FLORIDA DEPARTMENT OF FINANCIAL SERVICES FILED TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA JUN 3 2005 ? IN THE MATTER OF: fr Docketed by:. LINCOLN MEMORIAL GARDENS CaseNo” — 68717-05-FC OF OCALA, FLORIDA, Cemetery 68239-05-FC License Number 0300177 78587-05-FC 80705-05-FC CP 20021100482, EX20030200076, EX 20031200087,EX20040400013, EX20041200073 0) SLT Z 4 ADMINISTRATIVE COMPLAINT TO: Helen D. Cunningham, Registered Agent Lincoln Memorial Gardens Of Ocala, Florida 1913 N.W. 13" Place Ocala, Florida 34475 You, Lincoln Memorial Gardens of Ocala, Florida (hereinafter “Lincoln Memorial, ” “you,” or “‘your’’) are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made cemetery inspections, investigations, and examinations of your activities in connection with your cemetery company license. Based upon the reports of investigation, inspection and examination, probable cause was found to charge you with violations of Chapter 497, Florida Statutes, “The Funeral and Cemetery Services Act,” (hereinafter the “Act”). It is therefore alleged: GENERAL ALLEGATIONS 1. At all times relevant to the allegations of this Administrative Complaint, Lincoln Memorial operated a cemetery at 3035 N. W. Blitchton Road, Ocala, Florida. pursuant to the Act. 2. Pursuant to the Act, the Florida Board of Funeral and Cemetery Services, within the Department of Financial Services (hereinafter the “Department”), has jurisdiction over licensed cemetery companies in the State of Florida, and the subject matter of this proceeding. 3, Prior to 1987, Lincoln Memorial was authorized by the Department to sell preneed funeral and cemetery services and merchandise pursuant to the provisions of Section 497.405, Florida Statutes, and entered into many such contracts. 4. As a condition of authorization, a preneed seller must deposit a specified amount of money on every payment received into a trust account approved by the Department. The trust funds may not be withdrawn until the preneed contract is fulfilled or, under certain circumstances, cancelled. 5. Following a consumer complaint, the Department conducted an investigation of Lincoln Memorial (CP 20021100482), pursuant to the authority of Section 497.131, Florida Statutes. The Department also conducted an inspection (EX 20030200076) of Lincoln Memorial for the period December 28, 2001 through February 12, 2003 (hereinafter the “first inspection period”). Copies of the resulting reports were provided to you. 6. Based upon the foregoing reports, the Department’s panel found probable cause to charge Lincoln Memorial with violations of the Act. 7. Subsequently , the Department conducted an examination (EX20031200087) of Lincoln Memorial for the period December ], 2001 through September 30, 2003 (hereinafter the “first examination period”), an examination (EX20040400013) for the period October 1, 2003 through March 31, 2004 (hereinafter the “second examination period”), and an inspection of your cemetery (EX2004120073) on December 6, 2004 and January 7, 2005 (hereinafter the “second inspection period”). Copies of the resulting reports were provided to you. 8. You did not file an application for renewal of your cemetery company license in 2004, and you have not completed your application for renewal of your cemetery company license in 2005. 9. Based upon the foregoing reports, the Department’s panel found probable cause in April of 2005 to charge Lincoln Memorial with further violations of the Act. COUNT ONE 10. On September 5, 2001, the Department issued a Final Order directing Lincoln Memorial to cure a trust fund deficit within sixty days and pay an administrative fine in the amount of five thousand ($5,000) dollars. The deficit, in the amount of approximately fifteen thousand dollars ($15,000), was caused when Lincoln Memorial closed its preneed trust account and used the money for its personal needs. 11. Lincoln Memorial never complied with the Order. 12. The amount of thirteen thousand six hundred dollars ($13,600) that should have been trusted as of November 30, 2001, is still not trusted to date, and the fine has not been paid. IT IS THEREFORE CHARGED that you have violated or are accountable under Section 497.233(1)(b), Florida Statutes, failing to comply with a lawful order of the Department, which constitutes grounds for suspension or revocation of your license as a cemetery company. COUNT TWO 13. The above general allegations are hereby realleged and fully incorporated herein by reference. 14. Cemetery companies are required to keep accurate records of each burial in the cemetery, including the date of burial and the name of the person buried, together with lot, plot and space in which the burial was made. 15. On November 28, 1974, you sold and conveyed grave spaces number | and 2, Lot 41, Section A, Unit 2 of Lincoln Memorial Gardens of Ocala, Florida to JB and his wife RB. 16. On or about June 10, 1995, you interred FT, who was unrelated to either JB or RB. 17. When JB died in November of 2002, you discovered that FT’s grave encroached two feet onto JB’s burial space. There is insufficient room to inter both JB and RB in the remaining space. 18. Rather than disturbing FT’s family and loved ones by disinterring and moving FT’s body, RB agreed to accept two different interment spaces for herself and her husband. 19. You have a duty to comply with the laws and rules of this state, and the standards of the cemetery profession. You breached that duty when you interred FT and in so doing encroached two feet into JB’s space. That breach caused harm to RB who was required to choose between disrupting FT’s family and loved ones, and contracting for two different spaces at atime of great sadness. It IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Negligent operation of a cemetery. [Section 497.233(1)(j), Florida Statutes]; (c) Failing to keep accurate burial records. [Section 497.309, Florida Statutes]. COUNT THREE 20. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 21. The Department’s first inspection revealed that you initially keep Lincoln Memorial’s burial records in a notebook and transfer the information to a record book at a later time. At the time of the first inspection, February 12, 2003, you had not updated your record book since the year 2000. 22. An examination of the notebook for the first inspection period revealed that on at least six occasions, you failed to note the Jot number and grave space of the interment. The details of the six occasions were provided to you in the first inspection report. {T IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; b) Failing to keep accurate burial records. [Section 497.309(1), Florida Statutes]. COUNT FOUR 23. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 24. Cemetery companies are required to ensure that the cemetery grounds, structures, and other improvements of the cemetery are well cared for and maintained in a proper and dignified condition. 25. The Department’s first inspection revealed that you had allowed debris to accumulate on the cemetery grounds. Detailed pictures of the debris were provided to you in the first inspection report. 26. Many of the markers in the cemetery were misaligned. Detailed pictures were provided to you in the first inspection report. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to maintain the cemetery grounds and structures in a proper and dignified condition. [Sections 497.0255 and 497.005(8), Florida Statutes]. COUNT FIVE 27. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 28. To ensure the availability of funds to maintain their cemeteries in perpetuity, cemetery companies must establish a care and maintenance trust fund. Ten percent (10%) of the sale price of every right of burial must be deposited into the fund, and the income can only be withdrawn to pay for the care and maintenance of the cemetery and monuments. 29. During the first inspection period, you made an estimated seventy-one (71) sales of burial rights at a price of five hundred dollars ($500.00) each. 30. You failed to deposit the required amount into your care and maintenance trust fund for the burial rights sold during the first inspection period, and you made unauthorized withdrawals from the corpus of the trust. 31. Your failure to adequately fund the care and maintenance trust fund resulted in a deficit to that fund during the first inspection period of approximately one thousand three hundred dollars ($1,300). IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes); (b) Failing to deposit ten percent of the sale price of each burial right sold by the cemetery company into the care and maintenance trust fund for the sale of every burial right. [Section s 497.233(1)(d) and 497.2457, Florida Statutes, and Fla. Admin. Code R. 69K-7.001]; (c) Withdrawing any portion of the corpus of the care and maintenance trust fund without first obtaining written consent from the Department. [Section 497.237(3), Florida Statutes]. COUNT Six 32. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 33. A written contract for burial rights must be entered into between the cemetery company and the purchaser which documents all pertinent information relative to the transaction. 34. Several contracts entered into by Lincoln Memorial during the first examination period, as set forth with specificity in the examination report previously provided to you, failed to include pertinent information, including the purchaser’s name, burial selections and customer signatures. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Written contracts for burial rights must contain all information pertinent to the transaction. [Fla. Admin. Code R. 69K-6.0054(1)]. COUNT SEVEN 35. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 36. The Act requires that accurate records be kept of every burial in a cemetery of a cemetery company, showing the date of burial and the name of the person buried, together with lot, plot and space in which the burial was made. 37. Many burials conducted by Lincoln Memorials during the first examination period were not adequately recorded, as specifically set forth in the examination report previously provided to you. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to maintain adequate records of every burial in the cemetery. [Section 497.309(1), Florida Statutes]. COUNT EIGHT 38. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 39. Cemetery companies are required to keep burial records that accurately reflect the location of the burial in the cemetery. 40. Cemetery companies have a duty to operate within the Act and professional standards. 41. Many bodies buried during the first examination period, as specified in the examination report previously provided to you, were not interred in the location purchased for the burial, or specified in the cemetery’s burial records. 42. By failing to inter the deceased in the burial space purchased for the purpose, Lincoln Memorial has breached its duties under the Act and under the cemetery profession. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to maintain accurate records of every burial in the cemetery. [Section 497.309(1), Florida Statutes]; (c) Negligently operating a cemetery. {Section 497.233(1)(j), Florida Statutes]. COUNT NINE 43. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 44. Accurate accounts receivable records pertaining to each individual purchase must be kept by a cemetery company. The record must contain all relevant information. 45. | Twocontracts were identified during the first examination period that conflicted with the corresponding accounts receivable records. These contracts and accounts receivable records were specified in the examination report provided to you. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (b) Failing to keep accurate accounts receivable records. [Fla. Admin. Code R. 69K- 6.0051(1)]; (c) Failing to state the accurate sales price and terms on contracts made between the cemetery company and the purchaser. [Fla. Admin. Code R. 69K-6.0054(1)]. COUNT TEN 46. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 47. Every cemetery company must set aside and deposit in a care and maintenance trust fund an amount specified in the Act for the sale of burial rights within thirty days following the close of the calendar month in which payment was received. 48. Only the net income of the care and maintenance trust fund can be used to pay the costs of administering the trust fund. 49. Lincoln Memorial received sums from the sale of burial rights during the first examination period, as specified in the examination report provided, but failed to deposit sufficient money into the care and maintenance trust fund on account of those sales. 50. Lincoln Memorial used the corpus of its existing care and maintenance trust fund to pay the expenses of administering the fund during the first examination period, as specified in the examination report provided. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to remit the required amounts to any trust fund required by this chapter. [Sections 497.233(1)(d) and 497.245, Florida Statutes, and Fla. Admin. Code R. 69K-7.001]; (c) Using the corpus of the care and maintenance trust fund for an unauthorized purpose. [Section 497.237(3), Florida Statutes]. COUNT ELEVEN 51. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 52. Written contracts made between the cemetery company and the purchaser shall be serially numbered and filed in numerical sequence. The contracts must be maintained for inspection by the Department. 53. During the first examination period, you could not produce eight of the serially nurnbered contracts entered into by you, as specified set forth in the examination report previously provided to you. 11 IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (b) Failing to maintain written contracts for burial rights for inspection by the Department. [Fla. Admin. Code R. 69K-6.0054(1)]. COUNT TWELVE 54. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 55. Cemetery companies are required to maintain complete and accurate burial records by the Act. 56. During the second examination period, the Department determined that you continued to keep a temporary notebook with burial information that is later supposed to be transferred to your Burial Record Book; however, as of the date of the second examination, April 15-19, 2004, your Burial Record Book has not been updated since September of 2003. 57. Many of the entries in your temporary notebook continued to be incomplete during the second examination period. For example, your notation for CBO, buried December 6, 2003, contract number 2388, does not contain a plot or space number. Your notation for JMN, contract number 2389, does not contain a date of burial, lot or space number. Your entry for EP, contract number 2395, buried on January 24, 2004, does not contain a Jot or space number. The entry for ML, contract number 2396, does not contain a date of burial. Your entry for LB, contract number 2397, does not contain a date of burial, lot or space number. Your notation for LB, contract number 2398, does not contain a date of burial, and your entry for DM doesn’t contain a date of burial, lot, space or contract number. If IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failure to maintain complete and accurate burial records. [Section 497.309(1), Florida Statutes]. COUNT THIRTEEN 58. | The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 59. Cemetery companies are required by the Act to safeguard their burial records. 60. During the second examination, you were unable to produce your Burial Record Book because it was in the office manager’s vehicle. One of the burial record books was stored on top of the filing cabinets. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Failing to keep a record of every burial in the cemetery in a secure manner. [Section 497.309(1), Florida Statutes; Fla. Admin. Code R. 69K-6.004]. COUNT FOURTEEN 13 61. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 62. Cemetery companies must ensure that the cemetery grounds are maintained in a proper and dignified condition, including mowing the lawn. 63. The second examination revealed that the cemetery grounds continued to be unkempt; specifically, the grass in the Garden of the Holy Bible needed mowing. Even after you were notified about the condition, the grass was not mowed. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Failing to maintain the cemetery grounds in a proper and dignified condition. [Sections 497.0255 and 497.497.005(8), Florida Statutes; Fla. Admin. Code R. 69K-6.002]. COUNT FIFTEEN 64. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 65. Cemetery companies are required to keép burial records that accurately reflect the location of the burial in the cemetery, as well as a duty to operate within the Act and professional standards. 66. The second examination revealed that some of the records continued to inaccurately reflect the location of burials in the cemetery. 67. Many bodies buried during the second examination period, as specified in the examination report previously provided to you, were not interred in the location purchased for the burial, or specified in the cemetery’s burial records. 68. By failing to inter the deceased in the burial space purchased for the purpose, Lincoln Memorial has breached its duties under the Act and under the cemetery profession. Tr IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to maintain accurate records of every burial in the cemetery. [Section 497.309(1), Florida Statutes]; (c) Negligently operating a cemetery. [Section 497.233(1)(j), Florida Statutes]. COUNT SIXTEEN 69. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 70. Written, serially prenumbered contracts must be entered into for every sale of burial right by a cemetery company. This is an important internal contro] device established by rule of the Department. 71. The prenumbered contracts must be maintained in contract number order for examination by the Department. 72. You were unable to produce or account for some of the serially prenumbered contracts you entered into during the second examination period that were requested by the Department 15 73. You entered into two contracts with identical contract numbers during the second examination period. The contracts were written for the burials of two different people. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497 .233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Failing to produce a written contract for every sale of a burial right. [Section 497.309, Florida Statutes; Fla. Admin. Code R. 69K-6.005]; (d) Failing to enter into a written contract for every sale of a burial right. [Section 497.309, Florida Statutes; Fla. Admin. Code R. 69K-6.0054]; (e) Failing to keep accurate burial and financial records. [Section 497.309, Florida Statutes). COUNT SEVENTEEN 74. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 75. A cemetery company is required to provide a current copy of its bylaws upon request to its customers, and to the Department. 76. A current price list must be available for distribution to customers, and to the Department. TT. During the second inspection, you had neither bylaws nor a current price list available for distribution to customers. 16 IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Failing to provide a current copy of the bylaws upon request. [Section 497.333(5), Florida Statutes; Fla. Admin. Code R. 69K-6.005(4)]; (d) Failing to provide a current price list upon request. [Section 497.333(4), Florida Statutes; Fla. Admin. Code R. 69K-6.005(2)}. COUNT EIGHTEEN 78. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 79. During the second inspection, the Department determined that you still have not updated your Burial Record Book, as specifically set forth in the second inspection report previously provided to you. 80. During the second inspection, the Department determined that you continue to maintain inaccurate burial records, as specifically set forth in the second inspection report previously provided to you. 81. During the second inspection, the Department determined that your cemetery maps have not yet been updated, and continue to be unreliable for determination of burials. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: 17 (a) Violating any provision of the Act. {Section 497.233(1)(a), Florida Statutes]; (b) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (c) Failing to keep accurate burial records. {Section 497.309, Florida Statutes]. COUNT NINETEEN 82. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 83. Pursuant to the Act, all graves in a cemetery must be covered by at least twelve (12) inches of sod and soil. 84. During the second inspection, the Department determined Lincoln Memorial buried EB in the cemetery, but failed to cover her grave with the minimum amount of sod and soil. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; (b) Failing to ensure that each grave is covered by a minimum of twelve inches of sod or soil. [Fla. Admin. Code R. 69K-6.008]. COUNT TWENTY 85. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 86. During the second inspection, the Department determined that Lincoln Memorial continues to have incomplete and inaccurate burial records, and that bodies are not buried in the 18 locations reflected in the burial records, as specifically set forth in the inspection report previously provided to you. 87. You have a duty to operate your cemetery company in accordance with the Act, the Department’s rules, and the standards of the cemetery profession. 88. You breached your duty when you failed to keep accurate records of burials in your cemetery, so that the location of bodies in the cemetery cannot be located. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any provision of the Act. [Section 497.233(1)(a), Florida Statutes]; (b) Failing to keep accurate burial records. [Section 497.309, Florida Statutes]; (c) Negligence in the operation of a cemetery. [Section 497.233(1)(j), Florida Statutes]. COUNT TWENTY-ONE 89, The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 90. Lincoln Memorial was served with an emergency suspension order on February 4. 2004, that prohibited you from conducting interments except for those interments where the grave or mausoleum space was purchased prior to the date of the order, or the deceased was the spouse of predeceased husband or wife already buried in the cemetery, and an adjacent space was available for interment. 91. On September 28, 2004, you entered into contract number 2410 with Charlyine Kimble for the interment of Jerome Ingram, who was interred in Martin Luther King Garden C, lot 128, space 1, on October 2, 2004. 92. Mr. Ingram’s spouse was not interred in an adjacent space. Tr IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: (a) Violating any rule or order of the Department. [Section 497.233(1)(b), Florida Statutes]; COUNT TWENTY-TWO 93. The above general and specific allegations are hereby realleged and fully incorporated herein by reference. 94. Over the course of several years, Lincoln Memorial has continuously violated the Act despite repeated admonition from the Department. The violations are contrary to law and the standards of the cemetery profession. 95. The only logical explanations for Lincoln Memorial’s continuous failure to maintain complete and accurate burial and financial records and inability to account for the location of bodies in the cemetery, are negligence, incompetence or misconduct. 96. Lincoln Memorial’s conduct as set forth above has harmed and continues to threaten harm to the families and loved ones of those buried and to be buried in the cemetery. IT IS THEREFORE CHARGED that you have violated or are accountable under the following provisions of the Act which constitute grounds for discipline, including the suspension or revocation of your license as a cemetery company: 20 (a) Incompetence or misconduct in the operation of a cemetery company. {Section 497.233(1)(i), Florida Statutes}; (b) Negligence in the operation of a cemetery company. [Section 497.233(1)(@), Florida Statutes]. WHEREFORE, you are hereby notified that the Department intends to enter an Order suspending or revoking your license and imposing such penalties as may be provided under the provisions of Subsection 497.233(2), Florida Statutes, and under the provisions of Fla. Admin. Code Chapter 3F-11. 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. The Department must receive your written response 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 21 the attached Election of Proceedings 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 cal] 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. 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. 22 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. 4, rey her KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to Lincoln memorial Gardens of Ocalg, Florida, 1913,N.W. 13" Place, Ocala, Florida 34475 by U.S. Certified Mail this ¢ Pate day o , 2005. Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4110 Fla. Bar No. 0297569 23 STATE OF FLORIDA “% i ba, DEPARTMENT OF FINANCIAL SERVICES “ ve ty j IN THE MATTER OF: I rye °S 6 ax, LINCOLN MEMORIAL GARDENS Case No: Gs a7 OF OCALA, FLORIDA, Cemetery 68239-05-FC License Number 0300177 78587-05-FC 80705-05-FC CP 20021100482, EX20030200076, EX 20031200087, EX20040400013, EX2004 1200073 ELECTION OF PROCEEDING [have received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (Choose one) 1. [ ] Idonot dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate. 2. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard, I desire to (Choose one): [ ] Submit a written statement and documentary evidence in lieu of a hearing; or [ ] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or { ] Attend that same hearing by way of a telephone conference call. 3. [ ] Ido dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVIES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THEDEPARTMENT NO 24 LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: Address: Certified Article Number ?7LEO 3901 9848 4434 Se00 SENDERS RECORD: |: 25

Docket for Case No: 05-002729