Apr 21 2008 14:46 FROM :DEPT OF FINANCIAL SERVICES FAX NO. : 8584874987 Apr. 21 2808 61:53PM P?714 REPRESENTING APR 2 2008 ALEX SINK - CHTRF FINANCIAL OFFICER’ Taonnon oe , IN THE MATTER OF: OF :2092 ~ . UNITED REPUBLIC TITLE, LLLP CASE NO.; 91438-08-AG a ADMINISTRATIVE COMPLAINT TO: UNITED REPUBLIC TITLE, I.LLP 2691 E Oakland Park Blvd, Suite 203 Ft, Lauderdale, FL 33306 UNITED REPUBLIC TITLE, LLLP 600 W Hillsboro Bivd, Suite 110 Deerfield Beach, #L 33441 You, UNITED REPUBLIC TITLE, LLP, license LD. #£117675, 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 agency in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, UNITED REPUBLIC TITLE, LLLP, are currently licensed in this state as a title insurance agency. 2. At all times pertinent to the dates and occurrences referred to herein, you, UNITED REPUBLIC TITLE, LLLP, were licensed in this state as a title insurance agency. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial , Services (“Department”) has jurisdiction over your title insurance agency license and appointments. 4, At all times tmaterial herein, you, UNITED REPUBLIC JITLE, LLLP, as a licensed title insurance agency, and acting by and through your licensed insurance agent, Charles Apr 21 2008 14:4? FROM :DEPT OF FINANCIAL SERVICES FAX NO. 18584874987 Apr. 21 24068 41:54PM Paid ee Anania, improperly invested escrow moneys in accounts for profit without knowledge or consent of your consumers and contrary to statutory requirements, all as more particularly set forth hereinafter. COUNT I 5. The above general allegations are hercby realleged and fully incorporated herein - by reference. 6. During the years 2005 and 2006, you, UNITED REPUBLIC TITLE, LLLP, maintained escrow account number 37766617569 at the Rank of Ametica. You caused this escrow account to be subject to an automated overnight sweep investment account to carn interest on the consumer's cash balances. In 2005, this account earned you interest of $23,210.38, and in 2006, intorest of $73,268.64. Under this arrangement, your consumer's escrow moneys were invested in "repurchase agreements" involving risk including possible loss of the principal amounts invested which were not FDIC insured and not deposits or other obligations guaranteed by Bank of America Corporation. Your actions and activities were without the knowledge or consent of your consumers and are not in compliance with statutory tequirements regarding deposits of escrow moneys. , IT IS THEREFORE CHARGED that you, UNITED REPUBLIC TITLE, LULP., 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} 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]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Engaging in unfair methods of competition or in business, as prohibited under part IX of this chapter, or having otherwise shown bimself or herself to be a source of injury or Apr 21 2008 14:47 FROM :DEPT OF FINANCIAL SERVICES FAX NO. :8584874907 Apr. 21 2088 41:54PM P9714 loss to the public or to be detrimental to the public interest, [Section 626.844(5), Florida Statutes]; (a) _ All funds received by a title insurance agent . . . shall be trust funds received ina fiduciary capacity by the title insurance agent and shall be the property of the person or persons entitled thereto, [Section 626.8473(2), Florida Statutes]; (e) All funds received by a title insurance agent to be held in trust shall be immediately placed in a financial institution that is located within this stute and is a member of the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. These funds shall he invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds in s. 17.57, where the funds shall be kept until disbursement thereof as properly authorized. [Section 626.8473(3), Florida Statutes); (f) 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 accepted. [Section 626.8473(4), Florida Statutes]; and (g) A title insurance agent or title insurer may not use, endanger, or encumber money held in trust without the permission of the owner of such money, given after full disclosure of the circumstances. [Rule 690-186.008(1), F.A.C.]. WHEREFORE, you, UNITED REPUBLIC TITLE, LLLP, arc hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agency 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. Apr 21 2008 14:47 FROM :DEPT OF FINANCIAL SERVICES FAX NO. : 8584874987 Apr. 21 2008 @1:55PM P1@714 You have the right to request a proceeding to contest this action by the Department of Financial Services (""Depattment”) 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 Gencral 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 tight 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) Thename, addreys, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "espondent"). (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. Apr 21 2008 14:48 FROM :DEPT OF FINANCIAL SERVICES FAX NO. = 8564874987 Apr. 21 2088 @1:55PM P1114 (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are nono, the petition must so indicate, (d) A statement of when the respondent received notice of the administrative complaint. (ec) Avstatement including the file number to the administrative complaint. Ifa hearing of any type is requested, you have the right to be represented by counsel ot 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 Tallahassce, 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 Apr 21 2008 14:48 FROM :DEPT OF FINANCIAL SERVICES FAX NO. 28584874907 Apr. 21 2088 @1:55PM Pl2/i4d 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 attomey will discuss this matter with you until the response has been received by the Department. . DATED and SIGNED this 2 rake day of April , 2008. 'AREN CHANDLER Deputy Chief Financial Officer Apr 21 2008 14:48 FROM :DEPT OF FINANCIAL SERVICES Fax NO. : 8584874907 Apr. 21 2888 @1:55PM P1314 CERTIFICATE OF SERVICE T HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE | COMPLAINT and ELECTION OF PROCEEDING has been furnished to; UNITED REPUBLIC TITLE, LLLP, 2691 E Oakland Park Blvd, Suite 203, Ft. Lauderdale, FT, 33306; UNITED REPUBLIC TITLE, LLLP, 600 W Hillsboro Blvd, Suite 110, Deerfield Beach, FL 33441 by Certified Mail this nd. day of A pak, 2008. eal Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 Phone (850) 487-4907 Fax Florida Bar Number 0001959

Docket for Case No: 08-002022