FLORIDA DEPARTMENT OF 7 2 ren mee ee FINANCIAL SERVICES'-="? FILED TOM GALLAGHER ms ePRI8 PNG oct 14 apgy CHIEF FINANCIAL OFFICER STATE OF FLORIDA mish Cr QNISTRATIY Bog ; IN THE MATTER OF: A HEBREICS Keted by; CAROLE ANN SECHREST CASE NO.: 77660-04-AG i - — ADMINISTRATIVE COMPLAINT OD . | YU Yf C TO: CAROLE ANN SECHREST CAROLE ANN SECHREST P.O. Box 2224 2591 Stable Gate Drive Blairsville, GA 30514 Blairsville, GA 30512 You, CAROLE ANN SECHREST, 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 limited surety agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to chapter 648, Fla. Stat., you, CAROLE ANN SECHREST, are currently licensed in this state as a limited surety agent (2-34). Your license I.D. number is A237554. 2. At all times pertinent to the dates and occurrences referred to herein, you, CAROLE ANN SECHREST, were licensed in this state as a limited surety agent. 3. Pursuant to chapter 648, Fla. Stat., the Florida Department of Financial Services has jurisdiction over your limited surety licenses and appointments. COUNT 1 4. The allegations contained in paragraphs 1 through 3 are hereby realleged and fully incorporated by reference. 5. You, CAROLE ANN SECHREST, are currently not a resident of Florida. 6. In order to be a bail bond agent, which is defined to include a limited surety agent, and hold a limited surety agent license, you, CAROLE ANN SECHREST, must be a resident of this State. § 648.34(2)(b), Fla. Stat. (T IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension, revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Lacks one or more of the qualifications specified in chapter 648 for a license or appointment. [Section 648.45(2)(a), Florida Statutes]; and (b) A cause for which issuance of the license or appointment could have been refused had it then existed and been known to the department. [Section 648.45(3)(a). Florida Statutes]. COUNT II 7. The allegations contained in paragraphs 1 through 3 are hereby realleged and fully incorporated by reference. 8. You, CAROLE ANN SECHREST, failed to remit money you had collected on behalf of C.E. Parish General Agency, Inc. (“Parish General Agency”) in relation to Continental Heritage Insurance Company (Direct). 9, The amount you, CAROLE ANN SECHREST, failed to remit to Parish General Agency in relation to Continental Heritage Insurance Company (Direct) is approximately $84,276.92. Included in this amount were, or are, premiums owed to Continental Heritage Insurance Company. 10. You, CAROLE ANN SECHREST, failed to pay this amount after Parish General Agency made a formal demand for payment. IT IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]; (b) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; (c) Is guilty of misappropriation, conversion, or unlawful withholding 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]; (d) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]; (e) Has failed to perform a contractual obligation or agreement with a managing general agent or insurer which results in an unrecovered loss due to nonpayrnent of a forfeiture or judgment by the licensee. [Section 648.45(2)(m), Florida Statutes]; (fh Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]; (g) 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}; (h) 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]; (i) Failure or refusal, upon demand, to pay over to any insurer the bail bond agent represents or has represented any money coming into his or her hands which money belongs to the insurer. [Section 648.45(3)(d), Florida Statutes]; and qj) By violating section 645.295(1), Florida Statutes, which states all premiums, return premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds, Respondent violated a 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]. In fact, section 645.295(3), Florida Statutes, states that any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her own use commits larceny by embezzlement. COUNT III 11. The allegations contained in paragraphs 1 through 3 are hereby realleged and fully incorporated by reference. 12. You, CAROLE ANN SECHREST, failed to remit money you had collected on behalf of Parish General Agency in relation to Continental Heritage Insurance Company (Williams). 13. The amount you, CAROLE ANN SECHREST, failed to remit to Parish General Agency in relation to Continental Heritage Insurance Company (Williams) is approximately $30,237.13. Included in this amount were, or are, premiums owed to Continental Heritage Insurance Company. 14. You, CAROLE ANN SECHREST, failed to pay this amount after Parish General Agency made a formal demand for payment. IT IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business, [Section 648.45(2)(e), Florida Statutes]; (b) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; (c) Is guilty of misappropriation, conversion, or unlawful withholding 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]; (d) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]; (e) Has failed to perform a contractual obligation or agreement with a managing general agent or insurer which results in an unrecovered loss due to nonpayment of a forfeiture or judgment by the licensee. [Section 648.45(2)(m), Florida Statutes]; (fh Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]; (g) Has demonstrated a course of conduct or practices which indicate that the licensee is incornpetent, 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]; (h) 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]; (i) Failure or refusal, upon demand, to pay over to any insurer the bail bond agent represents or has represented any money coming into his or her hands which money belongs to the insurer. [Section 648.45(3)(d), Florida Statutes}; and Gj) By violating section 645.295(1), Florida Statutes, which states all premiums, return premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds, Respondent violated a 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]. In fact, section 645.295(3), Florida Statutes, states that any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her own use commits larceny by embezzlement. COUNT IV 15. The allegations contained in paragraphs 1 through 3 are hereby realleged and fully incorporated by reference. 16. You, CAROLE ANN SECHREST, failed to remit money you had collected on behalf of Parish General Agency in relation to Ranger Insurance Company. 17. The amount you, CAROLE ANN SECHREST, failed to remit to Parish General Agency in relation to Ranger Insurance Company is approximately $3,454.95. Included in this amount were, or are, premiums owed to Ranger Insurance Company. 18. You, CAROLE ANN SECHREST, failed to pay this amount after Parish General Agency made a formal demand for payment. IT IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes]; (b) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; (c) Is guilty of misappropriation, conversion, or unlawful withholding 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}; (d) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]; (e) Has failed to perform a contractual obligation or agreement with a managing general agent or insurer which results in an unrecovered loss due to nonpayment of a forfeiture or judgment by the licensee. [Section 648.45(2)(m), Florida Statutes]; (f) Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]; (g) 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]; (h) 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}; (i) Failure or refusal, upon demand, to pay over to any insurer the bail bond agent represents or has represented any money coming into his or her hands which money belongs to the insurer. [Section 648.45(3)(d), Florida Statutes]; and (j) By violating section 645.295(1), Florida Statutes, which states all premiums, return premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds, Respondent violated a 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]. In fact, section 645.295(3), Florida Statutes, states that any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her own use commits larceny by embezzlement. COUNT V 19. The allegations contained in paragraphs | through 18 are hereby realleged and fully incorporated by reference. 20. Onor around February 11, 2003, Ranger Insurance Company filed an Appointment Form with the Department, appointing you, CAROLE ANN SECHREST, as a bail bond agent. 21. Onthe Appointment Form, you, CAROLE ANN SECHREST, swore that you did not owe any premium to any insurer. 22. You, CAROLE ANN SECHREST, owed premiums to insurers. IT IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Has made a material misstatement, misrepresentation, or fraud in obtaining a license or appointment, or in attempting to obtain a license or appointment. [Section 648.45(2)(b), Florida Statutes]. COUNT VI 23. The allegations contained in paragraphs 1 through 18, and paragraph 20 are hereby realleged and fully incorporated by reference. 24. On the Appointment Form, you, CAROLE ANN SECHREST, swore that you would discharge all outstanding forfeitures and judgments on bonds that may have been previously written. 25. You, CAROLE ANN SECHREST, did not discharge all outstanding forfeitures and judgments on bonds that had been previously written. IT IS THEREFORE CHARGED that you, CAROLE ANN SECHREST, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the revocation or surrender of your limited surety agent license and appointments, and eligibility for licensure or appointment: (a) Has made a material misstatement, misrepresentation, or fraud in obtaining a license or appointment, or in attempting to obtain a license or appointment. [Section 648.45(2)(b), Florida Statutes}. WHEREFORE, you, CAROLE ANN SECHREST, 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 and bail bond agent or to impose such penalties as may be provided under the provisions of Sections 648.45, 648.49, 648.50, 648.52, 648.53, and 648.57, 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 Departrnent 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. 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 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 Admiristrative 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 ey day of Ove. 2004. (Ladle KAREN 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 have been furnished to CAROLE ANN SECHREST, by restricted U.S. Certified Mail, at the addresses identified in the Service List this {day of Cho , 2004. Khtleg Robert Alan Fox Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4106 Service List: CAROLE ANN SECHREST CAROLE ANN SECHREST P.O. Box 2224 2591 Stable Gate Drive Blairsville, GA 30514 Blairsville, GA 30512 13

Docket for Case No: 05-001444PL