STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION IN RE: Administrative Proceeding Docket Number: 87380 J & V FOOD STORE, INC. d/b/a DUNN FOOD STORE, and JASMINE PATEL, Respondents. ADMINISTRATIVE COMPLAINT The State of Florida, Office of Financial Regulation, (“Office”) files this Administrative Complaint against J & V FOOD STORE, INC, d/b/a DUNN FOOD STORE, and JASMINE PATEL (“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; Respondents’ address of record with the Office is 10696 Biscayne Boulevard, Jacksonville, Florida 32218-5285. 3; At all times material hereto, J & V Food Store, Inc. was licensed by the Office under Part III of Chapter 560, Florida Statutes, as a money services business as defined in section 560.103(22), Florida Statutes, having been issued license FT340000791. Respondents are licensed to operate as a check casher. 4. At all times material hereto, J & V Food Store, Inc. was solely owned by Jasmine Patel. 5. In May 2017, the Office conducted an examination (No. 71564) (“examination”) of Respondents’ business records and operations for the time period of April 2015 through March 2017. 6. As defined in 31 C.F.R. §1010.100(ff) a “financial institution” includes a money services business pursuant to 31 C.F.R. §1010.100(t)(3). 7s A “money services business” includes a check casher pursuant to 31 C.F.R. §1010.100(f8)(2). 8. Pursuant to section 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000(35), Florida Administrative Code, any violation of 31 C.F.R. §1022.210 shall be treated as a separate violation of chapter 560, Florida Statutes. 9. Money services businesses are required to develop, implement, and maintain an effective anti-money laundering program pursuant to U.S.C. §5318(h) and 31 C.F.R. §1022.210. 10. 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. 11. Pursuant to section 560.1141, Florida Statutes, and Rule 69V-560.1000(147)(a), Florida Administrative Code, for violation of Chapter 560, Florida Statutes, the Office may impose an administrative fine, suspension of license, or revocation of license or any combination thereof. 12: Pursuant to section 560.1141, Florida Statutes, and Rule 69V-560.1000(150), Florida Administrative Code, the ranges for administrative fines imposed by this rule are $1,000 to $3,500 for an “A” level fine; $3,500 to $7,500 for a “B” level fine; and $7,500 to $10,000 for a “C” level fine. 13. Pursuant to section 560.1141, Florida Statutes, and Rule 69V-560.1000(151), Florida Administrative Code, the ranges for suspensions imposed by this rule are 3 to 10 days for an “A” level suspension; 10 to 20 days for a “B” level suspension; 20 to 30 days for a “C” level suspension; and up to 90 days for a “D” level suspension. COUNT I 14. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 15. | When payment instruments having a face value of $1,000 or greater are cashed, section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code, require licensees to maintain a legible copy of acceptable personal identification as presented by the customer at the time the check is accepted for cashing. 16. Section 560.310(2)(b), Florida Statutes, provides that acceptable personal identification is limited to: (a) a valid driver license; (b) a state identification card issued by any state of the United States or its territories or the District of Columbia, and showing a photograph and signature; (c) a United States Government Resident Alien Identification Card; (d) a passport; or (e) a United States Military identification card. 17. During its examination, the Office determined Respondents failed to maintain legible copies of acceptable personal identification presented by the conductor at the time of acceptance for multiple payment instruments having a face value of $1,000 or greater, in violation of section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code. 18. Pursuant to Rule 69V-560.1000 (96), Florida Administrative Code, a licensee cited for failing to comply with section 560.310(2)(b), Florida Statutes, and Rule 69V-560.704(4)(c), Florida Administrative Code, is subject to a “B” level fine and/or a “B” level suspension. 19. Therefore, the Office is seeking an administrative fine of $4,100 and a 11-day license suspension. COUNT I 20. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 21. Section 560.310(2)(c), Florida Statutes, requires a licensee to secure and maintain a thumbprint of the customer when cashing payment instruments of $1,000 or more. 22. During its examination the Office determined that licensee cashed multiple payment instruments of $1,000 or more and failed to maintain customer thumbprints, in violation of section 560.310(2)(c), Florida Statues. 23. Pursuant to Rule 60V-560.1000(97), Florida Administrative Code, a licensee cited for failing to comply with section 560.310(2)(c), Florida Statutes, is subject to a "B" level fine and/or a “B” level suspension. 24. The Office is seeking an administrative fine of $4,100 and a 12-day license suspension. COUNT Itt 25. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 26. At the time a licensee accepts a payment instrument for cashing, the payment instrument must be endorsed using the legal name under which the licensee is licensed, pursuant to section 560.309(2), Florida Statutes. 27. During its examination the Office determined Respondents failed to endorse multiple payment instruments accepted or cashed using the legal name under which they are licensed, in violation of section 560.309(2), Florida Statutes. 28. A licensee cited for failing to comply with section 560.309(2), Florida Statutes is subject to a “B” level fine and/or a “B” level suspension pursuant to Rule 69V-560.1000(84), Florida Administrative Code. 29. Therefore, the Office is seeking an administrative fine of $7,000 and a 19-day license suspension. COUNT IV 30. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 31. As part of its examination, the Office reviewed Respondents’ anti-money laundering program, including the policies therein, for compliance with the policies and procedures therein. 32. Respondents’ Anti-Money Laundering (AML) Program states “J & V FOOD STORE, INC has adopted procedures for the orderly processing of check cashing transactions. These procedures require that all checks presented for cashing are to be handled in the following manner... Verify that the following information is record in the check cashing log...Type of payment instrument...”. 33. During its examination the Office reviewed Respondents check cashing log and determined Respondents did not record the “Type of Payment Instrument" on their check cashing log as required by their AML Program, therefore Respondents failed to implement their anti- money laundering program, in violation of section 560.114(1)(y), Florida Statutes, and Rule 69V- 560.1000(35), Florida Administrative Code. 34. A licensee cited for failing to comply with 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000 (35), Florida Administrative Code, is subject to a “B” level fine and/or a “B” level suspension and/or a license revocation. 35. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day license suspension. COUNT V 36. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 37. Respondents’ Anti-Money Laundering (AML) Program states “a copy of all payment instruments accepted and endorsed by the Company to include the face and reverse (front and back) of the payment instrument. Copies shall be made after each payment instrument has been endorsed with the legal name of the Company J & V Food Store, Inc. Endorsements on all payment instruments accepted by the check casher shall be made at the time of acceptance.” 38. During its examination the Office determined Respondents failed to endorse each payment instrument cashed as required by their AML Program, therefore Respondents failed to implement their anti-money laundering program, in violation of section 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000(35), Florida Administrative Code. 39. Allicensee cited for failing to comply with 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000 (35), Florida Administrative Code, is subject to a “B” level fine and/or a “B” level suspension and/or a license revocation. 40. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day license suspension. COUNT VI 41. | The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 42. Respondents’ Anti-Money Laundering (AML) Program states for payment instruments exceeding $1,000 Respondents “shall affix an original thumbprint of the conductor to the original of each payment instrument accepted which is taken at the time acceptance and secure and maintain a copy of the original payment instrument including the thumbprint of the conductor.” 43. During its examination the Office determined that for each payment instrument valued at $1,000 or more, Respondents failed to affix the conductor’s thumbprint, as required by their AML Program, therefore Respondents failed to implement their anti-money laundering program, in violation of section 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000(35), Florida Administrative Code. 44. A licensee cited for failing to comply with 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000 (35), Florida Administrative Code, is subject to a “B” level fine and/or a “B” level suspension and/or a license revocation. 45. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day license suspension. COUNT VII 46. The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 47. Respondents’ Anti-Money Laundering (AML) Program states that for payment instruments exceeding $1,000, Respondents “shall secure and maintain a legible copy of the personal identification.” 48. During its examination the Office determined that for each payment instrument with a face value of $1,000 or more, Respondents failed secure and maintain a legible copy of the personal identification as required by their AML Program, therefore Respondents failed to implement their anti-money laundering program, in violation of section 560,114(1)(y), Florida Statutes, and Rule 69V-560.1000(35), Florida Administrative Code. 49. A licensee cited for failing to comply with 560.114(1)(y), Florida Statutes, and Rule 69V-560.1000 (35), Florida Administrative Code, is subject to a “B” level fine and/or a “B” level suspension and/or a license revocation. 50. Therefore, the Office is seeking an administrative fine of $3,500 and a 10-day license suspension. COUNT VII 51. | The above general allegations in paragraphs 1-13 are hereby re-alleged and incorporated by reference as if fully stated herein. 52. Pursuant to section 560.310(2)(d), Florida Statutes, payment instruments accepted by licensees from any one person on any given day which total $1,000 or more must be aggregated and reported in the check cashing database or on the electronic log. 53. Pursuant to Rule 69V-560.704(5), Florida Administrative Code, every check casher shall create and maintain an electronic log of payment instruments having a face value of $1,000 or greater including eleven categories of information for each prescribed transaction. 54. As part of its examination, the Office determined Respondents failed to maintain an electronic log that contained the eleven categories of information for each aggregated transaction having a face value of $1,000 or greater, in violation of section 560.310(2)(d), Florida Statutes, and Rules 69V-560.704(5), Florida Administrative Code. 55. A licensee cited for failing to comply with section 560.310(2)(d), Florida Statutes, or related rule is subject to a “B” level fine and/or a “B” suspension Rule 69V-560.1000(98), Florida Administrative Code. 56. Therefore, the Office is seeking an administrative fine of $7,500 and a 20-day license suspension. WHEREFORE, Respondents, J & V FOOD STORE, INC. d/b/a DUNN FOOD STORE, and JASMINE PATEL are hereby notified that the Office intends to enter an Order imposing an administrative fine of $36,700 and a 102-day license suspension. 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. DATED and SIGNED on this 6" day of March, 2018. DREW J. BREAKSPEAR Comissioner By: /s/ Melissa-Rose A. Stafford Assistant General Counsel Office of Financial Regulation Florida Bar Number 0096522 401 N.W. 2" Avenue, Suite N-708 Miami, Florida 33128-1740 (305) 536-0308; fax (305) 810-1100 melissa-rose.stafford@flofr.com 10 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been sent for service by certified U.S. mail to ] & V FOOD STORE, INC. d/b/a DUNN FOOD STORE, and JASMINE PATEL, 10696 Biscayne Boulevard, Jacksonville, Florida 32218-5285, on this 6" day of March, 2018. 931 7199 9991 7036 b069 7275 /s/ Melissa-Rose A. Stafford 11

Docket for Case No: 18-002878