Dec 15 2005 10:18 12/15/2008 11:13 8504874987 LEGAL SERVICES PAGE 93/15 FLORIDA ~ DEPARTMENT OF FINANCIAL SERVICES Tae LL NHER FILED STATE OF FLORIDA NOV a4 2005 IN THE MATTER OF: Dookeied ny Zager? CASE NO.: 80789-05-AG TITLE SERVICES DEPOT, INC. ADMINISTRATIVE COMPLAINT TO: Title Services Depot, Inc. 18455 Miramar Parkway #182 Miramar, FL 33029-5871 Title Services Depot, Inc. 3701 Southwest 137 Avenue Miramar, FL 33027-3210 You, TITLE SERVICES DEPOT, INC., license I.D. #A265843, 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 agency in this state, as a result of which it is alleged: - GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, TITLE SERVICES DEPOT, INC.,, are currently licensed in this state as a Title Ins Agency (4-12). 2, At all times pertinent to the dates and occurrences referred to herein, you, TITLE SERVICES DEPOT, INC., were licensed in this state as an insurarice agency, 3, Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments, Dec 15 2005 10:19 12/15/2885 11:13 8504874987 LEGAL SERVICES PAGE 84/15 Ne aes 4, At all times material herein, you, TITLE SERVICES DEPOT, INC. failed to disburse closing funds in accordance with closing instructions, did not have an appointed agent in full-time charge of the agency, conducted title insurance business without a valid appointment, _ failed to notify the Department of a change of business address, failed to disclose your interest- beating account, disbursed moneys on uncollected funds, failed to pay the required 2004 surcharge, and failed to properly issue title insurance policies and make appropriate disbursements, all of which is hereinafter more fully set forth, COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference, 6 You, TITLE SERVICES DEPOT, INC., had an appointment with Fidelity National Title Insurance Company of New York from March 3, 1998 until cancelled by that appointing authority on June 5, 2003, as the result of an audit revealing improper escrow account practices. You, TITLE SERVICES DEPOT, INC., nonetheless continued to sell title insurance policies after Fune 5, 2003 acting improperly through Attorneys Title Insurance Fund without having been appointed to do so. IT IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., 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]; Nm . Dec 15 2005 10:19 12/15/2865 11:13 8584874907 LEGAL SERVICES PAGE 95/15 NH a (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]: COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. You, TITLE SERVICES DEPOT, INC,, failed to pay the administrative surcharge assessed by the Department for the year 2004. IT IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Depariment of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) On or before January 30 of each calendar year, each licensed title insurance agency shall remit to the Department an administrative surcharge of $200.00. [Section 624.501(27)(e)2.; Florida Statutes]; COUNT I 9, The above general allegations are hereby tealleged and fully incorporated herein by reference. 10. You, TITLE SERVICES DEPOT, INC., recorded with the Department a business. address to be located at 1470 NW 107th Avenue, Suite D, Miami, Florida 33172. The Department's attempts to communicate with you at that address reveated that such address was not your business address. Postal information reflected your business address had been moved to Miramar, Florida and you failed to notify the Department of this occurrence. IT IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC,, have violated or are accountable under the following provisions of the Flotida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: Dec 15 2005 10:19 12/15/2085 11:13 8584874947 LEGAL SERVICES PAGE 96/15 (a) Every licensee shall notify the Department in writing within 60 days after a change of name, residence address, principal business street address, or mailing address. Failure to notify the department within the required time period shall result in a fine not to exceed $250.00 for the first offense and for subsequent offenses a fine of not less than $500.00 or suspension or revocation of the license. [Section 626,551, Florida Statutes]; . COUNT IV 11, The above general allegations are hereby realleged and fully incorporated herein by reference, 12, You, TITLE SERVICES, DEPOT, INC., maintained an interest-bearing escrow account number 137336 at Union Bank. Bank records reveal that during the months of April, May and June, 2003, you deposited funds received putsuant to real estate closing transactions to that account without the written consent of the buyer and seller as otherwise required by law. IT IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., 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 ot trustworthiness to engage in the business of insurance. [Section 626.611(7), Flotida Statutes}; (b) Fraudulent or dishonest practices in the conduct of business under 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) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]. Dec 15 2005 10:19 12/15/2085 11:13 8584874987 LEGAL SERVICES PAGE 87/15 NU ! COUNT V 13. The above general allegations are hereby realleged and fully incorporated herein by reference. 14, 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. ITIS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., 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}; and (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes}. COUNT VI 15. The above general allegations are hereby realleged and fully incorporated herein by reference. 16. 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 Dec 15 2005 10:20 12/15/2885 11:13 8584874987 LEGAL SERVICES PAGE g6/15 aed —! 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 118458 issued to Title Services Depot for $5,500.00; check number 11857 issued to Title Setvices 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-I line 603 indicates cash at settlement to seller in the atnount of $4,580.51. The file ledger card does not show a disbursement check to the seller for this ammount. File ledger card shows check nunober 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, 17, 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, TITLE SERVICES DEPOT, INC., 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 Percent (30%) of the grass premiums on all title insurances issued by agent." IT 1S THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute prounds for the suspension ot revocation of your licenses and appointments: Dec 15 2005 10:20 12/15/2885 11:13 8584874907 LEGAL SERVICES PAGE 89/15 Xe ae) (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 626,3437(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) 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; (2) 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 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(t), Florida Statutes], COUNT VIL 18. The above general allegations are hereby realleged and fully incorporated herein by reference, 19. In or around March 14, 2003, in your closing file number 03-036, the HUD-I 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, . Dec 15 2005 10:20 12/15/2805 11:13 8584874987 LEGAL SERVICES PAGE 18/15 20, HUD-1 line 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 F idelity National Title in that sum which was not 30% of the gross premium charged on the HUD-1 Settlement Statement. Ir IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., 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) Misappropriation, conversion, or unlawful withholding of moneys belonging io 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 petsons entitled theteto. [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 normally receives or conspires to zeceive such funds commits either a misdemeanor or felony dependent upon the amount of funds converted or misappropriated. [Section 626.8473(7), Florida Statutes]; and Dec 15 2005 10:21 12/15/2885 11:13 8564874987 LEGAL SERVICES PAGE 11/15 Ne woe (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 VI ‘ 21. ‘The above general allegations are hereby realleged and fully incorporated herein by teference. 22. In its investigation of your activities as a licensed title insurance agency, 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, TT IS THEREFORE CHARGED that you, TITLE SERVICES DEPOT, INC., 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) 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) 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 finds received or beld 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 Dec 15 2005 10:21 12/15/2885 11:13 a5ade74907 LEGAL SERVICES PAGE 12/15 ed . Soe misdemeanor or felony dependent upon the amount of funds converted or misappropriated. [Section 626.8473(7), Florida Statutes]; and (e) 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, TITLE SERVICES DEPOT, INC., 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 rust 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. 10 Dec 15 2005 10:21 12/15/2645 11:19 6584874987 LEGAL SERVICES PAGE 13/15 Je you request a proceeding, you must provide information that coraplies 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 Tesponse must contain: (a) The name and address of the party making the request, for purpose of service; (bt) =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) Areference to the notice, order to show cause, administrative complaint, or other communication that the party bas received from the agency. 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, ot 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 Adtinistrative 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 11 Dec 15 2005 10:22 12/15/2865 11:13 8564874987 LEGAL SERVICES PAGE 14/15 -_ a) 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 [YD day of Upvembe c_, 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; TITLE SERVICES DEPOT, INC., Title Services Depot, Jnc., 18455 Miramar Parkway #182, Mitamar, FL 33029- 5871; and TITLE SERVICES DEPOT, INC., 3701 Southwest 137 Avenue, Miramar, FL 33027- 3210 by Certified Mail this (40h day of (Vevem be 2005 Dean Andrews : Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 Phone (850) 487-4907 Fax Florida Bar Number 0001959

Docket for Case No: 05-004546