STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION In re: Administrative Proceeding Docket J’s & M Solutions LLC., Number: 52634 d/b/a La Estacion, Respondent. ADMINISTRATIVE COMPLAINT Comes now, the State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against J’s & M Solutions L.L.C. d/b/a La Estacion (“Respondent”), alleging: GENERAL ALLEGATIONS 1. Pursuant to sections 560.105 and 560.109, Florida Statutes, the Office is charged with administering and enforcing the provisions of Chapter 560, Florida Statutes, and conducting examinations and investigations to determine whether any provision of Chapter 560, Florida Statutes, has been violated. 2. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of Chapter 560, Florida Statutes or related rule constitutes grounds for disciplinary action. 3. 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 issued license number FT340000603. 4. Respondent’s money transmitter license expired on December 31, 2013. 5. At all times material, Respondent’s address of record is and has been 11233 Beach Blvd, Unit 5, Jacksonville, Florida 32246 and its owner and compliance officer is Juan Administrative Proceeding Docket Number 52634 Administrative Complaint Page | of 12 Manuel Ruiz. 6. On about May 8 and 9, 2013, the Office conducted an examination (#43435) for the time period of August 13, 2012 through May 8, 2013, (“examination period”) of Respondent’s business records. 7. Pursuant to Rule 69V-560.1000(150), Florida Administrative Code, the range for an “A” level fine is between $1,000 and $3,500; and pursuant to Rule 69V-560.1000(151), Florida Administrative Code, the range for an “A” suspension is 3 to 10 days. 8. 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. COUNT I 9. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 10. On thirteen separate days starting in May 2011 until Respondent was licensed on August 13, 2012, Respondent acted as a money services business. 11. Section 560.125(1), Florida Statutes, prohibits engaging in the money services business without a license or exemption from licensure. 12. Section 560.114(1)(w), Florida Statutes, prohibits “Engaging or advertising engagement in the business of a money services business or deferred presentment provider without a license, unless exempted from licensure.” 13. Pursuant to section 560.114(8), Florida Statutes, “the Office may, in addition to or in lieu of the denial, suspension, or revocation of a license, impose a fine of at least $1,000 but not more than $10,000 for each violation of this chapter.” Administrative Proceeding Docket Number 52634 Administrative Complaint Page 2 of 12 14. Thus, Respondent unlawfully engaged in the act of money services business without being licensed in contradiction to sections 560.125(1) and 560.114(1)(w), Florida Statutes. 15. Therefore, the Office is seeking an administrative fine of $13,000. COUNT I 16. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 17. During the examination period, Respondent cashed payment instruments exceeding $1,000. 18. When payment instruments of greater than $1,000 are cashed, section 560.310(2)(d), Florida Statutes, and Rule 69V-560.704(5)(a), Florida Administrative Code, require licensees to maintain a detailed electronic payment instrument (check) log that includes at least eleven categories of information. 19. Respondents failed to maintain a payment log in violation of section 560.310(2)(d), Florida Statutes, and Rule 69V 560.704(5)(a), Florida Administrative Code. 20. Pursuant to Rule 69V-560.1000(98), Florida Administrative Code, a licensee cited for the first time for failing to maintain a complete payment log is subject to a “B” fine and a “B” suspension. 21. Therefore, the Office is seeking an administrative fine of $7,500. COUNT Il 22. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 3 of 12 23. During the examination period, Respondent cashed payment instruments exceeding $1,000. 24. Respondents failed to maintain copies of the personal identification of customers at the time of acceptance of payment instruments cashed exceeding $1,000. 25. Pursuant to section 560.310(2)(b), Florida Statutes, if a payment instrument cashed exceeds $1,000, additional information such as a copy of the personal identification that bears a photograph of the customer used as identification and presented by the customer, must be maintained or submitted. 26. Rule 69V-560.704(4)(c), Florida Administrative Code, states that “the check casher shall secure and maintain a legible copy of the personal identification, as defined by Section 560.310(1)(b) 1., F.S., presented by conductor at the time of acceptance.” 27. Pursuant to Rule 69V-560.1000(96), Florida Administrative Code, a licensee cited for the first time for failing to maintain a complete payment log is subject to a “B” fine and a “B” suspension. 28. Therefore, the Office is seeking an administrative fine of $7,500. COUNT IV 29. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 30. Respondent failed to make a copy of the front and back of all payment instruments accepted. 31. Section 560.310(1), Florida Statutes, “A licensee engaged in check cashing must maintain for the period specified in s. 560.1105 a copy of each payment instrument cashed.” Administrative Proceeding Docket Number 52634 Administrative Complaint Page 4 of 12 32. Rule 69V-560.704(2)(a), Florida Administrative Code, further requires that “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.” 33. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of this chapter constitute grounds for action by the Office pursuant to this chapter. 34. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for the first time for violation of section 560.114(1)(a), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. 35. Therefore, the Office is seeking an administrative fine of $6,100. COUNT V 36. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 37. Respondent failed to maintain a daily cash reconciliation of its check cashing business activity. 38. Section 560.310, Florida Statutes, requires check cashers to maintain certain records on each check cashed. 39. Rule 69V-560.704(3)(b), Florida Administrative Code, requires additional information shall be maintained including but not limited to a daily cash reconciliation that is sufficiently detailed to provide an audit trail of each day's business activity. 40. Respondent failed to maintain a daily cash reconciliation in violation of section 560.310, Florida Statutes, and Rule 69V-560.704(3)(b), Florida Administrative Code. 41. Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of this chapter constitute grounds for action by the Office pursuant to this chapter. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 5 of 12 42. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for the first time for violation of section 560.114(1)(a), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. 43. Therefore, the Office is seeking an administrative fine of $7,500. COUNT VI 44. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 45. During the examination period, some of the checks cashed by Respondent were returned to Respondent for insufficient funds. 46. Respondent failed to maintain the required records on all returned checks. 47. Section 560.310, Florida Statutes requires check cashers to maintain certain records on each check cashed. 48. Rule 69V-560.704(3)(a), Florida Administrative Code, requires records relating to all returned payment instruments include a copy, face and reverse (front and back), of all returned payment instruments, the date of deposit by the licensee, the date the payment instrument was returned to the licensee, documentation of all fees and charges paid by the customer in the collection of the returned item, and the date on which collection is made from the customer or charged-off by the licensee. 49, Pursuant to section 560.114(1)(a), Florida Statutes, failure to comply with any provision of this chapter constitute grounds for action by the Office pursuant to this chapter. 50. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for the first time for violation of section 560.114(1)(a), Florida Statutes, is subject to a “B” fine and a “B” suspension or revocation. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 6 of 12 51. Therefore, the Office is seeking an administrative fine of $7,500. COUNT VII 52. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 53. Respondent failed to maintain an anti-money laundering program. 54. Section 560.1235(2), Florida Statutes, “A licensee and authorized vendor must maintain an anti-money laundering program in accordance with 31 C.F.R. s. 1022.210. The program must be reviewed and updated as necessary to ensure that the program continues to be effective in detecting and deterring money laundering activities.” 55. Title 31 CFR 1022.210(d), Code of Federal Regulation, requires at a minimum, the program shall: Incorporate policies, procedures, and internal controls reasonably designed to assure compliance with this chapter. 56. Respondent failed to maintain an anti-money laundering program in violation of Section 560.1235(2), Florida Statutes, and Title 31 CFR 1022.210(d), Code of Federal Regulation. 57. Pursuant to Rule 69V-560.1000(44), Florida Administrative Code, a licensee cited for the first time for violation of section 560.1235(2), Florida Statutes, is subject to an “A” fine and an “A” suspension or revocation. 58. Therefore, the Office is seeking an administrative fine of $3,500. COUNT VIII 59. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 7 of 12 60. Respondent failed to post a toll-free telephone number for the purpose of customers contacting the money services business or authorized vendor. 61. Section 560.128(1), Florida Statutes, states that “a money services business and authorized vendor must provide each customer with a toll-free telephone number for the purpose of contacting the money services business or authorized vendor or, in lieu of a toll-free telephone number, the address and telephone number of the Office may be provided.” 62. Respondent failed to provide customers with a toll-free telephone number in violation of section 560.128(1), Florida Statutes. 63. Pursuant to Rule 69V-560.1000(54), Florida Administrative Code, a licensee cited for the first time for violation of section 560.128(1), Florida Statutes, is subject to an “A” fine and an “A” suspension. 64. Therefore, the Office is seeking an administrative fine of $1,000. COUNT IX 65. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 66. Respondent failed to post a notice of its check cashing fees. 67. Section 560.309(7), Florida Statutes, states that “the commission may by rule require a check casher to display its license and post a notice listing its charges for cashing payment instruments.” 68. Rule 69V-560.802(1), Florida Administrative Code, states that “every check casher must continuously post in a conspicuous place a clearly legible schedule of fees charged in every location and mobile unit.” Administrative Proceeding Docket Number 52634 Administrative Complaint Page 8 of 12 69. Respondent failed to post its schedule of fees for check cashing in violation of section 560.309(7), Florida Statutes and Rule 69V-560.802(1), Florida Administrative Code. 70. Pursuant to Rule 69V-560.1000(89), Florida Administrative Code, a licensee cited for the first time for violation of section 560.309(7), Florida Statutes, is subject to an “A” fine and an “*A” suspension. 71. Therefore, the Office is seeking an administrative fine of $1,000. COUNT X 72. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 73. Respondent failed to file quarterly reports for the entire time period of its licensure. 74. Section 560.118(2), Florida Statutes, requires that each licensee must submit quarterly reports to the office in a format and include information as specified by rule. 75. Rule 69V-560.602, Florida Administrative Code, requires money services business licensed pursuant to Chapter 560, Florida Statutes, submit a quarterly report to the Office by filing a Quarterly Report Form within forty-five (45) days after the conclusion of each quarter. 76. Respondent’s failure to file quarterly reports is a violation of section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code. 77. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for violation of section 560.118(2), Florida Statutes, is subject to an “A” fine, and an “A” suspension. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 9 of 12 78. Therefore, the Office is seeking an administrative fine of $3,500. COUNT XI 79. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 80. May 8 - 9, 2013, the Office conducted an examination of Respondent’s business. 81. The Office sent Respondent an invoice, dated October 18, 2013, for the costs of the examination in the amount of $924.42. 82. Respondent failed to remit payment of examination fees. 83. Section 560.1092(1), Florida Statutes, provides in part that each licensee examined shall pay to the office the expenses of the examination at the rates adopted by the commission by rule. 84. Rule 69V-560.504(5), Florida Administrative Code, provides in relevant part that the Office will invoice licensees for the costs of the examination and licensees will have 30 days from the date of the invoice to remit payment for invoiced expenses to the Office. 85. Thus, Respondent failed to pay to the Office the examination fee, in violation of section 560.1092(1), Florida Statutes and Rule 69V-560.504(5), Florida Administrative Code. 86. Pursuant to Rule 69V-560.1000(3), Florida Administrative Code, a licensee cited for violation of section 560.1092(1), Florida Statues, for the first time is subject to an “A” fine, and an “A” suspension. 87. Therefore, the Office is seeking an administrative fine of $1,000 and examination fees of $924.42. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 10 of 12 WHEREFORE, Respondent, J’s & M Solutions LLC., are hereby notified that the Office intends to seek an administrative fine of $45,200 and examination fees of $924.42. 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) 410-9889 101 East Gaines Street Fax: (850) 410-9663 Tallahassee, FL 32399-0379 Phone: (850) 410-9889 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. Administrative Proceeding Docket Number 52634 Administrative Complaint Page 11 of 12 Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this 4!” day of Neruda 20/4 DREW J. BREAKSPEAR Commissioner By: Low Jexfiy ia 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 served by U.S. certified mail to J’s & M Solutions LLC. at 11233 Beach Blvd, #5, Jacksonville, Florida 32246, this OP tiny of i) 2 a , 20 Vo o Administrative Proceeding Docket Number 52634 Administrative Complaint Page 12 of 12

Docket for Case No: 15-001425