FILED: AUG 06 2010 ARPRESENTING ALES Sink Docketed by << __ CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 111624-10-AG JEFFREY CARL PELLET / ADMINISTRATIVE COMPLAINT TO: Jeffrey Carl Pellet — 320 S. Flamingo Rd., #267 Pembroke Pines, FL 33027 You, JEFFREY CARL PELLET, are hereby notified that the Chief Financial Officer of the State of Florida (the Department) has caused to be made an investigation of your activities while licensed as a public adjuster in this state and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, JEFFREY CARL PELLET, are currently licensed in this state as a 5-20 All Lines Independent Adjuster, and were so licensed at all times relevant to the dates and occurrences referenced herein, Your license identification number is E122438. 2. Section 626.855, Florida Statutes, provides that an independent adjuster is any person who is self-employed or is associated with or employed by an independent adjusting firm or other independent adjuster, and who undertakes on behalf of an insurer to ascertain and determine the amount of any claim, loss, or damage payable under an insurance contract or undertakes to effect settlement of such claim, loss, or damage. Filed September 3, 2010 3:23 PM Division of Administrative Hearings. 3. You, JEFFREY CARL PELLET, have never been licensed as a public adjuster in Florida. . “4, As provided in section 626.854(1), Florida Statutes, a public adjuster is any petson, except a duly licensed attorney at law as hereinafter ins. 626.860 provided, who, for money, commission, or any other thing of value, prepares, completes, or files an insurance claim _ form for an insured or third-party claimant or who, for money, cominission, or any other thing of . value, acts or aids in any manner on behalf of an insured or third-party claimant in negotiating for or effecting the settlement of a claim or claims for loss or damage covered by an insurance contract or who advertises for employment as an adjuster of such of such claims, and also includes any person who, for money, commission, or any other thing of value, solicits, investigates, or adjusts such claims on behalf of any such public adjuster, 5. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter referred to as the “Department”) has jurisdiction over your licenses, appointments, and your eligibility for licensure. 6. As provided in sections 626.611 and 626.621, Florida Statutes, and Rule 69B- 220.201(1)(a), Florida Administrative Code, all adjusters, as defined in section 626.01 5(1), Florida Statutes, are subject to license disciplinary action by the Department. 7. At all times relevant to the dates and occurrences referenced herein you, JEFFREY CARL PELLET, and Etienne Font, attorney at law, were the owners of Professional Insurance Estimating & Appraisals (PIE or the agency), located at 211 sw 2"! Street, Suite J, Second Floor, Fort Lauderdale, FL 33301-1821. 8. At all times relevant to the dates and occurrences referenced herein you, JEFFREY CARL PELLET, had failed to designate a primary adjuster for PIE, but you acted as the de facto primary adjuster for the agency, including the supervision of Chris Burton, one of the employees of PIE whom you, JEFFREY CARL PELLET, supervised and who was subject to your control and direction, . COUNT] 9. The above General Allegations are hereby realleged and fully incorporated herein by reference. ‘10. J effrey Shammah is a public adjuster. In 2002, Carlos Martinez was the named public adjuster on a claim filed by Mr. Shammah. However, from about June 25, 2002 until a settlement was resolved; you, JEFFREY CARL PELLET, although purporting to be Mr. Shammah’s appraiser, acted as an unlicensed public adjuster by entering into discussions and negotiations with Warren Aplin of IAS Claim Services, Inc, (IAS) to settle Mr. Shammah’s claim. IT IS THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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) Section 626,611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or ) managing general agent to demonstrate a lack of fitness or trustworthiness to engage iti the business of insurance. (b) — Section 626.61 10), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.611(13), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or tule of the department ot any provision of this code. ; . - @d Section 626,877, Florida Statutes, which provides that every adjuster shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in accordance with the terms and conditions of the contract and of the applicable laws of this state, . (e) Section 626.878, Florida Statutes, which provides that an adjuster shall subscribe to the code of ethics specified in the rules of the department, The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and require practices necessary to ensure fair dealing, prohibit conflicts of interest, and ensure preservation of the rights of the claimant to participate in the adjustment of claims. | (f) Rule 69B-220-201, Florida Administrative Code, which provides that the work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. This Rule provides the following standards of conduct that define ethical behavior, and constitute part of acode of ethics that shall be binding on all adjusters: (1) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all patties without any remuneration to himself except that to which he is legally entitled. (2) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any insurer or independent adjusting firm. No person shall, as a company or independent adjuster, represent him- or herself or any insurer or independent adjusting firm against any person or entity that the adjuster previously represented a public adjuster, COUNT II 11. The above General Allegations are hereby realleged and fully incorporated herein by reference. 12. From about October 2002 until about July 2003, you, JEFFREY CARL PELLET, . acted as a unlicensed public adjuster for Rafat Altawil and Jane Pittman, Warren Aplin was hired by these consumers’ insurers, Universal Property and Casualty Insurance Company (Universal) and Strategic Insurance Company (Strategic) to adjust their claims. 13. You, JEFFREY CARL PELLET, engaged in claim negotiation on behalf of Mr. Altawil that included a demand for additional living expenses, a demand to speed up the settlement process, and an attempt to effect the settlement of the claims, 14. You, JEFFREY CARL PELLET, engaged in claim negotiation on behalf of Ms. Pitman that included demands to the proposed umpire on Ms, Pitman’s claim in an attempt to alter the course of the appraisal process and effect the settlement of the involved claims. 15, You, JEFFREY CARL PELLET, executed a contract with Rafat Altawil allowing you to collect money from Universal and directing that company to name yourself as an additional payee on any and all payment drafts. IT Is THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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) Section 626,611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. (b) —_ Section 626.6119), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.61 1(13), Flotida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order ot rule of the department or any provision of this code. (d) Section 626.877, Florida Statutes, which provides that every adjuster shall adjust or investigate every. claim, damage, or loss made or occurring under an insurance contract,.in accordance with the terms and conditions of the contract and of the applicable laws of this state. (e) Section 626.878, Florida Statutes, which provides that an adjuster shall subscribe to the code of ethics specified in the rules of the department. The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and require ptactices necessary to ensure fair dealing, prohibit conflicts of interest, and ensure preservation of the rights of the claimant to participate in the adjustment of claims. (f) Rule 69B-220-201, Florida Administrative Code, which provides that the work of adjusting insurance claims engages the public trust. An adjuster shail put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The Rule © provides the following standards of conduct that define ethical behavior, and constitutes part of a code of ethics that shall be binding on all adjusters: qd) ‘An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all parties without any remuneration to himself except that to which he is legally entitled. (2) An adjuster shall not undertake the adjustment of any claim concerning which the adj uster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any _insurer or independent adj usting firm. No person shall, as a company or independent adjuster, represent him- or herself or any insurer or independent adjusting firm against ; any person or entity that the adjuster previously represented a public adjuster. COUNT II 16, The above General Allegations are hereby realleged and fully incorporated herein by reference. 17. On May 9, 2005, you, JEFFREY CARL PELLET, signed a “Work Authorization and Contract” with Robert Seidle (the insured) to provide appraisal services for a hurricane property loss suffered by Robert and Tracy Seidle, the terms of which included the statement that _ you would not negotiate with respect to any insurance policy terms and conditions. 18. With the knowledge and consent of you, JEFFREY CARL PELLET, Tracy Seidle _ genta letter dated May 25, 2005, to Chubb & Son (Chubb) requesting an appraisal of the property loss. | 19. Ina letter to Chubb dated June 29, 2005, you, JEFFREY CARL PELLET, complained that Chubb had not responded to the Seidle letter dated May 25, 2005. 20. On August 2, 2005, Damian B. Lynch, an employee of Chubb, explained to Chris Burton in a telephone conversation that the Chubb policy allowed for an appraisal only if Federal agreed to it, but did not have a unilateral appraisal provision that allows an insured to demand an appraisal, The same day Mr. Lynch addressed a letter to Robert Seidle explaining that ‘there could be an appraisal of the loss if there was a dispute as to the amount of loss. 2. On August 3, 2005, you, JEFFREY CARL PELLET, sent a letter to Mr. Lynch advising him that Mr. Seidle rejected mediation by the Department and demanded an appraisal. 22. On August 4, 2005, Mr. Lynch sent a letter to the Seidles advising them that according to the terms of-the contract that they had with you, JEFFREY CARL PELLET, you _ could not negotiate with respect to any insurance policy terms and conditions, and that according to the terms of the Chubb policy, the Seidles and Chubb, if they could not agree on the amount of loss, could together select an independent appraiser and that failing agreement on the loss, mediation was available through the Department. 23. In a letter to Mr. Lynch dated August 24, 2005, you, JEFFREY CARL PELLET, ‘continued to argue the terms and conditions of the Chubb contract and otherwise act as a public adjuster on behalf of the Seidles. “IT IS THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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) Section 626.611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the . business of insurance. (b) Section 626.611(9), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or . managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. ) (c) Section 626.611(13), Florida Statutes, which provides that it is a violation for any ’ applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or tule of the department or any provision of this code. (d) Section 626.877, Florida Statutes, which provides that every adjuster shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in accordance with the terms and conditions of the contract and of the applicable laws of this state. (e) Section 626.878, Florida Statutes, which provides that an adjuster shall subscribe to the code of ethics specified in the rules of the department. The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and require practices necessary to ensure fair dealing, prohibit conflicts of interest, and ensure preservation of the rights of the claimant to participate in the adjustment of claims. (69) Rule 69B-220-201, Florida Administrative Code, which provides that the work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The Rule provides the following standards of conduct that define ethical behavior, arid constitutes part of a code of ethics that shall be binding on all adjusters: (1) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all parties without any remuneration to himself except that to which he is legally entitled. . (2) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any insurer or independent adjusting firm. No person shall, as a company or independent adjuster, represent him- or herself or any insurer or independent adjusting firm against any person or entity that the adjuster previously represented a public adjuster. COUNT IV 24, The above General Allegations are hereby realleged and fully incorporated herein. by reference. 25. During 2006, Andrew P. Rock was an attorney representing First Floridian Insurance Company (First Floridian) and United States Fidelity and Guarantee Company (USF&G). _ 26. -You, JEFFREY CARL PELLET, were hired by Derek and Claudine Gwinn to act as an appraiser on a property loss resulting from Hurricane Katrina in 2005. Your contract with 10 the Gwinns specified that you were not to negotiate with respect to the terms and conditions of the insurance contract the Gwinns had with First Floridian, their carrier at the time the loss was sustained, . 27. You, JEFFREY CARL PELLET, wrote letters dated January 3, 2006, January 17, 2006, February 28, 2006 and March 6, 2006 wherein you engaged in claim negotiations with Mr. Rock in an attempt to settle the Gwinns’ claims. - 28. You, JEFFREY CARL PELLET, executed a contract with the Gwinns authorizing you to collect money from First Floridian and you later directed First Floridian to include you as an additional named payee on payment drafts in connection with the Gwinn loss.’ . IT IS THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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) Section 626.611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. (b) — Section 626.61 1(9), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.61 1(13), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or 11 managing general agent to willfully fail to comply with, or willfully violate, any proper order or tule of the department or any provision of this code. | (d) Section 626.877, Florida Statutes, which provides that every adjuster shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in accordance with the terms and conditions of the contract and of the applicable laws of this state, . (e) Section 626,878, Florida Statutes, which provides that an adjuster shall subscribe “to the code of ethics specified in the rules of the department. The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and require practices necessary to ensure fair dealing, prohibit conflicts of interest, and - ensure preservation of the rights of the claimant to participate in the adjustment of claims. () Rule 69B-220-201, Florida Administrative Code, which provides that the work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The Rule provides the following standards of conduct that define ethical behavior, and constitutes part of a code of ethics that shall be binding on all adjusters: (1) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all parties without any remuneration to himself except that to which he is legally entitled. (2) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any 12 insurer or independent adjusting firm. No person shall, as a company ot independent adjuster, represent him- or herself or any insurer or independent adjusting firm against any person or entity that the adjuster previously represented a public adjuster. COUNT V 29. The above General Allegations are hereby realleged and fully incorporated herein by reference. . . | 30. Gloria Alexander suffered damage to her property in October 2005, as the result of Hurricane Wilma, Ms. Alexander filed a claim with her insurer, Southern Fidelity Insurance Company (Southern Fidelity), and hired you, JEFFREY CARL PELLET, to appraise her damages. . 31. You, JEFFREY CARL PELLET, introduced yourself to Marcel Piz of MP & Associates Insurance Adjusters, Inc. (MP), as Ms. Alexander’s representative, and proceeded to engage in claim negotiations with independent adjuster Gregory L. Gibson on behalf of Ms. Alexander, ) . 32, You, JEFFREY CARL PELLET, also executed a contract with Ms. Alexander that allowed you to collect money fiom Southern Fidelity and directing the insurer to include your name as an additional payee on any and all payment drafts. . 33. You, JEFFREY CARL PELLET, in and effort to adjust the Alexander claim, inflated the actual damages so as to present a fabricated and fraudulent claim of loss. IT IS THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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: 13 (a) Section 626.611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or . managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. ) (b) Section 626.611(9), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.611(13), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or rule of the department or any provision of this code. (d) —_ Section 626.877, Florida Statutes, which provides that every adjuster shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in accordance with the terms and conditions of the contract and of the applicable laws of this state. - () Section 626.878, Florida Statutes, which provides that an adjuster shall subscribe to the'code of ethics specified in the rules of the department. The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and requite practices necessary to ensure fair dealing, prohibit conflicts of interest, and _ ensure preservation of the rights of the claimant to participate in the adjustment of claims. (f) Rule 69B-220-201, Florida Administrative Code, which provides that the work of ) adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The Rule 14 provides the following standards of conduct that define ethical behavior, and constitutes part of acode of ethics that shall be binding on all adj usters: (1) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to.all parties without any remuneration - to himself except that to which he is legally entitled. (2) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any insurer or independent adjusting firm. No person shall, as a company or independent adjuster, represent him- or herself or any insurer or independent adjusting firm against atly person or entity that the adjuster previously represented a public adjuster. COUNT VI 34. The above General Allegations are hereby realleged and fully incorporated herein by reference, 35. Steven Carfray suffered damage to his property in October 2005, as the result of Hurricane Wilma. Mr. Carfray filed a claim with his insurer, Citizens Property Insurance Corporation (Citizens), and hired you, JEFFREY CARL PELLET, to appraise his damages. 36. You, JEFFREY CARL PELLET, proceeded to engage in claim negotiations with Citizens on behalf of Mr. Carfray, and in dealings with Ms. Valerie Riley of Insurance Claims Consultants (ICC Group), acting as an appraiser on behalf of Citizens. 15 37. You, JEFFREY CARL PELLET, as part of your attempt to adjust and settle the Carfray claim, submitted a false and fraudulent invoice to Citzens for temporary roof repairs to the Carfray property. ) 38. You, JEFFREY CARL PELLET, in and effort to adjust the Carfray claim, inflated the actual damages so as to present a fabricated and fraudulent claim of loss. IT IS THEREFORE CHARGED that you, J. EFFREY CARL PELLET, 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) Section 626.611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. . (b) —_ Section 626.611(9), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.611(13), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or rule of the department or any provision of this code. (d) Section 626.877, Florida Statutes, which provides that every adjuster shall adjust or investigate every claim, damage, or loss made or occurring under an insurance contract, in 16 accordance with the terms and conditions of the contract and of the applicable laws of this state. , (e) Section 626.878, Florida Statutes, which provides.that an adjuster shall subscribe to the code of ethics specified in the rules of the department. The rules shall implement the provision of this part and specify the terms and conditions of contracts, including a right to cancel, and require practices necessary to ensure fair dealing, prohibit conflicts of interest, and. ensure preservation of the rights of the claimant to participate in the adjustment of claims, (69) Rule 69B-220-201, Florida Administrative Code, which provides that the work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The Rule provides the following standards of conduct that define ethical behavior, and constitutes part of a code of ethics that shall be binding on all adjusters: (1) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all parties without any remuneration to himself except that to which he is legally entitled. (2) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. (3) No person shall, as a public adjuster, represent any person or entity whose claim the adjuster has previously adjusted while acting as an adjuster representing any insurer or independent adjusting firm. No person shall, as a company or independent adjuster, represent him- or herself or any insurer or independent adjusting firm against any person or entity that the adjuster previously represented a public adjuster. 17 COUNT VII 39. ° The above General Allegations are hereby realleged and fully incorporated herein by reference. | 40. As part of its attempt to investigate the above-described complaints, Department investigator Raphael Montero served an investigative subpoena on you, JEFFREY CARL ’ PELLET, and Ettienne Font at the agency on February 12, 2008. The subpoena requested the insurance claim files for seven insurance consumers, namely: Rafat Altawil, Jane Pittman, Robert Seidle, Derrick Gwinn, Joseph R. Cwikia, Gloria Alexander and Stephen Carfray. 41 . On February 20, 2008, you, JEFFREY CARL PELLET and Ettienne Font, sought a protective order to quash the subpoena from the Broward County Circuit Court, alleging as grounds that compliance with the subpoena would be unreasonable or oppressive; that the subpoena was overbroad and unduly burdensome; and that compliance would violate your Fifth Amendment privilege against self-incrimination, 42. On March 13, 2008, with the consent of the parties, the matter was referred to a Magistrate. . 43. On May 15, 2008, the Magistrate issued her Report and Recommendation that , Appellants” motion t6 quash be denied; that the Appellants’ be given an opportunity to object, if ever required to testify; that Appellants comply with the subpoena within thirty days; that the motion for continuation of the evidentiary hearing be denied; but that, if Appellants objected to the Report and Recommendation, they could file such with the Circuit Court. 44, | On May 25, 2009, you, JEFFREY CARL PELLET and Ettienne Font, filed objections and made demand for a “full evidentiary hearing.” 45. On June 2, 2008, Circuit Court Judge Aleman signed an order ratifying and approving the Magistrate’s Report in all respects, “subject only to timely filed objections.” 18° 46. You, JEFFREY CARL PELLET, and Ettienne Font filed objections and on February 13, 2009, a Supplemental Motion To Quash, arguing that, although your agency offices were not searched and. nothing was ever seized by Department investigators from the insurance agency, nevertheless you had somehow suffered violations of your Fourth Amendment right to be free of unreasonable searches and seizures, 47, OnFebruary 18, 2009, Circuit Court J udge Aleman presided over a one-hour oral sitgument as to the issues set forth in her June 10, 2008, order at the conclusion of which the Court denied the exceptions of you, JEFFREY CARL PELLET, and Ettienne Font to the General Magistrate’s Report and Recommendation and entered a final order denying your motion to quash the subpoena, ) 48. You, JEFFREY CARL PELLET, and Ettienne Font appealed the above Circuit Court order, On May 19, 2010, the Fourth District Court of Appeal Per Curiam Affirmed the Circuit Court final order. On June 16, 2010, the district court denied motion for rehearing. 49. As of this date you, JEFFREY CARL PELLET, and Ettienne Font, have not provided the records demanded by the Department’s subpoena. | IT IS THEREFORE CHARGED that you, JEFFREY CARL PELLET, 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) Section 626.611(7), Florida Statutes, which provides that it is a violation for‘any applicant, agent, title agency, adjuster, customer representative, service reptesentative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. 19 ' 0) Section 626.561(3), Florida Statutes, which provides that the licensee shall keep and make available to the department or office books, accounts, and records as will enable the department or office to determine whether such licensee is complying with the provisions of this code. Every licensee shall preserve books, accounts, and records pertaining to a premium _payment for at least 3 years after payment; provided, however, the preservation of records by computer or photographic reproductions or records in photographic form shall constitute compliance with this requirement. All other records shall be maintained in accordance with s. 626.748. The 3-year requirement shall not apply to insurance binders when no policy is ultimately issued and no premium is collected. (c) Section 624.30793), Florida Statutes, which provides that the department or office tnay conduct such investigations of insurance matters, in addition to investigations expressly authorized, as it may deem proper to determine whether any person has violated any provision of this code within its respective regulatory jurisdiction or to secure information useful in the lawful administration of any such provision. The cost of such investigations shall be borne by . the state. (d) Section 624.321(1)(b), Florida Statutes, which provides that the Department shall have the power to subpoena witnesses, compel their attendance and testimony, and require by subpoena the production of books, papers, records, files, comrespondence, documents, or other evidence which is relevant to the inquiry. ) (e) Section 624,321(2), Florida Statutes, which provides that if any person refuses to comply with any such subpoena or to testify as to any matter concerning which she or he may be lawfully interrogated, the Circuit Court of Leon County or of the county wherein such examination, investigation, or hearing is being conducted, or of the county wherein such person 20 resides, may, on the application of the department or office, issue an order requiring such person to comply with the subpoena and to.testify. ® Section 626.611(13), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or rule of the department or any provision of this code. (2) Section 626.621(2), Florida Statutes, which provides that violating any. provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment is, in itself, a violation of law. WHEREFORE, you, JEFFREY CARL PELLET, 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 626.61 1, 626.621, 626.681, 626.691, 626.692, 626.9521, and 626.8698, Florida Statutes, and under the other. referenced sections of the Florida Statutes as set out in this Administrative Complaint and under the provisions of Rule 69B-231, Florida Administrative Code, 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 eligibility held by you under the Florida Insurance Code. 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 21 for administrative hearing will suffice as a written request. The request must be filed with Julie Jones, DFS Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. 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) Astatement 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 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. 22 Ifa 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. DATED and SIGNED this &* day of A 49 wot , 2010. Director, Agent &\Agency Services 23 4 CERTIFICATE OF SERVICE LHEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the ELECTION OF PROCEEDING has been furnished to: JEFFREY CARL PELLET, 320 S. Flamingo Rd., Pembroke Pines, FL 33027 by Certified Mail and to Michael D. Gelety, Bsq., 1209 SE 3" Avenue, Ft. Lauderdale, FL 33316, by regular U.S. Mail this o™ day of Ayguss 2010. David J. Busch Florida Department of Financial Services Division of Legal Services 200 East Gaines St. . 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4146 24 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 111624 -10-AG JEFFREY CARL PELLET / ELECTION OF PROCEEDING I have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and I understand my options. I am requesting ’ disposition of this matter as indicated below. (CHOOSE ONE) 1.[] TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE I do not dispute any of the Department’s factual allegations and I do not desire a heating. 1 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 may be appropriate. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120,57(2), Florida Statutes. In this regard, I desire to (CHOOSE ONE): {] Submit a written statement and documentary evidence in lieu of a hearing; or [J 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. I do dispute one or more of the Department's factual allegations, I hereby 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 issues of material fact, TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: Julie Jones DFS Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390, ; Signature Print Name Date: Address: Date Administrative Complaint Received: if you are 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,: 25

Docket for Case No: 10-008909PL