FILED DEPARTMENT OF FINANCIAL SERVICES APR _-2 24 r LA Doskoned DY beg r ToM GALLAGHER S : CHIEF FINANCIAL OFFICER - wes oS - NA /), wo - IN THE MATTER OF: O4-LOTS FL 3 ae 2. CASE NO.: 75206-04-AG GEORGE ATHANS / ADMINISTRATIVE COMPLAINT TO: GEORGE ATHANS Athans Bail Bonds 2001 NW 7th St. Ste. 301C Miami, FL 33125-3440 GEORGE ATHANS P.O. Box 521046 Miami, FL 33152-1046 GEORGE ATHANS 6705 SW 44th St. Apt. 27 Miami, FL 33155-4736 You, GEORGE ATHANS, license I.D. #4009399, 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 limited surety agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes (2003), you, GEORGE ATHANS, are currently licensed in this state as a Limited Surety (Bail Bond) Agent (2-34), and were so licensed at all times relevant to the dates and occurrences referenced herein. 2. You, GEORGE ATHANS, were licensed in this state as a Limited Surety (Bail Bond) Agent on July 27, 1963. 3. Pursuant to Chapter 648, Florida Statutes (2003), the Florida Department of Financial Services (hereinafter “Department”) has jurisdiction over your limited surety license and appointments. 4. At all times relevant to the dates and occurrences herein, you, GEORGE ATHANS, were an officer of Athans Bail Bonds, Inc., an agent of surety American Bankers Insurance Company. 5. On or about January 20th, 2004, you were ordered by the United States District Court for the Southern District of Florida to return bail bond collateral in the amount of TWENTY-TWO THOUSAND THREE HUNDRED SIXTY-SIX AND 45/100 ($22,366.45) DOLLARS to L.P., of Miami, Florida. COUNT I 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. In or around June 1994, L.P. pledged her home as collateral on a bail bond of SIXTY THOUSAND AND 00/100 ($60,000.00) DOLLARS for defendant J.R. to Athans Bail Bonds. 8. In or around January 1995, following defendant J.R.'s failure to appear, foreclosure actions were instituted by the American Bankers Insurance Company against L.P.’s home. In order to prevent loss of her home, L.P. arranged for a second mortgage loan in the amount of SIXTY THOUSAND AND 00/100 ($60,000.00) DOLLARS, which she paid over to Athans Bail Bonds, Inc., for satisfaction of the bond debt. 9. Following apprehension of the defendant J.R., and in a hearing in J.R.'s trial in the United States District Court for the Southern District of Florida, a District Judge ordered a return of the collateral to L.P. The Eleventh Circuit Court of Appeals vacated and remanded that order, finding that you, GEORGE ATHANS, had not had sufficient notice of the hearing. Following remand from the Eleventh Circuit, the matter was assigned to a United States Magistrate Judge of the Southern District of Florida. 10. The Magistrate conducted a hearing on the Motion to Vacate Final Judgment and to Set Aside Bond Forfeiture on or about September 13th, 2002. Asa result of this hearing, the Magistrate recommended to the District Court Judge that you, GEORGE ATHANS, return to L.P. collateral in the amount of TWENTY-TWO THOUSAND THREE HUNDRED SIXTY- SIX AND 45/100 ($22,366.45) DOLLARS. 11, In an order dated January 20th, 2004, the District Court Judge for the Southern District of Florida adopted in full the Magistrate Judge's recommendation, including the amount of collateral owed by you, GEORGE ATHANS, to L.P. 12. To date, no collateral monies have been paid back to L.P. by you, GEORGE ATHANS, or by any other representative of Athans Bail Bonds, Inc. IT IS THEREFORE CHARGED that you, GEORGE ATHANS, 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 license and appointments: a) Collateral security or other indemnity accepted by a bail bond agent, except a promissory note or an indemnity agreement, shall be returned upon final termination of liability on the bond. Section 648.442(1} Florida Statutes (2003). we b) Collateral security shall be received and held in the insurer's name by the bail bond agent in a fiduciary capacity .. .. Section 648.442(3) Florida Statutes (2003).+ c) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. Section 648.45(2)(e) Florida Statutes (2003). d) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. Section 648.45(2)(g) Florida Statutes (2003). e) Is guilty of misappropriation, conversion, or unlawful witholding of moneys belonging to a surety, a principal, or others and received in the conduct of business under a license. Section 648.45(2)(h) Florida Statutes (2003). f) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. Section 648.45(2)(j) Florida Statutes (2003). g) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. Section 648.45(2)(1) Florida Statutes (2003). h) Has failed to return collateral. Section 648.45(2)(n) Florida Statutes (2003). i) Has demonstrated a course of conduct or practices which indicate that the licensee is incompetent, negligent, or dishonest or that property or rights of clients cannot safely be entrusted to him or her. Section 648.45(2)(p) Florida Statutes (2003). j) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. Section 648.45(3)(c) Florida Statutes (2003). k) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. Section 648.45(3)(e) Florida Statutes (2003). 5a a Amman WHEREFORE, you, GEORGE ATHANS, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a limited surety agent or to impose such penalties as may be provided under the provisions of Chapter 648, 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 ard 120.57, Florida Statutes (2003), 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 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 28-107.0C4, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: on er i REESE RE RA tn + (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 (2003), 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 (2003). 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 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: GEORGE ATHANS, 2001 NW 7th St., Ste 301c, Miami, FL 33125-3440; GEORGE ATHANS, P.O. Box 521046, Miami, FL 33152-1046; GEORGE ATHANS, 6705 SW 44th St., Apt. 27, Miami, FL 33155-4736 by Certified Mail this 2) fay of Apri , 2004. ’ Michael T. Ruff Florida Bar Number 0688541 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-033 Phone: (850) 413-4134 Fax (850) 487-4907 Attorney for Department COMPLETE THIS SECTION ON DELIVERY : 2. ‘Article Number | | | | D? is ddfivery addip& different from item? ‘7ib0 3001 S844 2b74 255b : It YES, enter delivery address below: 3. Service Type, CERTIFIED MAIL 4, Restricted be livery? (Extra Fee) Yes 1. Article Addressed to: = - i Reference Information GEORGE ATHANS 6705 SW 44TH STREET, APT. 27 MIAMI, FL 33155-4736 75206-04-AG AC 04/20/2004 RESTRICTED [re DELIVERY + PS Form 3811, July 2001 Domestic Return Receipt STATE OF FLORIDA “Pe DEPARTMENT OF FINANCIAL SERVICES ns) DIVISION OF LEGAL SERVICES 7 A IN THE MATTER OF: CASE NO.: 75206-04-AG °° GEORGE ATHANS ELECTION OF PROCEEDING I 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. I am requesting disposition of this matter as indicated below. (Choose one) 1 {J I do 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. 2. I do not dispute any of the Department's factual allegations and | hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes (2003). In this regard, I desire to (Choose one): {] Submit a written statement and documentary evidence in lieu of a 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. [ ] 1 do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes (2003), to be held before the Division of Administrative Hearings. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: Address: Phone No.:

Docket for Case No: 04-001898PL

Issue Date	Proceedings
Jul. 08, 2004	Order Closing File. CASE CLOSED.
Jun. 30, 2004	Motion for Abatement/Continuance Pending Appellate Disposition filed by Respondent.
Jun. 21, 2004	Order of Pre-hearing Instructions.
Jun. 21, 2004	Notice of Hearing (hearing set for August 4, 2004; 10:30 a.m.; Miami, FL).
Jun. 09, 2004	Joint Response to Initial Order filed by Petitioner.
May 28, 2004	Initial Order.
May 28, 2004	Objections to Report and Recommendations filed.
May 28, 2004	Respondent`s Response to the Administrative Complaint filed.
May 28, 2004	Administrative Complaint filed.
May 28, 2004	Agency referral filed.