; ; FILED was 2 -|4suVl MAR 20 2002 nour EA ESB onen THE TREASURER OF THE STATE OF FLORIDA _ Gooketed on CP DEPARTMENT OF INSURANCE TOM GALLAGHER IN THE MATTER OF: STUART DANIEL GOLDFARB CASE NO: 33613-02-AG ADMINISTRATIVE COMPLAINT a TO: STUART DANIEL GOLDFARB 1826 Brookhaven Drive Sarasota, Florida 34239 v STUART DANIEL GOLDFARB 1345 Main StSteA »® Sarasota, Florida 34236-5600 You, STUART DANIEL GOLDFARB, 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 an insurance agent in this state as a result of which it is alleged that: GENERAL ALLEGATIONS 1. You, STUART DANIEL GOLDFARB, are currently licensed in this state as a life and variable annuity contracts salesman, life, health and annuity contracts salesman, life insurance agent, life and health insurance agent, and health insurance agent. 2. At all times pertinent to the dates and occurrences referred to herein this Administrative Complaint, you, STUART DANIEL GOLDFARB, were licensed in this state as an insurance agent. COUNT I 3. Paragraphs one and two are realleged and incorporated herein by reference. 4. On or about March 24, 1999, you, STUART DANIEL GOLDFARB, visited the home of Donald W. and Helen Devries of Venice, Florida and solicited the Devries’ to invest $100,000.00 of their personal retirement savings, by purchasing 100 shares of stock ina preferred stock issued by Palm Beach Investment Group, Inc. a Florida corporation. 5 You, STUART DANIEL GOLDFARB, represented that the Palm Beach Investment Group, Inc., shares would have a guaranteed | 1% annual return the first year and were insured by both the F ederal Deposit Insurance Corporation (FDIC) and Great American Insurance Company, through a financial guarantee bond. No return has been received to date and the stock shares are not and never were insured by either the FDIC ot Great American Insurance Company. Your representations were false and a material misstatement of fact. Donald W. and Helen Devries would not have purchased the stock shares, but for these representations. You, STUART DANIEL GOLDFARB, were aware of these facts. fact. In fact, Palm Beach Investment Group, Inc., was not and never has been registered to sel] securities in this state nor was it’s preferred stock registered for sale in this State or exempt from such registration, all in violation of sections 517.051, 51 7.061, and 51 7.07, Florida Statutes, a You, STUART DANIEL GOLDFARB, were not registered in this state to sell securities, in violation of Section 517.12, Florida Statutes. You, STUART DANIEL GOLDFARB, were aware of these facts, 7. You, STUART DANIEL GOLDFARB, failed to inform Donald W. and Helen not be purchased by anyone who could not afford the loss of his or her entire investment. Donald W. and Helen Devries would not have purchased the shares if they had been made aware of these facts, 8. The Palm Beach Investment Group shares were not an appropriate investment for individuals of the Devries’ age, financial circumstances and investment experience. These transactions were neither necessary nor in the purchaser’s best interest. You, STUART DANIEL GOLDFARB were aware or should have been aware of these facts. 9. You, STUART DANIEL GOLDFARB, sold the Palm Beach Investment Group shares for the sole purpose of receiving a commission, which you did receive. 10. Palm Beach Investment Group, Inc., ina stipulated settlement agreement and financial loss, IT IS THEREFORE CHARGED that you, STUART DANIEL GOLDFARB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the Suspension or revocation of your license(s) and eligibility for licensure: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.6] 1(7), Florida Statutes] (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.61 1(9), Florida Statutes] (c) 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 626.61 1(13), Florida Statutes] (d) 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 permit. [Section 626.621(2), Florida Statutes] (e) Violation of any lawful order or rule of the Department. [Section 626.621(3), Florida Statutes] (69) In the conduct of business under the license or permit, 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 to be a source of injury or loss to the public. {Section 626.621(6), Florida Statutes] (g) Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material Statement. [Section 626.9541(1)(e)1, Florida Statutes] WHEREF ORE, you, STUART DANIEL GOLDFARB, are hereby notified that the Insurance Commissioner and Treasurer intends to enter an Order revoking or suspending your licenses and eligibility for licensure or to impose such penalties as may be proper under the provisions of Sections 626.61 1, 626.621, 626.681, 626.691, 626.692 and 626.9521 Florida Statutes, under the procedures and rules set forth in this Administrative Complaint. NOTICE OF RIGHTS You have the right to Tequest a proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The Proceeding Tequest must be in writing, signed by you, and must be filed with the Department within twenty-one (2 1) 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. Ifa 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. 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 2O™ gay of MARCH , 2002. oy “ kK he. KENNEY SHIPLEY Deputy Insurance Commissioner STATE OF FLORIDA DEPARTMENT OF IN SURANCE IN THE MATTER OF: STUART DANIEL GOLDFARB Case No: 33613i62-AG / ELECTION OF PROCEEDING T have received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand my options. Iam requesting disposition of this matter as indicated below, (Choose one) lf] Ido not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate. to I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard, I desire to (Choose one): {] Submit a written statement and documentary evidence in lieu ofa hearing: or { ] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [ ] Attend that same hearing by way of a telephone conference call, 3. [ J T do dispute one or more of the Department's factual allegations. | hereby request a hearing pursuant to section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. The address for filing is: General Counsel as acting agency clerk, Florida Department of Insurance, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: Address: Phone No.: 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: STUART DANIEL GOLDFARB, 1826 Brookhaven Drive, Sarasota, FL 34239, STUART DANIEL H GOLDFARB, 1345 Main Street, Suite A, Sarasota, FL 34236-5600 on this 20" day of MARCH 5099. A | dd Ba JAMES A. BOSSART. ESQUIRE ivision of Legal Services ‘ 612 Larson Building Tallahassee, Florida 32399-0333 » (850) 413-4124

Docket for Case No: 02-001434PL