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1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: AG CASE NO. L Taylor, Reed & Sloan, Inc., and John Thomas, Respondents ~/ ASSURANCE OF VOLUNTARY COMPLIANCE 1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation to be made into certain acts and practices of Taylor, Reed & Sloan, Inc., a Florida for-profit corporation and its owner and president, John Thomas (collectively hereinafter, "Respondents"). 2. Taylor, Reed & Sloan, Inc. ("TRS") is a debt collection company with its principal place of business registered as 6245 Powerline Road, Suite 103, Fort Lauderdale, Florida John Thomas ("Thomas") is an individual residing at 1015 East Sunrise Boulevard, #101, Fort Lauderdale, FL 33304, and is owner and president oftrs. 3. Respondents are prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondents violated Florida=s Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. 1

2 4. Pursuant to Section (6), Florida Statutes, the Department agrees to accept this AVC in termination of its investigation as to Respondents solely as to the acts and practices that were the subject of the investigation. I. STIPULATED FACTS 5. The Department and Respondents hereby agree and stipulate to the following: a. During the time frame beginning at least July 2011 through June 2013, Respondents engaged in the business of offering and providing debt collection services to consumers in Florida and elsewhere. b. The Department has investigated allegations that Respondents initiated collection activities on behalf of prospective clients prior to obtaining written authorization, that Respondents engaged in improper debt collection practices, including holding funds paid by debtors for excessive periods, that Respondents failed to provide appropriate disclosures to prospective clients, and that Respondents misrepresented themselves as a law firm. 6. Respondents represent since they became aware of the Department's investigation, on or about February 14, 2013, and in accordance with the Respondents' standard refund policies, the Respondents refunded $22, (Twenty-Two Thousand, Five Hundred and Twenty-Four Dollars and Thirty-Eight Cents) in total to consumers, listed on Exhibit A, who have retained Respondents for debt collection services. 7. This AVC is based upon the stipulated facts set forth herein. The Department shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way or should this AVC not be complied with in full by Respondents. The parties agree that this A VC has been entered into based on the truthfulness of 2

3 the information provided by Respondents. II. COMPLIANCE 8. Respondents, including their representatives, agents, employees, successors, assigns, independent contractors or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device, shall: a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes; b. Comply with Florida Statutes Section (the Florida Consumer Collection Practices Act); c. Comply with 15 U.S.C (the Fair Debt Collection Practices Act); d. Comply with all other applicable state and federal statutes; e. Cease commencing collection activities on behalf of creditors until in actual, physical possession of a written authorization signed by the creditor; f. Complete payment to creditor entities within 30 days of the expiration of any applicable charge-back period of funds collected from debtor entities; g. Cease holding funds received from debtors for payment to creditors in excess of 90 days under any circumstances; h. Provide creditors with the option to set a mmtmum acceptable amount OR provide clear and conspicuous written disclosures stating that TRS may collect any amount it deems acceptable after good-faith negotiations with the debtor; 1. Cease representations that Taylor, Reed & Sloan, Inc. is a law firm; J. Cease representations that employees of Taylor, Reed & Sloan, Inc. are attorneys; and k. Provide other and further disclosures to prospective clients as appropriate. 9. Respondents shall circulate an internal memorandum among their employee to remind Respondents' employees they must refrain from representing themselves as attorneys and from representing TRS as a law firm. The memorandum shall further remind employees to be respectful and courteous to debtors, creditors, and the consuming public. Each employee 3

4 shall sign the memorandum in acknowledgement of its contents and the employees' affirmation of compliance. Respondents have provided signed copies of the memorandum to the Attorney General. III. BUSINESS RECORDS 10. Respondents shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this A VC and other information reasonably sufficient to establish compliance with the provisions of this A VC for two (2) years from the date of this A VC, and shall provide reasonable access to such documents and information to the Department upon request. IV. CONSUMER RECORDS 11. Any personal or financial information of consumers m the custody, control or possesswn of Respondents shall be securely stored in such a manner as to reasonably protect against inadvertent disclosure of consumer information. Respondents, including any representatives, agents, employees, successors, and assigns, shall not, directly or indirectly, market, sell, share or otherwise disclose the name, contact information, or financial information of any consumer in the care, custody or control of Respondents. V. NOTICE 12. Respondents shall make the terms and conditions of this AVC known to any managers, members, officers, directors, employees, agents, independent contractors or anyone else acting for or on behalf of Respondents. The obligations imposed by this A VC are continuing in nature and shall apply to Respondents' successors and assigns as well as any and all new officers, employees, agents, representatives or any other persons who become engaged in the business or activities of Respondents. 4

5 13. Respondents shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this A VC. VI. RESTITUTION 14. Prior to the effective date of this AVC, Respondents have refunded to the consumers set forth in Exhibit A hereto the amounts listed thereon, the total amount of which as of the date of this AVC is $22, (Twenty-Two Thousand, Five Hundred and Twenty-Four Dollars and Thirty-Eight Cents) with all refunds completed on or before May 20, A sworn affidavit certifying compliance with this provision, including attached documentation substantiating same, shall be provided by Respondents simultaneous with delivery of the partially-executed copy of this AVC. 15. Respondents shall issue refunds to any other consumer who either a) filed a complaint regarding Respondents with the Department after May 20, 2013 but prior to the effective date of this A VC or b) files a complaint regarding Respondents with the Department following the effective date of this AVC. As additional consumer complaints are received by the Department following the effective date of this A VC, the Department shall provide Respondents with consumers who submitted complaints or affidavits following the effective date of this AVC and the amounts due to each consumer, and Respondents shall provide refunds within 30 calendar days. Respondents shall continue to provide these refunds until such time as the fees and costs set forth in Paragraph 17, below, are paid in full, or for at least 90 days following the effective date of this A VC. The 30 day period shall begin on the date that notice is sent by the Department. To the extent Respondents object to the listed refunds due additional consumers who file a timely complaint, such consumers shall be refunded as set forth on the list absent 5

6 sufficient documentation provided by Respondents to establish to the Department's reasonable satisfaction that Respondents made full and timely payment of all appropriate amounts due to the consumer. 16. Within 10 days of the conclusion of the refund period set forth in Paragraph 15, Respondents shall provide the Department with a sworn affidavit certifying the Respondents' compliance with the obligations set forth in Paragraph 15 and attaching documentation substantiating said payments. VII. FEES AND COSTS 17. Respondents shall contribute $25, (Twenty-Five Thousand Dollars) to the Department pursuant to Section , Florida Statutes, in payment of attorneys' fees, costs and investigative fees regarding this investigation and future investigative fees and costs. All payments shall be made by wire transfer, cashier's check or other certified funds payable to Department of Legal Affairs Revolving Trust Fund. The payment shall be submitted to Assistant Attorney General Ronald Honick as follows: a. $5, (Five Thousand Dollars) shall be submitted simultaneous with the Respondents' partially-executed copy of this AVC. b. Following the payment described above, $5, (Five Thousand Dollars) shall be submitted on the first business day of each month, until all payments have been completed. 18. The original AVC bearing the notarized signatures of Respondents and the payment( s) due hereunder will be delivered to the attention of Assistant Attorney General Ronald Honick, Office of Attorney General, Economic Crimes Division, 110 SE 6th Street, 1Oth Floor, Fort Lauderdale, FL

7 VIII. CIVIL PENAL TIES 19. Subject to Respondents' full, complete and timely compliance with the terms of this AVC, the Department is waiving, pursuant to this settlement and in consideration of the Respondents' performance hereunder, the civil penalties that would otherwise be due for the acts and practices at issue under Sections or , Florida Statutes, of up to $15,000 per violation. The total civil penalty liability that would otherwise be due, but for Respondents' full and complete compliance with this AVC, is stipulated to be $430, (Four Hundred and Thirty Thousand Dollars). IX. FUTURE VIOLATIONS 20. It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC by Respondents is by statute prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and will subject Respondents to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. In the event that a court of competent jurisdiction makes a determination that a violation of any condition of this AVC has occurred, then Respondents shall be liable to a consent judgment against Respondents in the amount of $430, (Four Hundred and Thirty Thousand Dollars) in civil penalties, as well as attorney's fees and costs and any other legal or equitable relief as the court may determine appropriate. 21. In the event that Respondents violate the provisions ofthis AVC, the Department will provide written notice of the specific violation to Ray Lucas, attorney for Respondents. Respondents will be given 10 business days to remedy the violation. The 10 business day cure period will begin on the date that notice is sent by the Department. 7

8 22. Upon the expiration of 91 days following the latter of full execution of this AVC and/or receipt of all payments due hereunder from the Respondents, provided the Respondents have fully and completely performed all obligations owing to date and no voluntary or involuntary petition for bankruptcy or other declaration of insolvency has been filed as to any of the Respondents, the Department shall close its civil investigation into the acts and practices of Respondents at issue herein, provided that such closure shall be without prejudice to any other remaining investigation(s) that may otherwise exist as to Respondents or any other entities. X. EFFECTIVE DATE 23. The effective date of this AVC shall be the date of its execution and delivery by the Department. Acceptance by the Department shall be established by the signature of the Director of the Consumer Protection Division, Richard Lawson. The receipt by the Department of any monies pursuant to the AVC does not constitute acceptance by the Department, and any monies received shall be returned to Respondents if this A VC is not accepted and fully executed by the Department. XI. MISCELLANEOUS 24. It is further agreed that facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this agreement, and this A VC may be executed in counterparts the compilation of which shall constitute the full and final agreement. 25. Notice to any of the parties to this AVC as may be required shall made by certified mail and at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. To Respondents: 8

9 Ray Lucas, Esq. 218 Commercial Blvd Suite 107 Lauderdale By the Sea, Florida Attorney for Respondents To the Department: Ronald J. Honick Assistant Attorney General Office of the Attorney General 110 Southeast 6th Street loth Floor Fort Lauderdale, FL Nothing in this A VC is to be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Respondents or any other person or entity. 27. It is a condition of each of the Department's obligations under this A VC that the Respondents have fully and timely performed all of Respondents' obligations previously due under this AVC. 28. This AVC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this A VC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this A VC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this AVC is based upon any statements by the other party outside of those in this AVC. 29. It is further agreed that the parties jointly participated in the negotiation of the terms of this A VC. No provision of this A VC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this AVC than another. 9

10 30. By my signature, I hereby affirm that I have authority to execute this A VC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as corporate representative, and that by my signature r am binding the party/parties indicated to the terms and conditions of this AVC. SIGNATURE PAGES FOLLOW ON SEPARATE PAGES 10

11 For Respondents: TAYL~& SLOAN, INC. Sign~~ Its: 'f?~ By: ~~rv /k7t-t rl STATE OF FLORIDA COUNTY OF BROW ARD )ss )ss...- BEFORE ME, an officer d ly uthorized to take acknowledgments in the State of Florida, ~'h.o. 'appeared re~; of Taylor, Reed & Sloan, Inc., who produced Ll li'j?-n 5-">as identification. S/he acknowledged before me th,t he executed the foregoing instrument for the purposes therein stated on then_ day of Jt..\. f, Subscribed to before me this j_j_ day of :.:S ~ \ J, _P., ~"E DORSAINVIL ; E MY COivli'JiiSSION If ,,/ EXPIRES August 03, 2013 N otary Public) Personally known /or Produc~d Identification (check one) Type of Identification Produced: L i c.e..., ~ 11

12 JO~S Signed.'.J--, ~ STATE OF FLORIDA COUNTY OF BROW ARD )ss )ss B~FORE ME, an officer duly authorized to take acknowledgments in the State of Florida, -=:su(1b, appeared John Thomas, who produced L-1 ~ as identification. S/he ackn~wledged before me that qe executed the foregoing instrument for the purposes therein stated on the.11_ day of 0 q [1, ~. Subscribed to before me this jj day of:::sia ~~, Personally kn?wn. Vor Produc, Ide~tification (check one) Type of IdentificatiOn Produced: L..J ( 1'1 S-o- 12

13 OFFICE OF THE ATTORNEY GENERAL /d?(13 Assistant Attorney General 110 S.E. 6th Street, 9th Floor Fort Lauderdale, FL (954) (954) facsimile rector, Consumer Protection Division Department of Legal Affairs OFFICE OF THE ATTORNEY GENERAL The Capitol Tallahassee, FL (850)

14 Taylor Reed and Sloan, Inc. Assurance of Voluntary Compliance Exhibit A Complainant Martin Buchtenkirch Leslie Combns Ralph Holly Pierre lsmeron Wesley Morgan Bob Murray Lynne and Frank Taibbi Jeremy Morris Dan Edgar Jack Roop Cary Stirling Will and Sherry Richardson Matthew Smith Mark Sturman Total Amount refunded $ $ $ $ $2, $ $2, $3, $1, $4, $ $ $3, $1, $22,524.38

15 AFFIDAVIT State offlorida } } ss: County of Broward } BEFORE ME, the undersigned notary, on this lf~'aday of July, 2013, personally appeared JOHN THOMAS, President of Taylor Reed & Sloan, Inc., "Affiant," known to me to be a credible person and of lawful age, who being by me first duly sworn, on his oath, deposes and says 1. I am the President of Taylor Reed & Sloan, Inc., a Florida corporation ("TRS"). 2. On or about June 28,2013, TRS entered into a Voluntary Assurance of Compliance agreement with the Florida State Attorney General's Office regarding a series of complaints filed by clients oftrs. 3. Paragraph 14 of said agreement indicates that TRS has refunded the consumers set forth in Exhibit A the amount of $22, Pursuant to the terms of Paragraph 14, I hereby certify compliance with this provision. STATE OF FLORIDA } COUNTY OF BROWARD } Sworn to and subscribed before me this 4 day of July, 2013, by JOHN THOMAS, President, Taylor Reed & Sloan, Inc., Affiant. _.i~v..o:<{~: \/IVIANNE DORSAINVIL ~! :*:: MY COM~v!ISSION # SEAL......,.::

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STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: AG CASE NO. L12-3-1046 Groundhog Enterprises, Inc. d/b/a Merchant Lynx Services and John Kucyk, Individually,