Index: STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket Number: SMART MONEY SOLUTIONS, INC. 53610 Respondent ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against Smart Money Solutions, 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. Smart Money Solutions, Inc. Administrative Complaint Page 1 of 9 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 FT30800225. Respondent’s license was terminated on January 14, 2014. 5. Respondent's address of record with the Office is 270 N.W. 183" St. Miami, FL 33169-4462 and its President is Patricia Riley. 6. The Office conducted an examination (#32795) of Respondent’s business records that included the period of August 1, 2010 to August 31, 2012 and resulted in a Report of Examination dated November 20, 2013. COUNT I 7. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 8. From August 1, 2010 to August 31, 2012 Respondent cashed payment instruments exceeding $1,000.00. 9. As a part 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 from August 1, 2010 to August 31, 2012, specifically including Respondent's electronic log of payment instruments received. 10. In its payment log, Respondent failed to create, maintain, and submit the following: a. Conductor name, if other than the payee; 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 for the first time is subject to a “B” fine Smart Money Solutions, Inc. Administrative Complaint Page 2 of 9 and a “B” suspension. 12: 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. 13. Thus, Respondent unlawfully failed to create, maintain, and submit in its electronic payment log the conductor name, if other than payee, for the payment instruments exceeding $1,000 from August 1, 2010 to August 31, 2012, in contradiction and violation of section 560.310(2)(d), Florida Statutes and Rule 69V-560.704(5)(a), Florida Administrative Code. COUNT II 14. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 15. A quarterly report for activity conducted in the third quarter of 2012 was not received by Petitioner within forty-five days of conclusion of the quarter 16. In Administrative Proceeding Number 0114-MR-2/11, Respondent entered into a Stipulation and Consent Agreement on February 8, 2011, for failing to timely file the quarterly report for the third quarter of 2010. The Office entered a Final Order for this case on February 24, 2011. 17.In Administrative Proceeding Number 0247-MR-6/11, Respondent entered into a Stipulation and Consent Agreement on June 6, 2011, for failing to timely file the quarterly report for the first quarter of 2011. The Office entered a Final Order for the case on June 22, 2011. 18. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for failing to timely submit quarterly reports to the Office in the format specified by rule for the third time is subject to a “C” fine, a ““C” suspension, and a revocation. Smart Money Solutions, Inc. Administrative Complaint Page 3 of 9 19. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for a “C” fine is between $7,500 and $ 10,000; and, pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for a “C” suspension is 20 to 30 days. 20. Thus, Respondent unlawfully failed to timely submit a quarterly report for the third quarter of 2012 to the Office in the format specified by rule, in contradiction and violation of section 560.118(2), Florida Statutes and Rule 69V-560.602, Florida Administrative Code. COUNT II 21. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 22. As part of the examination, the Office reviewed or attempted to review customer files for accepted corporate payment instruments exceeding $1,000 that were received between August 1, 2010 and August 31, 2012. 23. During the examination period, Respondent accepted corporate payment instruments greater than $1000 from PH Maintenance Group and King’s Plumbing Service, Inc. 24. Respondent was missing the following documentation from their customer file for PH Maintenance Group: a. Documentation from the Secretary of State verifying registration as a corporation or fictitious entity showing the listed officers and FEID registration number b. Articles of Incorporation ¢. Occupational License Smart Money Solutions, Inc. Administrative Complaint Page 4 of 9 25. Respondent was missing the following documentation from their customer files for King’s Plumbing Services, Inc.: a. Documentation from the Secretary of State verifying registration as a corporation or fictitious entity showing the listed officers and FEID registration number b. Articles of Incorporation c. Occupational License 26. On September 20, 2012, the Office submitted a written request to Respondent for the above-named records. Respondent received the written request on September 20, 2012. 27. Respondent failed to provide the records within three business days 28. Pursuant to Rule 69V-560.1 000(95), Florida Administrative Code, a licensee cited for failing to maintain customer files on all customers who cash corporate or third-party payment instruments exceeding $1,000 for the first time is subject to a “B” fine, and a “B” suspension. 29. 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, 30. Thus, Respondent unlawfully failed to secure or maintain complete customer files on all customers who cashed corporate payment instruments that exceeded $1 ,000, in contradiction and violation of Section 560.1105 and 560.310(2)(a), Florida Statutes and Rule 69V- 560.704(4)(d), Florida Administrative Code. COUNT IV Smart Money Solutions, Inc. Administrative Complaint Page 5 of 9 31. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 32. At all times material to this Administrative Complaint, Patricia M. Riley was the President of Smart Money Solutions Inc. 33. On June 6, 2012, in Case No. 120081-11-AG, a Consent Order was entered by the State of Florida, Department of Financial Services, suspending Patricia M. Riley’s license for twelve months, ordering her to pay restitution and placing her license on probation after the period of suspension expired. 34. Respondent failed to notify the office in writing within 30 days of the commencement of the above administrative proceeding. 35. Pursuant to Rule 69V-560.1000(47), Florida Administrative Code, a licensee cited for failing to provide the Office notice within 30 days after occurrence of the commencement of an administrative proceeding is subject to an “A” fine, and an “A” suspension. 36. 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. 1 000(151), Florida Administrative Code, the range for an “A” suspension is 3 to 10 days. 37. Thus, Respondent unlawfully failed to notify the Office within 30 days after the commencement of an administrative proceeding, in contradiction and violation of Section 560.126(1)(b), Florida Statutes. COUNT V 38. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Smart Money Solutions, Inc. Administrative Complaint Page 6 of 9 39. At no time material was Respondent licensed to perform money transmitter activities as a Part IT Money Services Business licensee pursuant to Chapter 560, Florida Statutes. 40. In or around November 2011, Respondent engaged in the activities of a money transmitter on three separate occasions. 41. Respondent engaged in the activities of a money transmitter for compensation. 42. Pursuant to section 560.114(8), Florida Statutes, the Office may impose a fine of up to $1,000 per day for each day that a person engages in the business of a money services business or deferred presentment provider without being licensed. 43. Thus, Respondent engaged in the activities of a money transmitter without being licensed to do so, in contradiction and violation of Sections 560.1 25(1) and 560.204(1), Florida Statutes. WHEREFORE, Respondent, Smart Money Solutions, Inc. is hereby notified that the Office intends to impose a fine of $25,900. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Smart Money Solutions, Inc. Administrative Complaint Page 7 of 9 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. Smart Money Solutions, Inc. Administrative Complaint Page 8 of 9 ee 4 DATED and SIGNED this (>__ day of No LN 201 4 DREW]. BREAKSPEAR Commissionér get bide Eas ith fer Leigh Blakeman = Zastant General Counsel a “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 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 Smart Money Solutions, Inc., c/o on Edward Tapanes, Esq., 990 Biscayne Boulevard, say: 0-903, ei) Miami FL 33132 this G day of OZ) 20) 91 7199 9991 7034 3459 bb3b / a p we wal igh Blakeman Assi General Counsel ice 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 Smart Money Solutions, Inc. Administrative Complaint Page 9 of 9

Docket for Case No: 15-000964