a DA - L388 h-L FILED MAR 6 2002 THE TREASURER OF THE STATE OF FLORIDA ‘Treasurer and tneurance Com DEPARTMENT OF INSURANCE Docketed Comrigetoner ToM GALLAGHER IN THE MATTER OF: | Division of Administrative Hearings RAYMOND DEAN CRAIG ADMINISTRATIVE COMPLAINT + FILED Date Vis kA VE TO: RAYMOND DEAN CRAIG 2057 Rockledge Drive Rockledge, FL 32955-5303 You, RAYMOND DEAN CRAIG, 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 GENERAL AA. 1. Pursuant to Chapter occurrences referred to herein, you, 626, Florida Statutes, at all times pertinent to the dates and RAYMOND DEAN CRAIG, are currently licensed in this state as a Life & Variable Annuity (2-14), Life (2-16), Life & Health (2-18), Health (2-40) insurance agent and are currently so licensed, license LD. #D029535. 2. At all times pertinen RAYMOND DEAN CRAIG, were t to the dates and occurrences referred to herein, you, 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 I 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. On or about March 2000, you, RAYMOND DEAN CRAIG, as a licensed insurance agent consulted with Violet and Nunziato Pepo, for the purpose of convincing them to invest proceeds from their stock investments for the purchase of an annuity policy. You made several subsequent presentations to this elderly couple who each advised you of the necessity to gain income from any annuity in order to supplement their social security benefits. You, RAYMOND DEAN CRAIG, advised them that if they purchased an annuity policy in American Equity Investment Life Insurance Company, such would yield a minimum of 3.5% annual interest or considerably more. 6. On or about May 24, 2000, and upon your representations, as aforesaid, Violet and Nunziato Pepo provided to you their check in the sum of thirty five thousand dollars ($35,000.00) as and for the premium cost for an annuity policy to be issued by American Equity Investment Life Insurance Company, which said policy was thereafter issued on June 5, 2000. 7. On or about June 5, 2001, the said American Equity Investment Life Insurance Company provided the said Violet and Nunziato Pepo with an annual statement reflecting that such annuity had not earned any interest during the preceding year, all as had otherwise been represented by you and causing them purchase of same. 8. Subsequent to this occurrence and only after complaint made to and intervention of the Department did American Equity Investment Life Insurance Company return to Violet and Nunziato Pepo the principle funds which you had caused them to invest in an annuity, plus 3% interest thereon. IT IS THEREFORE CHARGED that you, RAYMOND DEAN CRAIG, have violated and are 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 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) 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 a loss to the public interest or detrimental to the public interest. (Section 626.621(6), Florida Statutes); (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. (Section 626.611(9), Florida Statutes); (d) Violations 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 626.612(2), Florida Statutes). WHEREFORE, you, RAYMOND DEAN CRAIG, are 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 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. 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 Rule 28-107, Florida 3 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 General Counsel as acting Agency Clerk, at the Florida Department of Insurance, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. 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. 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 REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, 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 and address of the party making the request, for purpose of service; (b) A statement that the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received form the agency. 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. ce 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 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, 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 of Insurance. DATED this 6th_day of MARCH , 2002. / g) ~ Ke Sag ery KENNEY SHIPLEY Deputy Insurance Commissioner 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: RAYMOND DEAN CRAIG, 2057 Rockledge Drive, Rockledge, FL 32955-5303; by Certified Mail this _6thday of MARCH , 2002. EZ Dean Andrews Florida Bar Number 0001959 Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242

Docket for Case No: 02-001358PL