Petitioner: DEPARTMENT OF FINANCIAL SERVICES
Respondent: BENJAMIN R. EVANS
Judges: LARRY J. SARTIN
Agency: Department of Financial Services
Locations: West Palm Beach, Florida
Filed: Jun. 16, 2006
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Wednesday, July 19, 2006.
Latest Update: Dec. 25, 2024
FLORIDA
DEPARTMENT OF
FINANCIAL SERVICES
TOM GALLAGHER FILER
CHIEF FINANCIAL OFFICER
STATE OF FLORIDA
MAY 31 2006
IN THE MATTER OF: Dotketed by: aa
CASE NO. 86257-06-AG
§ Olo-D140 PL
ADMINISTRATIVE COMPLAINT
BENJAMIN R. EVANS
TO: BENJAMIN R. EVANS
3807 Manatee Avenue E.
_ Bradenton, Florida 34208
You, BENJAMIN R. EVANS, are hereby notified that pursuant to Chapter 634, Florida
Statutes, the Chief Financial Officer of the State of Florida, has caused to be made an
investigation of your activities while licensed as a service warranty sales agent in this state, as a
result of which it is alleged:
GENERAL ALLEGATIONS
1. You, BENJAMIN R. EVANS, are licensed in the state as a service warranty sales
agent. This license is presently suspended pursuant to an emergency order entered on May 10,
2006.
2. At all time pertinent to the dates and occurrences referred to in this
Administrative Complaint you, BENJAMIN R. EVANS, were licensed as a service warranty
sales agent in this state.
3. At all times pertinent to the dates and occurrences referred to in this
Administrative Complaint, you, BENJAMIN R. EVAN: S, were an officer and director of Exotic
Warranty Company, Inc., a Florida corporation and Fidelity. Worldwide Corporation, an
Alabama corporation.
4. At no time pertinent to the dates and occurrences referred to herein, were Exotic
Warranty Company or Fidelity Worldwide Corporation licensed in this state as motor vehicle
service agreement (MSVA) companies, pursuant to Section 634.031, Florida Statutes,
COUNT 1
5. Paragraphs one through four are realleged and incorporated herein by reference
6. On or about July 20, 2004, Exotic Warranty Company entered into an agency
agreement with ACSC of Florida, Inc. (“ACSC”), a licensed MVSA company. Pursuant to this
agreement, Exotic was appointed by ACSC to be its salesperson. Under this agreement, Exotic
was authorized to market warranty contracts on behalf of ACSC, a licensed Florida warranty
underwriter.
7. However, between July, 2004 and July, 2005, Exotic sold at least seventy (70)
contracts or more in this state on behalf of its Alabama affiliate, Fidelity Worldwide Corporation,
which would underwrite the service warranty contracts and issue the contracts in the name of
Fidelity Worldwide Corporation and Exotic Warranty Company. Neither Fidelity Worldwide
Corporation nor Exotic Warranty are currently licensed, and never have been licensed in Florida
as Motor Vehicle Service Agreement (MVSA) companies, and are not authorized to issue service
warranty contracts in their own name.
8. Fidelity Worldwide Corporation is an Alabama corporation solely owned by
BENJAMIN R. EVANS, who is the President and sole shareholder. Many of the contracts were
2
sold to Florida insurance consumers utilizing application materials provided to Exotic by ACSC,
which falsely implied to Florida consumers that their contracts were to be issued by and
underwritten by ACSC; but in fact, neither the applications or premiums were ever submitted by
Exotic to ACSC. Rather, the applications and premiums were retained by you, BENJAMIN R.
EVANS, though your companies, Fidelity Worldwide Corporation and Exotic Warranty
Company.
9. You, BENJAMIN R. EVANS, and Exotic Warranty Company illegally continued
to market service warranty contracts utilizing ACSC applications even after ACSC terminated its
contract with Exotic Warranty and expressly instructed you, BENJAMIN R. EVAN S, and Exotic
to cease soliciting warranty contracts on its behalf or representing itself to be an agent of ACSC.
Therefore, after termination of the contract, You, BENJAMIN R. EVANS, and Exotic were no
longer authorized to solicit service warranty contracts in this state on behalf of ACSC or any
other company.
10. On February 15, 2006, the Circuit Court of the Second Judicial Circuit, In and For
Leon County, Florida placed Exotic Warranty into receivership and signed an Ex Parte Order
authorizing the Department of Financial Services to seize corporate property and entered a
temporary injunction against Exotic and Fidelity Worldwide Corporation enjoining the
corporations from withdrawing or otherwise disposing of any corporate assets, recognizing that
exigent circumstances existed that posed a threat to those consumers purchasing service
warranties.
IT IS THEREFORE CHARGED that you, BENJAMIN R. EVAN: S, have violated or are
accountable under the following provisions of the Florida Insurance Code and Rules of the Chief
Financial Officer which constitute grounds for the suspension or revocation of your insurance
licenses and eligibility for licensure:
(a) A person may not transact, administer, or market, attempt to transact, administer, or
market, or in any manner hold itself out as transacting, administering, or marketing the service
agreement business, on behalf of himself or itself, in this state or from this state unless itis
authorized to do so under a subsisting license issued it to it by the office. [Section 634.031(1),
Florida Statutes]
(b) Willful misrepresentation of any service agreement or willful deception with regard
to any agreement, done either in person or by any form of dissemination of information or
advertising. [Section 634.422(3), Florida Statutes]
(c) Demonstrated lack of fitness or trustworthiness to engage in the service agreement
business. [Section 634.422(5), Florida Statutes]
(d) Fraudulent or dishonest practices in the conduct of the service agreement business
under the license or appointment. [Section 634.422(7), Florida Statutes]
(e) Willful failure to comply with, or willful violation of any provision of this part, or
any applicable provision of the insurance code. [Section 634,422(10), Florida Statutes]
WHEREFORE, you, BENJAMIN R. EVANS, 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 Chapter 634, Florida Statutes, and under the other referenced sections of the
Florida Statutes as set out in this Administrative Complaint. You are further notified that any
order entered in this case revoking or suspending any license or eligibility for licensure held by
you shall also apply to all other licenses and eligibility held by you under the Florida Insurance
Code.
NOTICE OF RIGHTS
You have the right to request a proceeding to contest this action by the Department
pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida
Administrative Code. The proceeding request must be in writing, signed by you, and must be
filed with the Department within twenty-one (21) days of your receipt of this notice. Completion
of the attached Election of Proceeding form and/or a petition for administrative hearing will
suffice as a written request. The request must be filed with the General Counsel as acting
Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East
Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the
Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice.
Mailing the response on the twenty-first day will not preserve your right to a hearing.
YOUR FAILURE TO RESPOND IN WRITING WITHIN
TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS
NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO
REQUEST A PROCEEDING ON THE MATTERS ALLEGED
HEREIN AND AN ORDER OF REVOCATION WILL BE
ENTERED AGAINST YOU. :
If you request a proceeding, you must provide information that complies with the
requirements of Rule 28-107.004, Florida Administrative Code. As noted above, completion of
the ‘attached Election of Proceeding form conforms to these requirements. Specifically, your
response must contain:
(a) The name and address of the party making the request, for purpose of service;
> (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 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
6
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 this 31°" _ day of Moy , 2006.
ae
Deputy Chief Financial Officer
5
STATE OF FLORIDA
DEPARTMENT OF FINANCIAL SERVICES
IN THE MATTER OF:
BENJAMIN R. EVANS
/ Case No. 86257-06-AG
ELECTION OF PROCEEDING
Thave 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. [J 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.
wo
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 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.:
8
CERTIFICATE OF SERVICE
; I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative
Complaint was mailed by certified mail to: BENJAMIN R. EVANS, 3807 Manatee Avenue E.,
Bradenton, Florida and at 7537 Proud Meadow Street, Las Vegas, Nevada 89131 and at 3470
W. Cheyenne Blvd, Ste. 500, N. Las Vegas, Nevada 89032 on this 315t day of
Mou , 2006.
CAL
JAMES A. BOSSART, ESQUIRE
ivision of Legal Services
12 Larson Building
Tallahassee, FL 32399-0333
(850) 413-4124
Docket for Case No: 06-002140PL
Issue Date |
Proceedings |
Sep. 10, 2007 |
Department`s Motion to Reassume Jurisdiction and Re-set Final Hearing filed. (DOAH CASE NO. 07-4173PL ESTABLISHED)
|
Jul. 19, 2006 |
Order Closing File. CASE CLOSED.
|
Jul. 19, 2006 |
Motion to Relinquish Jurisdiction filed.
|
Jul. 06, 2006 |
Order of Pre-hearing Instructions.
|
Jul. 06, 2006 |
Notice of Hearing (hearing set for September 11 and 12, 2006; 9:30 a.m.; West Palm Beach, FL).
|
Jun. 26, 2006 |
Joint Response to Initial Order filed.
|
Jun. 19, 2006 |
Initial Order.
|
Jun. 16, 2006 |
Administrative Complaint filed.
|
Jun. 16, 2006 |
Election of Proceeding filed.
|
Jun. 16, 2006 |
Agency referral filed.
|