FILED DEC 202013 Docketed by__ 7 CASE NO.: 143480-13-AG CHIEF FINANCIAL OFFICER JEFF ATWATER STATE OF FLORIDA IN THE MATTER OF: MARK A. HEFFERNAN / ADMINISTRATIVE COMPLAINT TO: MARK A. HEFFERNAN 1000 NW North River Drive, Ste. 104 Miami, Florida 33136 MARK A. HEFFERNAN 1000 NW 14" Street Miami, Florida 33136 You, MARK A. HEFFERNAN, are hereby notified that the Department of Financial Services (hereinafter the “department”) has caused to be made an investigation of your bail bond insurance related activities in this state, as a result of which it is alleged that: GENERAL ALLEGATIONS 1. You, MARK A. HEFFERNAN, are currently licensed as a limited surety agent to transact bail bond business in this state. 2. You, MARK A. HEFFERNAN, were licensed as a limited surety agent in this state at all times pertinent to the allegations of this administrative complaint. 3. At all times pertinent to the allegations of this administrative complaint, you, MARK A. HEFFERNAN, were an officer and director of Surety Corporation of America Inc., a Florida corporation doing business in this state as the managing general agent for United States Specialty Insurance Company. 4. Pursuant to Section 648.295, Florida Statutes, all premiums, return premiums, or other funds belonging to insurers or received by a person licensed pursuant to Chapter 648 in transactions under his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and the pay the same to the insurer, insured, or other person entitled to such funds. COUNT I 5. Allegations are hereby realleged and fully incorporated herein by reference. 6. On or about January 4, 2013, M. Q. and C. T. approached limited surety agent Jacqueline Hill to write a bail bond on behalf of E. G., who was incarcerated in the Broward County jail, in the amount of $250,000.00. Jacqueline Hill was not authorized to write a bond in that amount and therefore approached you, MARK A HEFFERNAN, seeking authorization to issue the bond. You, MARK A. HEFFERNAN, as an officer of Surety Corporation of America, Inc., managing general agent for the insurer, United States Specialty Insurance Company, authorized the issuance of the bond in the amount of $250,000. M. Q. and C. T., as indemunitors, posted $100,000 in collateral for the bond and paid $25,000 as the bond premium. Jacqueline Hill received both the collateral payment and the bond premium payment and a receipt for such was duly issued. The bond was issued by United States Specialty Insurance Company and E. G. was released from the jail. You, MARK A. HEFFERNAN, as an officer of Surety Corporation of America, Inc., managing general agent for the insurer, received the premium payment from Jacqueline Hill. ) ) 7. On or about March 25, 2013, you, MARK A. HEFFERNAN, as an officer of Surety Corporation of America, managing general agent for United States Specialty Insurance Company, and pursuant to Sections 903.20 and 903.22, Florida Statutes, caused the surrender of the above mentioned bond and the rearrest of E. G., prior to the final termination of the surety’s liability on the bond and without the defendant having violated the contract with the surety. Asa result, and pursuant to Rule 69B-221.110, Florida Rules of Administrative Procedure, M. Q. and C. T. were entitled to a full refund of the $25,000.00 bond premium. 8. You, MARK A. HEFFERNAN, as an officer of Surety Corporation of America failed to refund the $25,000 premium payment or any part thereof to the indemnitors or anyone so entitled, but rather misappropriated, converted or wrongfully withheld the $25,000.00 and retained it for your own use and benefit. 9. You, MARK A. HEFFERNAN, as an officer of Surety Corporation of America have misappropriated, converted, or wrongfully withheld funds belonging to M. Q. and C. T. and received in a bail bond transaction under the license. Demand has been made for return of the funds, but you, MARK A. HEFFERNAN, have refused to do so. As a result, M. Q. and C. T. have suffered a financial loss. IT IS THEREFORE CHARGED that you, MARK A. HEFFERNAN, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code: (a) Section 648.45(2)(e), Florida Statutes, which, provides that it is a violation to demonstrate a lack of fitness or trustworthiness to engage in the bail bond business; (b) Section 648.45(2)(h), Florida Statutes, which provides that it is a violation to willfully misappropriate, convert, or unlawfully withhold moneys belonging to a surety, a principal, or others and received in the conduct of business under the license. (c) Section 648.45(2)G), Florida Statutes, which provides that it is a violation to willfully fail to comply with or willful violate any proper order or rule of the department or willfully violate any provision of this chapter or the insurance code; (d) —_ Section 648.45(3)(c), Florida Statutes, which provides that it is a violation to violate any law relating to the business of bail bond insurance or violation of any provision of the insurance code; (e) Section 648.45(3)(e), Florida Statutes which provides that it is a violation to be found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. (63) Rule 69B-221.101(5), Florida Rules of Administrative Procedure, which provides that a bail bond agent who has surrendered a principal and failed to properly refund the premium when required by law shall be subject to discipline as provided in Chapter 648, Florida Statutes. 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 Julie Jones, Agency Clerk, at the 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. ) J Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Administrative Code. As noted. above, completion of the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: (a) The name, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"). (b) The name, address, telephone number, facsimile number of the attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) A statement of when the respondent received notice of the administrative complaint. (e) Astatement 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 J udge 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. thy DATED and SIGNED this 20 dayof_DeCernoe © , 2013. Gregory Thomas Director, Agent & Agency Services ) ) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been furnished by Electronic Mail and or Certified Mail to: mark@bailbonds.com; MARK A. HEFFERNAN, 1000 NW North River Drive, Ste. 104, Miami, Florida 33136; MARK A. HEFFERNAN, 1000 NW 14" Street, Miami, Florida 33136 this 20th day of Oecember_, 2013. ES A. BOSSART, ESQUIRE partment of Financial Services Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 Tel.: (850) 413-4125

Docket for Case No: 14-000295PL