DR-AASI I. FILED ~ APR 30 2002 THE TREASURER OF THE STATE OF FLORIDA Qa DEPARTMENT OF INSURANCE Treagurer "SoM Tom GALLAGHER ineurance Comr oF a Docketed by:_ ei 7, ° ad * 4. Te, IN THE MATTER OF: »> PETER JOHN WALDON CASE NO.: 60204-02-AG ADMINISTRATIVE COMPLAINT TO: PETER JOHN WALDON 616 Patricia Lane Jacksonville Beach, Florida 32250-4750 PETER JOHN WALDON 1301 Penman Road, Suite D Jacksonville Beach, Florida 32250-3685 You, PETER JOHN WALDON, 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, at all times pertinent to the dates and occurrences referred to herein, you, PETER JOHN WALDON, were licensed in this state as a Life and Variable Annuity (2-14), Life, Health and Variable Annuity (2-15), Life (2-16), Life and Health (2-18) insurance agent and are currently so licensed, License ID No. A275672. 2. At all times pertinent to the dates and occurrences referred to herein, you, PETER JOHN WALDON, 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. 4. At all times material herein you used your position as an insurance agent to misrepresent and deceive insureds into replacing annuity policies to their detriment, to gain control of an insured’s trust and assets, and to submit life insurance applications containing false information regarding proposed insureds. ° COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. On or about February 2000, you, PETER JOHN WALDON, as a licensed insurance agent, consulted with Thomas Pickering for the purpose of convincing him to name you as a substitute trustee for his revocable living trust estate and to gain from him a power of attorney granting to you control of his assets. Believing you to be associated with an entity existing to help senior citizens with their financial decisions, being the Senior Alliance Group and trusting you in that regard, the said Thomas Pickering agreed to and did name you as a substitute trustee and granted to you his power of attorney. Subsequent to that occurrence, Thomas Pickering more closely reviewed and considered the powers he had granted to you and decided to cancel same. He notified you of this decision requesting that you provide him the forms necessary to revoke your trusteeship and power of attorney. You failed to honor that request. IT IS THEREFORE CHARGED that you, PETER JOHN WALDON, have violated and/or 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: (7), Florid mcorporated herein acensed ynsurance to gurrendet his Had he done so, including liquidations of other investments which you had devised, such would have resulted in a total loss to him of approximately Sixty-Six Thousand Dollars ($66,000.00) and provided to you commission income of approximately Twenty Thousand Dollars ($20,000.00). IT IS THEREFORE CHARGED that you, PETER JOHN WALDON, have violated and/or 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) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) 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]; (e) 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 IX 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], (f) Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(a)(1), Florida Statutes]; (g) Misrepresentation for the purpose of inducing, or tending to induce, the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy. [Section 626.9541(a)(6), Florida Statutes]; (h) Knowingly making 4 false or 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), Florida Statutes]; (i) Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another insurer. [Section 626.9541(1)(1), Florida Statutes]. COUNT III 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. In or about 1997, you, PETER JOHN WALDON, as a licensed insurance agent, consulted with Jamie Repper for purpose of selling her a term life insurance policy to be issued by Massachusetts Mutual Life Insurance Company in the face amount of One Hundred Thousand Dollars ($100,000.00). You propounded to her all questions regarding her medical history as set forth in the application and she answered same to inform that she suffered from allergies, asthma, chronic fatigue syndrome, and had been disabled since 1994. She expressed to you her doubt and concem as being able to obtain life insurance coverage because of her medical history. Notwithstanding her advices, you, PETER JOHN WALDON, falsely completed the application in her behalf without revealing her true medical history, all for the purpose of gaining issuance of the policy and a commission for yourself. Thereafter, policy number 6,232,807 was issued by CM Life Insurance Company based upon the fraudulent and false application information prepared and submitted by you. IT IS THEREFORE CHARGED that you, PETER JOHN WALDON, have violated and/or 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) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; (b} Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) 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]; (e) Knowingly making a false or 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), Florida Statutes]. WHEREFORE, you, PETER JOHN WALDON, 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 626.61 1, 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 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 Tesponse 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 7 (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 hasten peceived b iy the Department of Insurance. DATED this 30th day of 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: PETER JOHN WALDON, 616 Patricia Lane, Jacksonville Beach, Florida 32250-4750 and PETER JOHN WALDON, 1301 Penman Road, Suite D, Jacksonville Beach, Florida 32250-3685, by Certified Mail this 30th day of APRIL , 2002. Dean Andrews Florida Bar Number 0001959 Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242

Docket for Case No: 02-002289PL