CY 1403 FILED MAR 25 2004 Booketed by: EC i re) . DEPARTMENT OF FINANCIAL SERVICES a Tom GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: Coe ete CASE NO.: 72524-04-AG® PAUL VICTOR CHAPLES ADMINISTRATIVE COMPLAINT TO: PAUL VICTOR CHAPLES 3297 Falcon Point Drive Kissimmee, FL 34741 You, PAUL VICTOR CHAPLES, license I.D. #E013226, 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, PAUL VICTOR CHAPLES, are currently licensed in this state as a General Lines Agent (Prop. & Cas. Ins.) (2-20). 2. At all times pertinent to the dates and occurrences referred to herein, you, PAUL VICTOR CHAPLES, were licensed in this state as an insurance agent. , 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your licenses and appointments. 4. You PAUL VICTOR CHAPLES, were employed through SCI Staffing Company, to assist Accredited Surety & Casualty and State National Insurance Company (hereinafter “SNIC”) as a claims adjuster. 5. SNIC is a third party claims administrator responsible for handling run-off claims relating to personal automobile policies issued by Accredited Surety & Casualty Ins. Co. and SNIC. 6. As an employee, you worked as an IT facilitator responsible for SNIC’s electronic claims database. 7. You PAUL VICTOR CHAPLES, were authorized to issue claim checks as per your manager’s, F.1. Hughes, instructions or at the direction of Terri L. Spoon, a licensed claims adjuster for SNIC. 8. Authorized claim checks were prepared by you, PAUL VICTOR CHAPLES, and signed via signature stamp, which depicted Terri Spoon’s signature. (Terri Spoon is an authorized signer on the checking account.) COUNT I 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. From December 6, 2001 to August 22, 2002, you PAUL VICTOR CHAPLES, misappropriated insurance funds by issuing five (5) separate SNIC claim checks, numbered, 24060, 14046, 10456, 14076, and 2585, totaling ONE THOUSAND SIX HUNDRED FIFTY- TWO AND 67/100 ($1,652.67) DOLLARS to Enterprise Rental Car for unauthorized use. 11. | You, PAUL VICTOR CHAPLES, knowingly and willfully used Terri Spoon’s signature stamp for unauthorized use without her knowledge or consent. IT IS THEREFORE CHARGED that you, PAUL VICTOR CHAPLES, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626.611(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(1), 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) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be , an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; COUNT I 12, The above general allegations are hereby realleged and fully incorporated herein by reference. 13. Onor about July 12, 2002, you, PAUL VICTOR CHAPLES, misappropriated insurance funds by issuing SNIC claim check number 24126 in the amount of ONE THOUSAND EIGHTY-SIX AND 03/100 ($1,086.03) DOLLARS to GAINSCO Co. (National Specialty Lines) for unauthorized use. 14. You, PAUL VICTOR CHAPLES, knowingly and willfully used Terri Spoon’s signature stamp for unauthorized use without her knowledge or consent. IT IS THEREFORE CHARGED that you, PAUL VICTOR CHAPLES, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626.611(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(1), 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) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; COUNT Il 15. The above general allegations are hereby realleged and fully incorporated herein by reference. 16. On or about July 30, 2002, you, PAUL VICTOR CHAPLES, misappropriated insurance funds by issuing SNIC claim check number 14077 in the amount of ONE THOUSAND TWO HUNDRED AND 00/100 ($1,200.00) DOLLARS to Porter Properties for unauthorized use. 17. You, PAUL VICTOR CHAPLES, knowingly and willfully used Terri Spoon’s signature stamp for unauthorized use without her knowledge or consent. IT IS THEREFORE CHARGED that you, PAUL VICTOR CHAPLES, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626.611(1), Florida Statutes}; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(1), 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) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be , an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; COUNT IV 18. The above general allegations are hereby realleged and fully incorporated herein by reference. 19, On or about July 30, 2002, you, PAUL VICTOR CHAPLES, misappropriated insurance funds by issuing SNIC supplemental claim check number 10479 in the amount of ONE THOUSAND THREE HUNDRED NINETY-FOUR AND 70/100 ($1,394.70) DOLLARS to SAFCO for unauthorized use. 20. You, PAUL VICTOR CHAPLES, knowingly and willfully used Terri Spoon’s signature stamp for unauthorized use without her knowledge or consent. IT IS THEREFORE CHARGED that you, PAUL VICTOR CHAPLES, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626.611(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(1), 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) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be , an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; WHEREFORE, you, PAUL VICTOR CHAPLES, 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 28-107, 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 Financial Services, 612 Larson Building, 200 East LY nena em FORE: RN hi eM 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. 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 shal] 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 asm day of [7ARCH » 2004. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: PAUL VICTOR CHAPLES, 3297 Falcon Point Drive, Kissimmee, FL 34741, by Certified Mail this QS day of NARCH , 2004. > a ; . oo . v \ 4 /. . maye we ean ihe ~Sriy William W. Tharpe, Jr. ; » Division of Legal Services / “200 East Gaines St. 7 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4110 Florida Bar Number 0312411 COMPLETE THIS SECTION ON DELIVERY i "2. Article Number rere . Print Clearly) Delivery | Pichentes [yop 0 If YES, enter delivery address below: TAL 390) 44 2700 4o50 3. Service Type CERTIFIED MAIL es, + 4, Restricted Delivery? (Extra Fee) ; 4. Article Addressed to: Reference Information PAUL VICTOR CHAPLES 3297 FALCON POINT DR 79594.03-AG