THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE TOM GALLAGHER IN THE MATTER OF: DAVEY B. LOCKE . / —_->—— ! ADMINISTRATIVE COMPLAINT TO: Davey B. Locke 935 24th Street West Palm Beach, Fl 33407 Davey B. Locke c/o W.A.R. Locke Bail Bonds 2300 Palm Beach Lakes Bivd. Suite 215A West Palm Beach, Fl] 33409 You, DAVEY B. LOCKE, are hereby notified that the Insurance Commissioner 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 alleged: GENERAL ALLEGATIONS 1. Pursuant to © Chapter 648, Florida Statutes, you, DAVEY B. LOCKE, are currently licensed | in this state as a limited surety agent (2-34). Your license identification number i is A316 8 03. a os a at all times relevant, to. the dates and occurrences alleged herein, you, DAVEY B. LOCKE, were licensed in this state as a limited surety agent. ee 3, Pursuant ‘to Chapter 648, Florida Statutes, the Florida Department of ~ Insurance (hereinafter referred to vas th the “Department” has jurisdiction over your license and ~ appointments. 4. At all times relevant hereto, you, DAVEY B. LOCKE, were an officer of W.A.R. Locke Bail Bonds Inc. located at 2300 Palm Beach Lakes Blvd. (a/k/a Executive Drive), Suite 215A, West Palm Beach, Florida 33401, (hereinafter referred to as “W.A.R. Locke”). ~ 5. On or about July 9, 1999, WAR. Locke became a Florida Corporation . engaged in the business of bail bonding. ~~ COUNTI ~ 6. The above general allegations are hereby realleged and fully incorporated herein by reference. a 7. Onor about December 18, 1999, you, DAVEY B. LOCKE, posted a bond in the amount of four thousand five hundred dollars ($4,500) for John Horn of 2765 10th Ave, Lake Worth, Florida 33461. As collateral for said bond, James Horn, John Horn’s father, gave you two thousand dollars 2, 000). On or about May 26, 2000, John Hom’s case was s adjudicated and the ted ice DAVEY B. LOCKE, * : remgpyyert Statutes) 9. . On or about August 25, 2000, Mr. Horn requested that the Department assist him in obtaining a refund of the collateral from you, DAVEY B. LOCKE. 10. On or about October 25, 2000, you, DAVEY B. LOCKE told an investigator from the Department, William D. May, that you had not refunded the collateral to _Mr. Horn. Latter that day Eunice Locke, a director of W.A.R. Locke, met with Mr. Horn and gave him a check for two thousand ($2,000) dollars asa refund of the collateral on said bond. | 11. You, DAVEY B. LOCKE, as an officer of W.A. R. Locke and a licensed limited surety agent are fe responsible for the return of collateral upon the termination of liability ~on the on the bond. You, DAVEY B. LOCKE, failed to timely refund two > thousand dollars: ($2,000) collateral to James Horn. IT IS THEREFORE CHARGED that you, DAVEY B. LOCKE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Florida Department of Insurance which constitute grounds for the Suspension or revocation of your licenses asa limited surety agent in this state: (a) Collateral security accepted by a bail bond agent shall be returned upon final termination of liability on the bond. [Section 648. 42(1), F lorida Statutes} . ; (0) ~ When the obligation of: surety is released on the bond has been released in writing by the court the collateral il shall be retuned to > the Fightful owner. [Section 648. 442(4), Florida © Demonstated lack o of fitness or trustworthiness to _engage in the bail bond business. Section 648. 8.452). F lorida a Statutes) TARR Sr ne ee pert oop pe een Srp (dq) Demonstrated lack of reasonably adequate knowledge and technical competence . to engage in the transactions authorized by the license or appointment. [Section 648.45(2)(f), Florida Statutes] | (e) Fraudulent of dishonest practices in the conduct of business under the license or appointment. {Section 648.45(2)(g), Florida Statutes] (f) Misappropriation, conversion, or unlawful withholding of moneys belonging toa surety, a principal, or others and received in the conduct of business under the license or appointment. [Section 648. 45(2)(h), Florida Stanutes] (g) . 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 648.45(2)(j), F lorida Statutes] (h) Failure to return collateral. [Section 648.45(2)(n), F lorida Statutes] @ Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648. 45(3\0), Florida Statutes _@ Being found to be a source of injury or loss to the public or detrimental to the public interest of being found by the department to be no longer carrying on the bail bond _ business in good faith. {Section 648. 4500 Florida Sut) COUNT COUNT, . 12 The above general allegations a are © hereby realleged and fully incorpo herein by reference. 1B. ‘On December 19, 2000, the Department conducted an_ inspection ; W.AR. Locke’ s offices located at 2300 Palm Beach Lakes Blvd. » Suite oA, West Palm Beach, Florida, 33408. Eunice Locke, a director of W. A. R Locke, told the investigator that the agency began making entries in a bond register about two weeks prior to the inspection. Priot to that date, a bond register had not been kept. . 14. You, DAVEY B. LOCKE, as an officer of W.A.R. Locke and a licensed surety agent are responsible for maintaining a bond register. You, DAVEY B. LOCKE, failed to i maintain a bond register for W.ALR. Locke. . IT IS THEREFORE, CHARGED that you, DAVEY B. LOCKE, have violated or are accountable under the flowing provisions of the Florida Insurance Code. and Rules of the ; Department of Insurance which. constitute ‘grounds for the suspension or revocation 1 of F your ~ license as a limited surety agent @ ‘Sections 648, 450%), 648. $4500, 648, 8.45(2)6) and 648. OO, Florida . Statutes, which are more fully set ‘forth in 1 Count I above and fully incorporated herein by reference. FER ROR ERE (b) Every bond agent shall maintain in his or her office such records of bail bonds executed of countersigned by him or her. [Section 648 648. 36, F lotida Statutes] (c) Each bail bond agent, as a minimum requirement for permanent office records shall maintain a daily bond register which shall be the book of original and permanent record of all bonds or undertakings executed by the licensee which shall state the number of the Power of Attorney form, date bond was executed, name of principal, amount of bond, premium charged, f premium reported to surety company, security or collateral received, indemnity agreements, F disposition of bond, and date of disposition. {Rule 4-211.055, Florida Administrative Code] | COUNT III 15. The above general allegations are hereby realleged and fully incorporated | herein by reference. ce RR TnI eco ag 16. On or about _ December 19, 2000, an investigator from the Department, William D, May conducted an inspection of W.AR. Locke’ s office which is located at 2300 Palm Beach Lakes Blvd., Suite 215A, West Palm Beach, Florida, 33409. A review of the corporate accounts indicates that WAR. Locke maintains three separate bank accounts. Account no. 2000002758688 is designated as the “operating account.” Account no. 2000002758675 is designated as the “reserve account” and account no. 2000002758691 is designated as the “petty cash” account. A review of the account registries indicates that a separate account is not being maintained for funds received as collateral security. Funds received as collateral security are being commingled with other funds. . 17. You, DAVEY B. LOCKE, as an officer of W.A.R. Locke and a licensed surety agent are responsible for maintaining funds received as collateral security separate from other agency funds. You, DAVEY B. LOCKE, failed to maintain a separate account for _ collateral security funds and were © commingling funds received as s collateral security with other funds of the corporation. — IT IS THEREFORE CHARGED that you, DAVEY B. LOCKE, have violated or are accountable under the following 5 Provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your license as a limited surety agent: 845 2)€), 648 4500, 648. 452)0), and 48 8.4503), Florida 2 Statutes which 2 are more © fully set for in Count I above and fly incorporated herein by. (b) — Such collateral security shall be received and held in the insurer’s name by the bail bond agent in a fiduciary capacity and shall be kept separate and apart from other funds or assets of the bail bond agent. [Section 648.442(3), Florida Statutes] COUNTIV — 18. The above general allegations are hereby realleged and fully incorporated herein by reference. 19. On or about December 19, 2000, you, DAVEY B. LOCKE, told William D, May, an investigator for the Department that you are a full time employee of the Palm Beach County School Board and that you do not begin working as a limited surety agent until after 3:30 p.m. 20. You, DAVEY B. LOCKE, as an officer of W.A.R. Locke and a licensed Ee “surety agent are responsible for maintaining a place a business that is open to the public during reasonable business hours, which is. under the full time charge of a licensed and appointed limited surety agent. You, DAVEY B, LOCKE, filed to ) maintain WA R. Locke open to the oe “public during reasonable usiness hours under the full time © charge of a licensed and appointed limited surety agent accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your. license as a limited surety agent: : | (a) Sections 648.45(2)(e), 648.45(2)(f), 648.45(2)(j), and 648.45(3)(c), Florida! Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. at you, DAVEY B. LOCKE, have violated or are ee eer me re sg pire ree - (b) An agent will maintain a place of business accessible to the public which is open during reasonable business hours. [Section 648. 34Q2N(C), Florida Statutes] (c) A place of business may not ‘be established, ‘opened or maintained unless it is under the active full-time charge of a licensed and appointed bail bond agent. [Section 648.44(4), Florida Statutes] (4) The term "reasonable business hours" means at least eight hours daily between the hours of 8:00 a.m. 1. and 6:00 P.m., Monday through Friday, except for legal holidays. [Rule 4- 221.051(3), Florida Administrative Code} WHEREFORE, you, DAVEY B. LOCKE, are e hereby + notified that the Treasurer and Insurance Commissioner 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 648. 46, 648. 49, 648. 50, 648.51, 648. 52, 648. 53, and 648.58, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. Youa are further notified that any order entered i in this case e revoking or r 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. of a a proceeding must, bei in writing and must be filed with the General Counsel acting as the Agency Clerk, Department of Insurance, If served by U.S. Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahassee, Florida 32399-0333. If Express Mail or hand delivery i is utilized, the Petition or Election should be delivered to 612 Larson n Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. The Petition or Election must be received by, and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact the provisions of Section 120.57(2), Florida Statutes would apply. In this regard you may submit oral or written evidence in opposition to the action taken by this agency or a written statement challenging the grounds upon which the agency has telied. While a hesring i is normally not t required i in the absence of a dispute of fact, if you feel that a hearing i is necessary one will be conducted in Tallahassee, thes oe we Florida or ‘by telephonic conference call upon your request. If you dispute material facts which are the basis for this agency's action, you may Tequest a formal adversarial proceeding pursuant to Sections 120.569 and 120. 57(1), Florida Statutes. ‘If you request this type of proceeding, the request must comply with all of the requirements of Rule 28- 106, PAC. “and co a) A statement identiying with b parila the allegations of of the Deparment which 3 you dispute and the nature of the dispute; ‘by An explanation of what relief you are seeking a and believe y You: are e entitled t to; c) ‘Any other information Which you contend j is s material, ~ an a NaN eR re EI These proceedings are held before a State administrative law judge of the Division of Admini- strative Hearings. Unless the majority of witnesses are located elsewhere the Department will request that the hearing be conducted in Tallahassee. If a hearing is requested, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and to cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf. You are hereby notified that mediation under Section 120.573, Florida Statutes, is not available. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior correspondence i in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative Proceeding. Any Tequest for administrative proceeding received prior to the date of this notice shal be deemed abandoned unless timely Ttenewed in compliance with the guidelines as set out above. DATED and SIGNED this 6A dayof Nice. 2001. "KENNEY SHIPLEY Deputy Insurance Commissioner : 10 Sees tener eens ieee aah A TT he lad etree ae CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: Davey B. Locke, 935 24th Street, West Palm Beach, Fl 33407 and Davey B. Locke, c/o W.A.R. Locke Bail Bonds, 2300 Palm Beach Lakes Blvd., Suite 215A, West Palm Beach, Fl 33409, by Certified Mail this GT, day of Diene 2001. Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4188 Fla. Bar No. 318530 oes Eat aiahdoaeaieeies: I ! i

Docket for Case No: 01-002666PL