FILED JUL -2 2020 a CHIEF FINANCIAL OFFICER Docketed by SAS _ JIMMY PATRONIS DEPARTMENT OF FINANCIAL SERVICES, Petitioner, v. THOMAS LOVETT, Respondent. ADMINISTRATIVE COMPLAINT TO: Thomas Lovett 1020 Minnesota Ave #8 Winter Park, FL 32789-4774 E-mail; BESTCLOSER436@GMAIL.COM Case No.: 253923-19-AG Thomas Lovett, license number E098641, is hereby notified that the Chief Financial Officer of the State of Florida (the Department) has caused to be made an investigation of his activities while licensed as a title (4-10) agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to chapter 626, Florida Statutes, Thomas Lovett is licensed in this state as a title agent. 2. Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services (the “Department”) has jurisdiction over Thomas Lovett’s license and eligibility for licensure as a title agent. 3. According to the Department’s records, Thomas Lovett was the owner, agent in charge and registered agent for The Title Bridge, LLC (the agency) formerly doing business as a title insurance agency, having license number W182037. 4. The agency’s license was revoked on September 9; 2019. 5. As required by Florida Statute 626.331(2), Florida Statutes, a title agent must be appointed with an insurance carrier in order to transact insurance business. 6. Thomas Lovett lost his last active appointment with an insurance company on August 11, 2017. 7. In accordance with Section 626.431(1), Florida Statutes, Thomas Lovett is currently without authority to engage in title insurance activities. COUNT I 8. The General Allegations listed above are hereby realleged and fully incorporated by reference, 9. On December 18, 2017, the Department received a complaint from Alliant National Title Insurance Company (Alliant) alleging that Thomas Lovett had misappropriated funds from three real estate closings for his personal use. 10. The Department requested documentation from Alliant in support of its allegations. Among the documents forwarded to the Department was an audit report dated September 1, 2017 detailing title mortgage payoffs not completed, escrow trial balance file shortages of $153,221.50, escrow trial balance negative file balances of $499,477.83, as well as undocumented payments of $153,857.63, indicating that Thomas Lovett applied payments from these sums for his personal use, disbursements not otherwise reflected in the agency’s records. 11. Alliant and First American Title Insurance Company (First American) sued the Respondent in the Circuit Court of the Eighteenth Judicial Circuit in and for Seminole County, case number 2017-CA-002009-16-K. 12. On or about March 20, 2009, the Department received a certified copy of a court order in the above-styled case directing that funds in the amount of $69,905.90 be disbursed from The Title Bridge LLC’s escrow account to First American, following which First American was authorized to close The Title Bridge LLC’s escrow account. IT IS THEREFORE CHARGED that the Respondent have violated one or more of the following provisions of the Florida Insurance Code, which constitutes sufficient grounds for the suspension or revocation of his licenses in this state: (a) —_ Section 626.8473(3), Florida Statutes, which provides that all funds received by a title insurance agent to be held in trust shall be immediately placed in a financial institution that is located within this state and is a member of the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, These funds shall be invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds in Section 17.57, Florida Statutes where the funds shall be kept until disbursement thereof is properly authorized. (b) Section 626.8473(4), Florida Statutes, which provides that funds required to be maintained in escrow trust accounts pursuant to this section shall not be subject to any debts of the title insurance agent and shall be used only in accordance with the terms of the individual, escrow, settlement, or closing instructions under which the funds were accepted. (c) Section 626.8473(5), Florida Statutes, which provides that title insurance agents shall maintain separate records of all receipts and disbursements of escrow, settlement, or closing funds. (d) Section 626.611(1)(g), Florida Statutes, which provides that the department shall deny an application for, suspend, revoke, or refuse to renew or continue the license or appointment of any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent, and it shall suspend or revoke the eligibility to hold a license or appointment of any such person, if it finds that as to the applicant, licensee, or appointee any one or more of the following applicable grounds exist: Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. (e) Section 626.611(1)(h), Florida Statutes, which provides that the department shall deny an application for, suspend, revoke, or refuse to renew or continue the license or appointment of any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent, and it shall suspend or revoke the eligibility to hold'a license or appointment of any such person, if it finds that as to the applicant, licensee, or appointee any one or more of the following applicable grounds exist: Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. (63) Section 626.611(1)(i), Florida Statutes, which provides that the department shall deny an application for, suspend, revoke, or refuse to renew or continue the license or appointment of any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent, and it shall suspend or revoke the eligibility to hold a license or appointment of any such person, if it finds that as to the applicant, licensee, or appointee any one or more of the following applicable grounds exist: Fraudulent or dishonest practices in the conduct of business under the license or appointment. (g) Section 626.621(6), Florida Statutes, which provide that the department may, in its discretion, deny an application for, suspend, revoke, or refuse to renew or continue the license or appointment of any applicant, agent, adjuster, customer representative, service representative, or managing general agent, and it may suspend or revoke the eligibility to hold a license or appointment of any such person, if it finds that as to the applicant, licensee, or appointee any one or more of the following applicable grounds exist under circumstances for which such denial, suspension, revocation, or refusal is not mandatory under s. 626.611: In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. (h) Section 626.9521(1), Florida Statutes, which provides that no person shall engage in this state in any trade practice which is defined in this part or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. COUNT II 13. The above allegations are hereby realleged and fully incorporated herein by reference, 14. On January 22, 2018, the Department mailed a notice to Thomas Lovett at 601 North Lake Sybella Drive, Maitland, Florida 32751, which, according to Department records, was the current address provided by Thomas Lovett to the Department. The notice advised Thomas Lovett of the Department’s ongoing investigation into his insurance agent activities. 15. On January 29, 2019, the Department mailed a second notice to Thomas Lovett at 1040 Windgrove Trail, Maitland, Florida 32751. The second notice contained information as noted above at an alternative address provided to the Department by Thomas Lovett. 16. Onor about May 12, 2020, the Department faxed an address verification letter to the U.S. Postal Inspection Service (U.S.P.1.S.) lovettin a further effort to determine Thomas Lovett’s current address. 17. The U.S.P.L.S. responded by indicating that Thomas Lovett’s new address was 1020 Minnesota Ave #8, Winter Park, FL 32789-4774, 18. That address was never furnished to the Department by Thomas Lovett. IT IS THEREFORE CHARGED that the Respondent has violated the following provision of the Florida Insurance Code, which constitutes sufficient grounds for the suspension or revocation of his licenses in this state: (a) Section 626.551, Florida Statutes, which provides that a licensee must notify the department, in writing, within 30 days after a change of name, residence address, principal business street address, mailing address, contact telephone numbers, including a business telephone number, or e-mail address. A licensee who has moved his or her principal place of residence and principal place of business from this state shall have his or her license and all appointments immediately terminated by the department. DATED and SIGNED this 2. _dayof__)u\\ , 2020. a Gregory Thomas, Director Division of Insurance Agent and Agency Services NOTICE OF RIGHTS ‘You have the right to request a proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and chapter 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 a petition for administrative hearing are required. The request must be filed with Julie Jones, DFS 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. Mailing the response on the twenty-first day will not preserve your right to a hearing. FAILURE TO ENSURE THAT YOUR WRITTEN RESPONSE IS RECEIVED BY THE DEPARTMENT 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 A FINAL 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. Specifically, your response must contain: (a) The name, address, 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, and 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)