. FLORIDA OFFICE OF FINANCIAL REGULATION www.FLOFR.com DREW J. BREAKSPEAR COMMISSIONER FLoRiD> October 27, 2015 FEDEX TRACKING NUMBER 7TA8 3555 8978 Arfan M. Faroogi 7401 E Broadway Ave Tampa, FL 33619 Re: ADMINISTRATIVE COMPLAINT WITH NOTICE OF RIGHTS Dear Arfan M. Faroogqi, As you know, our office conducted an examination of Arfan M. Farooqi D/B/A Short & Quick Stop Food Mart in relation to its activities pursuant to its Part III Money Services Business license with the Office of Financial Regulation (the Office). The findings were detailed within our Report of Examination, which was previously provided to you on or about November 17, 2014. As a result of these findings, the Division of Consumer Finance has referred your case to me for legal action. Consequently, accompanying this correspondence please find and carefully review our ADMINISTRATIVE COMPLAINT WITH NOTICE OF RIGHTS, which fully details the discovered violations. As explained within the Notice of Rights that accompanies the Administrative Complaint, if you wish to contest the findings or actions sought by the Office, you may request a hearing by filing a written Petition for Hearing. Such petition must be in the form specified and must also be received by the Office within twenty-one (21) days from the date you first received the complaint or the Office will take action as authorized by Chapter 560, Florida Statutes. If you have any question or concerns, or if you might like to discuss these matters, please do not hesitate to contact me. Ss lm Jenny Salvia Assistant General Counsel Florida Office of Financial Regulation Sincerely, Enclosure: Administrative Complaint Election of Proceedings Settlement Stipulation 1313 NORTH TAMPA STREET, SUITE615 TAMPA, FL 33602-3394 OrFice: (813) 218-5308 FAX: (813) 272-3752 STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket Number: 57692 ARFAN M. FAROOQI (a money services business), D/B/A SHORT & QUICK STOP FOOD MART and ARFAN M. FAROOQI (personally) Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) and files this Administrative Complaint against ARFAN M. FAROOQI (a money services business), D/B/A SHORT & QUICK STOP FOOD MART and ARFAN M. FAROOQI (personally) (together known as “Respondents”), 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. Atall times material, Arfan M. Farooqi d/b/a Short & Quick Stop Food Mart have 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, Administrative Proceeding Docket Number 57692 Administrative Complaint Page | of 10 having been issued license number FT30900152. On October 6, 2014, Respondents submitted an application to terminate their license. 4. At all times material, Respondents’ address of record is and has been 4929 E. Broadway Ave. Tampa, Florida 33605. The sole owner and compliance officer is Arfan M. Faroogi. 5. On August 14, 2014, the Office conducted an examination (#54360) of Respondents’ business records for the time period of July 1, 2013 through July 31, 2014, (“examination period”). 6. 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. 7. 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 8. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 9. Asa part of the examination, the Office reviewed records of payment instruments exceeding $1,000 that were presented to Respondents for negotiation or payment specifically including records of customer thumbprints. 10. Section 560.310(2)(c), Florida Statutes, requires check cashers to collect and maintain original customer thumbprints on checks cashed that exceeded $1,000. Administrative Proceeding Docket Number 57692 Administrative Complaint Page 2 of 10 11. Rule 69V-560.704(4)(a), Florida Administrative Code, provides that the check casher shall affix an original thumbprint of the conductor, at the time of acceptance, to the original of each payment instrument exceeding $1,000 accepted. 12. Sixty-four (64) payment instruments over $1,000 were reviewed, of which all sixty-four (64) lacked the required corresponding thumbprint affixed to the payment instruments. 13. Respondents violated section 560.310(2)(c), Florida Statutes, and Rule 69V- 560.704(4)(a), Florida Administrative Code, by failing to collect and maintain original customer thumbprints on checks cashed that exceeded $1,000. 14. Pursuant to Rule 69V-560.1000(97), Florida Administrative Code, a licensee cited for failing to maintain a thumbprint of the customer, taken by the licensee, for a payment instrument accepted having a face value of $1,000 or more, for the first time is subject to a “B” fine and a “B” suspension. 15. Therefore, the Office is seeking an administrative fine of $7,500. COUNT IT 16. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 17. During the examination period, Respondents cashed payment instruments. 18. Section 560.309(2), Florida Statutes, requires that when licensees cash payment instruments, they endorse them with their legal name at the time of acceptance. 19. Rule 69V-560.704(2)(a), Florida Administrative Code, requires check cashers maintain records that include a copy of payment instruments accepted and endorsed. 20. Respondents failed to maintain records of payment instruments accepted and endorsed, in violation of section 560.309(2), Florida Statutes and Rule 69V-560.704(2)(a), Administrative Proceeding Docket Number 57692 Administrative Complaint Page 3 of 10 Florida Administrative Code. 21. Pursuant to Rule 69V-560.1000(84), Florida Administrative Code, a licensee cited for the first time for failing to endorse payment instruments with its legal name is subject to a “B” fine and a “B” suspension. 22. Therefore, the Office is seeking an administrative fine of $6,900. COUNT Il 23. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 24. As a part of the examination, the Office reviewed records of payment instruments exceeding $1,000 that were presented to Respondents for negotiation or payment, specifically including customer files. 25. Three (3) corporate files were reviewed, and all three (3) of the files reviewed were deficient in some of the required information relative to customer files associated with presentment or negotiation of corporate checks. 26. Pursuant to section 560.310(2)(a), Florida Statutes, a licensee is required to maintain customer files, as prescribed by rule, on all customers who cash corporate payment instruments that exceed $1,000. 27. Rule 69V-560.704(4)(d), Florida Administrative Code, provides that, in addition to other required records, the check casher shall create and maintain a customer file of each entity listed as the payee on corporate payment instruments and third party payment instruments accepted by the licensee, and shall include the specified required information. 28. Pursuant to Rule 69V-560.1000(95), Florida Administrative Code, a licensee Administrative Proceeding Docket Number 57692 Administrative Complaint Page 4 of 10 cited for failure to maintain customer files on all customers who cash corporate or third-party payment instruments exceeding $1,000, as a required by paragraph 69V-560.704(4)(d), Florida Statutes, for the first time is subject to a “B” fine and a “B” suspension. 29. Therefore, pursuant to section 560.310, Florida Statutes and Rule 69V-560.704, Florida Administrative Code, the Office is seeking an administrative fine of $6,700. COUNT IV 30. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 31. During the examination period, Respondents cashed payment instruments exceeding $1,000. 32. 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. Acceptable personal identification is limited to a valid driver license, a state identification card, a United States Government Resident Alien Identification Card, a passport or a United States Military identification card. 33. 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.” 34. Respondents failed to secure and maintain a copy of acceptable personal identifications for all payment instruments cashed exceeding $1,000. 35. Pursuant to Rule 69V-560.1000(96), Florida Administrative Code, a licensee cited for the first time for failing to maintain a copy of the personal identification presented by the ' Formerly 560.310(1)(b)1, Florida Statutes and amended in 2012 to section 560.310(2)(b), Florida Statutes. Administrative Proceeding Docket Number 57692 Administrative Complaint Page 5 of 10 customer for a payment instrument accepted having a face value of $1,000 or more is subject to a “B” fine and a “B” suspension. 36. Therefore, the Office is seeking an administrative fine of $5,600. COUNT V 37. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 38. Pursuant to section 560.1235(2), Florida Statutes, a licensee must maintain an anti-money laundering program (“AML program”) in accordance with 31 C.F.R. s. 1022.210. 39. 31 CFR s. 1022.210, requires regular independent review of the AML program be conducted by a qualified person other than the compliance officer. 40. Respondents were unable to provide documentation of an Independent Review of the AML program since 2009, therefore Respondents failed to maintain and review its AML program to ensure its effectiveness, in violation of section 560.1235, Florida Statute. 41. 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. 42. Therefore, the Office is seeking an administrative fine of $1,600. COUNT VI 43. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 44. Pursuant to section 560.309(8)(a), Florida Statute, a check casher may not charge fees, except as otherwise provided in section 560.309(8), Florida Statute, in excess of 5 percent of the face amount of the payment instrument, or $5, whichever is greater. Administrative Proceeding Docket Number 57692 Administrative Complaint Page 6 of 10 45.In the instance of some corporate checks cashed by Respondents within the examination period, Respondents charged check cashing fees in excess of 5%, in violation of section 560.309(8)(a), Florida Statutes. 46. Pursuant to Rule 69V-560.1000(90), Florida Administrative Code, a licensee cited for the first time for violation of section 560.309(8)(a), Florida Statutes, is subject to an “A” fine and restitution. 47. Therefore, the Office is seeking an administrative fine of $1,100. COUNT VII 48. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 49. Pursuant to section 560.128(1), Florida Statutes, a money services business must provide each customer with a toll-free telephone number for the purpose of contacting the money services business. 50. During the on-site portion of the examination it was observed that Respondents failed to post the toll-free telephone number of the money services business or in the alternative the Office of Financial Regulation. 51. 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. 52. Therefore, the Office is seeking an administrative fine of $1,000. COUNT VII 53. The above general allegations are hereby re-alleged and incorporated by reference as if fully stated herein. 54. Pursuant to section 560.126(2), Florida Statutes, a licensee is required to report Administrative Proceeding Docket Number 57692 Administrative Complaint Page 7 of 10 any change in an initial license application form within 30 days after the change is effective. 55. Form OFR-560-01, which is incorporated by reference in Rule 69V- 560.1012(1)(a), Florida Administrative Code, requires license applicants to list every bank account through which registered activities are or will be conducted. 56. In its initial application in 2007, Respondents listed bank accounts with Mercantile Bank and First Commercial Bank of Tampa to be used for its registered activity. 57. Respondents later changed the bank used for its registered money services business activity, without notifying the Office. 58. In violation of 560.126(2), Florida Statutes, Respondents failed to report a change from the initial application. 59. Pursuant to Rule 69V-560.1000(52), Florida Administrative Code, a licensee cited for the first time for violation of section 560.126(2), Florida Statues, is subject to an “A” fine. 60. Therefore, the Office is seeking an administrative fine of $1,000. WHEREFORE, Respondents, ARFAN M. FAROOQI, are hereby notified that the Office intends to enter an Order imposing an administrative fine of $31,400. 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: Administrative Proceeding Docket Number 57692 Administrative Complaint Page 8 of 10 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. Administrative Proceeding Docket Number 57692 Administrative Complaint Page 9 of 10 Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this oll i of Ochs her- ; 20f. oIMCE 0, DREW J. BREAKSPEAR Commissioner nie e alvia 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 FedEX to ARFAN M. FAROOQI at 7401 E. Broadway Ave. Tampa, Florida 33619 this o?/’day of (Ocf:_, 20/9. Administrative Proceeding Docket Number 57692 Administrative Complaint Page 10 of 10 To: Page 1 of 13 2015-11-17 22:03:07 (GMT) 18663683029 From: James H Sutton Jr FAX COVER SHEET TO COMPANY FAXNUMBER 18504109914 FROM James H Sutton Jr DATE 2015-11-17 22:02:22 GMT RE Arfan Faroogi - Administrative Proceeding Docket No.: 57692 COVER MESSAGE To Whom it May Concern: Attached is the Election of Proceeding for the above referenced licensee along with the Response to the Administrative Complaint. Please direct any questions to the undersigned counsel for the Respondents. A hard copy is also being mailed. Best regards, Matthew R. Parker, Esq., Associate Moffa, Gainor, & Sutton, P.A. Office: (813) 775-2132 Fax: (866) 388-3029 Mobile: (813) 785-4778 Email: MatthewParker@FloridaSalesTax.com 8875 Hidden River Pkwy, Suite 300 Tampa, FL. 33637 hittp-/Awww.F loridaSalesTax.com ([MGS-logo_180x139] [FTM_115x56] IRS Circular 230 Disclosure: Please note that the views expressed herein or in any attachments hereto are not intended to constitute a "reliance opinion" under applicable Treasury Regulations, and accordingly are not intended or written to be used, and may not be used or relied upon, for the purpose of (i) avoiding tax-related penalties that may be imposed by the Intemal Revenue Service, or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. This transmission is intended to be delivered only to the named addressee(s) and may containinformationthatisconfidential, proprietary, attorney work-product or attorney- WWW.MYFAX.COM To: Page 2of13 2015-11-17 22:03:07 (GMT) 18663683029 From: James H Sutton Jr client privileged. If this information is received by anyone other than the named addressee(s), the recipient should immediately notify the sender by E-MAIL MatthewParker@FloridaSalesTax.com, and by telephone (813) 775-2132 and obtain instructions as to the disposal of the transmitted material. In no event shall this material be read, used, copied, reproduced, stored or retained by anyone other than the named addressee(s), except with the express consent of the sender or the named addressee(s). WWW.MYFAX.COM Page 3 of 13 2015-11-17 22:03:07 (GMT) 18663883029 From: James H Sutton Jr To. Page 4 of 13 2015-11-17 22:03:07 (GMT) _ 18663883029 From: James H Sutton Jr sear eiaa

Docket for Case No: 15-006896

Issue Date	Proceedings
Jan. 04, 2016	Order Closing File and Relinquishing Jurisdiction. CASE CLOSED.
Jan. 04, 2016	Unopposed Motion to Relinquish Jurisdiction filed.
Dec. 23, 2015	Order of Pre-hearing Instructions.
Dec. 23, 2015	Notice of Hearing by Video Teleconference (hearing set for February 12, 2016; 9:00 a.m.; Tampa and Tallahassee, FL).
Dec. 22, 2015	Notice of Petitioner's Request for First Set of Admissions filed.
Dec. 22, 2015	Notice of Petitioner's First Request for Interrogatories filed.
Dec. 22, 2015	Notice of Petitioner's First Request for Production filed.
Dec. 15, 2015	Petitioner's Response to the Initial Order filed.
Dec. 08, 2015	Initial Order.
Dec. 07, 2015	Power of Attorney/Letter of Authorization filed.
Dec. 07, 2015	Response and Request for Formal Administrative Proceeding filed.
Dec. 07, 2015	Election of Proceeding filed.
Dec. 07, 2015	Agency referral filed.
Dec. 07, 2015	Administrative Complaint filed.