FLORIDA DEPARTMENT OF FINANCIAL SERVICES W007, ~7 anbl TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO, 82882-05-AG JOHN CHRISTOPHER GEE OS - 3077 pe ADMINISTRATIVE COMPLAINT TO: JOHN CHRISTOPHER GEE 3800 Beverly Drive West Palm Beach, Florida 33406 JOHN CHRISTOPHER GEE c/o Atlantic Insurance Services Inc. DBA City Insurance Services 4064 Forest Hills Boulevard, Suite 1 West Palm Beach, Florida 33406-5726 JOHN CHRISTOPHER GEE 7811 West Lake Drive © West Palm Beach, Florida 33406-8743 & JOHN CHRISTOPHER GEE c/o Orrin R. Beilly, Esquire 105 South Narcissus Avenue, # 105 West Palm Beach, Florida 33401 You, JOHN CHRISTOPHER GEE, 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. You, JOHN CHRISTOPHER GEE, are currently licensed in the state as a general lines insurance agent. 2. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint you, JOHN CHRISTOPHER GEE, were licensed as an insurance agent in this state, 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, you, JOHN CHRISTOPHER GEE, were an officer and director for Atlantic Insurance Services, Inc., a Florida corporation, doing business in this state as an insurance agency also under the name of City Insurance Services. 4. As an officer and director for Atlantic Insurance Services, Inc., you, JOHN CHRISTOPHER GEE, knew or should have known of the activities of employees under your direct supervision and control, and you were responsible and accountable for all of the activities of the staff at the agency location described above for the times and occurrences as hereafter presented. References to you, JOHN CHRISTOPHER GEE, include persons acting under your direct supervision and control at the agency location described above. 5. At all times pertinent to the dates and occurrences referred to herein, Paul Venturelli was a licensed general lines agent and Primary Agent for Atlantic Insurance Services, Inc., and an officer and director for Atlantic Insurance Services, Inc. 6. At all times pertinent to the dates and occurrences referred to herein, Denise Ortiz was employed by Atlantic Insurance Services, Inc. Ms. Ortiz did not, during those dates and 2 occurrences, hold a Florida insurance license, but you, JOHN CHRISTOPHER GEE, knowingly and willfully allowed her to transact insurance business on behalf of Atlantic Insurance Services, Inc. 7. You, JOHN CHRISTOPHER GEE, knowing that Denise Ortiz was not licensed to act as an insurance agent, willfully authorized her to give insurance quotations over the telephone, take applications, explain coverage, accept premium payments and otherwise transact insurance for all pertinent time periods addressed in this Administrative Complaint. 8. At all times pertinent to the dates and occurrences referred to herein, Denise Ortiz was directed by you, JOHN CHRISTOPHER GEE, to sell motor club plans to insurance purchasers. Accordingly, “sliding” was routinely practiced whereby the purchaser of motor vehicle insurance was sold ancillary products without their informed consent. 9. At all times pertinent to the dates and occurrences referred to herein, you, JOHN CHRISTOPHER GEE, were a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services.” 10. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, JOHN CHRISTOPHER GEE, pursuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were to be paid over to persons entitled thereto in the regular course of business. 11. On or about January 6, 1997, a Letter of Guidance from the Department of Insurance was issued against you, JOHN CHRISTOPHER GEE, for you allegedly charging a consumer for an ancillary coverage without consent. On or about J anuary 10, 2000, another Letter of Guidance from the Department of Insurance was issued against you, JOHN 3 CHRISTOPHER GEE, for you allegedly charging a consumer for an ancillary coverage without consent, financing a consumer’s premium without the consumer’s knowledge, failing to request reinstatement of a consumer’s commercial policy causing the consumer to suffer an uninsured loss, and failing to refund a consumer’s unearned premium ina timely or complete manner. On or about June 11, 1997, a Consent Order was issued against you, JOHN CHRISTOPHER GEE, by the Department of Insurance for violations of the insurance code. The Consent Order required you, JOHN CHRISTOPHER GEE, to pay an administrative fine of five hundred ($500.00) dollars and to cooperate in the Department’s investigation against other individuals. COUNT I 12. Paragraphs one through eleven are realleged and incorporated herein by reference, 13. On March 5, 2003, Robin Bunce went to City Insurance Services to purchase motor vehicle insurance. On that day, Ms. Bunce signed an application for motor vehicle insurance coverage to be placed with Ocean Harbor Casualty Insurance Company for a stated annual premium of six hundred thirty-seven ($637.00) dollars, including the policy fee. Despite the fact that Denise Ortiz solicited and otherwise transacted this insurance coverage, the application was signed by you, JOHN CHRISTOPHER GEE, as the “agent” for this insurance transaction. 14. Ms. Bunce paid cash in the amount of two hundred ten ($210.00) dollars as a premium down payment for this insurance coverage, with the remaining four hundred twenty- seven ($427.00) dollars of premium to be financed with ETI Financial Corporation. At the time of this transaction Ms. Bunce did not know that she had purchased any other product. It was her understanding that the entire down payment was to apply to his motor vehicle insurance, Despite this, on the premium finance agreement signed by you, JOHN CHRISTOPHER GEE, the down 4 payment and unpaid balance were entered as one hundred sixty ($160.00) dollars and four hundred seventy-seven ($477.00) dollars, respectively. 15. | On March 27, 2003, Ms. Bunce decided to cancel her aforementioned motor vehicle insurance, You, JOHN CHRISTOPHER GEE, as a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services,” and pursuant to your Producing Agent’s Agreement with Ocean Harbor, were required to return all unearned premium and commissions to Ms. Bunce within thirty (30) days of the effective date of policy cancellation. However, on or about May 13, 2003, you, JOHN CHRISTOPHER GEE, sent Ms. Bunce an untimely and incomplete refund in the amount of one dollar and eighty cents ($1.80). On July 7, 2003, and only after Ms. Bunce filed a complaint with the Department of Financial Services, Division of Consumer Services, you, JOHN CHRISTOPHER GEE, sent Ms. Bunce an additional refund check in the amount of fifty-one ($51.00) dollars, more than three (3) months after the effective date of her policy cancellation. Therefore you, JOHN CHRISTOPHER GEE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Robin Bunce. 16. Ms. Bunce did not initially understand why she was “overcharged” in the amount of fifty ($50.00) dollars for her down payment, given that a down payment of one hundred sixty ($160.00) dollars was reflected on her premium finance agreement despite her possession of a receipt as proof of her actual two hundred ten ($210.00) dollar down payment. Ms. Bunce later found out that those fifty ($50.00) dollars went toward the purchase of an alleged motor club plan. The alleged motor club plan consisted only of a quarter page application entitled “Preferred Auto Protection” that displayed Ms. Bunce’s actual si gnature and home address, a description of her motor vehicle, and a one year effective date. However, the Total Fee” section 5 on Ms. Bunce’s copy of the motor club application was left conspicuously blank. Despite the existence of her signature on the application, Ms. Bunce had no prior knowledge of the alleged motor club application or its cost, and was never given a copy of the alleged motor club application, never gave her informed consent to purchase such a product, and would not have purchased such a product had she been made aware of its existence and availability. Further, subsequent to the unknown submission of the motor club application, Ms. Bunce never received any notice of acceptance by the motor club provider, any type of motor club policy or description of benefits, any type of motor club identification card, any type of motor club telephone number or other means of communication to request service, or any other tangible piece of evidence that could make Ms. Bunce aware that she had a motor club membership. In fact, according to the Florida Department of State, Division of Corporations, the entity entitled “Preferred Auto Protection” has been defunct since October 16, 1998. Therefore you, JOHN CHRISTOPHER GEE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Robin Bunce. 17, You, JOHN CHRISTOPHER GEE, either implicitly or explicitly, gave your full consent to the transactions described in this count. IT IS THEREFORE CHARGED that you, JOHN CHRISTOPHER GEE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course 6 of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard 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]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (e) 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. [Section 626.611(10), Florida Statutes]; (f) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (g) 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. [Section 626.621(12), Florida Statutes]; (h) Any general lines insurance agent who is an officer, director, or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his or her direct supervision and control while acting on behalf of the corporation. [Section 626.734, Florida Statutes]; (i) Knowingly collecting any.sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code, [Section ; 626.9541(1)(0)1, Florida Statutes]; (j) Sliding is the act or practice of: Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. [Section 626.9541(1)(z)3, Florida Statutes]. COUNT II 18. Paragraphs one through eleven are realleged and incorporated herein by reference. 19. On May 7, 2001, Cheryl Kersten went to City Insurance Services to purchase homeowner’s insurance. On that day, Mrs. Kersten met with you, JOHN CHRISTOPHER GEE, and wrote a check for eight hundred fifteen ($815.00) dollars to City Insurance Services representing down payments for homeowner’s policies to be placed with Florida Windstorm Underwriting Association (FWUA) for coverage for windstorm damage and American Strategic Insurance Corporation (ASI) for the remaining homeowner’s risks. Both policies were signed by you, JOHN CHRISTOPHER GEE, as the “agent” for this insurance, 20. In June, 2001, Mrs. Kersten was informed by ASI that Paul Venturelli submitted an incorrect Cost Estimator for her homeowner’s insurance to ASI. Mrs. Kersten was then informed that ASI would cancel her homeowner’s policy effective July 19, 2001, if City Insurance Services did not forward additional necessary information relating to the incorrect Cost Estimator to ASI. Mrs. Kersten immediately contacted City Insurance Services and spoke 8 with you, JOHN CHRISTOPHER GEE, and you assured Mrs. Kersten that you would “take care of everything.” 21, In March, 2002, Mrs. Kersten, assuming that her ASI policy was still in effect, contacted ASI to ask some questions regarding her policy renewal. At that time, ASI informed Mrs. Kersten that her homeowner’s policy had been canceled on July 19, 2001, due to City Insurance Services’ failure to submit the aforementioned necessary information. As a result of that policy cancellation, ASI sent to City Insurance Services a refund check payable to City Insurance Services, Inc., in the amount of two hundred fifty-seven dollars and twenty-eight cents ($257.28) representing unearned premiums owed to Cheryl Kersten. 22. Mrs. Kersten immediately sought that refund plus any unearned commissions from City Insurance Services resulting from the July 19, 2001, cancellation of her ASI homeowner’s insurance policy. You, JOHN CHRISTOPHER GEE, as a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services,” were required to return all unearned premium and commissions to Mrs. Kersten within the applicable regular course of business. However, City Insurance Services did not provide such refund until nine (9) months after Mrs. Kersten’s request. Therefore you, JOHN CHRISTOPHER GEE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Cheryl Kersten. IT IS THEREFORE CHARGED that you, JOHN CHRISTOPHER GEE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so teceived by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (d) 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. [Section 626.611(10), Florida Statutes]; COUNT I 23. Paragraphs one through eleven are realleged and incorporated herein by reference. 24, On March 14, 2002, Michael Wilson went to City Insurance Services to purchase motor vehicle insurance. On that day, Mr. Wilson signed an application for motor vehicle insurance coverage to be placed with Ocean Harbor Casualty Insurance Company (hereinafter referred to as “Ocean Harbor) for a stated annual premium of six hundred ($600.00) dollars, including the policy fee. 25. On May 18, 2002, Ocean Harbor cancelled Mr. Wilson’s motor vehicle insurance. You, JOHN CHRISTOPHER GEE, as a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services,” and pursuant to your Producing Agent’s Agreement with Ocean Harbor, were required to return all unearned 10 premium and commissions to Mr. Wilson within thirty (30) days of the effective date of policy cancellation. However, Mr. Wilson did not receive a refund from you, JOHN CHRISTOPHER GEE, until September 19, 2002, a full four (4) months after the effective date of his policy cancellation. Therefore you, JOHN CHRISTOPHER GEE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to Michael Wilson. IT IS THEREFORE CHARGED that you, JOHN CHRISTOPHER GEE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (d) 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. [Section 626.611(10), Florida Statutes]. 11 COUNT IV 26. Paragraphs one through eleven are realleged and incorporated herein by reference. 27. On June 30, 2001, Christopher Apostolou went to City Insurance Services to renew his motor vehicle insurance. On that day, Mr. Apostolou signed a renewal application for motor vehicle insurance coverage to remain with Ocean Harbor Casualty Insurance Company for a stated annual premium of seven hundred ten ($710.00) dollars, including the policy fee. Mr. Apostolou made a down payment and financed the remainder of the annual premium with Finco Financial Corporation. 28. Subsequently, Mr. Apostolou’s motor vehicle insurance was cancelled. On February 7, 2002, Finco Financial Corporation contacted Mr. Apostolou to inform him that a reftnd owed to him in the amount of one hundred seven dollars and forty-four cents ($107.44) was sent to City Insurance Services to be forwarded to Mr. Apostolou. You, JOHN CHRISTOPHER GEE, as a signatory on bank account number 901844 with Fidelity Federal Bank under the name “Atlantic Insurance DBA City Insurance Services,” and pursuant to your Producing Agent’s Agreement with Ocean Harbor, were required to return all unearned premium and commissions to Mr. Apostolou within thirty (30) days of the effective date of policy cancellation. However, Mr. Apostolou has never received a refund from you, JOHN CHRISTOPHER GEE, since the effective date of his policy cancellation. Therefore you, JOHN CHRISTOPHER GEE, have converted, misappropriated, or wrongfully withheld fiduciary finds belonging to Christopher Apostolou. Tf IS THEREFORE CHARGED that you, JOHN CHRISTOPHER GEE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of ‘your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belon ging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto, [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (d) 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. [Section 626.611(10), Florida Statutes]. WHEREFORE, you, JOHN CHRISTOPHER GEE, 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, 626.692, and 626.9521, 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. 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 writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice. Completion of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these Tequirements. 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 14 (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received form the agency. Ifa 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 Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. 15 Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. No Department attomey will discuss this matter with you until the response has been received by the Department of Financial Services. ~ DATED this th day of , 2005, Deputy Chief Financial Officer 16 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: JOHN CHRISTOPHER GEE, 3800 Beverly Drive, West Palm Beach, Florida 33406; JOHN CHRISTOPHER GEE, C/o Atlantic Insurance Services Inc. DBA City Insurance Services, 4064 Forest Hills Boulevard Suite 1, West Palm Beach, Florida 33406-5726; JOHN CHRISTOPHER GEE, 7811 West Lake Drive, West Palm Beach, Florida 33406-8743; JOHN CHRISTOPHER GEE c/o Orrin R. Beilly, Esquire, 105 South Narcissus Avenue, #105, West Palm Beach, Florida 33401 on this 4 th day of Segsterylyga 2008. | atfhe abr CHARLES L. GOWLAND, JR.,ESQUIRE Division of Legal Services 200 East Gaines Street Tallahassee, FL 32399-0333 (850) 413-4066 tit 7UbO 3901 48 Yay LIL hbO 3901 2848 4yqy bese PLbO 3501 9848 4434 GLUE 18

Docket for Case No: 05-003677PL