STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION In Re: Administrative Proceeding Docket MIR CONVENIENCE STORES INC., Number: 53566F-F Respondent. ADMINISTRATIVE COMPLAINT Comes now, the State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against MIR CONVENIENCE STORES 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. At all times material to this Administrative Complaint, Respondent is or has been, a Part III Money Transmitter licensee pursuant to Chapter 560, Florida Statutes, and specifically a “money services business,” as defined in section 560.103(22), Florida Statutes, having been Case No. 53566F-F Administrative Complaint Page 1 of 7 issued license number FT30900181. 5. Respondent’s address of record with the Office is 230 South Cypress Road, Suite L, Pompano Beach, Florida 33060. The owners are Zamel Abou, Georgios Zentefis, and Efthimios Zentefis. 6. On or about August 21, 2013, the Office conducted an examination (#44620) of Respondent’s business records that included the period of August 1, 2011 through July 31, 2013. 7. Section 560.123(3)(c), Florida Statutes, provides in relevant part: (3) A money services business shall keep a record of each financial transaction occurring in this state which it knows to involve currency or other payment instrument, as prescribed by the commission, having a value greater than $10,000 (c) The money services business must file a report with the office of any records required by this subsection, at such time and containing such information as required by rule. 8. Section 560.1235(1), Florida Statutes, provides in relevant part: (1) A licensee and authorized vendor must comply with all state and federal laws and rules relating to the detection and 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. 9. Rule 69V-560.608, Florida Administrative Code, provides as follows: Currency Transaction Reports, required by Section 560.123, F.S., must be filed with FinCEN! using FinCEN Form 104, which is incorporated by reference in Rule 69V- 560.1012, F.A.C. Reports filed in this manner shall be deemed to have also been filed with the Office. 10. 31 C.F.R. §1010.311? states: 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. ' FinCEN stands for Financial Crimes Enforcement Network, which is a bureau within the United States Department of the Treasury. See 31 U.S.C. §310. ' Formerly 31 C.F.R. §103.22(b)(1). On March 1, 2011, FinCEN transferred its regulations from 31 C.F.R. §103 to 31 C.F.R. §1022.210. Case No. 53566F-F Administrative Complaint Page 2 of 7 11. 31 C.F.R. §1010.306(a)(1)° states: (a)(1) A report required by §1010.311 or §1021.311, shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred. 12. On or about January 31, 2011 the Office cited Respondent, among other violations, for its failure to file approximately 31 currency transaction reports, in violation of section 560.123(3)(c), Florida Statutes, and 560.123(4), Florida Statutes. 13. On or about December 10, 2011, in regard to the missing currency transaction reports, the Office and Respondent entered a written settlement agreement with Final Order which required Respondent to pay an administrative fine. When the fine was timely paid, the matter was closed. COUNT I 14. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 15. Asa part of the examination, the Office reviewed records regarding compliance with the currency transaction report requirements. 16. According to FinCEN, in 2011 Respondent filed 51 currency transaction reports for transactions involving currency or other payment instrument greater than $10,000. 17. Respondent failed to timely file currency transaction reports with FinCEN for approximately 29 of those 51 currency transaction reports in 2011. 18. Pursuant to Rule 69V-560.1000(41), Florida Administrative Code, a licensee cited for failing to timely file a currency transaction report for the second time is subject to a “B” fine and a “B” suspension or revocation. 3 Formerly 31 C.F.R. §103.27(a)(1). Case No. 53566F-F Administrative Complaint Page 3 of 7 19. 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. 20. Thus, Respondent unlawfully failed to timely file currency transaction reports for 29 qualifying transactions, in contradiction and violation of section 560.123(3)(c), Florida Statutes, and 31 C.F.R. §1010.306(a)(1)*. COUNT I 21. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 22. Asa part of the examination, the Office reviewed records regarding compliance with the currency transaction report requirements. 23. According to FinCEN, in 2012 Respondent filed 127 currency transaction reports for transactions involving currency or other payment instrument greater than $10,000. 24. Respondent failed to timely file a currency transaction reports with FinCEN for approximately 10 of those 127 currency transaction reports in 2012. 25. Pursuant to Rule 69V-560.1000(41), Florida Administrative Code, a licensee cited for failing to timely file a currency transaction report for the second time is subject to a “B” fine and a “B” suspension or revocation. 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. * Formerly 31 C.F.R. §103.27(a)(1). Case No. 53566F-F Administrative Complaint Page 4 of 7 27. Thus, Respondent unlawfully failed to timely file currency transaction reports for 10 qualifying transactions, in contradiction and violation of section 560.123(3)(c), Florida Statutes, and 31 C.F.R. §1010.306(a)(1)°. COUNT Ii 28. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 29. Asa part of the examination, the Office reviewed records regarding compliance with the currency transaction report requirements. 30. As of April 11, 2013, Respondent filed 46 currency transaction reports for transactions involving currency or other payment instrument greater than $10,000. 31. Respondent failed to timely file a currency transaction reports with FinCEN for approximately 5 of those 46 currency transaction reports in 2013. 32. Pursuant to Rule 69V-560.1000(41), Florida Administrative Code, a licensee cited for failing to timely file a currency transaction report for the second time is subject to a “B” fine and a “B” suspension or revocation. 33. 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. 34. Thus, Respondent unlawfully failed to timely file currency transaction reports for 5 qualifying transactions, in contradiction and violation of section 560.123(3)(c), Florida Statutes, and 31 C.F.R. §1010.306(a)(1)°. * Formerly 31 C.F.R. §103.27(a)(1). 6 Formerly 31 C.F.R. §103.27(a)(1). Case No. 53566F-F Administrative Complaint Page 5 of 7 WHEREFORE, Respondent, MIR CONVENIENCE STORES INC., is hereby notified that the Office intends to enter an Order imposing a fine of $13,500.00. 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 Case No. 53566F-F Administrative Complaint Page 6 of 7 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 Lg fs of. Ve fllubie 20 /' a DREW J. BREAKSPEAR Commissioner i Dap Sa A — 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 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 MIR CONVENIENCE STORES INC at 230 South Cypress Road, Suite L, Pompano Beach, Florida 33060, this Piss of Nga: , 20 iF Qe eZ So L— “Jenny Salvia Case No. 53566F-F Administrative Complaint Page 7 of 7

Docket for Case No: 14-005946