backs of the checks in approximately 79% of the checks sampled. 17. Section 560.114(1)(e), Florida Statutes provides that the following action by a money services business or affiliated party also constitutes grounds for discipline as specified in subsection 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, 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125, or by any agreement entered into with the office. 18. Section 560.1105(1), 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. (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. 19. Rule 69V-560.704(2)(a), 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. Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 4 of 7 20. Pursuant to Rule 69V-560.1000(5) and Rule 69V-560.1000(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 an “A” suspension. 21. 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. 22. Thus, Respondent unlawfully failed to maintain complete copies of all payment instruments that it cashed between 2011 and 2013, in contradiction and violation of sections 560.1105 and 560.114(1)(e), Florida Statutes and Rule 69V-560.704(2)(a), Florida Administrative Code. WHEREFORE, Respondent, E-Z PAYDAY, INC., is hereby notified that the Office intends to impose a suspension of 21 days and a fine of $7,200. 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 Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 5 of 7 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 27 “day of Faust .20/ Y DREW J. BREAKSPEAR Commissioner By: ,. L— Jenrfy Salys Assistant General Counsel Office of Financial Regulation Fla. Bar No. 0055319 1313 N. Tampa Street, Suite 615 Tampa, FL 33602-3328 (813) 218-5308 Jenny.Salvia@flofr.com Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 6 of 7 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 E-Z PAYDAY, INC., at 3630 Gardens Parkway, Suite 1001, Palm Beach Gardens Florida 33410, this Ras of Acad 20 Lt Administrative Proceeding Docket No. 54249F-F In re: E-Z Payday, Inc. Page 7 of 7

Docket for Case No: 14-004560