FILED OIGDEC 15 PHI2: 01 STATE OF FLORIDA pEYISION oF OFFICE OF FINANCIAL REGULATION is tRaTiVE HEARINGS IN RE: Administrative Proceeding Docket Number: FAST PAYDAY LOANS, INC., ROBERT REICH | 56060 and TERRY FIELDS ly ; TBO Respondents ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against Fast Payday Loans, Inc., Robert Reich, and Terry Fields (“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. Pursuant to sections 537.016 and 537.017, Florida Statutes, the Office is charged with administering and enforcing the provisions of Chapter 537, Florida Statutes, and conducting Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 1 of 10 examinations and investigations to determine whether any provision of Chapter 537, Florida Statutes, has been violated. 4. Pursuant to section 537.006(1)(a), Florida Statutes, failure to comply with any provision of Chapter 537, Florida Statues, or any related rule or order constitutes grounds for disciplinary action. 5. At all times material hereto, Respondent Fast Payday Loans Inc. is or has been a Part lil 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 FT30900516. 6. At no time material hereto were Respondents a Part I] Money Transmitter licensee pursuant to Chapter 560, Florida Statutes. 7. Atall times material hereto, Respondent Fast Payday Loans, Inc’s address of record is and has been 9030 Bird Rd., Miami, Florida 33165, its President of record with the Office is and has been Robert Reich, and its Vice President of record with the Office is and has been Terry Fields. 8. At no time material were Respondents licensed as a title loan lender pursuant to Chapter 537, Florida Statutes. 9. The Office conducted an examination (#38860) of Respondents’ business records and operations for the time period of October 1, 2009 through September 30, 2012 (examination period 1) 10. The Office conducted an examination (#42834) of Respondents’ business records and operations for the time period of October 1, 2011 to September 30, 2013, (“examination period 2”). Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 2 of 10 11. During said examinations, the Office reviewed, or attempted to review all of Respondents’ business records for the examination period material to its money services business activities. 12. 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. 13. 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. 14. 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. 15, Pursuant to section 537.006, Florida Statutes, a person who fails to comply with any provision of Chapter 537 is subject to an administrative fine not to exceed $5,000 for each separate act or violation. COUNTI 16. The above general allegations 1 through 15 are hereby re-alleged and incorporated by reference as if fully stated herein. 17. Section 560.204(1), Florida Statutes, states that a person may not engage in the selling of payment instruments, for compensation, without first obtaining a license. 18. Section 560.103(29), Florida Statutes, defines payment instrument as including ‘electronic instrument(s)’. Section 560.103(14), Florida Statutes, defines ‘electronic instrument’ as including a stored value card. Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 3 of 10 19. Respondents, in payday loan transactions for compensation, provided the drawer! with a stored value card rather than currency, for compensation, without being appropriately licensed, thereby violating section 560.204(1) and section 560.114(1)(a), Florida Statutes. 20. 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 without being licensed. 21, Therefore, the Office is seeking a fine of $579,000. COUNT IT 22. The above general allegations 1 through 15 aré hereby re-alleged and incorporated by reference as if fully stated herein. 23. Section 560.404(3)(a), Florida Statutes, among other things, requires that written payday loan agreements contain the title of the person who signs the agreement on behalf of the provider. 24. In 26 payday loan agreements out of a sample size of 108, Respondents failed to include the title of the person who signed the agreement on behalf of the provider, in violation of section 560.404(3)(a), Florida Statutes, 25. Pursuant to Rule 69V-560.1000(101), Florida Administrative Code, a licensee cited for the first time for failing to place titles of person signing agreements on written payday loan agreements is subject to an “A” fine. 26. Therefore, the Office is seeking a fine of $1,600. '*Drawer’ means a customer who writes a personal check and upon whose account the check is drawn. Section 560.402(4), Florida Statutes. Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 4 of 10 COUNT Hl 27. The above general allegations 1 through 15 are hereby re-alleged and. incorporated by reference as if fully stated herein. 28. The first quarter of 2013 ended on March 31, 2013; pursuant to section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code, Respondents were required to file the first quarter 2013 report by May 15, 2013 29. Respondents filed their first quarter 2013 quarterly report with the Office on July 10, 2013. 30. Respondents failed to timely file a quarterly report in violation of section 560.118(2), Florida Statutes, and Rule 69V-560.602, Florida Administrative Code. 31. Pursuant to Rule 69V-560.1000(39), Florida Administrative Code, a licensee cited for the first time for failure to submit quarterly reports is subject to an “A” fine, and an “A” suspension. 32. Therefore, the Office is seeking a fine of $1,000. COUNTIV 33. The above general allegations 1 through 15 are hereby re-alleged and incorporated by reference as if fully stated herein. 34. Section 560.405(3), Florida Statutes, and Rule 69V-560.707(1)(j), Florida Administrative Code, states that upon redemption of a payday loan, the payday loan provider Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 5 of 10 shall return the drawer’s check and provide a signed, dated receipt showing that the drawer’s check has been redeemed, and maintain said receipt. 35. Respondents failed to maintain or provide the drawer, upon redemption, with a dated receipt for the following transactions, in violation of section 560.405(3), Florida Statutes and Rule 69V-560.707(1)(), Florida Administrative Code. a. C.A., transaction number 785216687 b. M.T., transaction number 884209366 36. Pursuant to Rule 69V-560.1000(143), Florida Administrative Code, a licensee who fails to, upon redemption of a payday loan, provide the drawer with a signed, dated receipt showing the drawer’s check has been redeemed is subject to an “A” fine. 37. Therefore, the Office is seeking a fine of $1,500. COUNT V 38. The above general allegations 1 through 15 are hereby re-alleged and incorporated by reference as if fully stated herein. 39. Rule 69V-560.107(2), Florida Administrative Code, states that a licensee must file a completed Form OFR-560-02 within 60 calendar days from the date that a location closes. 40. Respondents failed to file a completed Form OFR-560-02 for the following locations within 60 days of the date of their closure, in violation of Rule 69V-560.107(2), Florida Administrate Code and section 560.114(1)(a), Florida Statutes: a. 2702B E. Busch Blvd., Tampa FL 33612 b. 2733 N. Hiawassee Road, Orlando FL 32818 c. 4651 Babcock St., Unit 6A, Palm Bay FL 32905 Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 6 of 10 41. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee who fails to comply with any rule under Chapter 560 is subject to a ‘B’ fine, a ‘B’ suspension, and/or revocation. 42. Therefore, the Office is seeking a fine of $3,500. COUNT VI 43. The above general allegations 1 through 15 are hereby re-alleged and incorporated by reference as if fully stated herein. 44. Section 560.404(19), Florida Statutes, states that a payday loan provider may not enter into a payday loan transaction with a person whose previous payday loan transaction with that provider or with any other provider has been terminated for less than 24 hours. 45. On or about March 3, 2012, Respondents entered into a payday loan transaction with consumer L.B, when his previous payday loan transaction had been terminated for less than.24 hours, in violation of section 560,.404(19), Florida Statutes. 46. Pursuant to Rule 69V-560.1000(128), a licensee who enters into a payday loan transaction with a person whose previous payday loan transaction has been terminated for less than 24 hours is subject to a “B” fine, and restitution of any fees received for each subsequent rollover. 47, Therefore, the Office is seeking a fine of $3,500. COUNT Vi 48. The above general allegations 1 through 15 are hereby re-alleged and incorporated by reference as if fully stated herein. 49. Section 537.004(1), Florida Statutes, states that a person may not act as a title loan lender unless such person has an active title loan lender license. Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 7 of 10 50. Section 537.003(14), Florida Statutes, states that a ‘title loan lender’ means any person who engages in the business of making or servicing title loans. 51. Section 537.006(1)(a), Florida Statutes, states that it is a violation to fail to comply with any provision of Chapter 537, Florida Statutes. 52. Respondents acted as a title loan servicer by accepting numerous payments for title loans, in violation of section 537,004(1) and 537.006(1)(a), Florida Statutes. 53. Therefore, the Office is seeking a fine of $5,000. WHEREFORE, Respondents, Fast Payday Loans, Inc., Robert Reich and Terry Fields are hereby notified that the Office intends to enter an Order imposing an administrative fine of $595,100. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 8 of 10 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 Facsimile OR By Hand Delivery Agency Clerk Agency Clerk Office of Financial Regulation Office of Financial Regulation P.O. Box 8050 General Counsel’s Office Tallahassee, Florida 32314-8050 The Fletcher Building, Suite 118 Phone: (850) 410-9889 101 East Gaines Street Fax: (850) 410-9663 Tallahassee, Florida 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. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 9 of 10 DATED and SIGNED this [Pp is) day of Sap \ > 0G DREW J.BREAKSPEAR Commissioner “oe “ foe By: Ma Jennifer L4éi akeman Assist: eneral Counsel Offiee 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 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 Fast Payday Loans, Attn: Robert Reich, at 9030 Bird Rd., Miami, Florida 33165, this LE, day of Fast Payday Loans, Inc., Administrative Proceeding Docket Number 56060 Administrative Complaint Page 10 of 10

Docket for Case No: 16-007380