DEPARTMENT OF FINANCIAL SERVICES Tom Gallagher ; Chief Financial Officer IN THE MATTER OF: CASE NO.: 61348-03-AG i Russell Arthur Noggle / 0 4% _ O7 Ye ADMINISTRATIVE COMPLAINT TO: Russell Arthur Noggle 3654 Boggy Creek Road Kissimmee, Florida 34744 You, RUSSELL ARTHUR NOGGLE, license 1.D. #A192775, are hereby notified that the Deputy 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. Pursuant to Chapter 626, Florida Statutes, you, RUSSELL ARTHER NOGGLE, are currently licensed in this state as a Health agent (2-40), Life agent (2-16), Life and Health agent (2-18), Life Including Variable Annuity & Health agent (2-15), and Life Including Variable Annuity agent (2-14). 2. At all times pertinent to the dates and occurrences referenced herein, you, RUSSELL ARTHER NOGGLE, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. At all times relevant to the dates and occurrences referenced herein, Coastal Life Insurance Company; Coastal International Life Insurance, Limited; Coastal International Life Insurance Company, Limited; Caribbean Corporate Services Limited; BJM International Services Inc.; Medallion Group International; Evergreen Securities, Ltd. And Coyners, Dill & Pearman did not have a certificate of authority issued by the Department. 8. In order to transact insurance in the State of Florida, an insurer must hold a subsisting certificate of authority issued by the Department of Financial Services, pursuant to Section 624.401, Florida Statutes, and otherwise comply with other provisions of the Florida Insurance Code. 6. An unauthorized insurer is one not duly authorized by a subsisting certificate of authority issued by the Department of Financial Services to transact business in the State of Florida. [Section 624.09, Florida Statutes] COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. On or about November 13, 1991, you, RUSSELL ARTHUR NOGGLE met with consumers Herbert and Beryl Eargle of Orlando, Florida for the purpose of soliciting them to purchase annuities and/or unregistered securities and you, RUSSELL ARTHUR NOGGLE, did in fact solicit and induce Eargles to purchase annuities and/or unregistered securities. 9. At all times relevant hereto you, RUSSELL ARTHUR NOGGLE, led the Eargles to believe that they were purchasing annuities. 10. You, RUSSELL ARTHUR NOGGLE, told the Eargles that the annuities paid 11% interest the first year, 10% the next four years and 8% for each subsequent year until maturity. This statement is false, misleading, and material misstatement of fact. 11. On or about November 13, 1991, Herbert and Beryl Eargle each signed Trust Information sheets and Letters of Wishes directed to Caribbean Corporate Services Limited, a purported British Virgin Islands Corporation. 12. On or about November 13, 1991, the Eargles gave you, RUSSELL ARTHUR NOGGLE, a $100,000 as payment for the annuities and or unregistered securities. This money was to be used to purchase a $50,000 deferred annuity, with Herbert Eargle as the annuitant, a $35,800 deferred annuity, with Beryl Eargle as the annuitant and a $14,200 annuity immediate payable for S years, with Beryl Eargle as the annuitant. 13. The $100,000 was purportedly used to purchase annuity policies from or through Coastal International Life Insurance Limited, Orlando Florida. 14, You, RUSSELL ARTHUR NOGGLE, knew or should have know that Caribbean Corporate Services Limited and Coastal International Life Insurance Limited were not authorized to transact insurance in the state of Florida. 15, As a direct result of your, RUSSELL ARTHUR NOGGLE’s, actions and omissions the Eargles lost nearly $75,000. IT IS THEREFORE CHARGED that you, RUSSELL ARTHUR NOGGLE, 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 licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes.]; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes. ]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes. ]; (d) Violation of any provision of this code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment, including one or more of the following: Sections 624.11, 626.611(7), 626.611(8), 626.611(9), 626.621(6), 626.901(1), 626.901(2), and 626.9541(1)(a)(1). [Section 626.621(2), Florida Statutes. ]; (e) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X [redesignated part IX] of this chapter, or having otherwise shown himself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes. }; (f) No person shall, from offices or by personnel or facilities located in this state ... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not then duly authorized to transact such insurance in this state. [Section 626.901(1), Florida Statutes. ]; (g) If an unauthorized insurer fails to pay in full or in part any claim or loss within the provisions of any insurance contract which is entered into in violation of this section, any person who knew or reasonably should have known that such contract was entered into in violation of this section and who solicited, negotiated, took application for, or effectuated such insurance contract is liable to the insured for the full amount of the claim or loss not paid. [Section 626.901(2), Florida Statues. ]; ‘ (h) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9542(1)(a)(1), Florida Statutes. ] WHEREFORE, you, RUSSELL ARTHUR NOGGLE, 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, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out 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 Financial Services, 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. 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 REVOCATION WILL BE ENTERED AGAINST YOU. 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 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; (b) A statement that the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received from the agency. 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 of Financial Services. “sn DATED and SIGNED this_3 ed day of february 2003. J / i Pa fy abe —Kored rarllr KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: RUSSELL ARTHUR NOGGLE, 3654 Boggy Creek Road, Kissimmee, Florida 34744 by Certified Mail this ie day of Febru ard , 2003. t Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4188 Florida Bar Number 0318530

Docket for Case No: 03-000763PL