Jun 29 2006 9:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jun. 29 2666 @9:12AM Pao DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER FILED CHIEF FINANCIAL OFFICER STATE OF FLORIDA (FEB 20 2006 Docheted DZS TN THE MATTER OF: eo CASE NO.: 81587-06-AG LEWIS DONALD GUESS ADMINISTRATIVE COMPLAINT TO: LEWIS DONALD GUESS 754 B Avenue Coronado, CA 92118-2228 You, LEWIS DONALD GUESS, license LD. #4106237, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, LEWIS DONALD GUESS, are currently licensed in this state as a Nonres Life & Health (8-18), Nonres Health (8-40) Agent. 2. At all times pertinent to the dates and occurrences referred 1o herein, you, LEWIS DONALD GUESS, were licensed in this state as an insurance agent. 3. Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4, Prior to 1998 and thereafter, you, LEWIS DONALD GUESS, as a nonresident licensed insurance agent, conceived, developed, implemented, and participated in a false and fraudulent scheme to defraud members of the public, particularly medical doctors, by soliciting Jun 29 2006 9:18 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Jun. 29 2686 89:12AM P49 their participation in a number of purported insurance arrangements to avoid taxation. Your scheme for solicitation involved investment in "tax deductible savings programs" through “supplemental insurance arrangements," You represented that your program would achieve tax avoidance, which was at all times a false and fraudulent representation, Under the banner name of Xelan, you caused various entities to be formed, including Xelan Welfare Benefit Plan, in which you directly involved yourself as a means to receive commissions and management fees from and through the purported sale of insurance products, COUNTT 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. In or around November, 1999, you, LEWIS DONALD GUESS, as a nonresident licensed insurance agent, in concert with Rick Allen Jaye, and Michael 8. Junck, each licensed insurance agents in the state of Florida, caused solicitation of DSD, M.D., and his wife, ND, to pay “premium moneys” of THREE HUNDRED FIFTY THOUSAND DOLLARS ($350,000.00) to Xelan Welfare Benefit Trust, which you controlled. You caused yourself to be named as trustee of that entity to then manipulate all receipts and disbursements thereafter to benefit yourself with illegal commissions and management fees, You further caused a company known as Doctor’s Benefit Insurance Company, Ltd., based in the British Virgin Isles, to ostensibly issue a policy of insurance to ND to gain remuneration therefor from that entity for yourself. Neither Xelan Welfare Benefit Trust or Doctor’s Benefit Insurance Company were entities authorized to conduct insurance business in the state of Florida. IT IS THEREFORE CHARGED that you, LEWIS DONALD GUESS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension ot revocation of your licenses and appointments: Jun 29 2006 9:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jun. 29 2866 89:13AM Poo (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the practice of business under the license or appointment. [Section 626.611(9), Florida Statutes}; (c) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of this code. (Section 626.611(13), Florida Statutes] and (d) No person shall, from offices or by personnel or facilities located in this state, or in any other state or country, directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact such insurance in this state. [Section 626.901(1)]. WHEREFORE, you, LEWIS DONALD GUESS, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. 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 Jun 29 2006 9:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jun. 29 2866 @9:13AM Peo 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 (¢) 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 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 writien 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. Jun 29 2006 9:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jun. 29 2646 @9:14AM Pred 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 ate 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 this Z0ZA _ day of Febewar fs 2006. (ta dide KARBN CHANDLER Deputy Chief Financial Officer Jun 29 2006 9:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jun. 29 2646 @9:14AM Peo CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: LEWIS DONALD GUESS, 754 B Avenue, Coronado, CA 92118-2228, by Certified Mail this oth day of Fi sbruang , 2006. Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4242 Florida Bar Number 0001959 Jun 29 2006 9:20 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jun. 29 2646 @9:14AM Poe-9 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 81587-06-AG LEWIS DONALD GUESS / ELECTION OF PROCEEDING Ihave 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. | am requesting disposition of this matter as indicated belaw, (Choose one) 1. ] T do not dispute ary of the Department’s factual allegations and I do not desire a hearing. | 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. [ ] I do dispute one or more of the Department's factual allegations. T 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 APMINISTRATIVE 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 see teee pee Phone No.

Docket for Case No: 06-002319PL