TOM GALLAGHER CHIEF FINANCIAL OFFICER i fe ¥9 FILED ocT 7 203 IN THE MATTER OF: CASE NO.: 71329-03-AG DANIEL P. ZUTLER TO: ADMINISTRATIVE COMPLAINT DANIEL P. ZUTLER 7300 Sea Grape Avenue Port Richey, Florida 34668-2878 DANIEL P. ZUTLER c/o Southeast Bail Bonds d/b/a Capital Bond 2501 Orient Road, Suite B Tampa, Florida 33619-2925 You, DANIEL P. ZUTLER, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activities while licensed as a limited surety agent in this state and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, DANIEL P. ZUTLER, currently are licensed in this state as a limited surety (2-34) agent, and were so licensed at all times relevant to the dates and occurrences referenced herein. Your license identification number is A294572. 2. Pursuant to Chapter 648, Florida Statutes, the Florida Department of Financial Services (hereinafter referred to as the “Department”) has jurisdiction over your license and appointrnents. 3. On July 22, 1997, the Department filed an Administrative Complaint against you, DANIEL P. ZUTLER, alleging unauthorized advertising, to wit: wearing a shirt which said “BAIL BOND AGENT” on the back and which was legible and in plain view while you were in a County Jail in New Port Richey, Florida, in violation of Sections 648.44(1)(b) and 648.44(1)(c), Florida Statutes. 4. On January 30, 1998, you, DANIEL P. ZUTLER, signed a Settlement Stipulation for Consent Order (which gave rise to a Consent Order, dated February 16, 1998) imposing a one thousand dollar ($1,000.00) administrative penalty for the above-referenced violation. The fine was paid on March 10, 1998. 5. During the year 2002, the Chief Financial Officer of the State of Florida caused to be made an investigation of your activities while licensed as a limited surety agent in this state. In lieu of filing an Administrative Complaint against you alleging that you, DANIEL P. ZUTLER, charged an excessive fee and failed to have the correct company name on an application, premium receipt and promissory note, the Department and you, DANIEL P. ZUTLER, entered into a Settlement Stipulation for Consent Order dated December 18, 2002 (which gave rise to a Consent Order, dated January 29, 2003). The Consent Order imposed an administrative penalty of seven hundred fifty dollars ($750.00), which was paid April 15, 2003. The Consent Order also required that restitution in the amount of one hundred dollars ($100.00) be paid and it was so paid on April 15, 2003. The Consent Order also resulted in your, DANIEL P. ZUTLER, being placed on probation for a period of one (1) year, and in particular states that “As a condition of probation, Respondent [DANIEL P. ZUTLER] shall strictly adhere to all provisions of the Florida Insurance Code and Rules of the Department of Financial Services and all other laws of the State of Florida. If, during the period of probation, the Department has good cause to believe that Respondent has violated the terms or condition [sic] of this probation or any other probation it shall suspend or revoke the licenses and appointments of the Respondent.” 6. You, DANIEL P. ZUTLER, as of the date of this Administrative Complaint, still are on probation with the Department for past violations of the Florida Insurance Code and Rules of the Department of Financial Services. COUNT I 7. The above General Allegations are hereby realleged and fully incorporated herein by reference. 8. On or about August 7, 2002, you, DANIEL P. ZUTLER, received two thousand four hundred seventy dollars ($2,470.00) cash from DAF. You, DANIEL P. ZUTLER, provided two separate receipts to DAF, one indicating that one thousand nine hundred fifty dollars ($1,950.00) constituted collateral, and the other indicating payment of your fee of four hundred fifty dollars ($450.00) for travel time. The remaining seventy dollars ($70.00) received was not accounted for in either receipt. Thus, you, DANIEL P. ZUTLER, collected a total fee of five hundred twenty dollars ($520.00), which is not an allowable fee under Chapter 4-221 of the Florida Administrative Code. IT IS THEREFORE CHARGED that you, DANIEL P. ZUTLER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) No surety, bail bond agent, temporary bail bond agent, or managing general agent engaged in the bail bond business shall make any charge, collect, or receive any fee or consideration unless permitted by statute or rule other than the premium based on rate in current use... [Section 4-221.105(1), Florida Administrative Code]. (b) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]. (c) Has demonstrated lack of reasonably adequate knowledge and_ technical competence to engage in the transactions authorized by the license or appointment. [Section 648.45(2)(f), Florida Statutes]. (d) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]. (e) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]. (f) Has demonstrated a course of conduct or practices which indicate that the licensee is incompetent, negligent, or dishonest or that property or rights of clients cannot safely be entrusted to him or her. [Section 648.45(2)(p), Florida Statutes]. (g) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c)]. COUNT II 9. The above General Allegations are hereby realleged and fully incorporated herein by reference. 10. On or about July 29, 2002, you, DANIEL P. ZUTLER, arranged two Evergreen National Indemnity Company (hereinafter “Evergreen”) criminal surety bail bonds for DAF by completing the Evergreen Appearance Bond and Power of Attorney forms, which already bore the signature of Katie Long Heyer, and collected nine hundred dollars ($900.00) from a friend of DAF as premium. 11. At no time relevant to the dates and occurrences referenced herein were you, DANIEL P. ZUTLER, appointed by Evergreen. 12. As a result of these actions, you, DANIEL P. ZUTLER, aided and abetted Katie Long Heyer in her violation of Section 648.441(1), Florida Statutes. IT IS THEREFORE CHARGED that you, DANIEL P. ZUTLER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c)]. (b) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department. [Section 626.621(12)]. (c) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]. (d) Has demonstrated lack of reasonably adequate knowledge and technical competence to engage in fhe transactions authorized by the license or appointment. [Section 648.45(2)(f), Florida Statutes]. (e) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]. (fh Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]. COUNT III 13. The above General Allegations are hereby realleged and fully incorporated herein by reference. 14, On or about July 29, 2002, you, DANIEL P. ZUTLER, arranged two Evergreen criminal surety bail bonds for DAF by executing the Evergreen Appearance Bond and Power of Attorney forms. 15. At no time relevant to the dates and occurrences referenced herein were you, DANIEL P. ZUTLER, appointed by Evergreen. IT IS THEREFORE CHARGED that you, DANIEL P. ZUTLER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) A person may not act in the capacity of a bail bond agent or temporary bail bond agent or perform any of the functions, duties, or powers prescribed for bail bond agents or temporary bail bond agents under this chapter unless that person is qualified, licensed, and appointed as provided in this chapter. [Section 648.30(1), Florida Statutes]. (b) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]. (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c)]. (d) All bail bond agents who are members of the same agency, partnership, corporation, or association shall be appointed to represent the same companies. [Section 648.55, Florida Statutes]. COUNT IV 16. The above General Allegations are hereby realleged and fully incorporated herein by reference. 17. On or about August 7, 2002, you, DANIEL P. ZUTLER, gave two handwritten, unnumbered receipts to DAF for cash tendered by her to you, DANIEL P. ZUTLER, for collateral and fees, contrary to the Florida Administrative Code requirement to use consecutively pre-numbered receipts for such transactions. IT IS THEREFORE CHARGED that you, DANIEL P. ZUTLER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) Every bail bond agent who accepts any type of collateral in conjunction with a bail bond or undertaking which they execute must for such collateral received give to the person or persons giving the collateral a consecutively pre-numbered receipt as evidence thereof. [Section 4-221.120(1), Florida Administrative Code]. (b) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]. (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c)]. COUNT V. 18. The above General Allegations are hereby realleged and fully incorporated herein by reference. 19. Asa result of the particularly described violations in Count I through Count IV above, which are hereby realleged and fully incorporated herein by reference, you, DANIEL P. ZUTLER, have violated your probation under the Consent Order dated January 29, 2003. IT IS THEREFORE CHARGED that you, DANIEL P. ZUTLER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]. WHEREFORE, you, DANIEL P. ZUTLER, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a limited surety agent or to impose such penalties as may be provided under the provisions of Sections 648.46, 648.49, 648.50, 648.51, 648.52, 648.53, and 648.58, 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 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. DATED and SIGNED this Ui L day of Ock abel , 2003. Air Deputy Chief Financial Officer Sh EL CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ‘the following ELECTION OF PROCEEDING has been furnished to DANIEL P. ZUTLER, 7300 Sea Grape Avenue, Port Richey, Florida 34668-2878, and to DANIEL P. ZUTLER, c/o Southeast Bail Bonds d/b/a fapital Bond, 2501 Orient Road, Suite B, Tampa, Florida 33619-2925, by Certified Mail this 4H day of Octo ov , 2003. oe aa Gfeg S/Marr Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4180 Florida Bar Number 0131369 12

Docket for Case No: 03-004849PL