FROM :DEPT OF FINANCIAL SERVICES FAX NO. REPARTMENT OF FINANCIAL SERVICES ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA May 1 200? 13:24 1858437498? May. B1 2687 t2i2ePM PS IN THE MATTER OF: Dbbwoten by Case No.: 89647-07-AG JAMES STEWART SOTTILE / ADMINISTRATIVE COMPLAINT TO: JAMES STEWART SOTTILE 350 N. Fernleaf Avenue Sebring, FL 33870 JAMES STEWART SOTTILE C/O Sottile Bail Bonds, Inc. 366 N. Fernleaf Avenue Sebring, FL 33870 You, JAMES STEWART SOTTILE, 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 a limited surety agent in this state and as a result of which it is alleged: GENERAL ALLEGATIONS 1, Pursuant to Chapter 648, Florida Statutes, you, JAMES STEWART SOTTILE, currently are licensed in this state as a limited surety (bail bond) agent and were so licensed by the Department of Financial Services (hereinafter referred to ‘as the “Department™) at the times relevant to the dates and occurrences referenced herein. Your license identification number is A249622. 2. Pursuant to Chapter 648, Florida Statutes, the Department has jurisdiction over your license and appointments. May 1 200? 13:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. B1 2687 12:23PM P4 3. You, JAMES STEWART SOTTILE, are president and primary agent of Sottile Bail Bonds, Inc., located at 366 N. Fernleaf Avenue, Sebring, FL 33870. COUNTI 4. The above general allegations are hereby realleged and fully incorporated herein by reference, 5, On or about July 1, 2005, you, JAMES STEWART SOTTILE, executed appearance bonds and powers of attorney in the total amount of Seven Thousand Five Hundred Dollars ($7,500.00) for the benefit of Nicole Anderson Graham (hereinafter “the principal”), a detainee of Highlands County, Florida, jail. 6. You, JAMES STEWART SOTTILE, received from the principal eight hundred dollars ($800.00) cash payment for the premium on these bonds. 7. At that time, you, JAMES STEWART SOTTILE, received from the principal a contingent promissory note for the sum of seven thousand five hundred dollars ($7,500.00), 8. At that time, you, JAMES STEWART SOTTILE, executed an indemnity agreement for surety bail bond with Wayne H. Graham and Bradley A. Stephan (hereinafter “indemnitors”), whereby indemnitors undertook obligations in connection with the aforcmentioned bail bonds, should said bonds be estreated and forfeited, 9. On or about July 6, 2006, you, JAMES STEWART SOTTILE, took statements offered by indemnitors wherein they requested “to be taken off the liability” of principal’s bonds, 10. On or about July 27, 2006, you, JAMES STEWART SOTTILE, caused principal to be surrendered to and taken into custody of a bailiff of the court during principal’s appearance before that court. May 1 200? 13:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr May. @1 2667 12:25PM PS ll, You, JAMES STEWART SOTTILE, have not refunded principal her premium though such refund is required by Rules 69B-221.100 and 69B-221.1 10; Florida Administrative Code, IT I8 THEREFORE CHARGED that you, JAMES STEWART SOTTILE, have Violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your license as a limited surety agent in this state: (a) The department shall deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, and it shall suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or if the person; (1) Has willfully used, or intended the use, of the license or appointment to circumvent any of the requirements or prohibitions of this chapter or the insurance code. [Section 648.45(2)(d), Florida Statutes], (2) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]. (3) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648,45(2)(}), Florida Statutes], (4) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]. May 1 200? 13:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr May. @1 2687 12:25PM Pe (b) The department may deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter ot the insurance code, and it may suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or for any of the following causes: Q) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c), Florida Statutes]. (2) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648.45(3)(e), Florida Statutes]. (c) Terms and Conditions of Contract (5) In the event surrender of principal is made prior to the time set for principal’s appearances, and for reasons other than as enumerated below in paragraph 3., then arefund of the bond premium shall be made to the person listed on the premium reccipt. a It is understood and agreed that the happening of any one of the following events shall constitute a breach of principal’s obligations to Surety Company hereunder, and Surety Company shall have the right to forthwith apprehend, arrest and surrender principal, and principal shall have no right to any refund of premium whatsoever. Said events which shall constitute a breach of principal’s obligations hereunder are: (a) If principal shall depart the jurisdiction of the court without the written consent of the courtand Surety Company, or its Agent. May 1 200? 13:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 61 2687 t2:24Ph Pr (b) Tf principal shall move from one address to another within the State of Florida without notifying _— Surety Company or its Agent in writing prior to said move. (c) If principal shall commit any act which shall constitute reasonable evidence of principal's intention to cause a forfeiture of said bond. (4) If principal is arrested and incarcerated for any offense other than a minor traffic violation. (e) If principal shall make any material false statement in the application, [Rule 69B-221.100(1), Florida Administrative Code] (d) The defendant shall be entitled to the return of premium when surrendered by the surety or bail bond agent at any time prior to the final termination of the surety’s liability , on the bond; provided that the defendant shall not be entitled to a return of the premium where the defendant violates the contract with the surety. [Rule 69B-221.110, Florida Administrative Code.] WHEREFORE, you, JAMES STEWART SOTTILE, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a limited surety agent or to impose such penalties as may be provided under the provisions of Chapter 648, 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 cligibility held by you under the Florida Insurance Code. May 1 200? 13:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. B1 2687 t2:24PhM Pe NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services ("Department") pursuant to Sections 120.569 and 120.37, Florida Statutes, and Rule 28-106, 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 acting as A gency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Morida 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 hearin g. 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 SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that cotnplies with the requirements of Rule 28-106.2015, 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, address, and telephone number, and facsimile number Gf any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "yespondent"). (b) The name, address, telephone number, facsimile number of the attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other Papers shall be made. May 1 200? 13:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 61 2687 t2:24PhM Pa (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) Astatement of when the respondent received notice of the administrative complaint. (e) A-statement including the file number to the administrative complaint. If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative al 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 Administralive Law Judge of the Division of Administeative 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 ronewed in compliance with the guidelines as set out above. May 1 200? 13:27 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. @1 2687 12:25PM Pla 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. ¢ hk DATED and SIGNED this_[ | day of April, 200 : KAREN CHANDLER 4&3 rier Deputy Chief Financial Officer May 1 200? 13:27 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 61 2687 12:25PM Pil CERTIFICATE OF SERVICE IT HEREBY CERTIIY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: JAMES STEWART SOTTILE 350 N. Fernleaf Avenue Sebring, FL 33870 JAMES STEWART SOTTILE C/O Sottile Bail Bonds, Inc, 366 N. Fernleaf Avenue Sebring, FI. 33870 th by Certified Mail this Il“ day of April, 2007. VA Greg 8. M4 grr Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4180 Florida Bar Number 131369 May 1 200? 13:27 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. G1 2687 12:25PM Pl2 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES TN THE MATTER OF: CASE NO.: 89647-07-AG JAMES STEWART SOTTILE / ELECTION OF PROCEEDING Thave received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained thercin, and T understand my options, I am requesting disposition of this matter as indicated below. (CHOOSE ONE) lL] I do not dispute any of the Department's factual allegations and I do not desire a hearing, | 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 suspending or revoking my licenses and appointments as muy be appropriate. 2. T donot dispute any of the Department's (actual allegations and T hereby elect. a proceeding to be conducted in accordance with Section 120.57{2), Florida Statutes, In this regard, I dosire to (CHOOSE ONE): t] Submit a written statement and documentary evidence in lieu of a hearing; or {] Personally attend a hearing conducted by a department hearing officer in Tallahassee: or {J Attend that same hearing by way of a telephone conference call. 3, [—] T dg dispute one or more of the Department's factual allegations, I hercby request a hearing pursuant to Section 120,57(1), Florida Statutes, to be held before the Division of Administrative Hearings. I have attached to this election form the information required by Rule 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, I have identified the disputed issucs of material fact, 1Q PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITII THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF ‘10h ADMINISTRATIVE COMPLAINT, THE RESPONSE MUST BE RECE VED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINS. The address for filing is; General Counsel acting as Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 Hast Guirics Street, Tallahassee, Florida 32399-0333, Slamature “ _ Print Name Date: Address: Nate Administrative Complaint Received: If you arc represented by an attorney or qualified Phone No.: representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No.: 10

Docket for Case No: 07-001906PL