FILED July 12, 2004 Docketed by: CfA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER <3 CHIEF FINANCIAL OFFICER t 2 . - bee} “Ti —- uw eres IN THE MATTER OF: go} Soe UO gy Pls _ CASE NO..71533-03-AG PAUL ANTHONY VENTURELLI Ps / if UO pL ADMINISTRATIVE COMPLAINT TO: PAUL ANTHONY VENTURELLI 246 Arlington Road West Palm Beach, Florida 33405-5012 PAUL ANTHONY VENTURELLI c/o City Insurance Services 4064 Forest Hills Boulevard, Suite 1 West Palm Beach, Florida 33406-5726 PAUL ANTHONY VENTURELLI P.O. Box 5299 Lake Worth, Florida 33466-5299 PAUL ANTHONY VENTURELLI c/o Orrin R. Beilly, Esquire 105 South Narcissus Avenue, # 105 West Palm Beach, Florida 33401 You, PAUL ANTHONY VENTURELLI, 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, PAUL ANTHONY VENTURELLJI are currently licensed in the state as a General Lines Insurance (Property & Casualty) Agent (2-20), license ID # A273179. 2. At all times pertinent to the dates and occurrences referred to herein, you, PAUL ANTHONY VENTURELLI, were licensed as an insurance agent in this state. 3. At all times pertinent to the dates and occurrences referred to herein, you, PAUL ‘ ANTHONY VENTURELLI, were the Registered Agent, Primary Agent, and an officer and director for Atlantic Insurance Services, Inc., a Florida corporation, doing business in this state as an insurance agency also under the name of City Insurance Services, located in West Palm Beach, Florida. 4. At all times pertinent to the dates and occurrences referred to herein, you, PAUL ANTHONY VENTURELLI, were a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services.” 5. At all times pertinent to the dates and occurrences referred to herein all funds received by you, PAUL ANTHONY VENTURELLI, 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. 6. On or about January 27, 1998, a Letter of Guidance from the Department of Insurance (a/k/a Department of Financial Services “DFS”) was issued against you, PAUL ANTHONY VENTURELLLI, for your failure to notify the Department of a change of address, and for your failure to file required Designation of Primary Agent forms. 7. On or about June 18, 2002, another Letter of Guidance from the Department of Financial Services was issued against you, PAUL ANTHONY VENTURELLI, for your failure 2 to notify the Department of a change of address, and for placing coverage on an ineligible vehicle. COUNT I 8. Paragraphs one (1) through seven (7) are realleged and incorporated herein by reference. 9 On or about March 14, 2002, M.W. of Palm Beach Gardens, Florida went to City Insurance Services to purchase motor vehicle insurance. On that day, M.W. signed an application for motor vehicle insurance coverage to be placed with Ocean Harbor Casualty Insurance Company for a stated annual premium of SIX HUNDRED AND 00/100 ($600.00) DOLLARS, including the policy fee. Despite the fact that you did not solicit this insurance coverage, the application was signed by you, PAUL ANTHONY VENTURELLLI, as the “agent” for this insurance. 10. | M.W. wrote a check to City Insurance Services for TWO HUNDRED AND 00/100 ($200.00) DOLLARS as a premium down payment for this insurance coverage, with the remaining FOUR HUNDRED AND 00/100 ($400.00) DOLLARS of premium to be financed with Finco Financial Corporation. On the premium finance agreement signed by you, PAUL ANTHONY VENTURELLI, the down payment and unpaid balance were entered as ONE HUNDRED FIFTY AND 00/100 ($150.00) DOLLARS and FOUR HUNDRED FIFTY ($450.00) DOLLARS, respectively. M.W.’s finance charge and monthly payments were therefore calculated and charged to him, and to his detriment, based on the overcharged FOUR HUNDRED FIFTY AND 00/100 ($450.00) DOLLARS unpaid balance indicated on the premium financing agreement. 11. The above-mentioned premium payments represented trust funds received by you, PAUL ANTHONY VENTURELLI, from insurance consumers in a fiduciary capacity for City Insurance Services and the insurance companies it represents. 12, You, PAUL ANTHONY VENTURELLI, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Michael Wilson. IT IS THEREFORE CHARGED that you, PAUL ANTHONY VENTURELLI, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department 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 626.611(10), Florida Statutes]. COUNT II 13. Paragraphs one (1) through seven (7) are realleged and incorporated herein by reference. 14. On or about August 29, 2001, C.H and M.H. of Greenacres, Florida went to City Insurance Services to purchase motor vehicle insurance. On that day, M.H. signed an application for motor vehicle insurance coverage to be placed with Ocean Harbor Casualty Insurance Company for a stated annual premium of ONE THOUSAND ONE HUNDRED NINETY-ONE AND 00/100 ($1,191.00) DOLLARS, including the policy fee. Despite the fact that you did not solicit this insurance coverage, the application was signed by you, PAUL ANTHONY VENTURELLL, as the “agent” for this insurance. 15. M.H (a/k/a MLL.) wrote a check to City Insurance Services for THREE HUNDRED SEVENTY-THREE ($373.00) DOLLARS as a premium down payment for this insurance coverage, with the remaining EIGHT HUNDRED EIGHTEEN ($818.00) DOLLARS of premium to be financed with Finco Financial Corporation. On the premium finance agreement signed by you, PAUL ANTHONY VENTURELLI, the down payment and unpaid balance were entered as TWO HUNDRED NINETY-EIGHT AND 00/100 ($298.00) DOLLARS and EIGHT HUNDRED NINETY-THREE AND 00/100 (893.00) DOLLARS, respectively. M.C and M.H.’s finance charge and monthly payments were therefore calculated and charged to them, and to their detriment, based on the overcharged EIGHT HUNDRED NIENTY-THREE AND 00/100 ($893.00) DOLLARS unpaid balance indicated on the premium financing agreement. 16. The above-mentioned premium payments represented trust funds received by you, PAUL ANTHONY VENTURELLI, from insurance consumers in a fiduciary capacity for City Insurance Services and the insurance companies it represents. 17. You, PAUL ANTHONY VENTURELLI, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to C.H. and M.H. IT IS THEREFORE CHARGED that you, PAUL ANTHONY VENTURELLI, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department 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 626.611(10), Florida Statutes]. COUNT Il 18. Paragraphs one (1) through seven (7) are realleged and incorporated herein by reference. 19. Onor about June 30, 2001, C.A. of West Palm Beach, Florida went to City Insurance Services to renew his motor vehicle insurance. On that day, C.A. signed a renewal application for motor vehicle insurance coverage to remain with Ocean Harbor Casualty Insurance Company for a stated annual premium of SEVEN HUNDRED TEN AND 00/100 ($710.00) DOLLARS, including the policy fee. The solicition of this insurance coverage was handled by you, PAUL ANTHONY VENTURELLI, and the application was signed by you, PAUL ANTHONY VENTURELLI, as the “agent” for this insurance. 20. C.A. made two (2) separate cash payments to City Insurance Services for a total of TWO HUNDRED FIFTEEN AND 00/100 ($215.00) DOLLARS as a premium down payments for this insurance coverage, with the remaining FOUR HUNDRED NINETY-FIVE AND 00/100 ($495.00) DOLLARS of premium to be financed with Finco Financial Corporation. On the premium finance agreement signed by you, PAUL ANTHONY VENTURELLI, the down payment and unpaid balance were entered as ONE HUNDRED SEVENTY-EIGHT AND 00/100 ($178.00) DOLLARS and FIVE HUNDRED THIRTY-TWO AND 00/100 ($532.00) DOLLARS, respectively. C.A.’s finance charge and monthly payments were therefore calculated and charged to him, and to his detriment, based on the overcharged FIVE HUNDRED THIRTY-TWO AND 00/100 ($532.00) DOLLARS unpaid balance indicated on the premium finance agreement. “3 21. The above-mentioned premium payments represented trust funds received by you, PAUL ANTHONY VENTURELLTF, from insurance consumers in a fiduciary capacity for City Insurance Services and the insurance companies it represents. 22. You, PAUL ANTHONY VENTURELLL, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to C.A. IT IS THEREFORE CHARGED that you, PAUL ANTHONY VENTURELLI, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department 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 pennit. [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]. WHEREFORE, you, PAUL ANTHONY VENTURELL], are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and 8 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 al! 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 form 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. 10 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 this_/2+e day of tele , 2004. WCzeyr—. EN CHANDLER Deputy Chief Financial Officer 11 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: Paul Anthony Venturelli, 246 Arlington Road, West Palm Beach, Florida 33405-5012; Paul Anthony Venturelli, c/o City Insurance Services, 4064 Forest Hills Boulevard Suite 1, West Palm Beach, Florida 33406- 5726; Paul Anthony Venturelli, P.O. Box 5299, Lake Worth, Florida 33466-5299; Paul Anthony Venturelli, c/o Orrin R. Beilly, Esquire, 105 South Narcjssus Avenue #105, West Palm Beach, Florida 33401 on this_ /2+kday of slide - , 2004. twube Hovbead her William W. Tharpe, Jr. Florida Bar Number: 0312411 612 Larson Building Division of Legal Services 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4110 13

Docket for Case No: 04-004442PL