Fhe July 12, 2004 Docketed by: wf DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER CHIEF FINANCIAL OFFICER A HIE! F s aN “On - ea) % oN IN THE MATTER OF: =. Cn) CASE NO. 71532-03-AG JOHN CHRISTOPHER GEE ne >» CY Gye fe ADMINISTRATIVE COMPLAINT TO: JOHN CHRISTOPHER GEE 3800 Beverly Drive Recaived&cb2 served £la-O'% West Palm Beach, Florida 33406 Ti HOP By Leones ole . bo JOHN CHRISTOPHER GEE CPsB/ SO#__Ste\ _ c/o Atlantic Insurance Services Inc. DBA City Insurance Services 4064 Forest Hills Boulevard, Suite 1 West Palm Beach, Florida 33406-5726 J OHN CHRISTOPHER GEE 7811 West Lake Drive West Palm Beach, Florida 33406-8743 You, JOHN CHRISTOPHER GEE, 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, JOHN CHRISTOPHER GEE, are currently licensed in the state as a General . Lines Insurance (Property & Casualty) Agent (2-20), license ID#A094903. 2. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint you, JOHN CHRISTOPHER GEE, were licensed as an insurance agent in this state. 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, you, JOHN CHRISTOPHER GEE, were 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 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 in this Administrative Complaint all funds received by you, JOHN CHRISTOPHER GEE, 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 6, 1997, a Letter of Guidance from the Department of Insurance was issued against you, JOHN CHRISTOPHER GEE, for you allegedly charging a consumer for an ancillary coverage without consent. 7. On or about January 10, 2000, another Letter of Guidance from the Department of Insurance, (a/k/a Department of Financial Services “DFS”) was issued against you, JOHN CHRISTOPHER GEE, for you allegedly charging a consumer for an ancillary coverage without consent, financing a consumer’s premium without the consumer’s knowledge, failing to request reinstatement of a consumer’s commercial policy causing the consumer to suffer an uninsured loss, and failing to refund a consumer’s unearned premium in a timely or complete manner. 8. On or about June 11, 1997, a Consent Order was issued against you, JOHN CHRISTOPHER GEE, by the Department of Financial Services for violations of the insurance code. The Consent Order required you, JOHN CHRISTOPHER GEE, to pay an administrative fine of FFVE HUNDRED AND 00/100 ($500.00) DOLLARS and to cooperate in the Department’s investigation against other individuals. COUNTI 9. Paragraphs one (1) through eight (8) are realleged and incorporated herein by reference. 10. On March 5, 2003, R.B. of West Palm Beach, Florida, went to City Insurance Services to purchase motor vehicle insurance. On that day, R.B. signed an application for motor vehicle insurance coverage to be placed with Ocean Harbor Casualty Insurance Company for a stated annual premium of SX HUNDRED THIRTY-SEVEN AND 00/100 ($637.00) DOLLARS, including the policy fee. Despite the fact that you did not solicit this insurance coverage, the application was signed by you, JOHN CHRISTOPHER GEE, as the “agent” for this insurance. 9. R.B paid cash in the amount of TWO HUNDRED TEN AND 00/100 ($210.00) DOLLARS as a premium down payment for this insurance coverage, with the remaining FOUR 3 “HUNDRED TWENTY-SEVEN AND 00/100 ($427.00) DOLLARS of premium to be financed with Finco Financial Corporation. On the premium finance agreement signed by you, JOHN CHRISTOPHER GEE, the down payment and unpaid balance were entered as ONE HUNDRED SIXTY AND 00/100 ($160.00) DOLLARS and FOUR HUNDRED SEVENTY-SEVEN AND 00/100 (477.00) DOLLARS, respectively. R.B.’s finance charge and monthly payments were therefore calculated and charged to her, and to her detriment, based on the overcharged FOUR . HUNDRED SEVENTY-SEVEN AND 00/100 ($477.00) DOLLARS unpaid balance indicated on the premium finance agreement. 10. The above-mentioned premium payments represented trust funds received by you, JOHN CHRISTOPHER GEE, from insurance consumers in a fiduciary capacity for City Insurance Services and the insurance companies it represents. 11. You, JOHN CHRISTOPHER GEE, have converted, misappropriated, or . wrongfully withheld fiduciary funds belonging to R. B. IT IS THEREFORE CHARGED that you, JOHN CHRISTOPHER GEE, 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]. WHEREFORE, you, JOHN CHRISTOPHER GEE, 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, 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 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 5 “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 4 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 attomey will discuss this matter with you until the response has been received by the Department of Financial Services. DATED this /2+44 day of valet Z , 2004. IN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: John Christopher Gee, 3800 Beverly Drive, West Palm Beach, Florida 33406; John Christopher Gee, c/o Atlantic Insurance Services Inc. DBA City Insurance Services, 4064 Forest Hills Boulevard Suite 1, West Palm Beach, Florida 33406-5726; John Christopher Gee, 7811 West Lake Drive, West Palm Beach, Florida 33406-8743 on this /24A_ day of sli Z , 2004. ” 4 William W. Tharpe, Jr. t Florida Bar Number: 0312411 Division of Legal Services 200 East Gaines Street Tallahassee, FL 32399-0333 (850) 413-4110

Docket for Case No: 04-004443PL