Jun 29 2005 16:19 06/29/2085 16:19 98584874947 LEGAL SERVICES PAGE 83 me FLORIDA FINANCIAL SERVICES TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 78905-05-AG JOSEPH JOHN FIGURA a ADMINISTRATIVE COMPLAINT TO: JOSEPH JOHN FIGURA 1412 Southeast 17th Terrace Deerfield Beach, Florida 33441 JOSEPH JOHN FIGURA Coverall Insurance Consultants, Inc. 5800 West Atlantic Boulevard Margate, Florida 33063 You, JOSEPH JOHN FIGURA, license ID. #4083858, 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 1 Pursuant to Chapter 626, Florida Statutes, you, JOSEPH JOHN FIGURA, are currently licensed in this state as a Life (2-16), Life & Health (2-18), General Lines (Prop. & Cas.) (2-20), Health (2-40) Agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, JOSEPH JOHN FIGURA, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appoimtments. Jun 29 2005 16:20 @6/29/2085 16:19 9584874987 LEGAL SERVICES PAGE 84 4, At all times material to the dates and occurrences herein, you, JOSEPH JOHN FIGURA, did represent and aid an entity known as AES in transacting insurance business in the state of Florida. At no time material to the dates and occurrences herein did AES possess a certificate of authority from the Florida Department of Financial Services to engage in the business of insurance as an insurer, nor was it otherwise in any way licensed to act in the insurance business. COUNTI 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. In or atound April 2002, you, JOSEPH JOHN FIGURA, as a licensed insurance agent, sold to BM workers compensation insurance coverage for two separate companies which he then owned, being Modesitt General Contractors, Inc. and Ocean Breeze Foreign Concepts, Inc. BM then and thereafter caused premium payments to be furnished to you for such insurance coverage as you had instructed. Thereafter, and upon request by BM, you issued to him. certificates of insurance, which were false and fraudulent, certifying that Modesitt General Contractors, Inc. had been afforded workers compensation insurance coverage by Great American Insurance Company and First Commercial Mutual Company for the period 4/29/02 through 4/29/03, and you further certified that Ocean Breeze Foreign Concepts, Inc. had been issued workers compensation insurance coverage by T.H.P. Insurance Company and First Commercial Mutual for the period from 4/29/02 through 4/29/03. In fact, no valid workers compensation coverage was ever in effect for either of his companies provided by the companies as you had otherwise certified or by any other authorized insurance company. Jun 29 2005 16:20 66/29/2805 16:19 8584874987 LEGAL SERVICES PAGE @5 IT IS THEREFORE CHARGED that you, JOSEPH JOHN FIGURA, 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 eligibility as an insurance agent: a. To knowingly make or cause to be made, any false, fraudulent or misleading error or written statement for the purpose of obtaining or denying any benefit or payment under workers compensation law. {Section 440.105(4)(b), Florida Statutes]; b. If the license or appointment is willfully used, or to be used, to circumvent any of the requixements or prohibitions of the Insurance Code. [Section 626.611 (4), Florida Statutes); c. Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract, done either in person or by aty form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; d Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes); e. Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; f. No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to sections 626.951 or 626.9561 to be a deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; and g. No agent shall make or issue a contract of workers compensation insurance except in accordance with provisions of applicable law. [Section 627.191, Florida Statutes]. h. Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; and Jun 29 2005 16:20 @6/29/2685 16:19 8584874987 LEGAL SERVICES PAGE 46 1. 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]. COUNT 0 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. In or around July 2002, BM, to whom you had sold workers compensation coverage for two companies owned by him, leamed through an entity known as AES that no valid workers compensation insurance coverage existed as you had otherwise certified to him. Upon inquiry, the said BM was informed by you that his workers compensation insurance coverage for his companies had not been placed through insurance companies as you had previously certified to him but, rather, bad been effected through your collaboration and utilization of an entity known as AES purportedly under a policy issued to it and under which BM's companies had been named as additional insureds. In fact, at all times material, AES was not authorized or otherwise licensed to conduct insurance business in the state of Florida, nor did it at any time maintain any insurance policy coverage which afforded to BM's companies any insurance coverage as named additional insureds. Your relationship with AES and your professed utilization of this entity to afford workers compensation insurance coverage to companies owned by BM was at all times a scheme to defraud hum of insurance premium moneys which he furnished to you as payment for non-existent insurance coverage. IT IS THEREFORE CHARGED that you, JOSEPH JOHN FIGURA, 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 eligibility as an insurance agent: Jun 29 2005 16:21 @6/29/2885 16:19 8504874987 LEGAL SERVICES PAGE 4? a To knowingly make or cause to be made, any false, fraudulent or misleading error or written statement for the purpose of obtaining or denying any benefit or payment under workers compensation law. [Section 440.105(4)(b), Florida Statutes]; d. If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of the Insurance Code, [Section 626.611 (4), Florida Statutes}; c. Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; d, Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; e. Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes}; f. No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to sections 626.951 or 626.9561 to be a deceptive act or practice involving the business of insurance. [Section 626.9521(1), Flonda Statutes]; and g. No agent shall make or issue a contract of workers compensation insurance except in accordance with provisions of applicable law. [Section 627.191, Florida Statutes]. h. 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]. COUNT NI 9. The above general allegations are hereby realleged and fully incorporated herein by reference. Jun 29 2005 16:21 06/29/2885 16:19 8584874987 LEGAL SERVICES PAGE 68 10. nor around Apmil 2002, you, JOSEPH JOHN FIGURA, as a licensed insurance agent, ostensibly sold to BM workers compensation insurance coverage for two companies owned by him, namely, Modesitt General Contractors, Inc. and Ocean Breeze Foreign Concepts, Inc. You thereafter collected and received from him insurance premium moneys for such coverage, thereafter sharing same with an entity known as AES, which was neither an authorized insurance company nor otherwise licensed to conduct any form of insurance business in the state of Florida. You, JOSEPH JOHN FIGURA, by providing premium moneys to AES aided and abetted an unauthorized entity to engage in the business of insurance in the state of Florida. IT IS THEREFORE CHARGED that you, JOSEPH JOHN FIGURA, 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 eligibility as an insurance agent: a. To knowingly make or cause to be made, any false, fraudulent or misleading or written statement for the purpose of obtaining or denying any benefit or payment under workers compensation law. [Section 440.105(4)(b), Florida Statutes]; b. If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of the Insurance Code. [Section 626.611 (4), Florida Statutes]; G. Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes}; d. Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; e. Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; Jun 29 2005 16:21 @6/29/2885 16:19 8584874987 LEGAL SERVICES PAGE 489 nd —/ £ No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to sections 626.951 or 626.9561 to be a deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; and g. No agent shall make or issue a contract of workers compensation insurance except in accordance with provisions of applicable law. [Section 627.191, Florida Statutes]. hb. Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; and i. 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]. j. No person shall, from offices or by personnel or facilities located in this state, or in any other state or country, directly or indirectly act as agent for, or otherwise represent or aid on behalf of another any insurer not then authorized to transact such insurance in this state. [Section 626.901(1), Florida Statutes. k. Any insurance agent licensed in this state who in this state knowingly represents of aids an unauthorized insurer in violation of s. 626.901 commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or 8. 775.084. [Section 626.902(1)(b), Flonda Statutes]; COUNT IV 11. The above general allegations are hereby realleged and fully incorporated herein by reference. 12. Inor about April 2002, you, JOSEPH JOHN FIGURA, as a licensed insurance agent, ostensibly sold to BM workers compensation insurance coverage for two companies owned by him, namely, Modesitt General Contractors, Inc. and Ocean Breeze Foreign Concepts, Inc. You thereafter falsely and fraudulently collected and received from him excessive, Jun 29 2005 16:22 86/29/2885 16:19 8584874987 LEGAL SERVICES PAGE 18 unwarranted and unauthorized premium moneys which you then proceeded to misappropriate, convert and disburse to your own personal use and benefit. IT IS THEREFORE CHARGED that you, JOSEPH JOHN FIGURA, 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 To knowingly make or cause to be made, any false, fraudulent or misleading error or written statement for the purpose of obtaining or denying any benefit or payment under workers compensation law. [Section 440.105(4)(b), Florida Statutes]; b. If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of the Insurance Code. [Section 626.611 (4), Florida Statutes]; c. Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; d. Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; e, Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; f. No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to sections 626.951 or 626.9561 to be a deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; and 2g. No agent shall make or issue a contract of workers compensation insurance except in accordance with provisions of applicable law. [Section 627.191, Florida Statutes]. Jun 29 2005 16:22 @6/29/2085 16:19 9584874987 LEGAL SERVICES PAGE 11 h. Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; and i. 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]. COUNT V 13. Inor around December 10, 2001, you, JOSEPH JOHN FIGURA, as a licensed insurance agent, sold to GD workers' compensation coverage for his company, RFJD Holding Co., Inc. GD then and thereafter caused premium payments to be furnished to you for such insurance coverage payable to cover all insurance as you had instructed. In fact, no valid workers' compensation coverage was ever in effect for his company provided by any authorized insurance company. In July 2002, an employee of RFID Holding Co., Inc. filed a workers’ compensation claim and it was then discovered that no valid workers’ compensation coverage was in effect through any authorized insurance company as you had otherwise represented to GD. IT IS THEREFORE CHARGED that you, JOSEPH JOHN FIGURA, 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 To knowingly make or cause to be made, any false, fraudulent or misleading error or written statement for the purpose of obtaining or denying any benefit or payment under workers compensation law. [Section 440.105(4)(b), Florida Statutes]; b. Tf the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of the Insurance Code. [Section 626.611 (4), Florida Statutes]; Jun 29 2005 16:22 96/29/2285 16:19 8584874987 LEGAL SERVICES PAGE 12 c. Willful misrepresentation of any isuxance policy or annuity contract or willful deception with regards to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes]; d. Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; é. Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; f. No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to sections 626.951 or 626.9561 to be a deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; and 2. No agent shall make or issue a contract of workers compensation insurance except in accordance with provisions of applicable law. [Section 627.191, Florida Statutes]. h. Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; and i, 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]. WHEREFORE, you, JOSEPH JOHN FIGURA, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. 10 Jun 29 2005 16:22 46/29/2885 16:19 8584874987 LEGAL SERVICES PAGE 13 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 wniting, 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; (6) 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 cal] and i Jun 29 2005 16:23 @6/29/2@85 16:19 8524874987 LEGAL SERVICES PAGE 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 roust 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. Al 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/s%__ day of Nz » , 2005. Deputy Chief Financial Officer 12 14 Jun 29 2005 16:23 Q6/29/2885 16:19 8584874987 LEGAL SERVICES PAGE 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 JOHN FIGURA, 1412 Southeast 17th Terrace, Deerfield Beach, Florida 33441; JOSEPH JOHN FIGURA, Coverall Insurance Consultants, Inc., 5800 West Atlantic Boulevard, Margate, Florida 33063, by Certified Mail this 3/ day of May, 2005. Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 Florida Bar Number 0001959 13 15

Docket for Case No: 05-002344PL