FILE OCT 1% 2001 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE INSURANS Be TOM GALLAGHER Ol-4S37 / IN THE MATTER OF: | 3 P Cc, BRIAN LEE SHECHTMAN CASE NO.: 43251-01-AG —_ ADMINISTRATIVE COMPLAINT TO: BRIAN LEE SHECHTMAN 996 Sanibel Drive Hollywood, FL 33019-5036 OS: Nd 92 AON LO You, BRIAN LEE SHECHTMAN, are hereby notified that, pursuant to Chapter 626, Florida Statutes, 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 626, Florida Statutes, you, BRIAN LEE SHECHTMAN, are currently licensed in this state as a life and health insurance agent, License No. A240216 2. Atall times pertinent to the dates and occurrences referred to herein, you, BRIAN LEE SHECHTMAN, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida:Statutes, the Florida Department of Insurance has jurisdiction over insurance licenses and appointments. 4, Bank of America (formerly Nations Bank) account number 003060728017 was opened by you, BRIAN LEE SHECHTMAN, on October 14, 1998 as a business checking account under the account title, Brian Shechtman d.b.a. Elder Care Insurance Services. 5. You, BRIAN LEE SHECHTMAN, were the only authorized signatory on the account. 6. During the period April 1, 1999 through December 1, 1999, you, BRIAN LEE SHECHTMAN, utilized your above referenced business checking account to willfully divert fiduciary funds, belonging to elderly insureds, and willfully misappropriated such funds for your own pecuniary gain. 7 Said fiduciary funds were remitted by the insurer to you, BRIAN LEE SHECHTMAN, for delivery to the elderly insureds. 8. At all times pertinent to the dates and occurrences referred to herein, you, BRIAN LEE SHECHTMAN, engaged in’a scheme to defraud the elderly in which you diverted or misappropriated funds-received by you in a fiduciary capacity and belonging to the elderly individuals-through the usage of the registered fictitious name, Elder Care Insurance Services, all as will more particularly hereinafter be set forth. COUNT I 9. The above general allegations are hereby realleged and fully incorporated by reference. 10. On or about April 6, 1999, Pioneer Life Insurance Company issued check #92747, payable to Velma Caprarotta, in the amount of $309.60, and provided same to you for delivery to her. nN 11. On or about May 10, 1999, check #92747, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 12. Velma Caprarotta, an elderly individual, never received check #92747 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $309.60 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, solicitor, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. An agent shall keep the funds belonging to each insurer for which he or she is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department to properly audit such funds. The licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Any agent, customer representative, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified ue below...(b) If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in ss. 775.082, ss. 775.083, or ss. 775.084. (Section 626.561(3)(b), Florida Statutes]; (c) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; (d) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes}; (f) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; (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 626.611(13), Florida Statutes]; (h) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; a (i) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; . Gj) 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 X of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]; (k) Engaging in an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]. COUNT I 12. The above general allegations are hereby realleged and fully incorporated by reference. 13. Onor about September 27, 1999, Pioneer Life Insurance Company, issued check #20081, payable to Mary E. Katz, in the amount of $41.91, and provided same to you for delivery to her. 14, On or about October 14, 1999, check #20081, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. | 15. Mary E. Katz, an elderly individual, never received check #20081 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $41.91 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.61 1(9). 626.611(10), 626.61 1(13), 626.62 1(2), 626.621(3), 626.621(6), and 626.9521(1). aida COUNT III 16. The above general allegations are hereby realleged and fully incorporated by reference. 17. On or about April 6, 1999, Pioneer Life Insurance Company issued check #92748, payable to Francis Caprarotta, in the amount of $343.80, and provided same to you for delivery to her. 18. On or about May 10, 1999, check #92748, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 19. Francis Caprarotta, an elderly individual, never received check #92748 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $343.80 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611 (4), 626.611(7), 626.61 1(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). . COUNT IV 20. The above general allegations are hereby realleged and fully incorporated by reference. 21. On or about June 31, 1999, Pioneer Life Insurance Company issued check #154611, payable to William H. Heller, in the amount of $231.05, and provided same to you for delivery to him. 22. On or about September 20, 1999, check #154611, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 23. William H. Heller, an elderly individual, never received check #154611 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $231.05 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621 (2), 626.621 (3), 626.621(6), and 626.9521(1). COUNT V 24. The above general allegations are hereby realleged and fully incorporated by reference. 25. Onor about August 2, 1999, Pioneer Life Insurance Company issued check #149524 and check #149525, payable to William G. McRoy in the amount of $142.43 and $182.60 respectively, and provided same to you for delivery to him. 26. On or about August 23, 1999, check #149524 and check #149525, both endorsed as “Elder Care Insurance Services”, were deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 27. — William G. McRoy, an elderly individual, never received check #149524 or check #149525 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use. have or deposit the checks and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). COUNT VI 28. The above general allegations are hereby realleged and fully incorporated by reference. 29. Onor about October 29, 1999, Pioneer Life Insurance Company issued check #180744, payable to Helen H. White, in the amount of $661.13, and provided same to you for delivery to her. 30. On or about November 12. 1999, check #180744, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 31. Helen H. White, an elderly individual, never received check #1 80744 from Pioneer Life or Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $661.13 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). COUNT VII 32. The above general allegations are hereby realleged and fully incorporated by reference. 33. On or about July 13, 1999, Pioneer Life Insurance Company issued check #136320, payable to Marion J. Merriam, in the amount of $297.30, and provided same to you for delivery to her. 34. On or about July 30, 1999, check #136320, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 35. Marion J. Merriam, an elderly individual, never received check #136320 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $297.30 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.61 1(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). COUNT VII 36. The above general allegations are hereby realleged and fully incorporated by reference. 37. On or about October 29, 1999, Pioneer Life Insurance Company issued check #180743, payable to Charles R. White, in the amount of $661.13, and provided same to you for delivery to him. 38. On or about November 12. 1999, check #92747, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 39. Charles R. White, an elderly individual, never received check #180743 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $661.13 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED. that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute seek alibi li grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621 (3), 626.621(6), and 626.9521(1). . COUNT IX 40. The above general allegations are hereby realleged and fully incorporated by reference. . 41. On or about September 7, 1999, Pioneer Life Insurance Company issued check #162581, payable to Raymond L. Fredericks, in the amount of $364.28, and provided same to you for delivery to her. . 42. On or about September 20. 1999, check #162581, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 43. | Raymond L. Fredericks, an elderly individual, never received check #162581 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $364.28 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED. that you, BRIAN LEE SHECHTMAN, have violated or.are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6). and 626.9521(1). COUNT X 44. The above general allegations are hereby realleged and fully incorporated by reference. 45. On or about May 18, 1999, Pioneer Life Insurance Company issued check #112747, payable to Paul E. Nearpass, in the amount of $150.58, and provided same to you for delivery to him. . +6. On or about May 28, 1999, check #112747, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 47. Paul E. Nearpass, an elderly individual, never received check #112747 from Pioneer Life or the proceeds therefrom from you. BRIAN LEE SHECHTMAN, or anyone else for $150.58 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4). 626.61 1), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). COUNT XI +8. The above general allegations are hereby realleged and fully incorporated by reference. imi ia 49. On or about June 21, 1999, Pioneer Life Insurance Company issued check #126240, payable to Fred F. Collins, in the amount of $741.97, and provided same to you for delivery to her. 50. On or about July 22, 1999, check #126240, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 51. Fred F. Collins, an elderly individual, never received check #126240 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else in the amount of $741.97 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED. that you, BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.61 1(7), 626.61 1(9), 626.611(10), . 626.611(13), 626.621(2), 626.621(3), 626.621(6), and 626.9521(1). COUNT XII wn 2. The above general allegations are hereby realleged and fully incorporated by reference. 53. On or about June 21, 1999, Pioneer Life Insurance Company issued check #126239, payable to Jane Collins, in the amount of $741.97, and provided same to you for delivery to her. 54, On or about July 22, 1999, check #126239, endorsed as “Elder Care Insurance Services”, was deposited into Bank of America account number 003060728017, without the payee’s endorsement or consent. 55. Jane Collins, an elderly individual. never received check #126239 from Pioneer Life or the proceeds therefrom from you, BRIAN LEE SHECHTMAN, or anyone else for $741.97 and never gave permission to you, BRIAN LEE SHECHTMAN, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED, that you. BRIAN LEE SHECHTMAN, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(7), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(3), 626.621(6). and 626.9521(1). WHEREFORE, you, BRIAN LEE SHECHTMAN, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and eligibility for licensure as an insurance agent or to impose such lesser penalties as may be provided under the provisions of Chapter 626, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. 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 Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-106, Florida Administrative Code (F.A.C.), you have the right to request a proceeding to contest this action by the Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election of a proceeding must be 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 is utilized, the Petition or Election should be delivered to 612 Larson 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 relied. While a hearing is normally not required in the absence of a dispute in fact, if you fee] that a hearing is necessary one will be conducted in Tallahassee, 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 request “4 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. F.A.C. and contain: (a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; (b) | Anexplanation of what relief you are seeking and believe you are entitled to; (c) Any other information which you contend is material. 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. If you request a hearing, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and 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 in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative proceeding. Any request for 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. DATED and SIGNED this 17TH day of _OCTOBER 2001. KENNEY Soop heng Deputy Insurance Commissioner wie. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS have been furnished by Certified Mail to: BRIAN LEE SHECHTMAN, 996 Sanibel Drive, Hollywood, FL 33019-5036 on this 177TH day of OCTOBER , 2001. Wyatt Lok. ANTHONY B. MILLER, UI Division of Legal Services : ; 612 Larson Building i Tallahassee, Florida 32399-0333 (850) 413-4220 {2 Aricle Number "DS COMPLETE THIS SECTION ON DELIVERY 3 A. Received by (Please Print Clearly) B. Date of Delivery y 4 DRA Sel 3 4 agent q 1 | Oo Addressee i D. Is delivery address different from item 1? YES, enter delivery address betow: Tele 4575 1250 1244 21a 3. Service Type CERTIFIED MAIL 4. Restricted Delivery? (Extra Fee) Rk Yes 1. Article Addressed to: BRIAN LEE SHECHTMAN 996 SANIBEL DRIVE HOLLYWOOD, FL 33019-5036 4 RE: SHECHTMAN/43251/10-17-O1/AG ANTHONY MILLER : PS Form 3811, June 2000 Domestic Return Receipt SENDER:

Docket for Case No: 01-004537PL