a 2609 REPRESENTING APR ; 4 2008 ALEX SINK ty AM A B SPITE FINAN PICK QD SY CHIEF FINANCIAL OFFICER A VIS ON or STATE OF FLORIDA Ops} it, 13 TF bene DX -1 Yas Pl Mealtime on EU IN THE MATTER OF: CASE NO. 89789-08-AG CHARLES PHILLIP WILEY ; ADMINISTRATIVE COMPLAINT TO: CHARLES PHILLIP WILEY 1555 56" Square E Vero Beach, Florida 32966 CHARLES PHILLIP WILEY 859 16™ Place Vero Beach, Florida 32960 You, CHARLES PHILLIP WILEY, 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, CHARLES PHILLIP WILEY, are currently licensed in the state as a variable annuity agent; life including variable annuity agent; life including variable annuity and health insurance agent; life and health insurance agent; life insurance agent; and health insurance agent. 2. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint you, CHARLES PHILLIP WILEY, were licensed as an insurance agent in this state. 3. Pursuant to Chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida and the Department of Financial Services has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. COUNT I 4. The above General Allegations numbered one through three are hereby realleged and fully incorporated herein by reference. 5. On or about January 8, 2007, you, CHARLES PHILLIP WILEY, solicited D.L. of Sebastian, Florida, to purchase an annuity. 6. As an elderly pensioner of modest means, D.L.’s sole concern about her retirement assets were safety, interest income to help pay living expenses, and easy and penalty free access in the event of emergencies or other special situations. You, CHARLES PHILLIP WILEY, were aware of these facts. | 7. On or about January, 2007, you, CHARLES PHILLIP WILEY, willfully induced DLL. to utilize $43,000, which represented essentially her entire liquid retirement assets, to purchase a Fidelity and Guaranty Life Insurance flexible premium deferred annuity (hereinafter “annuity”). You, CHARLES PHILLIP WILEY, were aware at this time that this sum represented D.L.’s liquid assets. 8. In the process of inducing the sale and purchase of the annuity, you, CHARLES PHILLIP WILEY, willfully misrepresented and/or omitted material information regarding the nature and sale of the annuity. 9. You, CHARLES PHILLIP WILEY, failed to disclose to D.L. that D.L. could not annuitized or receive payments due under the annuity contract, until the policy had been in effect for twenty years when D.L. would be 94 years old. 10... You, CHARLES PHILLIP WILEY, failed to disclose that D.L. could not withdraw from the annuity in excess of 10% of her funds in any one year and that she. could not withdraw more than 25% of her funds over the life of the contract without payment of up a 17.5% surrender penalty. 11. You, CHARLES PHILLIP WILEY, willfully misrepresented to D.L. that she could withdraw $300 a month payment from the annuity to help her meet her living expenses. You, CHARLES PHILLIP WILEY, failed to disclose to D.L. that each monthly withdrawal would be assessed a surrender penalty of an additional 17.5%. for the first year. After the first year, D.L could withdraw $300 a month without penalty providing she did not withdraw in excess of 10% of her principal in any one year or more that 25% of her principal over the life of the contract. This was highly unlikely to happen as D.L. had informed you that she needs the funds to help her pay her living expenses. You, CHARLES PHILLIP WILEY, also willfully failed to disclose to D.L. that in withdrawing her $300 a month, she was utilizing her principal only and paying a surrender penalty for the privilege of withdrawing the funds. 12. The misrepresentations and omissions, made by you, CHARLES PHILLIP WILEY, described herein were false and material misstatements of fact. You, CHARLES PHILLIP WILEY, were fully aware of these facts. 13. The conduct and actions describe herein constitute unfair and deceptive acts or practices in violation of Section 626.9541, Florida Statutes. 14. D.L. justifiably relied on the representations and information conveyed by you, CHARLES PHILLIP WILEY, concerning the annuity. The annuity would not have been purchased but for these representations. 15. The sale of the of the annuity to D.L. was not in her best interest, was neither necessary nor appropriate for a person of her age and financial circumstance as she had no desire or need to restrict access to her retirement funds in such a fashion, was without demonstrable benefit, and was done for the sole purpose of obtaining a fee, commission, money or other benefit from an insurance company. As a result, D.L. has suffered financial harm. IT IS THEREFORE CHARGED that you, CHARLES PHILLIP WILEY, have violated or are accountable under provisions of one or more of the following: the Florida Statutes or the Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), 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) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of the Insurance Code. [Section 626.611(13), Florida Statutes]; (e) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; (63) In the conduct of business under the license or appointment, engaging in unfair methods of competition or unfair or deceptive acts or practices, as prohibited by part IX of this chapter. [Section 626.621(6), Florida Statutes]; (g) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a) 1, Florida Statutes]; (h) 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]. Q) Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer. [Section 626.9541(1)(k)1, Florida Statutes] (k) Failure to have reasonable grounds for believing that the recommendation is suitable for the senior consumer on the basis of the facts disclosed by the senior consumer as to his or her investments and other insurance products and as to his or her financial situation and needs. [Section 627.4554(4)(a), Florida Statutes]. COUNT II 16. The above General Allegations numbered one through three are hereby realleged and fully incorporated herein by reference. 17. Onor about July, 2005, you, CHARLES PHILLIP WILEY, solicited Mr. and Mrs. R.Y. (hereinafter R.Y.) of Barefoot Bay, Florida, to purchase an annuity. 18. As an elderly couple of modest means, R.Y. 's sole concern about their retirement assets were safety, interest income to help pay living expenses, and easy and penalty free access in the event of emergencies or other special situations. 19. On or about July, 2005, you, CHARLES PHILLIP WILEY, willfully induced R.Y. to utilize approximately $125,000.00 in retirement funds to purchase two EquiTrust Life equity deferred index annuities (hereinafter “annuities”), 20. At this time, approximately $24,000 of the above mentioned retirement funds were deposited in a Pacific Life annuity which R.Y. had purchased in 2002. This annuity contained a 7 year surrender period. You, CHARLES PHILLIP WILEY, willfully induced R.Y. to surrender this annuity and replace it with the EquiTrust annuities being solicited by you. 21. — In the process of inducing the sale and purchase of the annuity, you, CHARLES PHILLIP WILEY, willfully misrepresented and/or omitted material information regarding the nature and sale of the annuity. 22. You, CHARLES PHILLIP WILEY, misrepresented that R.Y. would receive a monthly $200 interest income check. In fact, R.Y. does not and cannot receive any monthly interest income checks from the annuity. 23. You, CHARLES PHILLIP WILEY, failed to disclose that R. Y. would be assessed a surrender fee of up to 20% for 14 years if they withdraw any funds from the annuities. 24 You, CHARLES PHILLIP WILEY, failed to disclose that by surrendering their PacificLife annuity in exchange for the EquiTrust annuities, R.Y. would be exchanging an annuity with a remaining three year surrender period for an annuity with a fourteen year surrender period and, and in addition, would be required to pay a substantial surrender penalty without gaining any comuniserate and significant benefit from the exchange. 25. The misrepresentations and omissions, made by you, CHARLES PHILLIP WILEY, described herein were false and material misstatements of fact. You, CHARLES PHILLIP WILEY, were fully aware of these facts. 26. The conduct and actions describe herein constitute unfair and deceptive acts or practices in violation of Section 626.9541, Florida Statutes. 27. _ R.Y. justifiably relied on the representations and information conveyed to them by you, CHARLES PHILLIP WILEY concerning the annuities. The annuity would not have been purchased but for these representations. 28. The sale of the of the annuities to R.Y. was not in their best interest, was neither necessary nor appropriate for a person of their age and financial circumstance as they had no desire or need to restrict access to her retirement funds in such a fashion, was without demonstrable benefit, and was done for the sole purpose of obtaining a fee, commission, money or other benefit from an insurance company. As a result, R.Y. has suffered financial harm. 7 IT IS THEREFORE CHARGED that you, CHARLES PHILLIP WILEY, have violated or are accountable under provisions of one or more of the following: the Florida Statutes or the Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: Sections 626.61 1(5); 626.611(7); 626.61 1(9); 626.61 1(13); 626.611(6), 626.621(2); 626.621(6); 626.9541(1)(a)1; 626,9541(1)(e)1 5 626.9541(1)(k)1; and 627.4554(4)(a), Florida Statutes, as more particularly alleged in count I above. COUNT IN 29, The above General Allegations numbered one through three are hereby realleged and fully incorporated herein by reference. 30. On or about December, 2004, you, CHARLES PHILLIP WILEY, solicited ELL. of Ft. Pierce, Florida, to purchase an annuity. 31. As an elderly pensioner of modest means, E.L.’s sole concern about his retirement assets were safety, interest income to help pay living expenses, and easy and penalty free access in the event of emergencies or other special situations. You, CHARLES PHILLIP WILEY, were aware of these facts. 32. On or about December 28, 2004, you, CHARLES PHILLIP WILEY, willfully induced E.L. to utilize $100,000, which represented essentially his entire liquid retirement assets, to purchase a Fidelity and Guaranty Life Insurance flexible premium deferred annuity (hereinafter “annuity”). You, CHARLES PHILLIP WILEY, were aware at this time that this sum represented E.L.’s liquid assets. 33. In the process of inducing the sale and purchase of the annuity, you, CHARLES PHILLIP WILEY, willfully misrepresented and/or omitted material information regarding the nature and sale of the annuity. 34. You, CHARLES PHILLIP WILEY, failed to disclose to E.L. that E.L. could not annuitized or receive payments due under the annuity contract, until the policy had been in effect for thirteen when DL. would be 97 years old. 35. You, CHARLES PHILLIP WILEY, failed to disclose that E.L. could not withdraw from the annuity in excess of 10% of his funds in any one year and that he could not withdraw more than 25% of his funds over the life of the contract without payment of up to a 17.5% surrender penalty. 36. You, CHARLES PHILLIP WILEY, willfully misrepresented to E.L. that he could withdraw funds from the annuity to help his meet living expenses or other special expenses. You, CHARLES PHILLIP WILEY, failed to disclose to E.L. that each monthly withdrawal would be assessed a surrender penalty of an additional 17.5%. for the first year. After the first year, E.L could withdraw funds without penalty providing he did not withdraw in excess of 10% of his principal in any one year or more that 25% of his principal over the life of the contract. This was highly ~ unlikely to happen as E.L. had informed you that he needs the funds to help pay living expenses. 37. The misrepresentations and omissions, made by you, CHARLES PHILLIP WILEY, described herein were false and material misstatements of fact. You, CHARLES PHILLIP WILEY, were fully aware of these facts. 38. The conduct and actions describe herein constitute unfair and deceptive acts or practices in violation of Section 626.9541, Florida Statutes. 39. ELL. justifiably relied on the representations and information conveyed to them by you, CHARLES PHILLIP WILEY, concerning the annuity. The annuity would not have been purchased but for these representations. 40. The sale of the of the annuity to E.L. was not in his best interest, was neither necessary nor appropriate for a person of his age and financial circumstance as he had no desire or need to restrict access to his retirement funds in such a fashion, was without demonstrable benefit, and was done for the sole purpose of obtaining a fee, commission, money or other benefit from an insurance company. As a result, E.L. has suffered financial harm. IT IS THEREFORE CHARGED that you, CHARLES PHILLIP WILEY, have violated or are accountable under provisions of one or more of the following: the Florida Statutes or the Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: Sections 626.61 1(5); 626.611(7); 626.61 1(9); 626.61 1(13); 626.611(6), 626.621 (2); 626.621(6); 626.9541(1)(a)1; and 626.9541 (1)(e)1; 626.9541(1)(k)1; and 627.4554(4)(a), Florida Statutes, as more particularly alleged in Count I above. WHEREFORE, you, CHARLES PHILLIP WILEY, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses, appointments and your eligibility for licensure as an insurance agent in this state or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692, 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. 10 NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the’ Department of Financial Services ("Department") pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, 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 acting as 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 SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, 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, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"). (b) The name, address, telephone number, facsimile number of the attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. 11 (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) A statement of when the respondent received notice of the administrative complaint. (e) A statement including the file number to the administrative complaint. 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. 12 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 Moreh the Department. ; th DATED and SIGNED this_ {4° day of KAREN CHANDLER Deputy Chief Financial Officer E) » ©. Ed ie Pa ak gts Bs 13 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: CHARLES PHILLIP WILEY at 1555 56™ Square E Vero Beach, Florida 32966 and 859 16"™ Place, Vero Beach, Florida 32960 on this 14 h day of Mou c , 2008. JAMES A. BOSSART, ES ivision of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124 QUIRE 14

Docket for Case No: 08-001825PL