Run aw eee FILED WAY 28 2002 Treasurer and THE TREASURER OF THE STATE OF FLORIDA Insurance vommiesioner DEPARTMENT OF INSURANCE Docketed by: TOM GALLAGHER IN THE MATTER OF: JAY WAYNE BOCK CASE NO: 33606-02-AG / ADMINISTRATIVE COMPLAINT al 055 2c TO: JAY WAYNE BOCK 1013 McFarland Street Dunedin, Florida 34698 JAY WAYNE BOCK 2430 Bayshore Blvd. Dunedin, Florida 34698-2001 You, JAY WAYNE BOCK, are hereby notified that pursuant to Chapter 626, Florida Statutes, the Insurance Commissioner of the State of Florida, has caused to be made an investigation of your activities while licensed an insurance agent in this state as a result of which it is alleged that: GENERAL ALLEGATIONS 1. You, JAY WAYNE BOCK, a currently licensed in this state as a life and variable annuity contracts salesman, life, health and annuity contracts salesman, life insurance agent, life and health insurance agent, health insurance agent and legal expense insurance agent. 2. At all times pertinent to the dates and occurrences referred to herein this Administrative Complaint, you, JAY WAYNE BOCK, were licensed in this state as an insurance agent. COUNT IJ 3. Paragraphs one and two are realleged and incorporated herein by reference, 4. On or about November 7, 1998, you, JAY WAYNE BOCK, visited the home of Mary F, Cavanaugh of Clearwater, Florida and solicited Ms. Cavanaugh to invest $ 30,000.00 of her personal retirement savings, by purchasing 6 shares of stock in a preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 5 You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your Tepresentations were false and a material misstatement of fact. Mary F, Cavanaugh would not have purchased the stock shares, but for these Tepresentations. You, JAY WAYNE BOCK, were aware of these facts, 6. You, JAY WAYNE BOCK, represented to Mary F. Cavanaugh that the Palm Beach Investment Group shares complied with all F lorida and Federal Securities laws and regulations, This Tepresentation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 517.051, 517.061, and 517.07, Florida Statutes. You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 5 17.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. 7. You, JAY WAYNE BOCK, failed to inform Mary F. Cavanaugh that you were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. Mary F. Cavanaugh would not have purchased the shares if she had been made aware of these facts. 8. The Palm Beach Investment Group shares were not an appropriate investment for individuals of Mary F. Cavanaugh’s age, financial circumstances and investment experience. These transactions were neither necessary nor in the purchaser’s best interest. You, JAY WAYNE BOCK were aware or should have been aware of these facts. 9. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive. 10. Palm Beach Investment Group, Inc., in a stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions. The stock shares purchased by Mary F. Cavanaugh are now worthless, and there is no likelihood that the investment or any part thereof will be recovered. As a result, she has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes] (c) Willful failure to comply with, or willful violation of any proper order or rule of the department or willful violation of any provision of this code. [Section 626.61 1(13), Florida Statutes] (d) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or permit. [Section 626.621(2), Florida Statutes] (e) Violation of any lawful order or rule of the Department. [Section 626.621(3), Florida Statutes] (6) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes] (g) Knowingly: a, Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e)1, Florida Statutes] COUNT II 11. Paragraphs one and two are realleged and incorporated herein by reference. 12. On or about F ebruary 18, 1999, you, JAY WAYNE BOCK, visited the home of George and Mary Cull of Clearwater, Florida and solicited Mr. and Mrs. Cull to invest $ 41,000.00 of their personal retirement savings, by purchasing 41 shares of stock in a preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 13, You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your representations were false and a material misstatement of fact. George and Mary Cull would not have purchased the stock shares, but for these representations, You, JAY WAYNE BOCK, were aware of these facts. 14, You, JAY WAYNE BOCK, represented to George and Mary Cull that the Palm Beach Investment Group shares complied with all Florida and Federal Securities laws and regulations. This representation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 517.051, 517.061, and 517.07, Florida Statutes. You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 5 17.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. 15. You, JAY WAYNE BOCK, failed to inform George and Mary Cull that you were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. George and Mary Cull would not have purchased the shares if they had been made aware of these facts. 16. The Palm Beach Investment Group shares were not an appropriate investment for individuals of George and Mary Cull’s age, financial circumstances and investment experience. These transactions were neither necessary nor in the purchaser’s best interest. You, JAY WAYNE BOCK were aware or should have been aware of these facts. 17. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive. 18. Palm Beach Investment Group, Inc., in a stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions. The stock shares purchased by George and Mary Cull are now worthless, and there is no likelihood that the investment or any part thereof will be recovered. As a result, they have suffered a significant financial loss. IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: Sections 626.61 1(7); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. COUNT It 19, Paragraphs one and two are realleged and incorporated herein by reference. 20. On or about J anuary 21, 1999, you, JAY WAYNE BOCK, visited the home of Hazel Eldredge of Apollo Beach, Florida and solicited Hazel Eldredge to invest $ 50,000.00 of her personal retirement savings, by purchasing 10 shares of stock in a preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 21. You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your tepresentations were false and a material misstatement of fact. Hazel Eldredge would not have purchased the stock shares, but for these tepresentations. You, JAY WAYNE BOCK, were aware of these facts. 22. You, JAY WAYNE BOCK, represented to Hazel Eldredge that the Palm Beach Investment Group shares complied with all Florida and Federal Securities laws and regulations. This representation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 517.051, 517.061, and 517.07, Florida Statutes. You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 517.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. 23. You, JAY WAYNE BOCK, failed to inform Hazel Eldredge that you were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. Hazel Eldredge would not have purchased the shares if she had been made aware of these facts. 24, The Palm Beach Investment Group shares were not an appropriate investment for individuals of Hazel Eldredge’s age, financial circumstances and investment experience. These transactions were neither necessary nor in the purchaser’s best interest. You, JAY WAYNE BOCK were aware or should have been aware of these facts. 25. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive. 26. Palm Beach Investment Group, Inc., in a stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions. The stock shares purchased by Hazel Eldredge are now worthless, and there is no likelihood that the investment or any part thereof will be recovered. As a result, she has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: Sections 626.61 1(7); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. COUNT IV 27. Paragraphs one and two are realleged and incorporated herein by reference. 28. On or about March 19, 1999, you, JAY WAYNE BOCK, visited the home of Myrtle J. Goyette of Winter Haven, Florida and solicited Myrtle Goyette to invest $25,000.00 of her personal retirement savings, by purchasing 25 shares of stock in a preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 29. You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (F DIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your Tepresentations were false and a material misstatement of fact. Myrtle Goyette would not have purchased the stock shares, but for these representations. You, JAY WAYNE BOCK, were aware of these facts. 30. You, JAY WAYNE BOCK, represented to Myrtle Goyette that the Palm Beach Investment Group shares complied with all Florida and Federal Securities laws and regulations, This representation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor Was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 517.051, 517.061, and 317.07, Florida Statutes. You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 517.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. 31, You, JAY WAYNE BOCK, failed to inform Myrtle Goyette that you Were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. Myrtle Goyette would not have purchased the shares if she had been made aware of these facts, 32. The Palm Beach Investment Group shares were not an appropriate investment for individuals of Myrtle Goyette’s age, financial circumstances and investment experience. These transactions were neither necessary nor in the purchaser’s best interest. You, JAY WAYNE BOCK were aware or should have been aware of these facts, 33. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive. 34. Palm Beach Investment Group, Inc., in a stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions. The stock shares purchased by Myrtle Goyette are now worthless, and there is no likelihood that the investment or any part thereof will be recovered. As a result, she has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: Sections 626.61 1(7); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. ae COUNT V 35. Paragraphs one and two are realleged and incorporated herein by reference, 36. On or about March 19, 1999, you, JAY WAYNE BOCK, visited the home of Josef E. Meier of Hudson, Florida and solicited Josef E. Meier to invest $200,000.00 of his personal retirement savings, by purchasing 40 shares of stock in a preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation, 37, You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a Suaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your Tepresentations were false and a material misstatement of fact. Josef E. Meier would not have purchased the stock shares, but for these Tepresentations. You, JAY WAYNE BOCK, were aware of these facts, 38. You, JAY WAYNE BOCK, represented to Josef E, Meier that the Palm Beach Investment Group shares complied with all Florida and Federal Securities laws and regulations. This representation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 517.051, 317.061, and 517.07, Florida Statutes. You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 5] 7.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. LSA ase 39, You, JAY WAYNE BOCK, failed to inform Josef E. Meier that you were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. Josef E. Meier would not have purchased the shares if he had been made aware of these facts. 40. The Palm Beach Investment Group shares were not an appropriate investment for individuals of Josef E. Meier’s age, financial circumstances and investment experience, These transactions were neither necessary nor in the purchaser’s best interest. You, JAY WAYNE BOCK were aware or should have been aware of these facts. 41. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive, 42. Palm Beach Investment Group, Inc., in a stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions. The stock shares purchased by Josef E, Meier are now worthless, and there is no likelihood that the investment or any part thereof will be recovered. As a result, he has suffered a si gnificant financial loss. IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: Sections 626.61 1(7); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. COUNT VI 43. Paragraphs one and two are realleged and incorporated herein by reference. 44, On or about J anuary 19 1999, you, JAY WAYNE BOCK, visited the home of Ella J. Robitaille of Apollo Beach, Florida and solicited Ella J. Robitaille to invest $25,000.00 of her personal retirement savings, by purchasing 8 shares of stock ina preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 45, You, JAY WAYNE BOCK, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed 11% annual return the first year and were insured by both the Federal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC or Great American Insurance Company. Your Tepresentations were false and a material misstatement of fact. Ella J. Robitaille would not have purchased the stock shares, but for these representations. You, JAY WAYNE BOCK, were aware of these facts. 46, You, JAY WAYNE BOCK, represented to Ella J. Robitaille that the Palm Beach Investment Group shares complied with all Florida and Federal Securities laws and regulations, This representation was false and a material misstatement of fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sell securities in this state nor was it’s preferred stock registered for sale in this state or exempt from such registration, all in violation of sections 917.051, 517.061, and 517.07, Florida Statutes, You, WAYNE JAY BOCK, were not registered in this state to sell securities, in violation of Section 317.12, Florida Statutes. You, JAY WAYNE BOCK, were aware of these facts. a 47, You, JAY WAYNE BOCK, failed to inform Ella J, Robitaille that you were not licensed to sell securities, that the Palm Beach Investment Group shares were unregistered, were speculative and involved a very high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. Ella J. Robitaille would not have purchased the shares if she had been made aware of these facts. 48, The Palm Beach Investment Group shares were not an appropriate investment for BOCK were aware or should have been aware of these facts, 49. You, JAY WAYNE BOCK, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive, 50. Palm Beach Investment Group, Inc., ina stipulated settlement agreement and consent order dated October 19, 1999, was ordered by the Florida Department of Banking and Finance to cease and desist from soliciting further stock subscriptions, The stock shares purchased by Ella J. Robitaille are now worthless, and there is no likelihood that the investment Or any part thereof will be recovered. As a result, she has suffered a significant financial loss, IT IS THEREFORE CHARGED that you, JAY WAYNE BOCK, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your license(s) and eligibility for licensure: Sections 626.61 1(7); 626.61 1(9); 626.61 1(13); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. WHEREFORE, you, JAY WAYNE BOCK, are hereby notified that the Insurance Commissioner and Treasurer intends to enter an Order revoking or suspending your licenses and eligibility for licensure or to impose such penalties as may be proper under the provisions of Sections 626.61 1, 626.621, 626.681, 626.691, 626.692 and 626.9521 Florida Statutes, under the Procedures and rules set forth in this Administrative Complaint. NOTICE OF RIGHTS You have the right to request a Proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The Proceeding request must be in writing, 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 the General Counsel as acting Agency Clerk, at the Florida Department of Insurance, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. 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. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, Florida Administrative Code, As noted above, completion of a the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: (a) The name and address of the party making the request, for purpose of Service; documents by subpoena, Ifa 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 Administrative Hearings. Unless the majority of Witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available, No Department attomey will discuss this matter with you until the Tesponse has been received by the Department of Insurance. » oth DATED this 2.2" day of May , 2002, N 1 Lali, KENNEY SHIPLEY Deputy Insurance Commissioner CERTIFICATE OF SERVICE Aa OF SERVICE : JAMES A. BOSSART, E \ e ifision of Legal Services ‘61 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4124

Docket for Case No: 02-002552PL