FILED APR 17 2009 Chief Financial Officer A [otgppketed. by: Rath gE 900985 Case Number: 08-178-1A-09-WC IN THE MATTER OF: -KIDS’ WORLD ACADEMY, LLC FINAL ORDER THIS PROCEEDING came on for final agency action and Alex Sink, Chief Financial Officer of the State of Florida, or her designee, having considered the record in this case, including the Stop-Work Order and Order of Penalty Assessment and the Amended Order of Penalty Assessment served in Division of Workers’ Compensation Case No. 08-178-1A, and being otherwise fully advised in the premises, hereby finds that: . 1. On May 13, 2008, the Department of Financial Services, Division of Workers’ Compensation (hereinafter “Department”) issued a Stop-Work Order and Order of Penalty Assessment in Division of Workers’ Compensation Case No. 08-178-1A to KIDS’ WORLD ACADEMY, LLC. The Stop-Work Order and Order of Penalty Assessment included a Notice of rights wherein KIDS’ WORLD ACADEMY, LLC was advised that any request for an administrative proceeding to challenge or contest the Stop-Work Order and Order of Penalty . Assessment must be filed within twenty-one (21) days of receipt of the Stop-Work Order and Order of Penalty Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes. 2. On May 13, 2008, the Stop-Work Order and Order of Penalty Assessment was served via personal service on KIDS’ WORLD ACADEMY, LLC. A copy of the Stop- Work Order and Order of Penalty Assessment is attached hereto as “Exhibit A” and incorporated herein by reference. 3. On May 23, 2008, the Department issued an Amended Order of Penalty Assessment to KIDS’ WORLD ACADEMY in Case No. 08-178-1A. The Amended Order of Penalty Assessment assessed a total penalty of $1,011.37 against KIDS’ WORLD ACADEMY, LLC. The Amended Order of Penalty Assessment included a Notice of Rights wherein KIDS’ WORLD ACADEMY, LLC was advised that any request for an administrative proceeding to challenge or contest the Amended Order of Penalty Assessment must be filed within twenty-one (21) days of receipt of the Amended Order of Penalty Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes. 4. The Amended Order of Penalty Assessment was served on KIDS’ WORLD ACADEMY, LLC by personal service on May 28, 2008. A copy of the Amended Order of Penalty Assessment is attached hereto as “Exhibit B” and incorporated herein by reference. 5. On June 3, 2008 KIDS’ WORLD ACADEMY, LLC paid the assessed penalty in full, and demonstrated proof of compliance with the coverage requirements of Chapter 440, Florida Statutes. Accordingly, on June 3, 2009 the Department issued an Order of Release from Stop-Work Order, and Amended Order of Penalty Assessment, a copy of which is attached hereto as “Exhibit C” and incorporated herein by reference. 6. On June 11, 2008, KIDS’ WORLD ACADEMY, LLC filed a timely Petition for a formal administrative hearing in accordance with Sections 120.569 and 120.57, Florida Statutes. The Petition was forwarded to the Division of Administrative Hearings and assigned Case No. 08-5854. 7, On March 26, 2009, KIDS’ WORLD ACADEMY, LLC filed a letter with the Division of Administrative Hearings, requesting dismissal of its Petition for formal administrative hearing. A copy of the March 26, 2009 letter is attached hereto as “Exhibit D.” 11. On March 31, 2009 Administrative Law Judge P. Michael Ruff entered an Order Closing File, relinquishing jurisdiction to the Department. A copy of the March 31, 2009 Order Closing File is attached hereto as “Exhibit E.” FINDINGS OF FACT 12. The factual allegations in the Stop-Work Order and Order of Penalty Assessment issued on May 13, 2008, and the Amended Order of Penalty Assessment issued on May 23, 2008, which are fully incorporated herein by reference, are hereby adopted as the Department’s Findings of Fact in this case. CONCLUSIONS OF LAW 13. Based on the Findings of Fact adopted herein, the Department concludes that KIDS’ WORLD ACADEMY, LLC violated the specific statues and rules alleged in the Stop- Work Order and Order of Penalty Assessment and the Amended Order of Penalty Assessment and hereby adopts the violations charged in the Stop-Work Order and Order of Penalty Assessment and the Amended Order of Penalty Assessment as the Conclusions of Law in this case. PENALTY IMPOSED 14. The voluntary dismissal of the Petition for formal hearing, wherein KIDS’ WORLD ACADEMY, LLC no longer contested the Amended Order of Penalty Assessment pursuant to Sections 120.569 and 120.57, Florida Statutes, taken together with the Findings of Fact and Conclusions of Law adopted herein, constitute grounds for the Chief Financial Officer to impose the penalty and order the cessation of business operations as set forth herein. IT IS THEREFORE ORDERED that: a) The penalty of $1,011.37 paid by KIDS’ WORLD ACADEMY, LLC to the Department is upheld. The Department acknowledges payment in full by KIDS’ WORLD ACADEMY, LLC of the assessed penalty; b) The Department acknowledges that KIDS’ WORLD ACADEMY, LLC has demonstrated compliance with the coverage requirements of Chapter 440, Florida Statutes, that the Stop-Work Order issued on May 13, 2008 has been released, and that KIDS’ WORLD ACADEMY, LLC has been cleared to continue its business operations in the state of Florida. DONE AND ORDERED this _f7__ day of Goaru , 2009. BRIAN LONDON DEPUTY CHIEF FINANCIAL OFFICER NOTICE OF RIGHTS Any party to these proceedings adversely affected by this Order is entitled to seek review of this Order pursuant to Section 120.68, Florida Statutes, and Florida Rule of Appellate Procedure 9.110, Review proceedings must be instituted by filing a Notice of Appeal with the Agency Clerk at Room 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida, 32399-0333 and a copy of the Notice of Appeal, a copy of this Order and filing fee with the appropriate District Court of Appeal within thirty (30) days of rendition of this Order. Copies furnished to: Kids’ World Academy, LLC c/o Manijeh Shakibai 1848 Capital Medical Court Tallahassee, Florida 32308 Timothy L. Newhall Assistant General Counsel Department of Financial Services 200 E. Gaines Street Tallahassee, FL 32399-4229 STATE OF FLORIDA, DEPARTMENT OF FINANCIAL SERVICES DIVISION OF WORKERS' COMPENSATION EMPLOYER NAME: STOP-WORK ORDER No.: KIDS WORLD ACADEMY LL C . | 08-178-1A FEIN: : ISSUANCE DATE: ; 020713985 5/13/2008 EMPLOYER ADDRESS: 1829 CAPITAL MEDICAL CT . CITY: TALLAHASSEE STATE: FL ZIP: 32308 WORKSITE POSTING ADDRESS: 1829 CAPITAL MEDICAL CT : CITY: TALLAHASSEE STATE: FL _ ZIP: 32308 INDUSTRY OF EMPLOYER: [_]Construction [lf] Non-construction [] Agriculture 4 STOP-WORK ORDER Pursuant to section 440.107, F.S., the above-referenced Employer is hereby ORDERED TO CEASE ALL BUSINESS OPERATIONS FOR ALL WORKSITES IN THE STATE based on the following violation(s): [tm] Failure to secure the payment of workers' compensation in violation of sections 440.10(1), 440.38(1), and 440.107(2) F. S., by: failing to obtain coverage that. meets the requirements of chapter 440, F. S., and the Insurance Code; materially understating or concealing payroll; [_] materially misrepresenting or concealing employee duties so as to avoid proper classification for premium calculations; LC materially misrepresenting.or concealing information pertinent to the computation and application of an experience rating modification factor. H Failure to produce required business records within 5 business days in violation of section 440.107(7)(a), F.S. Failure to produce required documents within 3 business days in violation of section 440.05(11), F.S. THIS STOP-WORK ORDER MAY BE AMENDED TO INCLUDE ADDITIONAL VIOLATIONS AND SHALL REMAIN IN EFFECT UNTIL THE DIVISION ISSUES AN ORDER RELEASING THE STOP-WORK ORDER FOR ALL WORKSITES. IF THE EMPLOYER CONDUCTS ANY BUSINESS OPERATIONS IN VIOLATION OF THIS STOP-WORK ORDER, A PENALTY OF $1,000.00 PER DAY FOR EACH DAY OF VIOLATION SHALL BE ASSESSED. ORDER OF PENALTY ASSESSMENT: A penalty against the Employer is hereby ORDERED in an amount: ; {m] Equal to 1.5 times the amount the employer woutd have paid in premium when applying approved manual rates to the employer's payroll during periods for which it failed to secure the payment of workers’ compensation required by this chapter within the preceding 3-year period, or $1,000, whichever is greater. Section 440.107(7)(d), F.S. [1] Up to $5,000 for each employee who the Employer misclassified as an independent contractor. Sections 440.10(1)(f) and 440.107(7)(f), F. S. The penalty may be amended until a Final Order or an Order of Conditional Release from Stop-Work Order is issued. Pursuant to section 440.107(11), F.S., the Department may initiate lien proceedings to collect any penalty due that has not been paid. In addition, the Department may refer any unpaid penalty that is due to a collection agency for the initiation of proceedings fo collect the unpaid penalty. CERTIFICATE OF SERVICE Pursuant to section 440,107(4), F.S., LOUISE GWYNETTE TURNER, Compliance Investigator , int nai anette orev (pnnt name and fille of server) served a true copy of this Stop-Work Order: [M]By posting at the Worksite: Date: 9/19/2008. time: 10:36:33 AM. geryer. LG.TURNER [m] By hand delivery: Date: 5/13/2008. Time; 10:36:33 PM - Server. L.G. TURNER (By certified mail: ' Date: : Article: EXHIBIT _A 4 3 NOTICE OF RIGHTS You have a right to administrative review of this action by the Department under sections 120.569 and 120.57, Florida Statutes. To obtain review, you must file a written petition requesting review. If you dispute a material fact contained in this action, you are entitled to a hearing under Sections 120.569 and 120.57(1), Florida Statutes, at which you may be represented by counsel, present evidence and argument on the issue(s), examine witnesses, submit a proposed recommended order, and file exceptions to the recommended order of the Administrative Law Judge. If you do not dispute a material fact contained in this action, you are entitled to a hearing under section 120.57(2), Florida Statutes, at which you may be represented by counsel, present documentary evidence, and present a written statement in opposition to this action. A petition for a hearing under sections 120.569 and 120.57, Florida Statutes, must conform to Rule 28-106.2015, Florida Administrative Code. The petition shall contain a) the name, address, and telephone number, and facsimile number (if any) of the petitioner; b) the name, address, and telephone number, and facsimile number of the attorney or qualified representative of the petitioner (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 petitioner received notice of the agency action; and e) a statement including the file number to the agency action. : You must file the petition for hearing so that it is received by the Department within twenty-one (21) days of your receipt of this agency action. The petition must be filed with the General Counsel acting as the Agency Clerk, Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. FAILURE TO FILEA PETITION WITHIN THE TWENTY-ONE (21) DAYS CONSTITUTES A WAIVER OF YOUR RIGHT TO ADMINISTRATIVE REVIEW OF THE AGENCY ACTION. Mediation under section 120.573, Florida Statutes, is not available. ISSUING AGENCY AND ADDRESS Division of Workers’ Compensation, Bureau of Compliance 2012 CAPITAL CIRCLE SE TALLAHASEE, FL 32399 a ae leer et han oan ao Attn: LOUISE GWYNETTE TURNER Telephone: (850) 413-1832 ——____—_— ly STATE. FLORIDA, DEPARTMENT OF FINANCIAL SERVICES DIVISION OF WORKERS' COMPENSATION EMPLOYER NAME: KIDS WORLD ACADEMY LLC FEIN: STOP-WORK ORDER No.: 08-178-1A 020713985 ISSUANCE DATE: 5/23/2008 EMPLOYER ADDRESS: 1829 CAPITAL MEDICAL CT CITY: TALLAHASSEE STATE: FL ZIP: 32308 AMENDED ORDER OF PENALTY ASSESSMENT rhe Division of Workers! Compensation issued a Stop-Work Order in this case on 5/13/2008 . The Stop-Work Order included an Order of Penalty Assessment that identified the penalties assessable under sections 440.10 and 440.107, F.S. The Division hereby amends the Order of Penalty Assessment based on the following penalties: [i] Failure to secure the payment of workers’ compensation within the meaning of section 440.107(2), F.S., by: failing to obtain coverage that meets the requirements of Chapter 440, F.S., and the Insurance Code; materially understating or concealing payroll: materially misrepresenting or concealing employee duties so as to avoid proper classification for premium calculations; 0 materially misrepresenting or concealing information pertinent to the computation and application of an experience rating modification factor. OO) For such violation(s) the Employer is assessed a penalty of $ 1,011.37 (section 440.107(7)(d), F.S.) as detailed in the attached PENALTY WORKSHEET, which is incorporated herein by reference; oO Conducting business Operations in violation of the Stop-Work Order as detailed in the attached PENALTY WORKSHEET, which is incorporated herein by reference, for which the Employer is assessed a penalty of $ (section 440.107(7)(c), F.S.); | Misrepresenting the status of the employee(s) as an independent ‘contractor(s), as detailed on the attached PENALTY WORKSHEET, which is incorporated herein by reference, for which the Employer is assessed a penalty of $ (section 440.10(1)(f), F.S.,). It is hereby ORDERED that the Employer is assessed a TOTAL PENALTY of $ 1,011.37 The penalties assessed herein supersede any penalties previously assessed in this case. The Employer shall pay the TOTAL PENALTY by money order or cashier's check, made payable to the DFS-Workers' Compensation Administration Trust Fund. The Stop-Work Order issued in this case shall remain in effect until either (a) The Division issues an order releasing the Stop-Work Order upon finding that the employer has come into compliance with the coverage requirements of the workers’ compensation law and pays the total penalty in full, or (b) The Division issues an Order of Conditional Release From Stop-Work Order pursuant to the employer coming into compliance with the coverage requirements of the workers’ compensation law and entering into a Payment Agreement Schedule For Periodic Payment of Penalty. Pursuant to section 440.1 07(11), F.S, the Department may initiate tien proceedings to collect any penalty due that has Not been paid. In addition, the Department may refer any unpaid penalty that is due to a collection agency for the initiation of proceedings to collect the unpaid penalty. CERTIFICATE OF SERVICE Pursuant to section 440.107(4), F.S., LOUISE GWYNETTE TURNER, Compliance Investigator ' print namie and Tle OF server) — Served a true copy of this Amended Orde of Penalty Assessment: | CBF hand delivery: Date: is 8/03 _; Time: 10.23 Ae; Serer: Z lutni— 7] By certified mail: Date: ; Time: - ; Article: January 3, 2006 EXHIBIT NOTICE OF RIGHTS You have a right to administrative review of this action by the Department under sections _ 120.569 and 120.57, Florida Statutes. — To obtain review, you must file a written petition requesting review. If you dispute a material fact contained in this action, you are entitled to a hearing under Sections 120.569 and 120.57(1), Florida Statutes, at which you may be represented by counsel, present evidence and argument on the issue(s), examine witnesses, submit a proposed recommended order, and file "exceptions to the recommended order of the Administrative Law Judge. If you do not dispute a material fact contained in this action, you are entitled to a hearing under section 120.57(2), Florida Statutes, at which you may be represented by counsel, present documentary evidence, and present a written statement in opposition to this action. A petition for a hearing under sections 120.569 and 120.57, Florida Statutes, must conform to Rule 28-106.2015, Florida Administrative Code. The petition shall contain a) the name, address, and telephone number, and facsimile number (if any) of the petitioner; b) the name, address, and telephone number, and facsimile number of the attorney or qualified representative of the petitioner (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 petitioner received notice of the agency action; and e) a statement including the file number to the agency action. You must file the petition for hearing so that it is received by the Department within twenty-one (21) days of your receipt of this agency action. The petition must be filed with the General Counsel acting as the Agency Clerk, Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. FAILURE TO FILE A PETITION WITHIN THE TWENTY-ONE (21) DAYS CONSTITUTES A WAIVER OF YOUR RIGHT TO ADMINISTRATIVE REVIEW OF THE AGENCY ACTION. Mediation under section 120.573, Florida Statutes, is not available. ISSUING AGENCY AND ADDRESS Division of Workers’ Compensation, Bureau of Compliance 200 GAINES STREET TALLAHASSEE, FL 32399 Attn: _LOUISE G TURNER Telephone: (850).413-1837 5/28/2008 Page 1 of 1 State of Florida, Department of Financial Services ion of Workers’ Compensation, Bureau of Compliance Penalty Worksheet BUSINESS NAME: KIDS WORLD ACADEMY LLC DWC Case No. __08-178-1A DAVIS, CORASENA __MAN, ABIR | 05/14/2008 KIRMSE, MATINEE LEDFORD, BRI ROBINSON. TASHA ALE SHA ALECI “ATKINS, JENNIFER * Ifthe employer has failed to provide business records sufficient to enable the Department to determine the employer's payroll, imputed to be the statewide average weekly wage as defined in s.440.12(2) F.S.multiplied by 1.5, (440.107(7)(e)). ** Premium multiplied by statutory factor of 1.5 . , payroll shail be *** Greater of penalty under column (g) or $1000. s440.107(d)(1) Page 1 of 1 STATE OF ™'.ORIDA, DEPARTMENT OF FINANCIAL ° “RVICES ._ .ISION OF WORKERS’ COMPENSATION EMPLOYER NAME:_KIDS WORLD ACADEMY LLC Stop-Work Order #: 08-178-1A FEIN: 020713985 BUSINESS ADDRESS: 1849 CAPITAL MEDICAL COURT CITY: TALLAHASSEE COUNTY: LEON STATE: FL ZIP: 32308 ORDER OF RELEASE FROM STOP-WORK ORDER, AND - AMENDED ORDER OF PENALTY ASSESSMENT 1. KIDS WORLD ACADEMY LLC, (hereinafter "employer") was issued a Stop-Work Order by the Division of Workers’ Compensation on 05/13/2008. The total penalty for the Stop-Work Order, as reflected in the Amended Order of Penalty Assessment issued on 05/23/2008 is $1,011.37. : 2. The Division finds that the employer has complied with the coverage requirements of Chapter 440, Florida Statutes. 3. On 6/3/2008 the employer paid the penalty assessment. Accordingly, it is hereby Ordered: a. . The Stop-Work Order issued to the employer on 05/13/2008, is hereby released, and b. The Amended Order of Penaity Assessment issued to the employer on 5/23/2008, is hereby released. Division of Workers' Compensation , Date LOUISE TURNER NOTICE OF RIGHTS Any party to these proceedings adversely affected by the Order is entitled to seek review of this Order pursuant to section 120.68, F.S., and Rule 9.110, Fla. R. App. Pro. Review proceedings must be instituted by filing a petition of notice of appeal with the General Counsel, acting as the Agency Clerk, at 612 Larson Building, Tallahassee, Florida 32399-0300, and a copy of the same with the appropriate District Court of Appeal within thirty days of rendition of the Order. I hereby certify that | have provided by hand delivery to Men 4 yeh Sha. Ki bone , as authorized representative of the employer named herein, a true and correct copy of this Order on this 3 day of_done_, 2008. UME EXHIBIT ivision of Workers' Compensation LOUISE TURNER i ( Mar 26 2009 9:30 FROM : M@UGHART FAX NO. : 8586687272 - Jun. 25 2889 @3:4@PM Pi 1849 Capital Medical Court Tallahassee FL. 32308 (850)656-6655 March 26, 2009 Department of Financial Services Division is Workers’ Compensation Case # 08-5854 C/O Tim Newhall Kids World Academy would like to dismiss the petition that we filed. If you have any questions please feal free to contact us at (850) 656-6655. Thank you for your time and consideration in this matter. a aoe - Manijeh Shakibai Owner / Director EXHIBIT _D_ tabbies”

Docket for Case No: 08-005854