Jul 11 2006 9:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 11 2886 89:19AM P3168 DEPARTMENT OF FINANCIAL SERVICES , FILED CHIEF FINANCIAL OFFICER STATE OF FLORIDA MAY 31 2008 Booketed on ele IN TIIE MATTER OF: CASE NO.; 84973-06-AG TOM GALLAGHER DANIEL C, SAUCER ADMINISTRATIVE COMPLAINT TO: DANIEL C. SAUCER FED USA 5574 N, Orange Blossom Trail Orlando, FL 32810 DANIEL C. SAUCER 661 Dartford Court Debary, FL 32713-2144 You, DANIEL C, SAUCER, license I.D. #E040886, 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 ag an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, DANIEL C. SAUCTR, are currently licensed in this state as a General Lines (Prop. & Cas.) (2-20) Agent, and were $0 licensed at all times pertinent to the datcs and occurrences referred to herein. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 3. Atall times material herein, you, DANIEL C. SAUCER, were the owner and designated primary agent of FED USA Financial Services (hereinafter "FED USA"). Jul 11 2006 9:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul, 11 2686 89:19AM P4148 4, Atall times pertinent to the dates and occurrences referred to herein, and pursuant to Section 626.561(1), Florida Statutes, all funds received by you, DANIEL C. SAUCER, from insureds were trust funds received in a fiduciary capacity and were to be paid over to an insurer, insured, or other person entitled thereto in the regular course of business. 5. At all times material herein, you, DANTEL C. SAUCER, as a licensed insurance agent, misappropriated fiduciary funds collected in the normal course of business and made an excess charge for insurance, all as will hereinafter be more fully set forth. COUNT I 6. The above general allegations are hercby realleged and fully incorporated herein by reference, 7. On or about January, 2003, an insurance binder was issued to SJE and signed by you, DANIEL C. SAUCER, representing that commercial general liability insurance was in place for the business of SJE at 1374 Haverhill Road North, West Palm Beach, Florida. On or about August, 2003, SJE learned that you, DANIEL C. SAUCER, or someone in your emiploy or under your supervision and control, and for whose actions you, DANIEL C, SAUCER, are accountable, failed to secure coverage on the aforesaid property and failed to forward the premium received to the intended insurer. 8. You, DANIEL C. SAUCER, ot someone in your employ or under your supervision and control, and for whose actions you are responsible, overcharged STE ONE HUNDRED TWENTY-FIVE ($125.00) DOLLARS. 9. You, DANIEL C. SAUCER, have misappropriated, converted, or withheld moneys belonging to SJE. Asa result, SJE lost his commercial general liability insurance and has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, DANIET. C. SAUCER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: Jul 11 2006 9:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul, 11 2686 89:19AM P5148 (a) All premiums, return premiums, or other funds belonging to insurers, insureds, or others received by an agent under his license are trust funds received by the licensee in a fiduciary capacity. The licensee in the 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 appointment. [Section 626.611(9), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moncys belonging to insurers or insureds or beneficiaries or to others and reccived in conduct of business under the license or appointment. [Section 626.61 1(10), Florida Statutes]; (e) 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]. COUNT Hf 10. The above general allegations are hereby realleged and fully incorporated herein by reference. 11. On or about April, 2001, you, DANIEL C. SAUCER, or someone in your employ or under your supervision and control, and for whose actions you, DANIEL C. SAUCER, are accountable, sold homeowners insurance to MBS. Said policy was placed with Seacoast Brokers who then placed the policy with I.loyd's of London. On or about May, 2004, MBS learned from his mortgage company (Homecomings Financial) that his homeowners insurance premiums were paid from his escrow account, and that escrow checks were cashed by your agency, Federal Insurance, for 2002 and 2003. MBS later learned from staff at Seacoast Brokers that his policy expired in April, 2002, and was never renewed, Jul 11 2006 9:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jul. 11 2666 89:26AM Pele 12. You, DANIEL C. SAUCER, have misappropriated, converted, or withheld moneys belonging to SJE. As aresult, SJE lost his homeowners insurance and has suffered a significant financial loss. IT 18 THEREFORE CHARGED that you, DANIEI. C. SAUCER, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) All premiums, return premiums, or other funds belonging to insurers, insureds, or others received by an agent under his license are trust funds received by the licensee in a fiduciary capacity. The licensee in the 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), Mlorida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointinent. [Section 626.611(9), Florida Statutes]; (qd) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and reccived in conduct of business under the license or appointment, [Section 626.611(10), Florida Statutes]; (©) 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]. WHEREFORE, you, DANIEL C. SAUCER, 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, I'lorida Statutes, and Jul 11 2006 9:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul, 11 2686 89:28AM Pr-1e 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 Strect, 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 afler 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; (>) 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 Jul 11 2006 9:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul, 11 2686 89:28AM Pe-1e8 (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 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. 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(L), 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 requeat 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. Jul 11 2006 9:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jul. 11 2666 @9:21AM Pole DATED and SIGNED this 2/S@_ day of May , 2006. = FlMaalny t Ly KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE THEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: DANIEL C. SAUCER, FED USA, 5574 N, Orange Blossom Trail, Orlando, FL 32810; DANIEL C. SAUCER, 661 Dartford Court, Debary, FL 32713-2144 by Certified Mail this SUS* day of weet , 2006. OD Pony — Dickson E. Keslers §# Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (407) 835-4409 Florida Bar Number 0884952 Jul 11 2006 9:26 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Jul. 11 2686 89:21AM Pia-1a STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 84973-06-AG DANIEL C. SAUCER / 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. 1 am requesting disposition of this matter as indicated below. (Choose one) 1. [} 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. 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, Tn this regard, I desire to (Choose one): {J Submit a written statement and documentary ovidence in lieu of a hearing; or [1 Personally attend a hearing conducted by a department hearing officer in Tallahassee; or {1 Attend that same hearing by way of a telephone conference call. 3. —] I do dispute one or more of the Department's factual allegations. J 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 i Date: ; Address: Phone No.; cen cnewee

Docket for Case No: 06-002415PL