THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE Tom GALLAGHER > on De H4S47 DL IN THE MATTER OF: CASE oO rs 1-01-AG CLIFF SCOTT GOLOB / ADMINISTRATIVE COMPLAINT TO: CLIFF SCOTT GOLOB 14846 Horseshoe Terrace Wellington, Florida 33414 CLIFF SCOTT GOLOB 5000 West Boynton Beach Boulevard Boynton Beach, Florida 33434 You, CLIFF SCOTT GOLOB, are hereby notified that, pursuant to provisions of 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, at all times pertinent to the dates and occurrences referred to herein, you, CLIEF SCOTT GOLOB, were licensed in this state as a life, health and variable annuity agent, License No. A099579. 2. Atall times pertinent to the dates and occurrences referred to herein, you, CLIFF SCOTT GOLOB, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. COUNT 1 4. The above general allegations are realleged and incorporated herein fully by reference. 5. On or about June 2000, you, CLIFF SCOTT GOLOB, conferred with Dorothy Bray, as a licensed insurance agent, and as a representative of Ryan, Beck and Company, concerning investment advice involving an account then maintained by the said Dorothy Bray with an institution identified as Federated. 6. That during such conference with the said Dorothy Bray, you, CLIFF SCOTT GOLOB, asked to review her variable annuity contract then in existence with Keyport Insurance Company. 7. That the said Dorothy Bray was then completely satisfied with her variable annuity contract with Keyport Insurance Company and she was consulting with you only for the purpose of analyzing and gaining advice concerning per Federated investment. 8. That notwithstanding the purpose of Dorothy Bray’s conference with you as aforesaid, you, CLIFF SCOTT GOLOB, nonetheless proceeded to advise her that her variable annuity contract was Keyport Insurance Company was not of sufficient value to her and she would do better by investing her money with ManuLife Insurance Company which would afford her better professional management and products than that afforded by Keyport Insurance Company. 9. That you, CLIFF SCOTT GOLOB, then and there convinced the said Dorothy Bray to surrender her investment with Keyport Insurance Company and to invest said proceeds therefrom in a new annuity contract with ManuLife Insurance Company. That you, CLIFF SCOTT GOLOB, did not explain to the said Dorothy Bray the amount she would lose in surrender charges by following your advice except to state that “it was a drop in the bucket” compared to what she would earn by changing her investment to ManuLife Insurance Company. 10. That commencing on or about July 2000, and thereafter, you, CLIFF SCOTT GOLOB, caused the said Dorothy Bray to surrender her annuity contract with Keyport Insurance Company and to invest the proceeds therefrom in a new annuity contract with ManuLife Insurance Company. On or about October 4, 2000, Keyport Insurance Company issued its check to Manufacturer’s Life Insurance Company in the sum of $468,776.12 representing the proceeds from surrender of the annuity contract then held by Dorothy Bray. As a result thereof the said . Dorothy Bray was assessed surrender charges of $20,764.39. 11. On or about November 6, 2000, and upon further consideration of the actions taken upon your advice, the said Dorothy Bray contacted ManuLife Insurance Company to advise that she did not desire to obtain a new annuity policy whereupon she was advised that to cancel same would attend yet further surrender charges assessed to her. 12. That your representations to the said Dorothy Bray to induce her to surrender her annuity investment contract with Keyport Insurance Company and to invest the proceeds there from with ManuLife Insurance Company were motivated solely to effect an agent’s commission for yourself and Ryan, Beck and Company, and not in any way predicated on a professional analysis which would afford the best long and short term annuity investment interest for the said Dorothy Bray. 13. ITIJS THEREFORE CHARGED, that you, CLIFF SCOTT GOLOB, have i violated and are held accountable under the following provisions of the Florida Insurance Code coe ee and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; . (b) | Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (c) 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]; (d) Violation of any provision of this code or 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]; (e) Knowingly making any misleading representations with respect to any insurance policies or insurers for the purpose of inducing any person to surrender or convert any insurance policy or to take out a policy of insurance in another insurer. [Section 626.9541(1)(), Florida Statutes]; ) Knowingly making a false and fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. [Section 626.9541(1)(K)1, Florida Statutes]. as weer crm OT ore WHEREFORE, you, CLIFF SCOTT GOLOB, are hereby notified the Treasurer and Insurance Commissioner intends to enter an order suspending or revoking your license(s) 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 reference 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 shal! 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 Chapter 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 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. If you dispute material facts which are the basis for this agency’s action you may request a 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 Chapter 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 the 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. vee meres crprerrg eee ae sorgreecinmere er 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. day of OCTOBER _, 2001. - L Soph KENNEY fap Deputy Insurance Commissioner I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTIONS OF RIGHTS have been furnished to: CLIFF SCOTT GOLOB, 5000 West Boynton Beach Boulevard, Boynton Beach, FL 33437, and CLIFF SCOTT GOLOB, 14846 Horseshoe Terrace, Wellington, FL 33414-4032, by certified mail this _ 5TH day of OCTOBER , 2001. Florida Bar No. 0001959 Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 — TER rg re ener

Docket for Case No: 01-004547PL