ATTACHMENT I STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: CONCH COALITION LLC, Administrative Proceeding CINDY JAE GOLDSTEIN, Docket Number: 88705 DANIEL GOLDSTEIN, and ARIEL POPLACK, Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against CONCH COALITION LLC (“Conch”), CINDY JAE GOLDSTEIN, (“Cindy Goldstein”), DANIEL GOLDSTEIN, and ARIEL POPLACK, (together “Respondents”), alleging that: 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. a At all times material hereto, Conch has been a Part III money services business licensee pursuant to Chapter 560, Florida Statutes, as defined in section 560.103(22), Florida Statutes, having been issued license number FT340000917 on January 21, 2015. Conch’s license enabled it to operate as a check casher. 4. Conch’s address of record with the Office is 690 S. State Road 7, Margate, FL 33068. 5. At all times material hereto, Cindy Goldstein was a member and designated manager of Conch; Daniel Goldstein was a member and the designated compliance officer of Conch; and Ariel Poplack was a member and functioned as the manager of Conch. Accordingly, Cindy Goldstein, Daniel Goldstein, and Ariel Poplack are each responsible persons of Conch, as that term is defined in section 560.103(33), Florida Statutes. 6. On or about December 20, 2017, the Office completed an examination (#70648) of Conch’s business records and operations for the period of January 1, 2015 through December 31, 2016. 7. Pursuant to section 560.114(1)(a), Florida Statutes, the Office may revoke a money services business license for failure to comply with any provision of Chapter 560, Florida Statutes, or related rule. 8. 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” level suspension is 3 to 10 days. 9: 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” level suspension is 10 to 20 days. OUNT 1 10. The above general allegations 1 through 9 are hereby re-alleged and incorporated by reference as though fully stated herein. 11. Conch engaged in financial transactions within the State that it knew involved currency or payment instruments greater than $10,000. 12. Section 560.123(3), Florida Statutes, requires money services businesses to timely file reports as required by 31 U.S.C. section 5313(currency transaction reports, or “CTR.” 13. Conch violated section 560.123(3), Florida Statutes, by filing CTRs late, inaccurately reporting cash out, and using incorrect names and Federal Employer Identification (FEIN) numbers on reports filed. 14. Pursuant to Rule 69V-560.1000(41), Florida Administrative Code, a licensee cited for a violation of failing to file CTRs timely and inaccurately is subject to an “A” level fine and revocation of its license. 15. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and a fine in the sum of $3,400. co it 16. | The above general allegations 1 through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 17. | Pursuant to Sections 560.1401(5), 560.141(1)(a)3., Florida Statutes, Florida Statutes, Respondent’s licensure application requires that all officers, responsible persons, and any other person who has a controlling interest in the money services business, which includes all members of an LLC, be listed on the application. 18. | Respondents failed to list all members, all responsible persons, and each person who has a controlling interest in the LLC, by omitting to list Ariel Poplack as a member, responsible person, and as having a controlling interest in the LLC. 19. Failure to list all members, all responsible persons, and each person who has a controlling interest in the LLC is a material misstatement, misrepresentation, or omission in an application for licensure, or in any amendment to an application for licensure, regarding an affiliated party is grounds for disciplinary action. Section 560.114(1)(k), Florida Statutes. 20. Pursuant to Rule 69V-560.1000(22), F.A.C., a licensee cited for a violation of a material misstatement, misrepresentation, or omission in an application for licensure, or any amendment to an application for licensure, is subject to an “A” level fine and revocation of license. 21. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $3,500. COUNT III 22. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 23. Respondents cashed checks in amounts exceeding one thousand dollars ($1,000). 24. For checks that exceed one thousand dollars ($1,000), a licensee is required to submit specified information into the statewide Check Cashing Database (“CCD”). Section 560.310(2), Florida Statutes, Rule 69V-560.704(6), Florida Administrative Code. 25. Respondents submitted inaccurate data into the CCD in 2748 of 2943 transactions entered into the CCD. 26. Submitting inaccurate data into the CCD is grounds for disciplinary action. Section 560.114(1)(a), Florida Statutes, 27. Pursuant to Rule 69V-560.1000(12), F.A.C., a licensee cited for submitting inaccurate data into the CCD, is subject to a “B” level fine and revocation of license. 28. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $7,200. COUNT IV 29. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 30. | Money services business licensees are required to maintain an anti-money laundering program (“AML”) in accordance with 31 CFR s. 1022.210 that it must review and update as necessary to ensure that the program continues to be effective in detecting and deterring money laundering activities. Section 560.1235(2), Florida Statutes. 31. Pursuant to 31 CFR s. 1022.210(4), a money services business must provide for independent review to monitor and maintain an adequate AML program. 32. | Conch’s AML required that Conch conduct an independent review of its AML on an annual basis. Respondents failed to conduct an independent review of its AML program during the examination period, as required by Conch’s AML program. 33. Failing to conduct an independent review of its compliance program is a violation of section 560.1235(2), Florida Statutes, and subjects a licensee to discipline. Section 560.114(1)(y), Florida Statutes. 34. Pursuant to Rule 69V-560.1000(44), Florida Administrative Code, a licensee cited for a violation of section 560.1235(2), Florida Statutes, is subject to revocation of license and an “A” level fine. 35. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $1,600. COUNT V 36. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as though fully stated herein. 37. A licensee is required to comply with all state and federal laws and rules relating to the detection and prevention of money laundering, and specifically including 31 C.F.R. 1022.380. Section 560.1235(1), Florida Statutes. 38. 31 CFR 1022.380 requires a money services business to register with the Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”). 39. Respondent Conch’s MSB registration expired 12/31/2016, and was not renewed until 3/06/2017. 40. During the period in which Conch’s MSB registration was expired, Respondents continued to operate as a money services business. 41. | Operating as an MSB during the time in which its registration with FinCEN was expired is a violation of section 560.1235(1), Florida Statutes. 42, Pursuant to Rule 69V-560.1000(43), Florida Administrative Code, a licensee cited for a violation of section 560.1235(1), Florida Statutes, is subject to revocation of license and an “A” level fine. 43. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $3,500. COUNT VI 44. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 45. A licensee is required to implement the policies and procedures provided for in its AML program. 31 CFR s. 1022.210(e). 46. Respondents AML requires timely filing of CTRs, as required by 31 CFR s. 1022.210. 47. Respondents failed to implement their AML policy by late filing CTRs. 48. Failure to implement its AML policy by late filing CTRs is a violation of section 560.114(1)(y), Florida Statutes. 49. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for violation of implementing its AML policy by late filing CTRs is subject to license revocation and a “B” level fine. 50. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $7,500. OUNT VI Si. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 52. A licensee is required to implement the policies and procedures provided for in its AML program. 31 CFR 1022.210(e). 53. Respondents AML requires accurately filing CTRs, as required by 31 CFR s. 1022.210. 54. Respondents failed to implement their AML policy by filing inaccurate CTRs in that the data entered was not correct. 55. Failure to implement its AML policy by filing inaccurate CTRs subjects Respondents to discipline. Section 560.114(1)(y), Florida Statutes. 56. Pursuant to Rule 69V-560.1000(35), Florida Administrative Code, a licensee cited for violation of implementing its AML policy by late filing CTRs is subject to license revocation and a “B” level fine. 57. Therefore, the Office is seeking REVOCATION of Conch’s money services business license, number FT340000917, and an administrative fine of $7,500. COUNT VIII 58. The above general allegations 1 through 9 are hereby re-alleged and incorporated by reference as though fully stated herein. 59. Conch cashed corporate or third party checks that exceeded $1,000. 60. — A licensee who cashes corporate or third-party checks that exceed $1,000is required to maintain documentation specified by section 560.310(2)(a), Florida Statutes, and Rule 69V- 560.704(2), (3), and (4), Florida Administrative Code. 61. | Respondents did not take or maintain all documentation required when it cashed corporate or third-party checks that exceeded $1,000. 62. Pursuant to Rule 69V-560.1000(12), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.310(2)(a), Florida Statutes, is subject to a “B” level fine and a “B” level suspension. 63. Therefore, the Office is seeking an administrative fine of $3,800, and an 11-day suspension. COUNT IX 64. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 65. Licensees may not accept or cash payment instruments from persons who are not the original payee, except for authorized officers of corporate payees named on the instrument’s face. Section 560.309(4), Florida Statutes, 66. Respondent cashed payment instruments presented by persons who were not the original payee, and were not authorized representatives of the corporate entity listed on the check as the original payee. 67. Cashing payment instruments for a person who is not the original payee, and who is not an authorized representative of a corporate entity that is the original payee, is a violation of section 560.309(4), Florida Statutes. 68. Pursuant to Rule 69V-560.1000(86), F.A.C., a licensee cited for accepting payment instruments from persons who are not the original payee, and who are not an authorized representative of a corporate entity that is the original payee, is subject to a “B” level fine and a “B” level suspension. 69. Therefore, the Office is seeking an administrative fine of $3,900 and an 11-day suspension. COUNT X 70. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as if fully stated herein. 71. Conch cashed corporate or third party checks that exceeded $1,000. 72. When payment instruments greater than $1,000 are cashed, licensees are required to maintain legible copies of the acceptable identification presented by the customer at the time of acceptance. Section 560,.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code. 73. Respondents failed to obtain or maintain legible copies of acceptable personal identification presented by a conductor at the time checks were accepted for cashing, in violation of section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), F.A.C. 74, Pursuant to Rule 69V-560.1000(96), F.A.C., a licensee cited for a violation of failing to maintain a copy of personal identification on checks cashed in amounts in excess of $1,000 is subject to a “B” level fine and a “B” level suspension. 75. Therefore, the Office is seeking an administrative fine of $3,600, and a 10-day suspension. COUNT XI 76. The above general allegations | through 9 are hereby re-alleged and incorporated by reference as though fully stated herein. 78. Section 560.309(3), Florida Statutes, requires licensees to maintain and deposit payment instruments into their own commercial account at a federally insured financial institution. 79. In violation of section 560.309(3), Florida Statutes, Respondents failed to deposit payment instruments into their own commercial account. 80. Pursuant to Rule 69V-560.1000(85), Florida Administrative Code, a licensee cited for the first time for failing to comply with section 560.309(3), Florida Statutes, is subject to a “B” level fine. 81. Therefore, the Office is seeking an administrative fine of $7,500. WHEREFORE, Respondents, Conch Coalition LLC, Cindy Jae Goldstein, Daniel Goldstein, and Ariel Poplack, are hereby notified that the Office intends to enter an Order REVOKING Conch’s money services business license number FT340000917, and imposing an administrative fine of $53,000. 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 iver, Agency Clerk Agency Clerk 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. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. DATED and SIGNED this 14'" day of March, 2018. DREW J. BREAKSPEAR Commissioner By: /s/ Scott Fransen Scott Fransen Assistant General Counsel Office of Financial Regulation Fla. Bar No. 994571 1313 N. Tampa St. Tampa, FL 33602 Telephone: 813.218.5364 Email: scott.fransen@flofr.com CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been sent by U.S. certified mail to Conch Coalition LLC, Cindy Jae Goldstein, Daniel Goldstein, and Ariel Poplack, 690 S. State Rd. 7, Margate, FL 33068, this 14" day of March, 2018. /s/ Scott Fransen Scott Fransen 91 7159 9991 7036 6069 7701 DIVISION OF CONSUMER FINANCE 200 East Gaines Street Tallahassee, FL 32399-0376 RETURN SERVICE REQUESTED 91 7199 9991 7036 6069 7701 Conch Coalition LLC, Cindy Jae Goldstein, Daniel Goldstein, and Ariel Poplack 690 S. State Rd. 7 Margate, Florida 33068

Docket for Case No: 18-002188