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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.


State of New York
Banking Department


In the Matter of 
AMITYVILLE PAYROLL SERVICE, INC. 
A Casher of Checks Licensed Pursuant
To Article IX-A of the New York 
Banking Law
(Respondent)


SETTLEMENT AGREEMENT

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:

  1. Violation of Banking Law Section 370.2, which requires the licensing of each limited station opened and maintained by a licensed casher of checks;

  2. 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;

  3. 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;

  4. 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;

  5. 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);

  6. Violation of Part 400.3(b)(10), which requires that an operative microfilm viewer be maintained on each licensed premises at all times;

  7. 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

  8. 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”).

NOW, THEREFORE IT IS STIPULATED AND AGREED BY THE PARTIES HERETO AS FOLLOWS:

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:

  1. 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.

  2. Amityville will take all necessary steps to ensure that it is in compliance with all applicable laws, rules and regulations.

  3. 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.

  4. 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.

  5. 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.

  6.  All communications regarding this Settlement Agreement shall be sent to: 

Regina Stone
Deputy Superintendent of Banks
Licensed Financial Services Division
New York State Banking Department
One State Street 
New York, New York 10004 

Mrs. Barbara Madonia
President
Amityville Payroll Service, Inc. 
573 North Broadway
Amityville, New York  11701

Robert M. Simels, Esq.
Robert M. Simels, P.C.
1735 York Avenue, Suite 35C
New York, New York  10128     

  1. 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.      

  2. 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. 

  3. Each provision of this Settlement Agreement shall remain effective and enforceable until stayed, modified, terminated or suspended in writing by the Superintendent. 

  4. The effective date of this Settlement Agreement is the date on which it is executed by the Superintendent or her Deputy.  

  5. The provisions of this Settlement Agreement are not confidential. 

Agreed to and Accepted: 

Dated: ____________________. By: _______________________________
Regina A. Stone
Deputy Superintendent of Banks
New York State Banking Department
Dated: ____________________.  By: _______________________________
Mrs. Barbara Madonia
President
Amityville Payroll Service, Inc. 
Dated:  ____________________ By:  _______________________________
Christopher Madonia
Vice President
Amityville Payroll Service, Inc.
Dated: ____________________. By: ______________________________
Joseph Madonia, Jr.
Secretary
Amityville Payroll Service, Inc.

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