FLORIDA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER Fi L E D CHIEF FINANCIAL OFFICER STATE OF FLORIDA Nov 3 20 IN THE MATTER OF Oocketed by: EUL a SN RACHAN MILVET DARITY CASE NO.: 76590-04-AG e Cs / D5 -0043PL ADMINISTRATIVE COMPLAINT TO: RACHAN MILVET DARITY EW & Associates of Central FL, Inc. 6905 W. Colonial Dr. Orlando, FL 32818 RACHAN MILVET DARITY 6008 Melbourne Avenue Orlando, Florida 32835 YOU, RACHAN MILVET DARITY, are hereby notified that the Chief Financial Officer of the State of Florida (“the Department”) 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, RACHAN MILVET DARITY, license identification number A294916, are currently licensed in this state as a Customer Representative (4-40). 2. At all times pertinent to the dates and occurrence referred to herein, you, RACHAN MILVET DARITY, were licensed in this state to transact insurance as allowed by Section 626.7354, Florida Statutes. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained in this complaint you, RACHAN MILVET DARITY, were appointed with and acted on behalf of EW & Associates of Central Florida, Inc. (“EW”). 6. At all times pertinent to the allegations of this complaint you, RACHAN MILVET DARITY, also held the corporate officer position of Secretary with EW. 7. There were two licensed persons operating out of the EW location for the relevant time periods at issue in addition to yourself: Primary Agent Eilean Webb and Leslie Lowe. Yagwattie Persaud Krishna was unlicensed, but with your implied consent acted as though she was licensed. 8. As a corporate officer of EW, you, RACHAN MILVET DARITY, knew or should have known of the various insurance activities engaged in by other corporate officers, insurance agents, salaried employees and staff at the EW agency location described above for the times and occurrences as hereafter presented. 9. You, RACHAN MILVET DARITY, together with Eileen Webb, are listed as a signor on the EW agency account numbered 003736038398 at Bank of America, N.A. to which the sums hereafter described were deposited and withdrawn pursuant to your control and direction. COUNT I 10. The above General Allegations numbered one through nine are hereby realleged and fully incorporated herein by reference. 11. Onor about July 15, 2003, Roberto Carlos Melli d/b/a Speedway Tours, Inc. (“Speedway”) spoke with Ms. Leslie Lowe at EW and explained to her that he needed a - minimum $300,000 automobile liability policy for a Lincoln. The limit was required by various governmental entities in the Orlando, Florida vicinity wherein Mr. Melli operated his tour business. 12. The next day Ms. Lowe informed Mr. Melli that the estimated premium for such a policy would be $2,600.00. You, RACHAN MILVET DARITY, then prepared and signed four certificates of insurance, handed them to Ms: Lowe who, in turn, handed them to Mr. Melli. Ms. Lowe told Mr. Melli that it would take about 30 days for the policy to arrive. 13. Mr. Melli then wrote a check for $300.00, leaving the “pay to the order of” space blank to be filled in with the agency name. Mr. Melli never filled out an application, nor did he ever receive a policy. 14. On July 25, 2003, Mr. Melli returned to EW to add another vehicle to the policy. At that time and place you, RACHAN MILVET DARITY, printed out a vehicle identification card and prepared and signed a certificate of insurance as to the additional vehicle. Mr. Melli prepared another check in the amount of $200.00, again leaving the “pay to the order of’ space blank, trusting that the funds would be credited to the EW account. 15. Meanwhile, a representative for the City of Orlando was demanding to see the insurance policy for the vehicles. When no insurance policy was ever produced, Mr. Melli telephoned EW and cancelled his insurance. 16. You, RACHAN MILVET DARITY, knowingly and willfully issued the above- described fraudulent certificates of insurance on a non-existent insurance policy. You also filled in your name as the Payee on the $200.00 Melli check and then signed and exchanged it for cash rather than applying it as a premium deposit on an insurance policy. IT IS THEREFORE CHARGED that you, RACHAN MILVET DARITY, 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 insurance licenses: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(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 626.611(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) 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]; (f) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and 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]; (g) Any agent, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or appropriates such funds or any portion thereof to his or her own use or deprives the other person of a benefit therefrom. [Section 626.561(3), Florida Statutes]. COUNT II 17. The above General Allegations numbered one through nine are hereby realleged and fully incorporated herein by reference. 18. The official residence address that you, RACHAN MILVET DARITY, provided the Department up to and including May 19, 2003 is shown in Department records as 7342 Bordwine Drive, Orlando, Florida 32818. 19. The official business address that you, RACHAN MILVET DARITY, provided the Department up to and including May 19, 2003 is shown in Department records as Allstate, 813 N. Pine Hills Road, Orlando, FL 32808. 20. Onor about February 3, 2003, you, RACHAN MILVET DARITY, became employed at EW & Associates of Central Florida, 5507 Alhambra Drive, Orlando, Florida 32808. You failed to notify the Department of this change in your business address in writing within 60 days after the change of address. 21. On August 7, 2003, the Department discovered as a result of this investigation that EW & Associates of Central Florida had moved to 6905 W. Colonial Drive, Orlando, Florida 32318. You, RACHAN MILVET DARITY, failed to notify the Department of this change in your business address in writing within 60 days after this change of address. On that day you were advised by Department personnel to so notify the Department in writing. 22. On June 23, 2004, you, RACHAN MILVET DARITY, orally notified Department personnel that your home address had recently changed to 6008 Melbourne Avenue, Orlando, FL 32835. On that day you were advised by Department personnel to so notify the Department in writing. 23. As of September 15, 20004, you RACHAN MILVET DARITY, had failed to notify the Department in writing of the this latest change in your residence address within 60 days of such change of address. IT IS THEREFORE CHARGED that you, RACHAN MILVET DARITY, 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) Every licensee shall notify the department in writing within 60 days after a change of name, residence address, principal business street address, or mailing address. [Section 626.551, Florida Statutes]. ‘ WHEREFORE, you, RACHAN MILVET DARITY, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a Customer Representative or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. 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 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 cf material fact, or a hearing not involving disputed issues of material fact; and (c) -Areference to the notice, order to show cause, administrative complaint, or other communication that the party has received from the agency. If a 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 that 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 3 day of November , 2004. nS IN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Compliant has been furnished to: Rachan Milvet Darity, 6008 Melbourne Avenue, Orlando, Florida 32835; RACHAN MILVET DARITY, EW & Associates of Central FL, Inc., 6905 rd W. Colonial Dr., Orlando, FL 32818 this day of November , 2004. 10 DA BUSC Florida Bar Number 0140945 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, FL 32399-0333 Phone: 850-413-4146

Docket for Case No: 05-000042PL