“7 _ , , Ob- S30 PC FLORIDA DEPARTMENT OF FINANCIAL SERVICES FILED ~ TOM GALLAGHER CHIEF FINANCIAL OFFICER FFR 3 2006 STATE OF FLORIDA / Dooksted by: SO. sen IN THE MATTER OF: CASE NO.: 84612-06-AG FRANZ CAVILLE WALLACE, III / ADMINISTRATIVE COMPLAINT TO: FRANZ CAVILLE WALLACE, Il 2140 Deer Run Trail Jacksonville, Florida 32246-1066 FRANZ CAVILLE WALLACE, III C/o Wallace & Associates, Inc. 3947 Boulevard Center Drive, Suite 114 Jacksonville, Florida 32207-2832 You, FRANZ CAVILLE WALLACE, III, 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 and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, FRANZ CAVILLE WALLACE, II, currently are licensed in this state as a life (- 16),1 life & health (2-18), health (2-40), and legal expense (2-56) agent, and were so licensed at all times relevant to the dates and occurrences referenced herein. Your license identification number is A276421. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter referred to as the “Department”) has jurisdiction over your licenses and appointments. 3. Atall times relevant to the dates and occurrences referenced herein you, FRANZ CAVILLE WALLACE, III, were employed or affiliated with Franz C. Wallace Tl, Inc., doing business as Wallace & Associates of Florida, 3947 Boulevard Center Drive, Suite 114, J acksonville, Florida 32207-2832. | COUNT I 4, The above General Allegations are hereby realleged and fully incorporated herein by reference. 5. On or about July 17, 2001, you, FRANZ CAVILLE WALLACE, TH, sold Katherine Briscoe a whole life insurance policy with an increasing term life insurance rider and an annuity contract rider, with the insured being her daughter, Alicia. | 6. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Briscoe by failing to disclose to her that a portion of her monthly payment was being applied as premium for life insurance on Alicia. 7. You, FRANZ CAVILLE WALLACE, Ill, misrepresented to Briscoe that the monthly payments being made by her were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 8. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Briscoe by failing to disclose to her that gaining access to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. 7 oN 9. You, FRANZ CAVILLE WALLACE, I, knew or should have known that the insurance product you sold Briscoe was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) 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], (6) 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 : appointment, [Section 626.611(9), Florida Statutes}. (d) _ Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1., Florida Statutes]. . COUNT II 10. The above General Allegations are hereby realleged and fully incorporated herein by reference. 11. On or about July 29, 2000, you FRANZ CAVILLE WALLACE, III, took an application for insurance from James W. Durbin, as the owner of a whole life policy with increasing term and annuity riders, with the insured being his son, Dustin. 12. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Durbin by failing to disclose to him that a portion of his monthly payment was being applied as premium for life insurance on Dustin. 13. You, FRANZ CAVILLE WALLACE, II, misrepresented to Durbin that the monthly payments being made by him were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 14. You, FRANZ CAVILLE WALLACE, I, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Durbin by failing to disclose to him that gaining access to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. 15. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Durbin was not suitable for the purpose for which it was.represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT II 16. The above General Allegations are hereby realleged and fully incorporated herein by reference. 17. On or about February 18, 2002, you, FRANZ CAVILLE WALLACE, II, took an application for insurance from David M. Key, as the owner of a whole life policy with increasing ~ term and annuity tiders, with the insured being his son, Matthew. 18. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Key by failing to disclose to him that a portion of his monthly payment was being applied as premium for life insurance on Matthew. 19, You, FRANZ CAVILLE WALLACE, III, misrepresented to Key that the monthly payments being made by him were being accumulated as in a savings type account and at a future ; date could be accessed in their entirety for use to cover college expenses, 20. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, ’ conditions or terms of the policy you sold to Key by failing to disclose to him that gaining access to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. 21. ‘You, FRANZ CAVILLE WALLACE, U1, knew or should have known that the insurance product you sold Key was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the-suspension or revocation of your licenses as an insurance agent in this state: ) (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT IV 22. The above General Allegations are hereby realleged and fully incorporated herein by reference. . 23. On or about June 18, 2005, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Annie M. Kinard, as the owner of a whole life policy with increasing term and annuity riders, with the insured being her daughter Brianna. 24, You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Kinard by failing to disclose to her that a portion of her monthly payment was being applied as premium for life insurance on Brianna. 25. You, FRANZ CAVILLE WALLACE, III, misrepresented to Kinard that the monthly payments being made by her were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 26. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Kinard by failing to disclose to her that gaining access to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. 27. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Kinard was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. , COUNT V 28. The above General Allegations are hereby realleged and fully incorporated herein by reference. 29. On or about Junel8, 2005, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Annie M. Kinard, as the owner of a whole life policy with increasing term and annuity riders, with the insured being her son, Cedric. 30. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Kinard by failing to disclose to her that a portion of her monthly payment was being applied as premium for life insurance on Cedric. 31. You, FRANZ CAVILLE WALLACE, III, misrepresented to Kinard that the monthly payments being made by her were being accumulated as ina savings type account and at a future . date could be accessed in their entirety for use to cover college expenses. 32. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Kinard by failing to disclose to her that gaining access to some of the finds available from the policy could be accomplished only by making an interest- bearing loan against the policy. . 33. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Kinard was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.61 1(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT VI 34, The above General Allegations are hereby realleged and fully incorporated herein by reference, . 35. On or about December 19, 2000, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Frank T. Marshall and Rebecca Marshall, as the owners of a whole life policy with increasing term and annuity riders, with the insured being their daughter Fharnell. 36. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Marshali’s by failing to disclose to them that a portion of their monthly payment was being applied as premium for life insurance on Fharnell. 37. You, FRANZ CAVILLE WALLACE, III, misrepresented to the Marshall's that the monthly payments being made by them were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 38. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Marshall’s by failing to disclose to them that gaining access to some of the funds available from the policy could be accomplished only by making an interest-bearing loan against the policy. 3 9, You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold the Marshall’s was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT VI 40. The above General Allegations are hereby realleged and fully incorporated herein by reference. 41. On or about December 19, 2000, you, FRANZ CAVILLE WALLACE, I, took an application for insurance from Frank T. Marshall and Rebecca Marshall, as the owners of a whole life policy with increasing term and annuity riders, with the insured being their son Frank. 42, You,F RANZ CAVILLE WALLACE, Ill, misrepresented the benefits, advantages, “ conditions or terms of the policy you sold to the Marshall’s by failing to disclose to them that a portion of their monthly payment was being applied as premium for life insurance on Frank. 43. You, FRANZ CAVILLE WALLACE, III, misrepresented to the Marshall’s that the monthly.payments being made by them were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses, | 44, You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Marshall’s by failing to disclose to them that gaining access to some of the funds available from the policy could be accomplished only by making an interest-bearing loan against the policy. 45. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold the Marshall’s was not suitable for the purpose for which it was represented. | IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT VIO» 46. The above General Allegations are hereby realleged and fully incorporated herein by ; reference. . . 47. Onor about March 15, 2000, you, FRANZ CAVILLE WALLACE, III, took an + application for insurance from Charles Perkins, as the owner of a whole life policy with increasing - term and annuity riders, with the insured being his daughter, Sarah. 48. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Perkins by failing to disclose to him that a portion of his monthly payment was being applied as premium for life insurance on Sarah, : . 49. You, FRANZ CAVILLE WALLACE, III, misrepresented to Perkins that the monthly. payments being made by him were being accumulated as in a'savings type account and at a future date could be accessed in their entirety for use 0 cover college expenses, | 50. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Perkins by failing to disclose to him that gaining access 10 to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. ) 51. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Perkins was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: . (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, ‘as set forth more fully in Count I above and incorporated herein by reference. COUNT Ix , 52. The above General Allegations are hereby realleged and fully incorporated herein by reference, oo 53. On or about January 12, 1999, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Elizabeth Swim, as the owner of a whole life policy \ with increasing term and annuity riders, with the insured being her daughter, Michelle. 54. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Swim by failing to disclose to her that a portion of her monthly payment was being applied as premium for life insurance on Michelle. 55. You, FRANZ CAVILLE WALLACE, I, misrepresented to Swim that the monthly payments being made by her were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. il 56. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Swim by failing to disclose to her that gaining access to some of the funds available from the policy could be accomplished only by making an interest- bearing loan against the policy. 57.. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Swim was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code; which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.61 1(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT X 58. The above General Allegations are hereby realleged and fully incorporated herein by reference. 59. On or about June 6, 2000, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Emmanuel Williams, as the owner of a whole life policy with increasing term and annuity riders, with the insured being his son, Marquis. 60.. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, _ conditions or terms of the policy you sold to Williams by failing to disclose to him that a portion of his monthly payment was being applied as premium for life insurance on Marquis. 61. You, FRANZ CAVILLE WALLACE, III, misrepresented to Williams that the monthly payments being made by him were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 62. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Williams by failing to disclose to him that gaining access to some of the fimds available from the policy could be accomplished only by making an . interest-bearing loan against the policy. 63. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Williams was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.611(7), 626.61 1(6), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT XT 64. The above General Allegations are hereby realleged and fully incorporated herein by reference. 65. On or about December 2, 2002, you, FRANZ CAVILLE WALLACE, III; took an application for insurance from Laticia Williams as the owner of a whole life policy with increasing term and annuity riders, with the insured being her son, Everick. 13 66. You, FRANZ CAVILLE WALLACE, IH, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Williams by failing to disclose to her that a portion of her monthly payment was being applied as premium for life insurance on Everick. 67. You, FRANZ CAVILLE WALLACE, IIL, misrepresented to Williams that the monthly payments being made by her were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 68. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to Williams by failing to disclose to her that gaining access to some of the finds available from the policy could be accomplished only by making an interest-bearing loan against the policy. 69. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold Williams was not suitable for the purpose for which it was represented. IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, II, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a), | Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. COUNT XI 70. The above General Allegations are hereby realleged and fully incorporated herein by reference, . ) ; . 71. On or about February 13, 1998, you, FRANZ CAVILLE WALLACE, IIT, took an application for insurance from Gary Anthony and Evelyn Pauline Moo Young, as the owners of a 14 whole life policy with increasing term and annuity riders, with the insured being their daughter, Chelsea. 72. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Moo Youngs by failing to disclose to them that a’ portion of their monthly payment was being applied as premium for life insurance on Chelsea. 73. You, F RANZ CAVILLE WALLACE, I misrepresented to the Moo Youngs that the monthly payments being made by them were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 74, You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Moo Youngs by failing to disclose to them that gaining access to some of the funds available from the policy could be accomplished only by making an interest-bearing loan against the policy. | 75, You, FRANZ 'CAVILLE WALLACE, TI, knew or should have known that the insurance product you sold the Moo Youngs was not suitable for the purpose for which it was represented, IT IS THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, III, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 626.611(5), 626.61 1(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. 15 COUNT XII 76. The above General Allegations are hereby realleged and fully incorporated herein by reference, 77. On or about February 13, 1998, you, FRANZ CAVILLE WALLACE, III, took an application for insurance from Gary Anthony and Evelyn Pauline Moo Young, as the owners of a whole life policy with increasing term and annuity riders, with the insured being their daughter, Jessica, 78. You, FRANZ CAVILLE WALLACE, II, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Moo Youngs by failing to disclose to them that a portion of their monthly payment was being applied as premium for life insurance on Jessica. 79. You, FRANZ CAVILLE WALLACE, III, misrepresented to the Moo Youngs that the monthly payments being made by them were being accumulated as in a savings type account and at a future date could be accessed in their entirety for use to cover college expenses. 80. You, FRANZ CAVILLE WALLACE, III, misrepresented the benefits, advantages, conditions or terms of the policy you sold to the Moo Youngs by failing to disclose to them that gaining access to some of the funds available from the policy could be accomplished only by making an interest-bearing loan against the policy. 81. You, FRANZ CAVILLE WALLACE, III, knew or should have known that the insurance product you sold the Moo Youngs was not suitable for the purpose for which it was represented, / IT I8 THEREFORE CHARGED that you, FRANZ CAVILLE WALLACE, ITT, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, 16 which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: . (a) Sections 626.611(5), 626.611(7), 626.611(9), and 626.9541(1)(a)1., Florida Statutes, as set forth more fully in Count I above and incorporated herein by reference. WHEREFORE, you, FRANZ CAVILLE WALLACE, ITI, 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 624.15, 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 and under the provisions of Rule 69B-231, Florida Administrative Code. 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 Tequest 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- 17 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. 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. Ifa 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. 18 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. 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 wid Sof day o 2006 I IN CHANDLER Deputy Chief Financial Officer 19 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to Miriam Olga Victorian, Esq., Blank Meenan & Smith, P.A., 204 South Monroe Street, Tallahassee, Florida 32301, Attorney for Respondent, by facsimile transmission and by U.S. Mail this 35 day of , 2006. Greg 8. Marr / . Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4180 Florida Bar Number 131369 Attorney for the Department IN THE MATTER OF: FRANZ CAVILLE WALLACE, III STATE OF FLORIDA EB DEPARTMENT OF FINANCIAL SERVICES fom DIVISION OF LEGAL SERVICES ADMiny CASE NO.: 84612-06 “AG Hy oat re \ uz Ave / ELECTION OF PROCEEDING I 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) LE] Nv 3.0] I do not 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. Ido 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. I do 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 SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO 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: Phone No.:

Docket for Case No: 06-001530PL