Oct 4 2006 11:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 64 2646 11:38AM P4-14 FLORIDA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER FILED CHIEF FINANCIAL OFFIGER STATE OF FLORIDA "JUN 24 2006 IN THE MATTER OF: Goohated nn, 27 Een? CASE NO.: 86232-06-AG MARY VALDES ADMINISTRATIVE COMPLAINT TO: MARY VALDES 2715 Southwest 157th Avenue Homestead, FL 33031-2505 You, MARY VALDES, license I.D. #A271034, 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 stale, as a result of which it is alleged: GENERAL ALLEGATIONS I. Pursuant to Chapter 626, Florida Statutes, you, MARY VALDES, are currently licensed in this state as a Title Agent (4-10). 2. At all times pertinent to the dates and occurrences referred to herein, you, MARY VALDES, were licensed in this state as a Title Agent (4-10). 3. Pursuant to Chapter 626, Florida Statutes, the FLORIDA DEPARTMENT OF FINANCIAL SERVICES has jurisdiction over your license and appointments. 4, At all times material herein, you, MARY VALDES, as a licensed title insurance agent, acting through The Greater Title Services, Inc., a licensed tile insurance agency, failed to maintain monthly reconciliation escrow accounts, failed to retnit correct premiums to the insurer, Oct 4 2006 11:37 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. G4 2666 11:31AM Po-14 failed to submit premiums and applications to the insurer in a timely manner, and overcharged for related title services, all as will hereinafter be more fully set forth. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6, On or about March 15, 2005, you, MARY VALDES, as a licensed title insurance agent, and acting through a licensed title insurance agency, The Greater Title Services, Inc., as its sole officer and director, conducted a real estate closing and issued title insurance therefor in behalf of F.C., being agency file number 04-1856, You charged this consumer TWO HUNDRED FIFTY DOLLARS ($250,00) as and for abstract title services and a further charge of TWO HUNDRED FIFTY DOLLARS ($250.00) for title examination. Actual cost for these services was EIGHTY FIVE DOLLARS ($85.00) paid to GR Title Examiners, Inc. The consumer F.C., was thusly overcharged FOUR HUNDRED FIFTEEN DOLLARS ($415.00) by you for title search and examination. IT IS THEREFORE CHARGED that you, MARY VALDES, 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 or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment, [Section 626.8437(7), Florida Statutes]; Oct 4 2006 11:37 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. G4 2666 11:31AM Pe-l4 / (d) 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 act. [Section 626.8437(9), Florida Statutes; (e) Knowingly collecting a sum as a premium or charge for insurance, which has not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1,, Florida Statutes; (f) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance in accordance with the applicable classifications and rates as filed with and approved by the office, and as specified in the policy. [Section 626.9541(1)(0)2., Florida Statutes]. COUNT II 7. The above general allegations are hereby realleged and fully incorporated herein by reference, 8. On or about March 15, 2005, you MARY VALDES, as a licensed title insurance agent, and acting through a licensed title agency, The Greater Title Services, Inc., as its sole officer and director, conducted real estate closing and issued title insurance therefor in behalf of F.C., being agency file number 04-1856, You overcharged the consumer TWO HUNDRED FIFTY and 72/100 DOLILARS ($250.72) above the promulgated premium for title insurance. Although you issued an owner's policy of insurance through Fidelity National Title Insurance Company, you failed to remit the premium sum due that company for its policy of title insurance. IT IS THEREFORE CHARGED that you, MARY VALDES, 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 or revocation of your licenses and appointments: Oct 4 2006 11:37 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Oct. G4 2666 11:31AM Pril4 (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitments, binders, policics of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) — Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626,8437(6), Florida Statutes]; (ce) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) 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 act. [Section 626.8437(9), Florida Statutes; (e) Knowingly collecting a sum as a premium or charge for insurance, which has not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541 (1)(o)1., Florida Statutes; (f) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance tn accordance with the applicable classifications and rates as filed with and approved by the office, and as specified in the policy. [Section 626.9541(1)(0)2., Florida Statutes]; (g) A person may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than the premium adopted by the Commission. [Section 627.780(1), Florida Statutes]. COUNT Il 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. In or around May, 2005, Fidelity National Title Insurance Company conducted an audit of your title insurance agency, The Greater Title Services, Inc., which reflected that you Oct 4 2006 11:38 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. G4 2666 11:32AM Pe-l4 had been routinely charging title insurance consumers above the promulgated rates for such title insurance. Review of files audited revealed that you had failed to remit to it THIRTY PERCENT (30%) of the gross premium in accordance with ihe agency agreement with that company. IT IS THEREFORE CHARGED that you, MARY VALDES, 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 or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment, [Section 626.8437(7), Florida Statutes]; (d) 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 act. [Section 626.8437(%), Florida Statutes: (c) Knowingly collecting a sum as a premium or charge for insurance, which has not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.954] (1)(0)1., Florida Statutes; (f) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance in accordance with the applicable classifications and rates as filed with and approved by the office, and as specified in the policy. [Section 626.9541(1)(0)2., Florida Statutes); Oct 4 2006 11:38 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. G4 2666 11:32AM Parl4 (g) A person may not knowingly quote, charge, accept, collect, or receive a premium for title insurance other than the premium adopted by the Commission. [Section 627.780(1), Florida Statutes}. COUNTIV 11. The above general allegations are hereby rcalleged and fully incorporated herein by reference. 12. You, MARY VALDES, as a licensed title insurance agent, acting through your licensed title insurance agency, The Greater Title Services, Inc., maintained escrow account numbers 749000368 and 074-7001731 at Bank United. You further maintained two other escrow accounts, one at Colonial Bank, being account number 266773, and one at Ocean Bank, being account number 71314705. Review of these escrow bank account reconciliations as of June 30, 2005, reflect numerous checks to be outstanding in excess of six months, The majority of such outstanding checks were found to be premium sums due and payable to Fidelity National Title Insurance Company but not furnished to that company. Reconciliation of the Ocean Bank escrow account reflected a shortage of THREE THOUSAND DOLLARS ($3,000.00). IT IS THERE!}ORE CHARGED that you, MARY VALDES, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Departitient of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer through the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; {c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; 6 Oct 4 2006 11:38 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Oct. G4 2686 11:35AM Piae-id (d) Funds required to be maintained in escrow trust accounts pursuant to this section shall not be subject to any debts of the title insurance agent and shall be used only in accordance with the terms of the individual escrow, settlement, or closing instructions under which the funds were received. [Section 626.8473(4), Florida Statutes. WHEREFORE, you, MARY VALDES, 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 626.8437, 626,844, 626,8443, 626.8457, 626.846, 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 Kast 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 Oct 4 2006 11:59 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. 64 2666 11:33AM Pil-14 the attached Election of Proceeding form conforms to these requitements. 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 represenied 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 Tallahassec, Florida. Failure to follow the procedure outlined with regatd 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 Oct 4 2006 11:59 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. 64 2666 11:33AM Pl2-14 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 A/s¢_ day of Tega, 2006 KAREN CHANDLER Deputy Chief Financial Officer Oct 4 2006 11:59 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. G4 2666 11:34AM Pis-i4 CERTIFICATE OF SERVICE THEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: MARY VALDES, 2715 Southwest 157th Avenue, Homestead, FL 33031-2505; by Certified Mail this Aalst day Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 Phone (850) 487-0197 Fax Florida Bar Number 0001959 of “ys he , 2006. 10

Docket for Case No: 06-003777PL