FLORIDA DEPARTMENT OF FINANCIAL SERVICES Her FILED OFFICER SEP 28 2004 IN THE MATTER OF: ocaenaty CLA _ CASE NO.: 75699-04-AG "2. ¥ RICHARD LEE BAMMERLIN { ADMINISTRATIVE COMPLAINT engel ince TO: RICHARD LEE BAMMERLIN OS - OSWY id L 802 Lanark Court Inverness, Florida 34453 RICHARD LEE BAMMERLIN RJAM, Inc. 802 Lanark Court Inverness, Florida 34453 You, RICHARD L. BAMMERLIN, license I.D. #4012841, are hereby notified that, pursuant to Chapter 626, Florida Statutes, 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, RICHARD L. BAMMERL IN, are currently licensed in this state as a life (2-16) agent, and life & health (2-18) agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, RICHARD L. BAMMERLIN, were licensed in this state as an insurance agent. 3. The Business of Life Insurance is a public trust, in which all agents of all companies have a common obligation to work together in serving the best interests of the insuring public, by understanding and observing the laws governing Life Insurance by presenting accurately and completely every fact esscntial to a client’s decision, and by being fair in all relations with colleagues and competitors, always placing the policyholder’s interests first. [Chapter 69B-215.210, Florida Administrative Code}. 4, At all times pertinent to the dates and occurrences referred to herein, you, RICHARD L. BAMMERLIN, were listed as an agent of Ameri-Life & Health Services of Marion County (‘Ameri-Life’}, located at 821 North East 36 Terrace, Ocala, Florida 34470. 5. At all times pertinent to the dates and occurrences referred to herein, you, RICHARD L. BAMMERLIN, were associated with and acted as a “sales representative” for a company known as Universal Luxury Coaches, LLC. (“ULC”) located at 4441 Orange Blvd., Sanford, FL 32771. In that capacity, you, RICHARD L. BAMMERLIN, sclicited and sold investments in ULC’s Affinity Rental Program, Option 4 (“Option 4”), an unregistered security. 6. ULC’s Option 4 is an investment contract inasmuch as the plan involves an investment of money in a common enterprise with the expectation of profits to be derived from the managerial efforts of others. Investment contracts arc statutorily defined as securities pursuant to Section 517.021(20), Florida Statutes. 7. ULC’s Option 4 is a security, but it is not registered with the State of Florida, Office of Financial Regulation. Section 517.07, Florida Statutes, requires that all securities sold in or into Florida be registered with the Office or exempt from registration. ULC’s Option 4 is not exempt from such registration requirements under the provisions of Sections 517.051 or 517.061, Florida Statutes. 8. ULC’s Option 4 is not a timeshare plan and does not qualify for the exemption set forth in section 721.23, Florida Statutes. 9. You, RICHARD L. BAMMERLIN, used your existing insurance relationships with clderly customers to either introduce these customers to other agents or act individually for the purposc of soliciting investments in ULC’s Option 4. 10. You, RICHARD L. BAMMERLIN, while an agent for Amen-Life, sold approximately $309,414.00 worth of unregistered securities to senior citizens, earning you substantial commissions. 11. You, RICHARD L. BAMMERLIN, aided and abetted agent Kenneth Keyes, of Ameri-Life & Health Services of Citrus County, in the marketing and sale of ULC’s Option 4 to senior citizens. 12. As to each of the transactions described below, you, RICHARD L. BAMMERLLI, used your position as an agent of Ameri-Life to knowingly mislead clderly insureds into purchasing unregistered securities, thereby causing pecuniary harm to them. 13. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. COUNT I 14. The above General Allegations are hereby realleged and fully incorporated by reference. 15. You, RICHARD L. BAMMERLIN, have sold insurance to, or have becn acquainted with R.E. (age 80) for approximately ten (10) years. 16. On or about June 4, 2003, you, RICHARD L. BAMMERLIN, sent agent Kenneth Keves of Ameri-Life & Health Services of Citrus County, to visit with R.E., for the purpose of soliciting investments in ULC’s Option 4. 17. During this visit, agent Keyes represented that R.E. was “not making anything” on his CD, and you recommended ULC’s Option 4 as a better investment alternative. Agent Keves assured R.E. that ULC’s Option 4 was a safe investment by stating that, “Bammerlin would not offer any investments to his clients that he did not personally invest in himself.” In addition, R.E. was promised a 10% return on monies invested in ULC’s Option 4. 18. Acting upon this advice, R.E. purchased $51,000.00 worth of ULC’s Option 4. For this sale, you, RICHARD L. BAMMERLIN, received a substantial comnuission, fee, or other benefit. 19, In conclusion, you, RICHARD L. BAMMERLIN, used your position as an agent of Ameri-Life to knowingly aid and abet agent Kenneth Keyes in the sale of an unregistered security, You, RICHARD L. BAMMERLIN, did this for the purpose of obtaining a fee, commission, or other benefit. IT IS THEREFORE CHARGED that you, RICHARD L. BAMMERLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (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 appointment. [Section 626.611(9), Florida Statutes}; (c) Asa life agent, a violation of the code of ethics. [Section 626.621 (9), Florida Statutes}; (a) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. CQUNT II 20. The above General Allegations are hereby realleged and fully incorporated by reference. 21. On or about February 18, 2003, you, RICHARD L. BAMMERLIN, and agent Kenneth Keyes of Ameri-Life & Health Services of Citrus County, visited M.H. (age 68), regarding a supplemental insurance policy. During this visit you, RICHARD L. BAMMERLIN, and agent Keyes recommended ULC’s Option 4 to M.H. You, RICHARD Lt. BAMMERLIN, and agent Keyes informed M.H. that “ULC did not have enough coaches to fill the demand for people wanting to lease them,” and that you, RICHARD L. BAMMERLIN, and agent Bammerlin, were “raising funds to acquire more busses.” 22. You, RICHARD L. BAMMERLIN represented to M.H. that the ULC Option 4 investment required a minimum investment of $10,000.00. M.H. stated that she could not afford a $10,000.00 investment, and you, RICHARD L. BAMMERLIN, agreed to accept a smaller investment. 23. Acting upon your advice, M.H. purchased $6,000.00 worth of ULC’s Option 4. For this sale you, RICHARD L. BAMMERLIN, received a substantial commission, fee, or other benefit. 24, In conclusion, you, RICHARD L. BAMMERLIN, used your position as an agent of Ameri-Life to knowingly mislead M.H. into purchasing $6,000.00 worth of an unregistered security. You, RICHARD L. BAMMERLIN, did this for the purpose of obtaining a fee, commission, or other benefit. IT IS THEREFORE CHARGED that you, RICHARD L. BAMMERLIN, 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 cligibility as an insurance agent: Sections 626.611(7); 626.61 1(9); 626.621(%); and 626.621(12), Florida Statutes, as more fully described under Count I above. In addition, it is also charged that you, RICHARD L. BAMMERLIN, have violated or are accountable under the following provisions of the Florida Insurance Code ard Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Sale of an unregistered security that was required to be registered, pursuant to chapter 517 [Section 626.611(16), Florida Statutes]. WHEREFORE, you, RICHARD L. BAMMERLIN, are hereby notified that the Chief Financial Officer intends to enter an order suspending or revoking your license(s) and eligibility for licensure as an insurance agent or to impose such lesser penalties as may be provided under the provisions of Chapter 626, 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 eT ne ee order cptered 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 procceding 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 reccipt 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, F lorida 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 Cisputed issues of material fact, or a hearing not involving disputed issucs 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. If a hearing of any type is requested, you have the right to be represented by counsel or other qualified represcntative at your expense, to present evidence and argument, to call and cross-examine Witnesses, and to compcl 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 relicd. While a hearing is normally not required in the absence of a dispute of fact, if you fecl that a hearing is necessary, onc 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 denicd. 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, F lorida Statutes, is not available. No Department attorney will discuss this matter with you until the response has been received by 2 bee KARE! nas Deputy Chief Financial Officer the Department of Financial Services. DATED and SIGNED this, 28" day ot Sep-bmber, CERTIFICATE OF SERVICE | HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPILAINT and ELECTION OF RIGHTS has been furnished to: Richard L. Bammerlin, 802 Lanark Court, Inverness, FL 34453, Richard Lee Bammerlin, RIAM, Inc., 802 Lanark Court, Inverness, FL 34453 by Certified Mail this 28"tay of Se@lember_, 2004. \\ aS ae, DAVID BUSCH Florida Bar Number 0140945 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: 850-413-4146

Docket for Case No: 05-000569PL

Orders for Case No: 05-000569PL