FLORIDA DEPARTMENT OF FINANCIAL SERVICES ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA OO7-DY 9S PL IN THE MATTER OF: | CASE NO.: 89786-07-AG * ROGER CLAY GAMBLIN / ADMINISTRATIVE COMPLAINT TO: ROGER CLAY GAMBLIN . 215 Westwood Circle East ° West Palm Beach , FL 33411-4403 You, ROGER CLAY GAMBLIN, license I.D. #4092614, are hereby notified that the Chief Financial Officer and agency head of the Florida Department of Financial Services of the State of Florida (Department) has caused to be made an investigation of your activities while licensed as a title insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, ROGER CLAY GAMBLIN, are currently licensed in this state as a title insurance agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, ROGER CLAY GAMBLIN, were licensed in this state as a title insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services, has jurisdiction over your title insurance agent license and appointments. 4, At all times material herein, you, ROGER CLAY GAMBLIN, as a licensed title insurance agent, conducted title insurance business by, through and with a title insurance agency known as Flagler Title Company, a licensed title insurance agency located and conducting business in West Palm Beach, Florida. 5. ‘In 2006, the Department of Financial Services conducted an investigation of your actions and activities as a licensed title insurance agent and as a result of that investigation alleged that, among other things, you had offered prohibited inducements for title insurance services. 6. On May 4, 2006, a Consent Order was issued against you in case no.: 85863-06- AG, then pending before the Department of Financial Services. That Consent Order approved and incorporated a Settlement Stipulation for a Consent Order executed by you on April 5, 2006. That Consent Order placed you on probation pursuant to Section 626.846, Florida Statutes, for a period of one (1) year, and further provided that if during the period of your probation, the Department had cause to believe that you violated the terms or conditions of your probation it would then initiate administrative action to suspend or revoke your license and appointments. 7. The May 4, 2006 Consent Order further ordered that you, ROGER CLAY GAMBLIN, “... shall cease and desist from offering inducements for title insurance services.” 8. Following issuance of the Consent Order against you and during the period of your probation, the Department conducted farther investigations into your actions and activities as a licensed title insurance agent. As a result of that investigation, the Department alleges that while conducting title insurance business through Flagler Title Company, as its President and agent in charge, you continued to offer prohibited inducements to obtain referral of title insurance business directly or through representatives of Flagler Title. You further provided reimbursement to Flagler representatives who provided unlawful inducements to various individuals and entities as an incentive to induce those various individuals and entities to refer title insurance business to Flagler Title Company. Additionally, you compensated unlicensed representatives of Flagler from the commissions earned by you and/or Flagler Title from the issuance-of title insurance. COUNT I 9. The above general allegations are hereby realleged and fully incorporated herein by reference. . 10. You, ROGER CLAY GAMBLIN, have offered unlawful inducements to individuals and entities as an inducement to title insurance. IT IS THEREFORE CHARGED that you, ROGER CLAY GAMBLIN, 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) No title insurer, or any member, employee, attorney, agent or agency thereof, shall pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as inducement to obtain title insurance, ... any monetary consideration or inducement whatever. [Section 626.9541(1)(h)3a, Florida Statutes); (b) Demonstrated lack of fitness or trustworthiness io 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]; (c) Violation of any provision of this act in the course of dealing under the license or appointment. [Section 626.844(2), Florida Statutes]; (dq) = Engaging in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of business, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or to be detrimental to the public interest. [Section 626.844(5), Florida Statutes]; COUNT I . 10. The above general allegations are hereby realleged and fully incorporated herein by reference. 11. You, ROGER CLAY GAMBLIN, have violated the terms and conditions of the May 4, 2006 Consent Order and you have, thereby, also violated the terms and conditions of your probation. IT IS THEREFORE CHARGED that you, ROGER CLAY GAMBLIN, 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) - Willful failure to 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]; (b) Violation of any provision of this act in the course of dealing under the license or appointment. [Section 626.844(2), Florida Statutes]; | (c) Asa condition to such probation or in connection therewith, the department may specify in its order reasonable terms and conditions to be fulfilled by the probationer during the probation period. If during the probation period the department has good cause to believe that the probationer has violated such terms and conditions, or any of them, it shall forthwith suspend, revoke, or refuse to renew or continue the license or appointment of the probationer, as upon the original ground or grounds referred to in subsection (1), by its order given to the licensee and title insurer without the necessity of further advance notice, hearing, or procedure. [Section 626.846(2), Florida Statutes]; COUNT OT 12. The above general allegations are hereby realleged and fully incorporated herein by reference. 13. The May 4, 2006 Consent Order ordered you to “cease and desist from offering inducements for title insurance service”. 14. You, ROGER CLAY.GAMBLIN, have violated the cease and desist order provision of your May 4, 2006 Consent Order. ITIS THEREFORE CHARGED that you, ROGER CLAY GAMBLIN, 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) — Willful failure to 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]; | (b) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]; (c) Engaging in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of business, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or to be detrimental to the public interest. [Section 626.844(5), Florida Statutes]; (d) No title insurer, or any member, employee, attorney, agent or agency thereof, shall pay, allow, or give, or offer to pay, allow, or give, directly or indirectly, as inducement to obtain title insurance, ... any monetary consideration or inducement whatever. [Section 626.9541(1)(h)3a, Florida Statutes]; (e) Any person who violates a cease and desist order of the department or office under s. 626.9581 while such order is in effect, after notice and hearing as provided in s. 626.9571, shall be subject, at the discretion of the department or office, to any one or more of the following: (1) A monetary penalty of not more than $50,000 as to all matters determined in such hearing. 2) Suspension or revocation of such person's certificate of authority, license, or eligibility to hold such certificate of authority or license. (3) Such other relief as may be provided in the insurance code. [Section 626.9601, Florida Statutes]; ‘COUNT IV 15. The above general allegations are hereby realleged and fully incorporated herein by reference. . 16. Section 626.8411(1)(c) provides that Section 626.753, Florida Statutes is applicable to title insurance agents or agencies. 17. Section 626.753, Florida Statutes prohibits an agent from sharing commissions with an unlicensed individual. 18. _You paid or authorized payments to Mary Beth Chapman, an unlicensed employee of Flagler Title, based in part on commissions earned on the sale of title insurance policies which Chapman obiained as clients of Flagler Title Company. IT IS THEREFORE CHARGED that you, ROGER CLAY GAMBLIN, 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) Unlawful rebating, or attempting to unlawfully rebate, or unlawfully dividing, or offering to unlawfully divide, title insurance premiums, fees, or charges with another, as prohibited by s. 626.9541(1)(h)3. [Section 626.8437(8), Florida Statutes]; (6) Willful failure to 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]; (c) Violation of any provision of this act in the course of dealing under the license or appointment.. [Section 626.844(2), Florida Statutes]; WHEREFORE, you, ROGER CLAY GAMBLIN, 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 626.8437, 626.844, 626.9601, Florida Statutes, and under other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. NOTICE OF RIGHTS You have the tight to request a proceeding to contest this action by the Department of . Financial Services ("Department") pursuant to Sections 120.569 and 120.57, 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 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 SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies 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 (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"). (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. (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) A statement 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 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 received by the Department. - ‘3 . DATED and SIGNED thi: a Aay of C5 » 2007. i N CHANDLER Deputy Chief Financial Officer 10 CERTIFICATE OF SERVICE T HEREBY CER F Y that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: ROGER CLAY GAMBLIN, 1897 Palm Beach Lakes Blvd. #125, West Palm Beach, FL 33409-3509; ROGER CLAY GAMBLIN, 215 Westwood Circle East, Palm Beach, FL 33411-4403 by Certified Mail thi y of May, 2007. Pil! Aagle ser Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 . Florida Bar Number 0001959 11

Docket for Case No: 07-002495PL