FLORIDA DEPARTMENT OF . ‘ é FINANCIALSERVICES — TOM GALLAGHER . Fi LED: CHIEF FINANCIAL OFFICER : . STATE OF FLORIDA ; Aus 9 6 INTHEMATTEROF: ~— Docketed by:_ Ak ARTHUR WALTER BROWN, JR, > CASENO. 86795-06-AG ho. 2 ADMINISTRATIVE COMPLAINT TO: . ARTHUR WALTER BROWN JR. 120 SW 250" Street Newberry, Florida 32693 : 0 o-> 2) Y, PL ARTHUR WALTER BROWN, JR. 12451 1018" Court Archer, Florida 32618 ARTHUR WALTER BROWN, JR. P.O. Box 130 ; Newberry, Florida 32669 You, ARTHUR WALTER BROWN, JR., are hereby notified that pursuant to Chapter 626, Florida Statutes, 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, — You, ARTHUR WALTER BROWN, JR., are currently licensed in the state as a general lines insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, ARTHUR WALTER BROWN, JR., were licensed as an insurance agent in this . State, 3. , Atall time pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, ARTHUR. WALTER BROWN, JR. from consumers or on ' behalf of consumers representing premiums for insurance policies, were trust funds received in a fiduciary capacity and were to be paid over to an insurer, insured, or other persons entitled thereto in the regular course of business. | COUNT I 4, Paragraphs one through four are realleged and incorporated herein by reference. 5. On or about July 23, 2004, you, ARTHUR WALTER BROWN, JR., received $483.82 from PK. of Bronson, Florida, a F lotida insurance consumer. This sum was intended to be total premium payments. on a mobile homeowner’s insurance policy to be issued by Lloyds of London, | . 6. You, ARTHUR WALTER BROWN, JR. failed to promptly remit the above- described $483.82 premium payments received from P.K. to Lloyds or any insurer entitled thereto. Rather, you, ARTHUR WALTER BROWN, JR., without P.K.’s knowledge or informed consent, submitted a fraudulent premium finance application to Distinct Advantage Premium Finance Company with the signature of P.K, falsely affixed thereto, together with a $123 down payment. You, ARTHUR WALTER BROWN, JR., then financed the remainder of the insurance policy premium and retained the remaining $364 in fiduciary funds for your own use and benefit. 7. P.K. subsequently began receiving demands from the premium finance company for payments on the premium loan. When queried by P.K. about the heretofore unknown premium financing, you, ARTHUR. WALTER BROWN, JR., represented to P.K. that it was a clerical error only and that you would “take care of it”. Ultimately, P.K.’s insurance policy was cancelled for nonpayment to the premium finance company. 8. You, ARTHUR WALTER BROWN, JR. have knowingly and willingly misappropriated, converted or wrongfully withheld an insurance premium belonging to insurers or to an insured received in conduct of business under your license. 9, You, ARTHUR WALTER BROWN, JR., have converted, misappropriated, or wrongfully withheld money belonging to an insurer and an insured. | | ITIS THEREFORE CHARGED that you, ARTHUR WALTER BROWN, JR., 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) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee ina 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) Willful misrepresentation of any insurance policy or willful deception with regard to . such policy, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes] . ) . (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. © [Section 626.611(7), Florida Statutes]; _(d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [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. [Section 626.61 1(10), Florida Statutes]; co Willful failure to comply with or willful violation of any provision of the Insurance Code. [Section 626.61 1013), Florida Statutes) (g) Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material. statement. [Section 626.9541(1)(e) 1, Florida Statutes] COUNT 10. Paragraphs one through four are realleged and incorporated herein by reference. 11 On or about Septertiber 16, 2004, you, ARTHUR WALTER BROWN, JR., received $1354.46 from J.B.H. of Clearwater, Florida, a Florida insurance consumer. This sum was intended to be total premium payment on a mobile home insurance policy to be issued by Lloyds of London. 12. You, ARTHUR WALTER BROWN, JR. failed to promptly remit the above- described $1354.46 premium payments received from J.B.H. to Lloyds or any insurer entitled thereto. Rather, you, ARTHUR WALTER BROWN, JR., without J.B.H.’s knowledge or informed consent, submitted a fraudulent premium finance application to Distinct Advantage Premium Finance Company with the signature of J -B.H. falsely affixed thereto, together with a $345 down payment, You, ARTHUR WALTER BROWN, JR., then financed the remainder of the insurance policy premium and retained the remaining $1,041.76 in fiduciary funds for your own use and benefit. 13. J.B.H. subsequently began receiving demands from the premium finance company for payments on the premium loan. When queried by J.B.H. about the heretofore unknown premium financing, you, ARTHUR WALTER BROWN, JR., represented to J.B.H. that it was a clerical error only and that you would “take care of it”, Ultimately, J.B.H.’s insurance policy was cancelled for nonpayment to the'premium finance company. 14. You, ARTHUR WALTER BROWN, JR. have knowingly and willingly misappropriated, converted or wrongfully withheld an insurance premium belonging to insurers or to an insured received in conduct of business under your license. 15. You, ARTHUR WALTER BROWN, JR., have converted, misappropriated, or wrongfully withheld money belonging to an insurer and an insured. | IT IS THEREFORE CHARGED that you, ARTHUR WALTER BROWN, JR., 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: Sections 626.561(1); 626.611(5); 626.611(7); 626.611(9); 626.611(10); 626.611(13) and 626.9541(1)(e)1, Florida Statutes; as more particularly alleged in Count I above. . | , COUNT IH © 16. On or about September 2, 2003, you, ARTHUR WALTER BROWN, JR, received $802.800 from First American Title Company on behalf D.T. of LaCrosse, Florida, a Florida insurance consumer. This sum was intended to be total premium payment on a homeowner’s insurance policy to be issued by Florida F amily Insurance Company. 17. ARTHUR WALTER BROWN, IR. failed to promptly remit the above-described $802.00 premium payments received from First American Title Company on behalf of D.T. to Florida Family or any insurer entitled thereto. Rather, you, ARTHUR WALTER BROWN, JR., without D.T.’s knowledge or informed consent, submitted a fraudulent premium finance application to Distinct Advantage Premium Finance Company with the signature of D.T. falsely affixed thereto, together with a $198 down payment. You, ARTHUR WALTER BROWN, R, then financed the remainder of the insurance policy premium and retained the remaining $594.15 in fiduciary funds for your own use and benefit. _ . 18. _D.T’s insurance policy was subsequently cancelled for non payment of the premium, When queried by D.T. about cancellation of her policy, you, ARTHUR WALTER BROWN, I R., represented to D.T. that it was a clerical error only and that she was fully insured. 19. = You, ARTHUR WALTER BROWN, JR. have knowingly and willingly misappropriated, converted or wrongfully withheld an insurance premium belonging to insurers or to an insured received in conduct of business under your license. 20. You, ARTHUR WALTER BROWN, JR., have converted, misappropriated, or wrongfully withheld money belonging to an insurer and an insured. ITIS THEREFORE CHARGED that you, ARTHUR WALTER BROWN, JR., 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: Sections 626.561(1); 626.611(5); 626.611(7); 626.611(9); 626.611(10); 626.611(13) and 626.9541(1)(e)1, Florida Statutes; as more particularly alleged in Count I above. WHEREFORE, you, ARTHUR WALTER BROWN, JR., 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 io 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 8 (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. 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, th DATED and SIGNED this 4" " day of Avgust 2006. “KAREN CHANDLER Deputy Chief Financial Officer 10 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative . Complaint has been furnished by U.S. Certified Mail to ARTHUR WALTER BROWN JR., 120 SW 250" Street, Newberry, Florida 32693; ARTHUR WALTER BROWN, JR., 12451 1015". Court, Archer, Florida 32618; ARTHUR WALTER BROWN, JR., P.O. Box 130, Newberry, th . Florida 32669 this 1" day or. Suyus\ _, 2006. James A. Boss \ Division of Legal Services \ East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033- (850) 413-4124 Florida Bar Number 0374598 11

Docket for Case No: 06-003304PL