Feb 8 2007 13:59 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Fek, 66 2647 41:57PM Peed FLORIDA FINANCIAL SERVICES ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA DAN 18 2007 IN THE MATTER OF: Booked by, 27244? ATLANTIS TITLE SERVICI'S, INC, CASE NO.: 84742-07-AG ADMINISTRATIVE COMPLAINT TO: ATLANTIS TITLE SI R VICES, INC. 15104 Southwest 1591 “lace Miami, FL 33196-5743 ATLANTIS TITLE $!'f'VICES, INC. 11980 SW 144th Courl, Suite 111 Miami, FL 33186 You, ATLANTIS TITLE SERVICES, INC., license LD. #65-1126330, are hereby notified that the Chief Finanei:i! Officer of the State of Florida has caused to be made an investigation of your activitie:. while licensed as a title insurance agency in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chiyter 626, Florida Statutes, you, ATLANTIS TITLE SERVICES, INC. (hereinafter "ATLANTI:\"), are currently licensed in this state as a Title Insurance Agency (4-12). 2. Atall times pe:tinent to the dates and occurrences referred to herein, you, ATLANTIS, were licensed in ‘his state as a Title Insurance Agency (4-12). Feb 8 2007 13:59 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, 63 2647 41:57PM Paes 3. Pursuant to Chi pier 626, Florida Statutes, the Florida Department of Financial Services (hereinafter "Depart cit") has jurisdiction over your title insurance agency license and appointments. 4, At all times ma:evial herein, you, ATLANTIS, operated a title insurance agency business located at 11980 SW |+4th Court, Suite 111, Miami, Florida 33186. 5. At all times malcrial herein, all funds received by you, ATLANTIS, from consumers or on behalf of con:ummers representing premiums for insurance policies, were trust funds pursuant to Section 626.561(1), Florida Statutes, and were received in a fiduciary capacity and were to be accounted for # nd paid over to the insurer, insured, or other persons entitled thereto in the regular course o° business. 6. At all times malerial herein, Marta 1. Martinez was your sole officer and director who acted in your behalf’ as th .: licensed title insurance agent in full-time charge of the agency. 7, At all times mulevial herein, you, ATLANTIS, as a licensed title insurance agency, consistently effected 1’ {lx insurance premium charges in excess of the promulgated rates; failed to remit proper premiwr «mounts to the insurer; disbursed moneys on uncollected funds; prepared and issued deceptive |. ID-1 settlement closing statements; and charged consumers excess sums for abstract title sorvices. COUNT I 8. The above gen. 1! allegations are hereby realleged and fully incorporated herein by reference. 9. During the perio from November 21, 2003 through June 14, 2004, yon, ATLANTIS, as a licensed titl: insurance agency, effected premium charges to consumers in excess of promulgated rates a: evidenced in your following files: File Numbers 03-11-167; 03- 12-181; 03-12-1812; 04-01-14); 04-01-152; 04-03-66; 04-05-104; 04-05-1042; 03-11-159; 03- 12-185; and 04-01-0000. Feb 8 2007 14:00 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, 636 2667 41:58PM P4725 Your conduct in these «.|osings, as aforesaid, represents fraudulent and deceptive preparation of settlement doc: ments which did not and do not reflect true costs of the transaction. IT 1S THEREFORE ChUARGED that you, ATLANTIS TITLE SERVICES, INC., have violated or are accountable urvler the following provisions of the Florida Insurance Code and Rules of the Department of Fi: iancial Services which constitute grounds for the suspension or revocation of your licenses ar'.| ippointments: (a) Demonstrated | ic) of fitness or trustworthiness to represent a title insurer through the issuance of its commitmer'.s, binders, policies of title insurance, or guatantecs of title. [Section 626.8437(4), Florida 'Hatutes]; (b) — Fraudulent or «-sironest practices in the conduct of business under the license or appointment. [Section 626.84 ° 7/5), Florida Statutes]; (c) Misappropriati im, 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 626.84: 7/7), Florida Statutes]; (d) Willful failure to comply with or willful violation of any proper order or rule of the department or willful violiiion of any provision of this act. [Section 626.8437(9), Florida Statutes; (ec) Knowingly collecting a sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance polic:’ issued by an insurer as permitted by this code. [Section 626,9541(1)(0)1., Florida Stat. ites; (f) Knowingly coilecting as a premium or charge for insurance any sum in excess of ot less than the premium or ch ne applicable to such insurance in accordance with the applicable classifications and :ates as filed with and approved by the office, and as specified in the policy, [Section 626.9541) |\(0)2., Florida Statutes]. Feb 8 2007 14:00 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, 88 2687 @1:38PM Po-25 (g) A person may 710! knowingly quote, charge, accept, collect, or reccive a premium for title insurance other than tlic premium adopted by the commission. [Section 627.780(1), Florida Statutes. COUNT II 10. The above gen ral allegations are hereby realleged and fully incorporated herein by reference. 1. During the peri:! from November 21, 2003 to June 14, 2004, you, ATLANTIS, as a license title insurance agency, failed to remit the required premium portion to your insurers as reflected in your following ‘ties: File Numbers 03-11-167; 03-12-181; 03-12-1812; 04-01- 150: 04-01-152; 04-03-66; 0405-104; 04-05-1042; 03-11-159; 03-12-185; and 04-01-0000. Your conduct in these losings, as aforesaid, represents fraudulent and deceptive action designed only to afford impremer revenues for your agency. IT 18 THEREFORE (1 4RGED that you, ATLANTIS TITLE SERVICES, INC., have violated or are accountable ur Jor 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 ari! appointments: (a) Demonstrated |.vk of fitness or trustworthiness to represent a title insurer through the issuance of its commitme:its;, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Floride statutes]; (b) Fraudulent or (lishonest practices in the conduct of business under the license or appointment, [Section 626.84: 7¢6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or of ters and received in conduct of business under the license or appointment. [Section 626.84 1717), Florida Statutes]; (4) Willful failure io comply with or willful violation of any proper order or rule of the department or willful viol ion of any provision of this act. [Section 626.8437(9), Florida Statutes; Feb 8 2007 14:00 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, 88 2667 @1:38PM Pe-25 (e) Knowingly col) zcting a sum as a premium or charge for insurance, which is not then provided, or is not in due :ourse to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1., Florida Stat. ites; (f Knowingly col ‘acing as a premium or charge for insurance any sum in excess of or less than the premium or cl:irje applicable to such insurance in accordance with the applicable classifications and .: vies as filed with and approved by the office, and as specified in the policy, [Section 626.9541( 1\(0)2., Florida Statutes]; (g) Aperson may ict knowingly quote, charge, accept, collect, or receive a premium for title insurance other than 1|'¢ premium adopted by the commission, [Section 627.780(1), Florida Statutes. (h) All funds recei: ctl by a title insurance agent as described in subsection (1) shall be trust funds received in a fic uciary capacity by the title insurance agent and shall be the property of the person or pers: ns entitled thereto. |Scction 626.8473(2), Florida Statutes]. COUNT 12. The above genv-ril allegations are hereby realleged and fully incorporated herein by reference. 13. During the yea 7904, you, ATI-ANTIS, as a licensed title insurance agency, conducted the following closi.\zs wherein your files reflect that you disbursed moneys from your escrow account before collect: 91 of required funds at those closings: February 25, 2004—ILG. (seller) and R.S. (buyer); Mar. 3, 2004 — P.W. (seller) and R.S. (buyer); May 14, 2004 — Vasmar Investments, Inc. (se!lc") and P.W. (buyer); June 16, 2004 ~ R. or O. (buyer) and R.C. (seller). 14. _ A title insurani:2 agency may not disburse funds unless the funds have been collected at or before closing IT IS THEREFORE CHARGED that you, ATLANTIS TITLE SERVICES, INC., have violated or are accountable under the following provisions of the Florida Insurance Code and Feb 8 200? 14:01 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Febh, 66 2647 41:59PM Pres Rules of the Department of Fiviuicial Services which constitute grounds for the suspension or revocation of your licenses ani! «ppointments: (a) Demonstrated Iscl: of fitness or trustworthiness to represent a title insurer through the issuance of its commitmers, binders, policies of title insurance, or guarantees of title. [Section 626.843 7(4), Florida ‘istutes]; (b) — Fraudulent or d'shonest practices in the conduct of business under the license or appointment. [Section 626.84':7(5), Florida Statutes]; (c) Misappropriati., conversion, or unlawful withholding of moneys belonging to title insurers or insureds or ot!.crs and received in conduct of business under the license or appointment. [Section 626.84'17(7), Florida Statutes); (a) Willful failure » comply with or willful violation of any proper order or rule of the department or willful violation of any provision of this act. [Section 626.8437(9), Florida Statutes; (e) Knowingly co!lecting a sum as a premium or charge for insurance, which is not then provided, or is not in duc ciurse to be provided, subject to acceptance of the risk by the insurer, by an insurance polic issued by an insurer as permitted by this code. [Section 626.9541 (1}(o)1., Morida Sta: utes; (f) Knowingly col‘ e:ting as a premium or charge for insurance any sum in excess of or less than the premiuin of cliacge applicable to such insurance in accordance with the applicable classifications and. rules as filed with and approved by the office, and as specified in the policy. [Section 626.9541 /'1)(0)2., Florida Statutes), (g) Aperson may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than |'s¢ premium adopted by the commission, [Section 627.780(1), Florida Statutes. (h) All funds rece: ved by a title insurance agent as described in subsection (1) shall be trust funds received in a filuciary capacity by the title insurance agent and shall be the property of the person or perso8 entitled thereto. [Section 626.8473(2), Florida Statutes]. Feb 8 200? 14:01 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, 88 2667 @1:39PM Pe-25 COUNT IV 15. The above gonc-ral allegations are hereby realleged and fully incorporated herein by reference. 16. During 2004, yi, ATLANTIS, as a licensed title insurance agency, prepared and furnished HUD-1 closing sett):rent statements with false, deceptive and conflicting amounts reflected therein in copies furi ished to sellers and lenders. Your following files reflected those occurrences: January 21, 200-1 -- E.G. (seller), J.M. (buyer) and Meshnick Mortgage Corp. (lender); February 25, 2004 — J.i. (seller), R.S. (buyer) and United Security Financial (lender); March 3, 2004 — P.W. (seller). [..S. (buyer) and Alliance Bancorp (lender); May 14, 2004 ~ Vasmar Investments, Inc. (sell: P.W. (buyer) and Alliance Bancorp (lender), May 28, 2004 ~ V.O. (buyer), E.V. (seller) ani! Angel's Empire and Investments, Inc. (lender); June 16, 2004 - V.O. (buyer, B.C. (seller) and (ited Security Financial (lender). IT IS THEREFORE (° [ARGED that you, ATLANTIS TITLE SERVICES, INC., have violated or are accountable ur Jer the following provisions of the Florida Insurance Code and Rules of the Department of Finsncial Services which constitute grounds for the suspension or revocation of your licenses auii] appointments: (a) Demonsttated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitmelits, binders, policies of title insurance, or guarantecs of title. [Section 626.8437(4), Florida Statutes); (b) Fraudulent or :lishonest practices in the conduct of business under the license or appointment. [Section 626.84 57/6), Florida Statutes]; (c) Willful failure :« comply with or willful violation of any proper order or rule of the department or willful viol::tion of any provision of this act. [Section 626.8437(9), Florida Statutes; COUNTY. 17. The above ger -zril allegations are hereby realleged and fully incorporated herein by reference. Feb 8 200? 14:01 FROM : DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, 88 2687 @1:39PM Pores 18. Inoraround M.-y 28, 2004, you, ATLANTIS, as a licensed title insurance agency, conducted closing between V.'.). (buyer) and £.G./Granados LLC (seller) as reflected by contract for sale and purchase furnishe:. ia you. You issued a title commitment with requirement that one of the deeds be executed by G:anados LLC to V.O. Upon and after closing you recorded a warranty deed executed by Ar acl's Empire and Investments, Inc. to V.O. and issued to him an owner's title insurance policy jis well as a lender's policy to Argent Mortgage Company ILLC. Miami-Dade property records .:urrently reflect the subject property to yet be in the name of Granados LLC and do not shc-w any property trans/er to V.O. By preparing and recording a warranty deed from Angel's Ernpire and Investments, Inc. which did not meet the requirements of your own title cotnmitment: and did not vest title in V.O., you knowingly created a fraudulent title defect. IT IS THEREFORE C'|T4RGED that you, ATLANTIS TITLE SERVICES, INC., have violated or are accountable wider the following provisions of the Florida Insurance Code and Rules of the Department of Fi :ncial Services which constitute grounds for the suspension or revocation of your licenses anil appointments: (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitmeiils, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Floridn Statutes); (b) Fraudulent or :lisihonest practices in the conduct of business under the license or appointment. [Section 626.84.\7/6), Florida Statutes]; (c) Willful failure io comply with or willful violation of any proper order or tule of the department or willful viol ion of any provision of this act. [Section 626.843 7(9), Florida Statutes; WHEREFORE, you, 2: TLANTIS TITLE SERVICES, INC., are hereby notified that the Chief Financial Officer inteni's 1o enter an Order suspending or revoking yout licenses and appointments as an title insurnce agency or to impose such penalties as may be provided under the provisions of Sections 62.1437, 626,844, 626.8443, 626.8457, 626.846, and 626.9521, Feb 8 2007 14:02 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, 88 2687 @2:68PM Pie-2s 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 r:quest a proceeding to contest this action by the Department pursuant to Sections 120,569 : 1d 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The pronceding request must be in writing, signed by you, ATLANTIS TITLE SERVICES, INC. and rnust be filed with the Department within twenty-one (21) days of your receipt of this notice. Cuinpletion of the attached Election of Proceeding form and/or a petition for administrative hea. ing will suffice as a written request. The request must be filed with the General Counsel as ating Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 100 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 rivtise. Mailing the response on the twenty-first day will not preserve your right to a hearir:::. YOUR FAIL!JNE TO RESPOND IN WRITING WITHIN TWENTY-OM (21) DAYS OF YOUR RECEIPT OF THIS NOTICE Wil. CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ..LEGED HEREIN AND AN ORDER OF REVOCATIC N WILL BE ENTERED AGAINST YOU. If you request a proce..Jing, you must provide information that complies with the requirements of Rule 28-107.:104, Florida Administrative Cade. As noted above, completion of the attached Election of Procending form conforms to these requirements, Specifically, your response must contain: (a) The name and uctlress of the party making the request, for purpose of service, (b) A statement thiit the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and Feb 8 2007 14:02 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, 88 2667 2:68PM Piles (c) A reference to {ic notice, order to show cause, administrative complaint, or other communication that the party tas received from the agency. Ifa hearing of any typ«: is requested, you have the right to be represented by counsel or other qualified representative «1 your expense, to present evidence and argument, to call and cross-examine witnesses, and 9 compel (he attendance of witnesses and the production of documents by subpoena. If a proceeding is requi:sied and there is no dispute of material fact, the provisions of Section 120.57(2), Florida Stauies, apply. Tn this regard, you may submit oral or written evidence in opposition to the «:tion taken by the Department or a written statement challenging the grounds upon which the [!:partment has relied. While a hearing is normally not required in the absence of a dispute of fac, if you feel that a hearing is necessary, one will be conducted in ‘Tallahassee, Florida, or by tel:pi.onic conference call upon your request. However, if you dispu:: material facts which are the basis for the Department’s action, you must request an adversari il proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. These proceedings « -c held before a State administrative law judge of the Division of Administrative Hearings. Un’ 2s the majority of witnesses are located elsewhere, the Department will request that il 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 dev'iccl. All prior oral communication or correspondence in this matter shall be considered freeform «gency action, and no such oral communication or correspondence shall operate as a valid reque:-| “or an administrative proceeding. Any request for an administrative proceeding reci:ived prior to the date of this notice shall be deemed abandoned unless timely renewed in corr.liance with the guidelines as sct out above. Mediation of this mat’ 1 pursuant to Section 120.573, Florida Statutes, is not available. No Department attomey will Jiscuss this matter with you until the response has been received by the Department of Financial |.crvices. 10 Feb 8 2007 14:03 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, 68 2687 @2:68PM Pil2-25 DATED and SIGNED ‘his _/& th day of deateany 2007, Bun _* KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY ‘hit a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTIO™! OF PROCEEDING has been furnished to: ATLANTIS TITLE SERVICES, INC,, 15104 Souttwest 159th Place, Miami, FL 33196-5753; and ATLANTIS TITLE SERVICES, INC,, 110 SW 144th Court, Suite 111, Miami, FL 33186 by Certified i Dean Andrews ul Division of Legal Services | 200 East Gaines St. 612 Larson Building Mail this / 3 th day of SS irttecaeryy _, 2007. Tallahassee, Florida 32399-0333 (850) 413-4242 Phone (850) 487-4907 Fax a | Florida Bar Number 0001959

Docket for Case No: 07-000657