Source: http://dfs.ny.gov/about/ea/ea041013.htm
Timestamp: 2017-10-17 09:19:59
Document Index: 603769698

Matched Legal Cases: ['art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400', 'art 400']

NYDFS Enforcement Action: Settlement Agreement with Amityville Payroll Services, Inc., October 13, 2004
Amityville Payroll Services, Inc., a Licensed Casher of Checks, has entered into a Settlement Agreement with the Superintendent of Banks which includes a Payment of $25,000 fine.
WHEREAS, AMITYVILLE PAYROLL SERVICE, INC. (“Amityville”, the “Respondent” or the “Licensee”), with corporate headquarters at 573 North Broadway, Amityville, New York 11701, originally was granted a license on May 23, 1990 to engage in business as a licensed casher of checks pursuant to Article IX-A of the New York Banking Law (the “Banking Law”) by the Superintendent of Banks (the “Superintendent”) of the New York State Banking Department (the “Banking Department”) and currently operates from licensed locations at 573 North Broadway, Amityville, New York 11701, 58A East Suffolk Avenue, Central Islip, New York 11722, 120-130 West Sunrise Highway, Lindenhurst, New York 11757, 385 Nassau Road, Roosevelt, New York 11575, and 3333A Veterans Memorial Highway, Ronkonkoma, New York 11779 and at twenty limited purpose stations; and
WHEREAS, Barbara Madonia, Christopher Madonia and Joseph Madonia, Jr., each own one third of the Licensee; and
WHEREAS, as a result of an examination of Amityville, conducted as of January 2, 2002 (the “January 2, 2002 Examination”), the following violations of the Banking Law and related regulations (the “Violations”) were cited to Amityville:
Violation of Banking Law Section 370.2, which requires the licensing of each limited station opened and maintained by a licensed casher of checks;
Violation of Part 400.3(a) of the Superintendent’s Regulations (“Part 400”), which requires a “daily record of checks cashed” in which all cash transactions shall be recorded;
Violation of Part 400.3(b)(2), which requires that all date items which are microfilmed be identified with a date card inserted into the machine before each item is microfilmed;
Violation of Part 400.3(b) (4), which requires that each check, draft or money order cashed shall be microfilmed together with the deposit ticket indicating the date and total amount of the deposit;
Violation of Part 400.3(b)(8), which requires a licensee to review all microfilm to determine that processed film is accurate and, if not accurate, to immediately begin to maintain written records as required by Part 400.3(a);
Violation of Part 400.3(b)(10), which requires that an operative microfilm viewer be maintained on each licensed premises at all times;
Violation of Part 400.3(b)(11), which requires that a licensee maintains all microfilm equipment so as to ensure continuous proper operation, verifies that all microfilm records are maintained in an accurate and legible form and assures that all personnel working at a location are familiar with the requirements of Part 400; and
Violation of Part 400.3(d), which requires a “returned items record”, including certain enumerated information; and
WHEREAS, the Violations, as well as other violations cited in prior examinations, represent a serious ongoing lack of management oversight and controls; and
WHEREAS, the Violations, as well as additional violations cited in prior examinations, evidence that Amityville is operating in an unauthorized and unsafe manner; and
WHEREAS, the parties hereto wish to resolve this matter on the terms set forth hereinafter in this Settlement Agreement (the “Settlement Agreement”).
THAT, the Notice of Hearing and Statement of Charges, each dated December 20, 2002, served by the Banking Department on Amityville, seeking to revoke Respondent’s licenses, immediately shall be lifted.
THAT, the Respondent agrees as follows:
Without admitting or denying the aforementioned allegations, Amityville freely and voluntarily waives its right to a hearing on the Violations cited above and Amityville fully understands the terms and conditions of this Settlement Agreement.
Amityville will take all necessary steps to ensure that it is in compliance with all applicable laws, rules and regulations.
Amityville agrees to pay to the State of New York a fine in the aggregate amount of $_25,000 in the following manner: payable upon execution of this Settlement Agreement. The payment is to be made by electronic transfer, in immediately available funds, pursuant to transfer instructions received from the Banking Department. Failure to make timely payment, in whole or in part, shall result in immediate revocation of Amityville’s licenses.
No later than thirty (30) days from the date of execution of this Settlement Agreement, Amityville shall address to the full satisfaction of the Banking Department all items mentioned in the letter, dated January 16, 2002, from the Banking Department to Amityville relating to January 2, 2002 Examination. At that date, Amityville shall present to the Banking Department a plan of corrective action indicating steps to prevent the reoccurrence of the indicated Violations and related control weaknesses.
Amityville shall be on probationary status until such time as an examination can be conducted by the Banking Department, or one year whichever is earliest. Such examination would be for the purpose to determine the effectiveness of the implementation of the corrective actions required by section 4 above and would be at the expense of Amityville.
Mrs. Barbara Madonia
573 North Broadway
Robert M. Simels, Esq.
Robert M. Simels, P.C.
1735 York Avenue, Suite 35C
The provisions of this Settlement Agreement shall not bar, estop or otherwise prevent the Superintendent, or any state or federal agency or department, from taking any other action affecting the Licensee, any of its current or former officers, directors, employees, or insiders, or their successors or assigns with respect to matters not relating to this Settlement Agreement or any criminal aspect of the matters in this Settlement Agreement.
No extension or waiver of the terms of this Settlement Agreement shall be binding on the Banking Department except if approved in writing by the Superintendent.
Dated: ____________________. By: ______________________________
Joseph Madonia, Jr.