FLORIDA DEPARTMENT OF FINANCIAL SERVICES MM AUG 22 A IWS TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA JUL 18 2066 IN THE MATTER OF: ge Docketed by: UL —_E« — CASENO. 86339-06-AG JORGE GUIDO VILLANUEVA ADMINISTRATIVE COMPLAINT TO: JORGE GUIDO VILLANUEVA _- 852 Pine Shadow Drive ALS p (_ Apopka, Florida 32712 ly JORGE GUIDO VILLANUEVA 225 S. Westmonte Drive Altamonte Springs, Florida 32714 You, JORGE GUIDO VILLANUEVA, 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, JORGE GUIDO VILLANUEVA, are currently licensed in the state as a general lines insurance agent and surplus lines insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, JORGE GUIDO VILLANUEVA, 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, JORGE GUIDO VILLANUEVA, were an officer and director of Florida Corporate Insurers, Inc., a Florida incorporated insurance agency. Pursuant to Section 626.734, Florida Statutes, you, JORGE GUIDO VILLANUEVA, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the Insurance Code committed by either you or anyone else under your direct supervision and control while acting on behalf of the corporation. 4, At all times pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, JORGE GUIDO VILLANUEVA, 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. COUNT I 5. Paragraphs one through four are realleged and incorporated herein by reference. 6. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, a contract was in effect between Florida Corporate Insurers, Inc., and Prime Rate Premium Finance Corporation, a premium finance company. Pursuant to the contract, Prime Rate Premium Finance Corporation agreed to finance insurance policy premiums on policies sold by Florida Corporate Insurers, Inc. Florida Corporate Insurers had the authority to make Prime Rate Premium Finance check drafts payable to it in turn, for which it was to remit 2 the funds to the respective insurance company in order to pay the customer’s insurance policy premium. 7. An audit of Florida Corporate Insurers, Inc.’s agency account with Prime Rate Premium Finance Corporation reveals an indebtness owed by Florida Corporate Insurers Inc., of $95,349.85. g. These funds represent either premium disbursements for insurance policies made by Prime Rate Premium Finance Corporation for which you, JORGE GUIDO VILLANUEVA, failed to remit to the insurer or anyone else so entitled or return premiums and unearned commissions on cancelled polices for which you failed to remit to the premium finance company. 9. The above-mentioned funds represented trust funds received by you, JORGE GUIDO VILLANUEVA, from either Prime Rate Premium Finance or insureds in a fiduciary capacity. 10. You, JORGE GUIDO VILLANUEVA, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Prime Rate Premium Finance and to the payees. 11. Demand was made for remittal of the funds to Prime Rate Premium Finance Corporation, but you, JORGE GUIDO VILLANUEVA, have refused same. As a result, Prime Rate Premium Finance Corporation has suffered a financial loss. IT IS THEREFORE CHARGED that you, JORGE GUIDO VILLANUEVA, 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 insurance licenses and eligibility for licensure: 3 (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 of insureds or beneficiaries or to others and received in conduct of business under the license. [Section 626.611(10), Florida Statutes}; (e) Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]; COUNT II 12. Paragraphs one through four are realleged and incorporated herein by reference. 13. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, a contract was in effect between Florida Corporate Insurers, Inc., and Imperial A.I. Credit Company, a premium finance company. Pursuant to the contract, Imperial A.I. Credit Company agreed to finance insurance policy premiums on policies sold by Florida Corporate Insurers, Inc. Florida Corporate Insurers had the authority to make A.L. Credit premium finance check drafts payable to it in turn, for which it was to remit the funds to the respective insurance company in order to pay the customer’s insurance policy premium. 14. An audit of Florida Corporate Insurers, Inc.’s agency account with Imperial A.I. Credit Company reveals an indebtness owed by Florida Corporate Insurers Inc., of $121,461.09. 15. These funds represent either premium disbursements for insurance policies made by Imperial A.I. Credit Company for which you, JORGE GUIDO VILLANUEVA, failed to remit to the insurer or anyone else so entitled or return premiums and unearned commissions on cancelled polices for which you failed to remit to the premium finance company. 16. The above-mentioned funds represented trust funds received by you, JORGE GUIDO VILLANUEVA, from either Imperial A.I. Credit Company or insuréds in a fiduciary capacity. 17. You, JORGE GUIDO VILLANUEVA, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Imperial A.I. Credit Company and to the payees. 18. | Demand was made for remittal of the funds to Imperial A.I. Credit Company, but you, JORGE GUIDO VILLANUEVA, have refused same, As a result, Imperial AI. Credit Company has suffered a financial loss. IT IS THEREFORE CHARGED that you, JORGE GUIDO VILLANUEVA, 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 insurance licenses and eligibility for licensure: Sections 626.561(1); 626.611(7); 626.611(9); 626.611(10); and 626.621(4), Florida Statutes as more particularly alleged in Count I above. COUNT III 19, Paragraphs one through four are realleged and incorporated herein by reference. 20. ‘At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, a contract was in effect between Florida Corporate Insurers, Inc., and Bass Underwriters, Inc., a managing general insurance agent. Pursuant to the contract, Florida Corporate Insurers was to remit the full amount of any insurance policy premium to Bass Underwriters no later than the 15" day of the first month after the effective date of that insurance policy. 21. An audit of Florida Corporate Insurers, Inc.’s agency account with Bass Underwriters reveals an indebtness owed by Florida Corporate Insurers Inc., of $93,986.57. 22. These funds represent premium payments for insurance policies issued by Bass Underwriters to Florida insurance consumers for which you, JORGE GUIDO VILLANUEVA, and Florida Corporate Insurers failed to remit to Bass Underwriters or anyone else so entitled. 23, The above-mentioned funds represented trust funds received by you, JORGE GUIDO VILLANUEVA, from insureds in a fiduciary capacity. 24, You, JORGE GUIDO VILLANUEVA, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Bass Underwriters and to the insureds. 25, Demand was made for remittal of the funds to Bass Underwriters, but you, JORGE GUIDO VILLANUEVA, have refused same. As a result, Bass Underwriters has suffered a financial loss. IT IS THEREFORE CHARGED that you, JORGE GUIDO VILLANUEVA, 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 6 revocation of your insurance licenses and eligibility for licensure: Sections 626.561(1); 626.611(7); 626.611(9); 626.611(10); and 626.621(4), Florida Statutes as more particularly alleged in Count I above. COUNT IV 26. Paragraphs one through four and paragraph twenty are realleged and incorporated herein by reference. 27, On July 20, 2005, you, JORGE GUIDO VILLANUEVA, or someone under your direct supervision and control, did submit a check to Bass Underwriters in the amount of $28,974.67 drawn on the Florida Corporate Insurers business bank account. These funds were intended to be the monthly premium payments in accordance with the contract on numerous insurance policies issued by Bass Underwriters to Florida insurance consumers. 28. This check was presented to the drawee bank but payment was refused and the check returned for insufficient funds. You, JORGE GUIDO VILLANUEVA, or someone under your direct supervision and control, failed to remit the funds to Bass Underwriters or to anyone else so entitled. 29. The above-mentioned funds represented trust funds received by you, JORGE GUIDO VILLANUEVA, from insureds in a fiduciary capacity for Bass Underwriters. 30. You, JORGE GUIDO VILLANUEVA, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Bass Underwriters and to the insureds. 31. - Demand was made for remittal of the funds to Bass Underwriters, but you, JORGE GUIDO VILLANUEVA, have refused same. As a result, Bass Underwriters has suffered a financial loss. IT IS THEREFORE CHARGED that you, JORGE GUIDO VILLANUEVA, 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 insurance licenses and eligibility for licensure: Sections 626.561(1); 626.611(7); 626.611(9); 626.611(10); and 626.621(4), Florida Statutes as more particularly alleged in Count I above. WHEREFORE, you, JORGE GUIDO VILLANUEVA, 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 Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the 8 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) 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) . Areference to the notice, order to show cause, administrative complaint, or other communication that the party has received forms 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 recetved by the Department of Insurance. fh <— DATED this_18"" day of Swiy , 2006. < CL ibe IN CHANDLER, 10 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: JORGE GUIDO VILLANUEVA, 852 Pine Shadow Drive, Apopka, Florida 32712 and 225 S. Westmonte Drive, Altamonte Springs, Florida 32714 on this |¢"_ day of Sulu , 2006. JAMES A. BOSSART, ESQUIRE Division of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124 il

Docket for Case No: 06-003115PL