Jul 28 2005 8:57 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE &d : WW FLORIDA DEPARTMENT OF ZA FINANCIAL SERVICES TOM GALLAGHER FILED CHIEF FINANCIAL OFFICER STATE OF FLORIDA JUN 34 2005 . IN THE MATTER OF: Dookated bye Tage? CASE NO.: 80788-05-AG MARLENE M. RUIZ ADMINISTRATIVE COMPLAINT. TO: MARLENE M. RUIZ 18455 Miramar Parkway #182 Miramar, FL 33029-5871 MARLENE M. RUIZ 3701 Southwest 137 Avenue Miramar, FL 33027-3210 You, MARLENE M. RUIZ, license LD. #4228196, 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 an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, MARLENE M. RUIZ, are currently licensed in this state as a Title Agent (4-10) Agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, MARLENE M. RUIZ, 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. Jul 28 2005 8:57 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE &5 4. At al] times material herein, you, MARLENE M. RUIZ, as a licensed title insurance agent, conducted business through Title Service Depot, Inc., a Florida corporation, for which you were an officer and director. Both you and the said Title Service Depot, Inc. held appointments with Fidelity National Title Insurance Company of New York until both appointments were cancelled by the company based upon financial irregularities disclosed as a result of audit. 5. At all times material herein, you, MARLENE M. RUIZ, acting as an insurance agent individually and acting by and through your agency, Title Service Depot, Inc., consistently conducted real estate closings utilizing false and fraudulent entries to generate proceeds therefrom for your own use and benefit, all as will hereinafter be more fully set forth. COUNT I 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. In or around September 6, 2002, in your closing file number 02-277, the file ledger reflects no checks or other disbursements made to the following items as listed in HUD-1 form: title charge lines 1101 through 1111] totaling $877.37; line 1302 — pest inspection to Ameri-Service for $1,000.00; line 1303 — satisfaction of mortgage for $6.00; line 1305 — water bill for $307.55; line 1306 — water bill for $200.00; Schedule A —~ final bill for $300.00. The total of these items is $2,690.92, HUD-1 line 303 indicates cash at settlement from borrower in the amount of $8,623.19. However, the file ledger card does not show a deposit for this amount. The file ledger card shows a file shortage of $5,932.27. IT Is THEREFORE CHARGED that you, MARLENE M. RUIZ, 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: Jul 28 2005 3:58 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE &6 (a) Demonstrated Jack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance or guarantees of title. [Section 626.8347(4), Florida Statutes]; and (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8347(6), Florida Statutes]. COUNT II 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. In or around February 26, 2003, in your agency closing file number 03-028, the HUD-1 Settlement Statement line 504 indicates the payoff of a first mortgage loan in the amount of $65,591.04. Check No. 11854 was issued and paid to Irwin Mortgage for $62,591.04. The file contains a payoff statement from Irwin Mortgage that confirms the payoff amount due to be $62,591.04. There was a difference of $3,000.00 reflected in the payoff of such items. HUD-1 line 505 indicates the payoff of a second mortgage loan for the amount of $6,000.00. No documentation supported the existence of a second mortgage. The file ledger card indicates check number 11858 issued to Title Services Depot for $5,500.00; check number 11857 issued to Title Services Depot for $3,000.00; check number 11855 issued to ERMAR Enterprises, Inc. for $500.00. None of these disbursements are listed on the HUD-1 Settlement Statement. HUD-1 line 201 indicates a deposit from the borrower in the amount of $2,000.00. Line 303 indicates cash at settlement from borrower in the amount of $913.54. The file ledger card does not show deposits for these amount. HUD-1 line 603 indicates cash at settlement to seller in the amount of $4,580.51. The file ledger card does not show a disbursement check to the seller for this amount. File ledger card shows check number 11862 was issued and paid to Janna Strijak for $495.00. Check number 11863 was issued and paid to Title Services Depot for $73.78. Neither of these disbursements were listed on the HUD-1 Settlement Statement. Jul 28 2005 3:58 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE &? 10. Further in that closing, HUD-1 line 1108 indicates title insurance premium in the amount of $800.00, and line 1111 indicates endorsements in the amount of $130.00, thus providing a total premium charge of $930.00. Promulgated premium not otherwise reflected on the HUD-1 Settlement Statement was $596.45 which would have caused Fidelity National Title Insurance Company of New York to have received 30% of that premium or $178.94. You, MARLENE M. RUIZ, through Title Services Depot, Inc., issued check number 11847 to Fidelity National Title Insurance Company of New York in the sum of $178.94, while according to your agency agreement with that company, the "agent shall pay company thirty percenit (30%) of the gross premiums on all title insurances issued by agent.” IT IS THEREFORE CHARGED that you, MARLENE M. RUIZ, 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 represent a title insurer in the issuance of its commitments, binders, policies of title insurance or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropniation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes; (d) All funds received by a title insurance agent shall be trust funds received in fiduciary capacity by the title insurance agent and shall be the property of the person or persons entitled thereto. [Section 626.8473(2), Florida Statutes; (e) A title insurance agent, or any officer, director or employee thereof, or any person associated therewith as an independent contractor for bookkeeping or similar purposes, who converts or misappropriates funds received or held in escrow or in trust of such title insurance Jul 28 2005 3:58 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE 8 agent, of any person who normally receives or conspires to receive such funds commits either a misdemeanor or felony dependent upon the amount of funds converted or misappropriated, [Section 626.8473(7), Florida Statutes]; and (f) A person may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than the premium adopted by the commission. [Section 627.780(1), Florida Statutes]. COUNT TI 11. The above general allegations are hereby realleged and fully incorporated herein by reference. 12. In or around March 14, 2003, in your closing file number 03-036, the HUD-1 line 504 indicates payoff of the first mortgage loan in the amount of $275,000.00. Check number 12101 was issued and paid to Household Mortgage Services for $268,903.73 thus creating a difference of $6,096.27. 13. HUD-1 hme 1108 indicates title insurance in the amount of $3,540.95 and line 1111 indicates endorsements in the amount of $427.60. Total premiums were thus charged amounting to $3,968.55, Promulgated premium rate was $1,592.50 representing a 30% premium of $477.75 due Fidelity National Title Insurance Company of New York under the promulgated premium rate. Check number 12116 was issued to Fidelity National Title in that sum which was not 30% of the gross premium charged on the HUD-1 Settlement Statement. JT IS THEREFORE CHARGED that you, MARLENE M. RUIZ, 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 represent a title insurer in the issuance of its commitments, binders, policies of title insurance or guarantees of title. [Section 626.8437(4), Florida Statutes]; Jul 28 2005 3:58 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE &9 (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (¢) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes; (d) All funds received by a title insurance agent shall be trust funds received in fiduciary capacity by the title insurance agent and shall be the property of the person or persons entitled thereto. [Section 626.8473(2), Florida Statutes; (e) A title insurance agent, or any officer, director or employee thereof, or any person associated therewith as an independent contractor for bookkeeping or similar purposes, who converts or misappropriates funds received or held in escrow or in trust of such title insurance agent, or any person who ronmally receives or conspires to receive such funds commits either a misdemeanor or felony dependent upon the amount of funds converted or misappropriated. [Section 626.8473(7), Florida Statutes]; and (f) A person may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than the premium adopted by the commission. [Section 627,780(1), Florida Statutes]. COUNT IV 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. Inits investigation of your activities as a licensed title insurance agent, acting by and through your licensed title insurance agency, Title Services Depot, Inc., the Department has examined over twenty (20) separate closing files in which you charged and collected premium sums in excess of the promulgated rate and failed to remit the required premium share to the underwriter whom you represented, IT IS THEREFORE CHARGED that you, MARLENE M. RUIZ, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Jul 28 2005 3:59 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Demonstrated Jack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance or guarantees of title. [Section 626.8437(4), Flonda Statutes]; (b) Fraudulent or dishonest practices in the conduct of business undet the license or - appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes; (d) All funds received by a title insurance agent shall be trust funds received in fiduciary capacity by the title insurance agent and shall be the property of the person or persons entitled thereto. [Section 626.8473(2), Florida Statutes; (e) A title insurance agent, or any officer, director or employee thereof, or any person associated therewith as an independent contractor for bookkeeping or similar purposes, who cotiverts or misappropriates funds received or held in escrow or in trust of such title insurance agent, or any person who normally receives or conspires to receive such funds commits either a misdemeanor or felony dependent upon the amount of funds converted or misappropriated. [Section 626.8473(7), Flonda Statutes]; and (f) A person may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than the premium adopted by the commission. [Section 627.780(1), Florida Statutes]. WHEREFORE, you, MARLENE M, RUIZ, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent ot 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 18 Jul 28 2005 3:59 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE 11 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 yout 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) Astatement 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. Jul 28 2005 3:59 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE 12 Ifa 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. 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 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 adversanal 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. Jul 28 2005 9:00 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE 13 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 24th day of _ June , 2005, N CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE THEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: MARLENE M. RUIZ, 18455 Miramar Parkway #182, Miramar, FL 33029-5871; MARLENE M. RUIZ, 3701 Southwest 137 Avenue, Miramar, FL 33027-3210 by Certified Mail this_2% day of TU? , 2005, ie Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 Florida Bar Number 0001959 10 Jul 28 2005 9:00 67/28/2885 86:55 8584874987 LEGAL SERVICES PAGE 14 STATE OF FLORIDA. DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 80788-05-AG MARLENE M. RUIZ / ELECTION OF PROCEEDING Thave received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (Choose one) 1 [] I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate, 2. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes. In this regard, J desire to (Choose one): [] Submit a written statement and documentary evidence in lieu of a hearing: or C] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [] Attend that same hearing by way of a telephone conference call, 3. [J I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M, ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 Hast Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: Address: Phone No.: ll

Docket for Case No: 05-002741PL