(4 Uo FILED DEPARTMENT OF FINANCIAL SERVICES JAN 20 204 -- Docketed by 210m TOM GALLAGHER CHIEF FINANCIAL OFFICER oO IN THE MATTER OF: CASE NO.: WALTER LEE MYERS ADMINISTRATIVE COMPLAINT TO: WALTER LEE MYERS 3921 Cochise Terrace Sarasota, FL 34237 WALTER LEE MYERS 2803 Fruitville Road, Ste. 203 Sarasota, FL 34233 You, WALTER LEE MYERS, license I.D. #A188400, are hereby notified that the Chief Financial Officer 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, WALTER LEE MYERS, are currently licensed in this state as a Life and Health Insurance Agent (2-18). 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your license and appointments. 3. At all times pertinent to the dates and occurrences referred to herein, you, WALTER LEE MYERS, were licensed in this state as a Life & Health Insurance Agent. (2-18). 4. At all times pertinent to the dates and occurrences referred to in this administrative complaint all funds received by you, WALTER LEE MYERS, puruuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were to be paid over to persons entitled thereto in the regular course of business. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. At all times pertinent to the dates and occurrences referred to herein, three Bankers Life and Casualty annuities, Maybelle Thompson of Punta Gorda, Florida, owner and annuitant, were in full force and affect. 7. On or about November 26, 2002, you, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully submit a fraudulent withdrawal request form to Bankers Life and Casualty with the signature of Maybelle Thompson falsely affixed thereto, requesting a cash withdrawal of $2,700 from one of her annuities. 8. On or about November 27, 2002, Bankers Life and Casualty did send, at your direction, a check to you in the amount of $2,700 made payable to Maybelle Thompson. You, oe WALTER LEE MYERS, received the check. You, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully and falsely affix her signature endorsement thereto and deposit the check into your personal bank account. 9. You, WALTER LEE MYERS, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to the insurer and Maybelle Thompson. 10. Bankers Life and Casualty has reversed the transaction and credited Maybelle Thompson’s policy for $2,700. Demand has been made by the insurer for return of the funds, but you, WALTER LEE MYERS, refused to remit the funds. As a result, Bankers Life and Casualty has suffered a financial loss. IT IS THEREFORE CHARGED that you, WALTER LEE MYERS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes 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) 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) 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]; woe (e) 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} (f) 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] (g) Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]. (h) 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 to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes] (i) 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. COUNT II 11. The above general allegations are hereby realleged and fully incorporated herein by reference. 12. _ Atall times pertinent to the dates and occurrences referred to herein, three Bankers Life and Casualty annuities, Mabelle Thompson of Punta Gorda, Florida, owner and annuitant, were in full force and affect. 13. On or about December 27, 2002, you, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully submit a fraudulent withdrawal request form to Bankers Life and Casualty with the signature of Maybelle Thompson falsely affixed thereto, requesting the cash surrender of one of her annuities. 14, On or about December 31, 2002, Bankers Life and Casualty did send, at your direction, a check to you in the amount of $20,127.20 made payable to Maybelle Thompson. You, WALTER LEE MYERS, received the check. You, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully and falsely affix her signature endorsement thereto and deposit the check into your personal bank account. 15. You, WALTER LEE MYERS, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to the insurer and Maybelle Thompson. 16. Bankers Life and Casualty has reversed the transaction, reinstated the policy and credited Maybelle Thompson’s policy for its full value. Demand has been made by the insurer for return of the funds, but you, WALTER LEE MYERS, refused to remit the funds. As a result, Bankers Life and Casualty has suffered a financial loss. IT IS THEREFORE CHARGED that you, WALTER LEE MYERS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Section 626.561(1); 626.61 1(7); 626.611(9); and 626.611(10), 626.611(13); 626.621(2); 626.621(6) and 626.9541( 1)(e)1, Florida Statutes as more particularly alleged in Count I above. COUNT II 17. The above general allegations are hereby realleged and fully incorporated herein by reference. 18. At all times pertinent to the dates and occurrences referred to herein, three Bankers Life and Casualty annuities, Mabelle Thompson of Punta Gorda, Florida, owner and annuitant, were in full force and effect. 19. On or about July 30, 2003, you, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully submit a fraudulent withdrawal request form to Bankers Life and Casualty with the signature of Maybelle Thompson falsely affixed thereto, requesting a cash withdrawal of $4,000 from one of her annuities. 20. On or about August 6, 2003, Bankers Life and Casualty did send, at your direction, a check to you in the amount of $3,884.56 (after federal tax witholding) made payable to Maybelle Thompson. You, WALTER LEE MYERS, received the check. You, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully and falsely affix her signature endorsement thereto and deposit the check into your personal bank account. 21. | You, WALTER LEE MYERS, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to the insurer and Maybelle Thompson. 22. Bankers Life and Casualty has reversed the transaction and credited Maybelle Thompson’s policy for $3,884.56. Demand has been made by the insurer for return of the funds, but you, WALTER LEE MYERS, refused to remit the funds. Asa result, Bankers Life and Casualty has suffered a financial loss. IT IS THEREFORE CHARGED that you, WALTER LEE MYERS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Section 626.561(1); 626.611(7); 626.611(9); and 626.61 1(10), 626.61 1(13); 626.621(2); 626.621(4); 626.621(6) and 626.9541 (1)(e)1, Florida Statutes as more particularly alleged in Count I above. | COUNT IV 23. The above general allegations are hereby realleged and fully incorporated herein by reference. 24. At all times pertinent to the dates and occurrences referred to herein, three Bankers Life and Casualty annuities, Mabelle Thompson of Punta Gorda, Florida, owner and annuitant, were in full force and effect. 25. On or about July 31, 2003, you, WALTER LEE MYERS, without the knowledge or informed consent of Maybelle Thompson, did willfully submit a fraudulent withdrawal request form to Bankers Life and Casualty with the signature of Maybelle Thompson falsely affixed thereto, requesting a cash withdrawal of $7,000 from one of her annuities. 26. Onor about August 6, 2003, Bankers Life and Casualty did send, at your direction, a check to you in the amount of $6960 (after federal tax witholding) made payable to Maybelle Thompson. However, the check was not able to be delivered by the post office and was returned to Bankers Life and Casualty, which voided the transaction. IT IS THEREFORE CHARGED that you, WALTER LEE MYERS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Section 626.561(1); 626.611(7); 626.611(9); 626.61 1(13); 626.621(2); 626.621(6) and 626.9541(1)(e)1, Florida Statutes as more particularly alleged in Count I above. COUNT V 27. The above general allegations are hereby realleged and fully incorporated herein by reference. 28. At all times pertinent to the dates and occurrences referred to herein, two Bankers Life and Casualty life insurance policies, Rosemary Dean, insured, were in full force and effect. Mary Dean, as Rosemary Dean’s mother was the owner and beneficiary of the policy. 29. You, WALTER LEE MYERS, had placed each policy and were each policy’s agent of record. ore 30. | You, WALTER LEE MYERS, were not a family member of Mary and Rosemary Dean. . 31. On or about January 30, 2001, you, WALTER LEE MYERS, willfully and fraudulently caused yourself to be named a beneficiary of each of the above mentioned life insurance policies, without the knowledge or informed consent of Mary Dean, all in violation of Section 626.798, Florida Statutes. IT IS THEREFORE CHARGED that you, WALTER LEE MYERS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Section 626.611(7); 626.611(13); 626.621(2), Florida Statutes as more particularly, alleged in Count I above and: (a) Prohibition against the designation of a life insurance agent as the beneficiary of life insurance policy sold to an individual other than a family member. [Section 626.798, Florida Statutes.] WHEREFORE, you, WALTER LEE MYERS, are hereby notified that the Chief Financial Officer 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 28-1 07, 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 Financial Services, 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 from 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. Ifa 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 cal] 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 Financial Services. DATED and SIGNED this 20th day of January _, 2004. KAREN CHANDLER Deputy Chief Financial Officer 10 CERTIFICATE OF SERVICE T HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING have been furnished to: Walter Lee Myers, 3921 Cochise Terrace, Sarasota, FL 34237, Walter Lee Myers, 2803 Fruitville Road, Ste, 203, Sarasota, FL 34233 this 20th day of January , 2004. ‘e JAMES A. BOSSART, ESQ. ida Bar Number 0374598 Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4124 (850) 487-4907 fax 11

Docket for Case No: 04-000638PL