FLORIDA DEPARTMENT OF FILED FINANCIAL SERVICES MAY 8 2006 TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA Docketea by. FE Ss. IN THE MATTER OF: ALEX SOTOLONGO CASE NO.: 85760-06-AG ADMINISTRATIVE COMPLAINT 1. 305 SW 79" Court Oly D*I PL Miami, Florida 33155 Uo Deere You, ALEX SOTOLONGO, a/k/a ALEJANDRO SOTOLONGO, 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, ALEX SOTOLONGO, are currently, and at all times relevant to the dates and occurrences alleged herein were, licensed in this state as Life (2-16), Life and Health (2-18), General Lines, Property and Casualty (2-20), and Health agent (2-40). Your license I.D. number is A249610. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your license and appointments. 3. At all times relevant to the dates and occurrences referred to herein, you, ALEX. SOTOLONGO, were the President, or another officer, of Metro Insurance Group, Inc. COUNT I 4. The allegations contained in paragraphs 1 through 3 are hereby realleged and fully incorporated herein by reference. 5. On December 9, 2003, you, ALEX SOTOLONGO, met with B.R. regarding automobile insurance for B.R. and/or J.P. 6. On December 9, 2003, you, ALEX SOTOLONGO, sold B.R. an insurance policy from MGA Insurance Company, Inc. (“MGA”) for B.R. and/or J.P. 7. On December 9, 2003, you, ALEX SOTOLONGO, received cash from B.R. in the amount of $434.00. It was B.R’s intent that the money be used as a partial premium payment towards the insurance policy from MGA Insurance Company (“MGA Policy”). 8. You, ALEX SOTOLONGO, knew B.R. intended to use the December 9"" payment of $434.00 as a partial premium payment towards the MGA Policy. 9. On December 9, 2003, you, ALEX SOTOLONGO, provided B.R. an insurance binder (“Insurance Binder”). 10. The Insurance Binder stated, among other things, “Confirmation of Coverage”, and listed the effective date of the MGA Policy as “12/10/03”. ll. Subsequent to December 9, 2003, you, ALEX SOTOLONGO, received cash from B.R. It was B.R.’s intent that the money be used as a premium payment(s) towards the MGA Policy. 12. You knew B.R. intended to use these additional payments as a premium payment(s) towards the MGA Policy. nN 13. You, ALEX SOTOLONGO, without B.R.’s knowledge or informed consent, failed to timely submit the MGA Policy application to MGA, or MGA’s managing general agent, or any other person so entitled. 14. You, ALEX SOTOLONGO, without B.R.’s knowledge or informed consent, failed to timely remit any of the funds you received from B.R. (“Funds”) to MGA, or MGA’s managing general agent, or any other person so entitled. 15. Asaresult of your action, the MGA Policy was not in effect as of December 10, 2003. . 16. You, ALEX SOTOLONGO, knew, or should have known that, the MGA Policy was not in effect as of December 10, 2003. 17. On February 19, 2004, you, ALEX SOTOLONGO, finally submitted the MGA Policy application and remitted some Funds to MGA, or MGA’s managing general agent, or another person so entitled. ; 18. The Funds represented trust funds received by you, ALEX SOTOLONGO, from B.R., in a fiduciary capacity for both the insured and an insurance company. Pursuant to Section 626.561(1), Florida Statutes, the Funds were to be accounted for and paid over to the insurer, insured or other persons entitled thereto in the regular course of business. 19. You, ALEX SOTOLONGO, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to B.R. and an insurance company by holding the Funds from December 9, 2003 to February 19, 2004. 20. In the interim, on January 11, 2003, Lazaro Madrigal, an individual driving the vehicle that was to be insured under the MGA Policy, was in an accident, 21. Since you, ALEX SOTOLONGO, failed to timely place insurance coverage, the MGA Policy was not in effect on January 11, 2003. 22, As aresult of you, ALEX SOTOLONGO, not timely placing insurance coverage, collection proceedings were brought against J.P., and J.P.’s drivers license was suspended. IT IS THEREFORE CHARGED that you, ALEX SOTOLONGO, based upon some or all of the foregoing, 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 fumds belonging to insurers or others received by an agent, customer representative, or adjuster in transactions under his or her license ; are trust funds 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) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes] (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [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 or appointment. [Section 626.611(10), Florida Statutes]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) In the conduct of business under the license or appointment, having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6)]; (h) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices as prohibited under part LX of Chapter 626. [Section 626.621(6)]; (i) False statements and entries.— 1. Knowingly: b. Making, publishing, disseminating, circulating, Q . Delivering to any person, d. Placing before the public, ao . Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. WHEREFORE, you, ALEX SOTOLONGO, 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, 626.935, 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. 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 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 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. 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 zis day of Mau. , 2006. IN CHANDLER Deputy Chief Financial Officer 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 ALEX SOTOLONGO at ALEX SOTOLONGO, Bibs SW 79" Court, Miami, Florida 33155, via U.S. Certified Mail, restricted delivery, this S’° day of Mad , 2006. ‘Kd? Robert Alan Fox . Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4106

Docket for Case No: 06-002890PL