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Coinsource OH Notice of Charges

The Ohio Department of Commerce intends to suspend the money transmitter license of Clark, Sharp & Reynolds, LLC d/b/a Coinsource for failing to maintain the minimum $500,000 net worth required by Ohio law. Coinsource has had a negative net worth of $1.917 million since September 2020 and failed to remedy its deficiency after receiving a 10-day notice in January 2021. The Department finds this to be an unsafe and unsound practice. Coinsource has 30 days to request a hearing to challenge the suspension, or else its license will be suspended.

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237 views

Coinsource OH Notice of Charges

The Ohio Department of Commerce intends to suspend the money transmitter license of Clark, Sharp & Reynolds, LLC d/b/a Coinsource for failing to maintain the minimum $500,000 net worth required by Ohio law. Coinsource has had a negative net worth of $1.917 million since September 2020 and failed to remedy its deficiency after receiving a 10-day notice in January 2021. The Department finds this to be an unsafe and unsound practice. Coinsource has 30 days to request a hearing to challenge the suspension, or else its license will be suspended.

Uploaded by

LK
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Mike DeWine STATE OF OHIO Sheryl Maxfield

Governor DEPARTMENT OF COMMERCE Director


Division of Financial Institutions

In the matter of: ) Case No. MT2021-002


)
CLARK, SHARP & REYNOLDS, LLC ) NOTICE OF CHARGES AND INTENT
D/B/A COINSOURCE ) TO SUSPEND MONEY TRANSMITTER LICENSE
1943 Golden Heights Road, Suite 200 )
Fort Worth, TX 76177 )
)

JURISDICTION

The Ohio Department of Commerce, by and through the Superintendent of the Division of
Financial Institutions (“Division”), is charged with the responsibility of administering and enforcing
the Ohio Money Transmitter Act (“OMTA”), codified at Ohio Revised Code (“R.C.”) sections
1315.01 to 1315.18.
RESPONDENT

Clark, Sharp & Reynolds, LLC d/b/a Coinsource (“Respondent”) is a foreign corporation that
holds a money transmitter license (OHMT 147) issued by the Division pursuant to the OMTA.
Respondent’s address of record is 1943 Golden Heights Road, Suite 200, Fort Worth, TX 76177.
NOTICE OF PROPOSED ACTION

In accordance with R.C. 1315.151 and R.C. Chapter 119, the Division intends to SUSPEND
Respondent’s money transmitter license.
STATEMENT OF FACTS

A. R.C. 1315.151(A)(1) authorizes the Superintendent to suspend a money transmitter license if


the Division finds that any fact or condition exists that, if it had existed at the time when the
licensee applied for its license, would have been grounds for denying the application.
B. R.C. 1315.151(A)(2) authorizes the Superintendent to suspend a money transmitter license if
the Division finds that the licensee's net worth becomes inadequate and the licensee, after
ten days' written notice from the Superintendent, fails to take steps that the Superintendent
considers necessary to remedy the deficiency.
C. R.C. 1315.151(A)(4) authorizes the Superintendent to suspend a money transmitter license if
the license is conducting its business in an unsafe or unsound manner.
D. R.C. 1315.04(C) prohibits the Superintendent from approving a money transmitter license
application if the applicant does not have a minimum net worth of five hundred thousand
dollars ($500,000), calculated according to generally accepted accounting principles, but
excluding any assets that the Superintendent disqualifies and including any off-balance sheet
liabilities that the Superintendent requires.
E. R.C. 1315.05(B) requires a licensed money transmitter to maintain at all times a minimum net
worth of five hundred thousand dollars ($500,000), calculated in accordance with generally
accepted accounting principles, but excluding any assets that the Superintendent of Financial
Institutions disqualifies and including any off-balance sheet liabilities that the Superintendent
requires.
Clark, Sharp & Reynolds d/b/a Coinsource
Notice of Intent to Suspend License
Page 2 of 3

F. As of January 19, 2021, the Division’s records revealed that Respondent had a negative net
worth of $1.917 million at September 30, 2020, in violation of R.C. 1315.05(B).
G. Therefore, on January 19, 2021, the Division issued a 10-day letter to Respondent pursuant
to R.C. 1315.151(A)(2). The 10-day letter required Respondent to, within 10 days, provide
evidence to the Division that demonstrated Respondent’s compliance with the net worth
requirement established at R.C. 1315.05(B).
H. Despite Respondent’s having been afforded multiple opportunities to demonstrate to the
Division that it maintained a minimum net worth of $500,000, as of the date of this Notice,
Respondent has failed to provide evidence to the Division that it has taken steps the
Superintendent considers necessary to remedy Respondent’s deficient net worth. Specifically,
from January 19, 2021, to the present Respondent has failed to provide evidence to the
Division demonstrating that Respondent has a net worth of at least $500,000.
I. As of the date of this Notice, the Division’s records reveal that Respondent’s liquidity is
inadequate with a current ratio is less than 1.0X.
J. The circumstances described in Paragraph I of this Notice are an unsafe or unsound practice
in the business of money transmission.
As a result of the findings listed above, the Division has determined that:
1. The Superintendent is authorized pursuant to R.C. 1315.151(A)(1), 1315.151(A)(2), and
1315.151(A)(4) to suspend Respondent’s money transmitter license.
2. A suspension of Respondent’s money transmitter license until such time as Respondent
demonstrates to the Division: a) Respondent’s compliance with R.C. 1315.05(B); and b) that
Respondent is operating in a safe and sound manner is necessary and appropriate pursuant
to R.C. 1315.151(A)(1), 1315.151(A)(2), and 1315.151(A)(4).
REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
Clark, Sharp & Reynolds d/b/a Coinsource
Notice of Intent to Suspend License
Page 3 of 3

NOTICE OF OPPORTUNITY FOR A HEARING


Therefore, pursuant to R.C. 1315.151 and Chapter 119, Respondent is hereby notified that
thirty-one (31) days from the date of the mailing of this Notice, the Superintendent intends to
issue an order suspending Respondent’s money transmitter license.
Respondent is further notified that Respondent is entitled to a hearing in accordance with R.C.
1315.17 on this matter. If Respondent desires to request a hearing, the request must be made
in writing, and must be received in the offices of the Division within thirty (30) days of the time
of mailing of this Notice. The hearing request should be addressed: Ohio Division of Financial
Institutions, Attn: Jennifer Whitehurst, Assistant Division Counsel, 77 South High Street, 21st
Floor, Columbus, OH 43215-6120.
Respondent may appear at the hearing in person or by Respondent’s attorney, or by
presenting Respondent’s positions, arguments, and contentions in writing, and at the hearing
may present evidence and examine witnesses for and against Respondent.
Respondent is hereby notified that, pursuant to R.C. 1315.17, Respondent’s failure to make
a timely request for a hearing to determine whether Respondent’s money transmitter license
should be suspended, or failure to appear at the hearing, in person, by attorney, or by writing,
is consent by Respondent to the Division’s license suspension order.
If the Division does not receive a written request for a hearing in its offices within thirty (30)
days of the time of the mailing of this Notice, or if Respondent requests a hearing and fails to
appear thereat, the Superintendent will issue an order suspending Respondent’s money
transmitter license.
Signed this 12th day of March, 2021.

_______________________________________
INGRID E. WHITE
Deputy Superintendent for Banks
Division of Financial Institutions
Ohio Department of Commerce

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