De ae . 4 » STATE OF FLORIDA . FEED DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF EMPLOYEE LEASING Companies CU JUN-7 PH 2:31 DIVISION OF ADHIMISTRATD ‘DEPARTMENT OF BUSINESS AND | A PROFESSIONAL REGULATION, Petitioner, vs. , CASENOS. 99-06471, : 99-06469 SEA LEASING, INC., Oo-4 3Y, % . and K. SCOTT WORK, Respondents. / ADMINISTRATIVE COMPLAINT : Petitioner, Department of Business and Professional Regulation, files this Administrative Complaint before the Board of Employee Leasing Companies (Board), against Sea Leasing, Inc., and K. Scott Work (Respondents), and alleges: 1. Petitioner is the state agency charged with regulating the practice of employee leasing companies pursuant to Section 20.165, Chapter 455, and Chapter 468, Part XI, Florida Statutes. 2. Respondent (99-06471), Sea Leasing, Inc., having been issued license number EL 0000169, is, and has been at all times material hereto, a licensed employee leasing company in the State of Florida. 3. Respondent (99-06469), K Scott Work, is and has been at all times material hereto, a licensed controlling person for Sea Leasing, Inc., in the State of Florida having been issued license number CO 0000386. / . 4, Respondents’ address of record is 155 Crystal Beach Drive, Suite 137, Destin, FL 1 bad nd Section 468.520(7), Florida Statutes, provides: “Controlling person means: (a) Any natural person who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of any employee leasing company, including, but not limited to: (1) Direct or indirect control of 50 percent or more of the voting securities of the _ employee leasing company; or (2) The general power to endorse any negotiable instrument payable to or on behalf of the employee leasing company or to cause the direction of the management ” or policies of any employee leasing company; or Any natural person employed, appointed, or authorized by an employee leasing company to enter into a contractual relationship with a client company on behalf of the employee leasing company. Section 468.532(1), Florida Statutes, provides in part: The following constitutes grounds for which disciplinary action against a licensee may be taken by the board: QQ) Violating any provision of Chapter 468, Part XI, Florida Statutes, or any lawful order or rule issued under the provisions of this act or Chapter 455. Rule 61G7-5.002(1), Florida Administrative Code, provides in pertinent part: , Effective April 1, 1992, the Department of Business and Professional Regulation shall assess each Employee Leasing Company and each Employee Leasing Company Group an annual assessment fee based upon the preceding calendar year's gross Florida payroll of the company or group. The assessment shall be due on April 1 of each year and shall become delinquent after April 30. : Rule 61G7-10.001, Florida Administrative Code, states, in pertinent part: Each employee leasing company shall submit, not later than 75 days after the end of each calendar quarter, a statement to the Board of Employee Leasing Companies affirming that it is in compliance with s. 468.525(3)(d), F.S., in that it is maintaining positive working capital. Medak, 9. Rule 61G7-10.0011, Florida Administrative Code, states, in pertinent part: Each employee leasing company shall submit, not later than 120 days after their -fiscal year end, a copy of their current fiscal yea énd financial statements, prepared in accordance with generally accepted accounting principles. 10. . Rule 61G7-10.0012, Florida Administrative Code, states, in pertinent part: Each audited or reviewed financial statement submitted to the Board pursuant to . Section 468.525(3)(e), F.S., and Rules 61G7-5.0031 and 61G7-5.0032, F.A.C., shall - include a statement, signed by the chief executive officer (CEO) and chief financial officer (CFO) of the employee leasing company as well as the independent certified public accountant (CPA) auditing or reviewing the financial statement, in substantially one of the following forms: (1) For the period(s) represented in the attached financial statements, we had a - guaranteed cost policy for workers’ compensation provided by an admitted i insurance carrier licensed to do business in the State of Florida. COUNT I ll. Petitioner realleges and incorporates the preceding paragraphs as if fully stated herein. 12. Respondents’ annual assessment fee for the year ending December 31, 1998, was not received by the April 30, 1999 deadline. 13. Respondents’ annual assessment fee was received by the Board on or about February 11, 2000. . . 14. Based upon the foregoing, Respondents violated Section 468.532(1)(i), Florida Statutes, through a violation of Rule 61G7- 5. 5.00200? Florida Administrative Code, » by ing to timely submit an annual assessment it fee. COUNT IH 15. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. a 16. Respondents annual financial statement for the year ending December 31, 1998, was not received by the April 30, 1999 deadline. | 17. Respondents' annual financial statement was received by the Board on or about February 11, 2000. . 18. Based upon the foregoing, Respondents violated Section 468.532(1)(i), Florida Statutes, through a violation of Rule 61G7-10.001 1, Florida Administrative Code, by failing to timely submit an annual financial statement. COUNT III 19. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. - 20. | Respondents’ December 31, 1998 annual report did not contain a Workers’ Compensation Liability Statement. 21. Based upon the foregoing, Respondents violated Section 468.532(1)(i), Florida Statutes, through a violation of Rule 61G7-10.0012, Florida Administrative Code, by failing to submit an annual financial statement prepared in accordance with generally accepted accounting principals. COUNT IV "22. _Peionerelleges and eincorportes pagans ne throigh nine si fly stated wan “ spree woes sv eannien Bi thing 23, Respondents! financial report for the quarter ending March 31, 1 999, was not received by the Board on or before the June 15, 1999 deadline. . 24. Respondenis quarterly financial statement for the quarter ending March 31, 1999, 4 ee was received by the ‘Board o on or ot about February li, 2000. 25. Based upon the foregoing, Respondents violated Section 468. 532(00) Florida Statutes, through a violation of Rule 61G7-10.001, Florida Administrative Code, by failing to timely submit a quarterly financial statement, 7 COUNT V 26: Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. 27. Respondents’ quarterly financial statement for the quarter ending March 31, 1999, was incomplete in that it did not include a completed quarterly report form or a workers’ compensation certificate of insurance. 28. Based upon the foregoing, Respondents violated Section 468.532(1)(i), Florida Statutes, through a violation of Rule 61G7-10.001, Florida Administrative Code, by failing to submit a quarterly financial statement prepared in accordance with generally accepted accounting principals. COUNT VI 29. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. | 30. Respondents' financial report for the quarter ending June 30, 1999, was not received by the Board on or before the September 14, 1999 deadline. | 31. Respondents’ quarterly financial statement for the quarter ending June 30, 1999, was received by the Board on or about February 11, 2000. . 32. Based upon the foregoing, Respondents violated Section 468.532(1)@), Florida 5 Ww vy Statutes, through a violation of Rule 61 G7-10.001, Florida Administrative Code, by failing to timely submit a quarterly financial statement. . } COUNT VII 33. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. | 34, -Respondents' quarterly financial statement for the quarter ending June 30, 1999, was incomplete in that it did not include a completed quarterly report form or a workers’ compensation certificate of insurance. . 35. Based upon the foregoing, Respondents violated Section’ 468.532(1)G), Florida Statutes, through a violation of Rule 61G7-10.001, Florida Administrative Code, by fsiling to submit a quarterly financial statement prepared in accordance with generally accepted accounting principals. COUNT VIII 36. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein. | | 37. Respondents financial report for the quarter ending September 30, 1999, was not received by the Board on or before the December 15, 1999 deadline. . 38. Respondents quarterly financial statement for the quarter ending September 30, 1999, was received by the Board on or about February 11, 2000. 39.. Based upon the foregoing, Respondents violated Section 468.532(1)(i), Florida Statutes, through a violation of Rule 61 G7-10. 001, » Florida Administrative Code, by failing to timely submit a quarter y ‘financial sta ement. | “COUNT IX 40. Petitioner realleges and reincorporates paragraphs one through nine as if fully stated herein... 41. Respondents’ quarterly firiancial statement for the quarter ending September 30, 1999, was incomplete in that it did not include a completed quarterly report form or a workers’ compensation certificate of insurance. 42. Based upon the foregoing, Respondents violated Section 468.532(1)G), Florida Statutes, through a violation of Rule 61G7-10.001, Florida Administrative Code, by failing to submit a quarterly financial statement prepared in accordance with generally accepted accounting principals. WHEREFORE, Petitioner respectfully requests the Board of Employee Leasing Companies enter an Order imposing one or more of the following penalties: revocation or suspension of the - Respondents’ licenses, an administrative fine, costs, probation, and/or any other relief that the Board deems appropriate. SIGNED this 29 _ day of Appi. , 2000. FILED 5 ‘ ional Regulation Deparent of Bi ERK * Deputy General Counsel orem Drardont Wit ichele DATE ~Y-27-2000 7 BY: Peter G. Gioia ee ee eee We COUNSEL FOR DEPARTMENT: Allison H. Deison Senior Attorney Department of Business and Professional Regulation Northwood Centre 1940 N. Monroe St.. Tallahassee, Florida 32399-2202 (850) 487-9636 AHD/pky 3/15/00 AC.ELCOSeaLeasing — VpcP: Byrd and Landrum DATE: ~~ April 11, 2000

Docket for Case No: 00-002396