FILED Rirnce APR 16-2010 ALEX SINK CHESTATEOP FLORIDA Docketed b 7 “~_—e—ee—w—s lockeled by . IN THE MATTER OF: CASE NO. 109351-10-AG ADALBERTO LUIS SOTERO ADMINISTRATIVE COMPLAINT TO: ADALBERTO LUIS SOTERO 7050 SW 73" Court Miami, Florida 33143 ADALBERTO LUIS SOTERO 14150 SW 129™ Street Miami, Florida 33186 You, ADALBERTO LUIS SOTERO, are hereby notified that pursuant to Chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida, has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. You, ADALBERTO LUIS SOTERO, are currently licensed in the state as a general lines insurance agent and surplus lines insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, ADALBERTO LUIS SOTERO, were licensed as an insurance agent in this state. Filed May 6, 2010 10:27 AM Division of Administrative Hearings. 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, you, ADALBERTO LUIS SOTERO, were an officer and director of Falcontrust Group, Inc., a Florida incorporated insurance agency. Pursuant to Section 626.734, Florida Statutes, you, ADALBERTO LUIS SOTERO, are personally and fally liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the Insurance Code committed by either you or anyone else under your direct supervision and control while acting on behalf of the corporation. 4. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, all funds received by you, ADALBERTO LUIS SOTERO, pursuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were to be paid-over to persons entitled thereto in the regular course of business. COUNTI 5. Paragraphs one through four are realleged and incorporated herein by reference. 6. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, a contract was in effect between Falcontrust Group, Inc., and Zurich Insurance Company. Pursuant to the contract, all premiums received were held in a fiduciary capacity and were to be remitted to the insurance company no later than forty five days after the end of the month for which an account current statement was rendered, 7. You, ADALBERTO LUIS SOTERO, failed to remit all premiums due to Zurich Insurance Company. An audit of Falcontrust Group, Inc.’s account with Zurich Insurance Company reveals an indebtness owed by Falcontrust Group, Inc. of $7,145,851.14. 8. These funds represent premium payments, minus commission, received by you, ALDALBERTO LUIS SOTERO, and Falcontrust, from insureds for liability and property insurance policies issued by Zurich Insurance Company, but not remitted to the company. 9. The above-mentioned funds are trust funds received by you, ADALBERTO LUIS SOTERO, through Faicontrust Group in a fiduciary capacity only for the insurer. 10. You, ADALBERTO LUIS SOTERO, or someone under your direct supervision and control, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Zurich Insurance Company. 11. Demand has been made for remittal of the funds to Zurich Insurance Company, but you, ADALBERTO LUIS SOTERO, have refused same. As a result, Zurich Insurance Company has terminated the agency contract and has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, ADALBERTO LUIS SOTERO, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license. [Section 626.61 1(10), Florida Statutes]; (e) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of the Insurance Code. [Section 626.611(13), Florida Statutes]; (f) . Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]. WHEREFORE, you, ADALBERTO LUIS SOTERO, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services ("Department") pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, Florida Administrative Code. The proceeding request must be in writing, 4 signed by you, and must be filed with ‘the Department within twenty-one (21) days of your receipt of this notice. Completion of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with Julie Jones, Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. - If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: (a) The name, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the “respondent"), (b) The name, address, telephone number, facsimile number of the ‘attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. . (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (4) A statement of when the respondent received notice of the administrative complaint. (e) A statement including the file number to the administrative complaint. 5 If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative at your expense, to present evidence and argument, to call and cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. If a proceeding is requested and there is no dispute of material fact, the provisions of Section 120.57(2), Florida Statutes, apply. In this regard, you may submit oral or written evidence in opposition to the action taken by the Department or a written statement challenging the grounds upon which the Department has relied. While a hearing is normally not required in the absence of a dispute of fact, if you feel that a hearing is necessary, one will be conducted in Tallahassee, Florida, or by telephonic conference call upon your request. However, if you dispute material facts which are the basis for the Department’s action, you must request an adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. These proceedings are held before a State Administrative Law Judge of the Division of Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. Mediation of this matter pursuant to Section 120.573, Florida Statutes, is not available. No Department attorney will discuss this matter with you until the response has been received by the Department. , . ey ‘ a DATED and SIGNED this io" day of he ri 2010. NANCY ROWELL Division Directo}] Agent and Agency Services CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished by U.S. Certified Mail to: ADALBERTO LUIS SOTERO, 7050 SW 73 Court, Miami, Florida 33143, ADALBERTO LUIS SOTERO, 14150 SW 129" Street, Miami, Florida 33186 this | lo™ of s , 2010. ES A. BOSSART, ESQUIRE (zaytes of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4124 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: ADALBERTO LUIS SOTERO CASE NO.: 109351-10-AG ELECTION OF PROCEEDING I have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) 1.0] I do. not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my licenses and appointments as may be appropriate. 2. I do. not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120,57(2), Florida Statutes, In this regard, I desire to (CHOOSE ONE): Ut) Submit a written statement and documentary evidence in lieu of a hearing; or [] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [] Attend that same hearing by way of a telephone conference call, 3.[] I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. I have attached to this election form the information required by Rule 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, { have identified the disputed issues of material fact. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: Tracey Beal, Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390, Signature Print Name Date: Address: Date Administrative Complaint Received: If you are represented by an attorney or qualified Phone No.: representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No.:

Docket for Case No: 10-002442

Orders for Case No: 10-002442