ons os me FLORIDA FINANCIAL SERVICES FILED TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA JAN 12 2005 Dooketed by; p= IN THE MATTER OF: CASE NO.: 78640-04-AG JOSEPH HOUSTON ADMINISTRATIVE COMPLAINT TO: JOSEPH HOUSTON Express Bail Bond 495 Goodlette Rd Naples, FL 34102 JOSEPH HOUSTON 6881 Highland Pines Circle Ft. Myers, FL 33912 You, JOSEPH HOUSTON, license I.D. #A123930, 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 I, Pursuant to Chapter 648, Florida Statutes, you, JOSEPH HOUSTON, are currently licensed in this state as a Limited Surety Agent (Bail Bond) (2-34) Agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, JOSEPH HOUSTON, were licensed in this state as a limited surety agent. 3. Pursuant to chapter 648, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments, €1/S@ 3Ovd SS0IAN3S WOST 206p28pace PhiZl G@BZ/PT/za AL VOIGT saoyuuniy ABS :Auedwiog L06PZ840S8 swepueg 99S UIW » :uoyjeing eh :soBeg Wd 84-7 sOwI] SOOc/FL/c 79yeq (papaecons jUsAg) JUBA PsAls00y 4. At all times material herein, you, JOSEPH HOUSTON, conducted business as a licensed bail bond agent, in combination with Mary Livingston, a licensed bail bond agent, under ownership of the named entity, Express Bail Bonds. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. On or about August 24, 1998, you, JOSEPH HOUSTON, as a licensed bail bond agent, with one Mary Livingston, also a licensed bail bond agent, each acting through Express Bail Bonds, 2 named entity owned by you, consulted with Jean Satonick for purpose of providing to her an appearance bond in the sum of $100,000.00 to secure her release from incarceration pending trial. She furnished to you $10,000.00 as and for premium cost in addition to $27,000.00 cash collateral and her promissory note as security for such bond. 7. You, JOSEPH HOUSTON, with Mary Livingston, then caused on August 24, 1998, a bond in the sum of $100,000.00 to be issued in behalf of the said Jean Satonick by Continental Heritage Insurance Company, through C. E. Parrish General Agency, Inc. 8. On receiving the said collateral sum from the said Jean Satonick in the amount of $27,000.00, you, JOSEPH HOUSTON, thereafter failed to remit all or any portion of the said collateral sum to either your managing general agent or Continental Heritage Insurance Company as required by statute. IT IS THEREFORE CHARGED that you, JOSEPH HOUSTON, 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) Has willfully used, or intended the use, of the license or appointment to circumvent any of the requirements or prohibitions of this chapter or the insurance code. [Section 648.35(2)(d), Florida Statutes]; 2 A ET/9G FOV S30IANES WOAT 266P28Pacs peiéT SO@BZ/PT/Z28 uo amyuany aed :Auedwiog LO06>2870S8 wepueg 998 p UIW py suowjeung €L :soBed Wd 8¢:7 sO SO0Z/P1L/Z :ayeg (pepeasong jUSsAq) JUSAg paalsooy €1/2e (b) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]; (c) Has engaged in fraudulent or dishonest practices in the conduct of the business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; (d) Is guilty of misappropriation, conversion, or unlawful withholding of moneys belonging to a surety, or principle, or others and received in the conduct of business under a license. {Section 648.45(2)(h), Florida Statutes]; (e) 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)(), Florida Statutes]; ) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(I), Florida Statutes]; (g) Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]; (h) Failure to remit funds to insurer. [Section 648.295, Florida Statutes]; (i) Failure to remit collateral security to insurer. [Section 648.442, Florida Statutes]; COUNT It 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. On or about August 24, 1998, you, JOSEPH HOUSTON, as a licensed bail bond agent, with one Mary Livingston, also a licensed bail bond agent, each acting through Express Bail Bonds, a named entity owned by you, consulted with Jean Satonick for purpose of providing to her an appearance bond in the sum of $100,000.00 to secure her release from incarceration pending trial. She furnished to you $10,000.00 as and for premium cost in addition to $27,000.00 cash collateral and her promissory note as security for such bond. 11. You, JOSEPH HOUSTON, with Mary Livingston, then caused on August 24, 1998, a bond in the sum of $100,000.00 to be issued in behalf of the said Jean Satonick by Continental Heritage Insurance Company, to C. E. Parrish General Agency, Inc. 3 a 390d Sa0IANaS W937 206b>28Pacs Pridl SGGZ/PT/28 qeouus aoyuuupy Aes :Auedwog 206¢28¢0S8 uepueg 29S p UI p :uoleing €L :soBeg Wd 87:4 sOUWEL GOO?/P LIC eyeg (papascons jUaAg) JUBA paAiso0y 12. In or around February 2001, the said Jean Satonick was adjudicated guilty of the charge against her and the bond provided by you and Mary Livingston was thereupon discharged and returned to Express Bail Bonds. 13, Thereafter, the said Jean Satonick made numerous written requests to you for return of her $27,000.00 cash collateral sum previously furnished to you as aforesaid to which you failed to respond as required by statute. 14. You, JOSEPH HOUSTON, completely ignored the requests of the said Jean Satonick and failed to return her cash collateral sum of $27,000.00 for a period of approximately two years, and only finally did so in December 2003 upon learning of investigation then pending by the Department of Financial Services involving such matter. IT 18 THEREFORE CHARGED that you, JOSEPH HOUSTON, 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) Has willfully used, or intended the use, of the license or appointment to circumvent any of the requirements or prohibitions of this chapter or the insurance code. [Section 648,35(2)(d), Florida Statutes]; (b) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]; (c) Has engaged in fraudulent or dishonest practices in the conduct of the business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; (d) Is guilty of misappropriation, conversion, or unlawful withholding of moneys belonging to a surety, or principle, or others and received in the conduct of business under a license. {Section 648.45(2)(h), Florida Statutes]; (¢) 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]; 4 i €T/8G 9 3OVd SSOIANSS W5D37 206628>aS8 ppidT SBB2/>T/28 ques woyuayy aed :Auedwiog 206¢28%0S8 wepuag 98S y UI p ruoneing €L :sobeg Wd 8:7 OWL so0zrLiz :97eq (pepsasons juaAg) USA Psalesay (h Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]; (g) Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]; (h) Failure to remit funds to insurer. [Section 648.295, Florida Statutes]; G) Failure to retum collateral security. [Section 648.442, Florida Statutes]; «&) Failure to remit collateral security. [Section 648.571, Florida Statutes]; COUNT DIT 15. The above general allegations are hereby realleged and fully incorporated herein by reference. 16. At all times material herein, you, JOSEPH HOUSTON, as a licensed bail bond agent and owner of Express Bail Bonds, caused that named entity to operate but failed to designate a primary agent at any of the Express Bail Bonds locations on required forms approved by the Department. As such, you and Express Bail Bonds were and are in violation of statutory requirements and as such cannot legally conduct surety business. IT IS THEREFORE CHARGED that you, JOSEPH HOUSTON, 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) Willfully failed to follow or report a record by state or federal law. [Section 648.45(2)(0)2., Florida Statutes]; (b) Failure to designate a primary bail bond agent for each location of the bail bond agency. [Section 648.387, Florida Statutes]; WHEREFORE, you, JOSEPH HOUSTON, 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 Sections 648.46, 648.49, 648.50, 648.51, 648.52, 648.53, and 648.58, Florida Statutes, and under the other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. 5 AL €1/6@ Fd Sa0IAaaS W931 2a6pz9epace bpiél GOBZ/PT/za GVOIyUy aoquarnipy Aey :Aueduiog LO6P2870S8 dapuas 99S p UW » ruoieing €L :soBeg Wd 8¢-7 soul) SO0Z/PL/Z -97eG (papeacons juaag) jUsAq paaleooy ~~ oN You are further notified that any order entered in this case revoking or suspending amy 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 response must contain: (a) The name and address of the party making the request, for purpose of service; (&) 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 6 AL ET/8l BONd S30IANaS W537 246p28peG8 Priel GBBZ/PT/Za qusIyny oyu aed :Auedwiog 206¢2870S8 apuas 08S p UW F nuojeing €b :seBeg Wd 8¢:4 TOLL SO0z/rL/Z :93eq (pepaesans jusAg) USAW paalsoey il c™ o™ (c) A reference 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 wiitten 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 attomey will discuss this matter with you until the response has been received by the Department of Financial Services. 7 Ti ET/TT FoVd S30IAYNSS WOst 266>28bacs Pri2T GBGZ/PT/Za VOID, eaoyuanyy aed :Auedwio5 LO06PZ8v0S8 wopuag 28S 7 UILU p :u01}e1Ng eL :soBeg Wd 8¢4 reWLL GO0Z/b1/Z seyeq (papesoons jueAg) jUeAq pealavey IN CHANDLER Deputy Chief Financial Officer 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: JOSEPH HOUSTON, Express Bail Bond, 495 Goodlette Rd, Naples, FL 34102; and JOSEPH HOUSTON, 6881 Highland Pines Circle, Ft. Myers, FL 33912 by Certified Mail this 12th. day of Shornsry »> AROS. Dean Andrews Division of Legal Servicds 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 Florida Bar Number 0001959 8 a EW/Z0 39Nd S30IANES W931 2@6r2eracs PriLT GaBZ/pT/za avoryus aoyumnpy ACL sAueduiog LO6PZ8~0S8 uapuasg 998 p UI y ruoneing eh isoBeg Wd 84-7 SOUL SO0C/FLIZ -ayeq (papesesons yusag) JUsAQ paalaoay

Docket for Case No: 05-000537PL