REPRESENTING FEB 18 2006 ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA _ IN THE MATTER OF: ao, to Tie pg O MARGARITA DELACARIDAD MARTIN Case No. 90836-08-AG GG, 7%, “gPa oo @ 4, ee ADMINISTRATIVE COMPLAINT TO: MARGARITA DELACARIDAD MARTIN 840 Falcon Avenue Miami, Florida 33166-4316 MARGARITA DELACARIDAD MARTIN Martin-Argote Insurance Agency 7911 NW 72™ Avenue, Suite 114 Medley, FL 33166-2221 YOU, MARGARITA DELACARIDAD MARTIN, a/k/a Maggie Martin, a/k/a Marjorie Lavoie, 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 agent in this state, as a result of which it is alieged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, MARGARITA DELACARIDAD MARTIN, license identification number A1665 16, are currently licensed in this state as a general lines (property & casualty) 2-20 agent. 2. At all times pertinent to the dates and occurrence referred to herein, you, MARGARITA DELACARIDAD MARTIN, were licensed in this state to transact property and casualty insurance. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained in this complaint you, MARGARITA DELACARIDAD MARTIN, operated the Martin-Argote Insurance Group, Inc. (“Martin-Argote” or “the agency”) insurance agency. The initial agency location was in Medley, Florida. As noted below, you, MARGARITA DELACARIDAD MARTIN, are surreptitiously marketing insurance from other “branch” locations by using other agents’ licenses. 5. At all times pertinent to the allegations of this complaint, you, MARGARITA DELACARIDAD MARTIN, also held corporate officer and director positions with the above- named insurance agency corporation, as did your husband Erick J. Argote. However, because Erick J. Argote is unlicensed and not appointed by any property and casualty insurers, he could not solicit, negotiate, or effect insurance contracts. [Section 626.733, Florida Statutes] 6. As a corporate officer of Martin-Argote, you, MARGARITA DELACARIDAD MARTIN, were personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the Florida Insurance Code committed by you or by any person under your direct supervision and control while acting on behalf of the corporation, including but not limited to Odelysis “Odie” Guerra a/k/a Odelysis Madruga and Veronica Valle, both licensed 4-40 Customer Representatives. [Section 626.734, Florida Statutes] 7. Florida Secretary of State, Division of Corporations records show Odie Guerra as an officer and director of Reliable Insurance Underwriters, Inc. of Jacksonville, Florida (“RIU”), although Department records show that she is not appointed by a licensed general lines agent and operating out of one agency office. [Sections 626.7351 (5); 626.7352; 626.7353, Florida Statutes] From time to time RIU has used the names and forged the signatures of licensed Florida general lines agents on insurance documents without their permission, such agents having no actual relationship with RIU. 8. Similarly, Florida Secretary of State, Division of Corporation records show that you, MARGARITA DELACARIDAD MARTIN and your husband Erick Argote, paid for Division of Corporation transactions relating to the incorporation of Specialized Insurance Solutions, Inc. of Virginia Gardens, Florida (“SIS”). Mercantile Bank records show that Erick Argote is authorized to sign for SIS banking transactions on that business account. From time to time SIS has used the names and forged the signatures of licensed Florida general lines agents on insurance documents without their permission, such agents having no actual relationship with SIS. 9. More recently you, MARGARITA DELACARIDAD MARTIN, established a relationship with Atlas Permits & Insurance Services, Inc. (Atlas) located at 8539 NW South River Drive, Medley, Florida 33166. Florida Secretary of State, Division of Corporation records show Dagoberto Perez as president and the only officer of Atlas, but that the incorporating fees were paid by you, MARGARITA DELACARIDAD MARTIN. Mr. Perez has no knowledge of his name being used as an officer of Atlas and he never authorized you, MARGARITA DELACARIDAD MARTIN, to incorporate the business and use his name on any documents connected with the incorporation of Atlas or the filing of the application for agency licensure filed with the Department. You, MARGARITA DELACARIDAD MARTIN gave your name as “Marjorie Lavoie” to Mr. Perez in your dealings with him. 10. RIU, SIS and Atlas were illegally established and operated as branch agencies by you, MARGARITA DELACARIDAD MARTIN, and your husband Erick Argote because none were under the active full-time charge of a licensed general lines agent appointed to represent one or more insurers at each branch location. [Section 626.747(1)(a), Florida Statutes] 11. At various times relating to the following insurance transactions you, MARGARITA DELACARIDAD MARTIN, were listed as a signatory on the Pointe Bank, Mercantile Bank, and Wachovia Bank accounts for the agency. COUNT I 12. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 13. Roberto Brandao handles insurance matters for Aroma Trading & Holding Company (“Aroma”). 14. Shelly, Middlebrooks & O’ Leary, Inc. (“SMO”) is a wholesale insurance broker and a contract agent for Canal Indemnity Company (“Canal”), an insurance company. 15. On or about November 18, 2004, Mr. Brandao contacted you, MARGARITA DELACARIDAD MARTIN, and directed that several vehicles be added to the insurance policy covering Aroma’s vehicles, among them a trailer owned by Marco Almeida. 16. In order to cover the cost of the additional insurance coverage, Mr. Almeida authorized a debit to her VISA credit card in the amount of $150.00. 17. In December, 2004, the above-mentioned trailer was involved in a vehicular accident which resulted in over $9,000.00 in damage to it. 18. You, MARGARITA DELACARIDAD MARTIN, were notified of this loss whereupon you directed that Mr. Brandao contact Canal to report the claim. 19. Upon doing so, Mr. Brandao discovered that Canal did not have coverage on the vehicle because the agency was not appointed with Canal and had no authority to bind insurance coverage with either Canal or SMO. 20. You, MARGARITA DELACARIDAD MARTIN, knew that you had no authority to bind insurance coverage either through SMO or directly with Canal and you willfully converted the $150.00 premium payment to your own use. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, 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: (a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person. [Section 626.112(1)(a), Florida Statutes]; (b) 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 shail account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes}; (e) 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 code. [Section 626.611(13), Florida Statutes]; (f) 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 permit. [Section 626.621(2), Florida Statutes]; (g) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (h) Knowingly collecting any 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 policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1., Florida Statutes]. COUNT I 21. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 22. Gordon M. Spencer called the agency to obtain a quote for physical damage insurance for his tractor-trailer and spoke to a woman named “Odie.” 23. Odie Guerra provided Mr. Spencer with a quote for $1,513.00. On April 6, 2006, Mr. Spencer provided requested insurance information and a check in that amount by overnight mail to the agency, but he was never asked to sign an insurance application. 24. Although the check was deposited into the agency’s bank account the following day, Mr. Spencer did not receive a timely binder, proof of insurance or an insurance policy despite his repeated requests for such until after his son, Philip Dulanie, contacted the Department in May, 2006. 25. On May 26, 2006, Mr. Spencer received a binder from First Insurance Network (“FIN”), a managing general agency, effective May 25, 2006. The binder listed the premium amount for the policy as $1,692.67. 26. Mr. Dulanie telephoned FIN to check on the policy and was told that FIN had requested a signed application from the agency, but to date no premium or application had been received. On June 16, 2006, FIN notified Mr. Spencer that the binder had expired for lack of receipt of an insurance application and premium payment from the agency. 27. — Inconclusion, Mr. Spencer never received either insurance or a refund of his premium payment of $1,513.00 from the agency due to the actions or inactions of Ms. Odie Guerra as willfully directed by you, MARGARITA DELACARIDAD MARTIN. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (a) through (h) of Count I above, which constitute grounds for the suspension or revocation of your licenses. COUNT Hl 28. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 29. Albert Alexis Espinosa is the president and operations manager of Reliable of Miami, Inc. trucking company (“Reliable”). 30. On April 27, 2006, Mr. Espinosa, and his aunt Claudia Yera, went to the agency to renew insurance coverage for five of his trucks by dealing with you, MARGARITA DELACARIDAD MARTIN. 31. You, MARGARITA DELACARIDAD MARTIN, accepted Mr. Espinosa’s company check in the amount of $13,296.70, and an additional check payment of $630.30, as a down payment on the insurance premium, the balance of which was to be financed. 32. In return you, MARGARITA DELACARIDAD MARTIN, handed Mr. Espinosa a fraudulent and worthless certificate of liability insurance binder indicating that the Reliable trucks were insured by Canal. 33. Mr. Espinosa later received an agency invoice dated July 27, 2006, indicating, without explanation, that Reliable needed to pay an additional sum of $17,121.08. Mr. Espinosa paid that additional sum by check dated August 7, 2006. 34. On September 19, 2006, Reliable issued another check for $4,280.27, which represented the balance due on the entire insurance premium. 35, On October 11, 2006, Mr. Espinosa’s attorney checked with the Federal Motor Carrier Safety Administration (“FMCSA”) and learned that Reliable had not placed insurance coverage on the subject vehicles. Mr. Espinosa was thereby forced to obtain insurance on the vehicles through another insurance agency. 36. Mr. Espinosa sought a refund of the $35,328.35 he had paid to you, MARGARITA DELACARIDAD MARTIN, for insurance coverage that he never received. 37. Meanwhile, in May, 2006, one of Reliable’s drivers was involved in an accident in New Jersey, suffering damages to the subject truck in the amount of approximately $9,000.00. Because of the willful failure of you, MARGARITA DELACARIDAD MARTIN, to place insurance coverage on this vehicle, there was never any insurance coverage in place to cover this loss. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (a) through (h) of Count I above, which constitute grounds for the suspension or revocation of your licenses. COUNT IV 38. | The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 39. Henry Colado is the vice-president and general manager of Colado Trucking. CTC Hauling is a subsidiary of Colado Trucking and brokers trucking business for truckers. 40. | Harlem Miyares (now deceased) owned and drove trucks. On September 13, 2005, Henry Colado purchased insurance from the agency for two of Harlem Miyares’ trucks, a 1992 Ford dump truck and a 1998 Volvo dump tractor-trailer. 41. Having received no notice of renewal from the insurance carrier, Canal, Mr. Colado returned to the agency on October 3, 2006 and spoke with Odie Gurerra about the Harlem Miyares policy. In return for Mr. Colado’s down payment check made payable to the agency in the amount of $3,150.00 toward the policy premium total of $12,600.00, Odie Guerra, supposedly dealing through Seaboard Underwriters, Inc., gave Mr. Colado a fictitious certificate of liability insurance coverage with a new carrier, Empire Fire & Marine Ins. Co. (“Empire”) for coverage purportedly extending until October 3, 2007. The balance of the premium was to be financed. 42. | Onor about October 10, 2006, Mr. Colado called the agency and expressed concern to Veronica Valle about his not having received a premium finance payment book. Veronica Valle told Mr. Colado that she would place it in the mail. Mr. Colado never received the payment book. 43. On November 8, 2006, Veronica Valle sent Mr. Colado a letter indicating that the subject insurance coverage was void due to missing information. Mr. Colado advised her that all such information was available from agency files relating to his initial purchase of Colado Trucking insurance with Canal. 44, Never having received either insurance or the return of his $3,150.00 down payment, Mr. Colado contacted the Department for assistance. You, MARGARITA DELACARIDAD MARTIN, sent a letter to the Department dated February 9, 2007, together with a copy of a check made payable to Mr. Colado in the amount of $3,150.00 as the requested refund. 45. As of March 6, 2007, Mr. Colado had received no refund from you, MARGARITA DELACARIDAD MARTIN, in accordance with promises made in letters you addressed to both the Department and Mr. Colado. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (a) through (h) of Count I above, which constitute grounds for the suspension or revocation of your licenses. COUNT V 46. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 10 47. Carlos Ramon Aguiles is a self-employed truck driver. 48. On August 10, 2005, Mr. Aguiles went to the agency to purchase an annual policy of insurance for a 1998 Mack dump truck. He made a check payable to the agency in the amount of $2,301.00 as a down payment toward insurance on his truck, the balance to be financed through Finco Financial Corporation, a premium finance company. The premium finance payments were made by Mr. Aguiles in accordance with the agreement, although the signature on the finance agreement is not that of Mr. Aguiles. 49. Mr. Aguiles was handed a certificate of liability insurance showing Canal and Lloyds of London as the carrier providing coverage. A copy of the Canal application shows the policy period extending between August 17, 2005 and August 17, 2006. 50. Later documentation provided by SMO shows that you, MARGARITA DELACARIDAD MARTIN, were the licensed agent of record on the Canal policy and that Mr. Aguiles only had insurance coverage from August 31, 2005 until February 25, 2006, the balance of his paid-up premium having been credited to the agency’s account with SMO, and the Lloyds of London certificate number being a false number. 51. Before renewal time for the policy had expired, Mr. Aguiles called the agency and was told not to worry, that he was insured, and to make a down payment and finance payments on the renewal as before. Accordingly, on August 15, 2006, Mr. Aguiles wrote a check payable to the agency in the amount of $1,900.00. 52. A September 14, 2006 application of insurance with Empire has the unauthorized and forged signature of Mr. Aguiles showing the agency as SIS, an agency with which Mr. Aguiles has never had any dealings. 11 53. On August 25, 2006, Mr. Aguiles was involved in an accident with his truck and his claim for damages has never been paid because of the willful and fraudulent actions of you, MARGARITA DELACARIDAD MARTIN, and those under your control and supervision as described above. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (a) through (h) of Count I above, which constitute grounds for the suspension or revocation of your licenses. COUNT VI 54. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 55. Patricia Mesquita purchased three vehicular liability policies for a tractor-trailer from you, MARGARITA DELACARIDAD MARTIN. Ms. Mesquita made a down payment of $3,162.00 on March 29, 2006 by charging that sum to her VISA credit card. 56. The balance of the premium was to be financed through AMGRO premium finance company (“AMGRO”). Ms. Mesquita had made a total of $3,502.95 ($1,167.65 x 3) of finance payments when she was advised by AMGRO in June, 2006 that her policy was cancelled and therefore the finance company would not accept further finance payments. On June 28, 2006, AMGRO sent a refund check to the agency in the amount of $1,363.38. 57. Ms. Mesquita made numerous telephone calls to you, MARGARITA DELACARIDAD MARTIN, in an attempt to obtain proper insurance coverage in accordance with the premium payments she had made to your agency, but received no satisfaction. 12 58. On July 6, 2006, Ms. Mesquita authorized you to charge her credit card for an additional $815.00 with the assurance that you, MARGARITA DELACARIDAD MARTIN, would apply that sum and the refund you received from AMGRO to another financed insurance policy. 59, In October, 2006, after having applied the $1,363.38 refund, the $815.00 described above, and an additional sum of $1,009.69 to the Finco Financial Corporation, Ms. Mesquita discovered that you had abused her trust a second time by willfully taking her premium payments and deliberately failing to place insurance for her with Canal or any other insurance company. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (a) through (h) of Count I above, which constitute grounds for the suspension or revocation of your license. COUNT VI 60. The above General Allegations numbered one through eleven are hereby realleged and fully incorporated herein by reference. 61. During the period of time between February to May, 2005 and on behalf of First Insurance Funding Corporation (FIFC) of Northbrook, Illinois, as contracting agent for FIFC, you, MARGARITA DELACARIDAD MARTIN, and individuals under your supervision and control, completed premium finance agreements with approximately thirty (30) of your insurance customers who went to the agency to purchase motor vehicle insurance. 62. As part of the execution of these premium finance agreements, you MARGARITA DELACARIDAD MARTIN, received premium down payments from your 13 customers. Additionally, in some cases, you received the balance of the insurance policy premiums from FIFC. You were obligated to promptly remit these funds to the insurers whom you identified would issue the requested insurance coverage for your customers. 63. You, MARGARITA DELACARIDAD MARTIN, failed to remit these funds to insurers causing your customers to be operating their vehicles at risk without insurance. Following the realization that insurance policy coverages were never put in place, you were obligated to return wired funds to FIFC and down payments to your customers, but failed to do so. 64. During the time period indicated, you became indebted to FIFC in the approximate amount of $74,640.00, by reason of unearned commissions and other refunds, which sum is still due and owing to FIFC. FIFC has made repeated demands for you to remit these funds but you have willfully failed to remit them. 65. In most, if not all of these transactions, the insured only had insurance in place for a brief period because you, MARGARITA DELACARIDAD MARTIN, collected their premiums knowing that you would not be placing permanent insurance coverage for them either then or later. IT IS THEREFORE CHARGED that you, MARGARITA DELACARIDAD MARTIN, have violated or are accountable under the provisions of the Florida Insurance Code and Rules of the Department of Financial Services as described under paragraphs (b) through (h) of Count I above, which constitute grounds for the suspension or revocation of your license. WHEREFORE, you, MARGARITA DELACARIDAD MARTIN, 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 14 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 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"). 15 (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 16 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. spn | DATED and SIGNED this 13" day of Febr ion i 2008. KA CHANDLER Deputy Chief Financial Officer 17 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished by Certified Mail to MARGARITA DELACARIDAD MARTIN, 840 Falcon Avenue, Miami, Florida 33166-4316, MARGARITA DELACARIDAD MARTIN, Martin-Argote Insurance Agency, 7911 NW 72" +h Avemue, Suite 114, Medley, FL 33166-2221 on this 16" day of lebruary , 2008. . . DAVID J. BUSCH, ESQUIRE Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4146 18

Docket for Case No: 08-005331PL