FROM May 20 2008 3:25 DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr May. 28 2668 @7:32AM Pile FILED REPRESENTING APR a 2008 ALEX SINK CHIRFFINANCIAL OFFICER . STATE O! FLORIDA D ‘ Life ) TN THE MATTER OF; , . CASE NO.: 91435-08-AG CHARLES L. ANANIA ADMINISTRATIVE COMPLAINT TO: CHARLES 1, ANANIA United Republic ‘Title, LLLP 2691 E. Oakland Park Blvd, Suite 203 Ft. Lauderdale, FI, 33306 CHARLES L. ANANIA 10 Fort Royal Isle Ft. Lauderdale, FL 33308 You, CHARLES L. ANANIA, license LD. #2175318, 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, CIIARLES L. ANANIA, are currently licensed in this state as a title agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, CHARLES L. ANANTA, were licensed in this state as a title insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your title insurance agent license and appointments. ; May 20 2008 3:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 24 2686 4? S35AM Pele 4. At all times material herein, you, CHARLES L. ANANIA, as a licensed title insurance agent, acting by, through, and for United Republic Title, LLLP, 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 hereby realleged and fully incorporated herein by reference. 6. During the years 2005 and 2006, you, CHARLES L. ANANIA, were the licensed title insurance agent acting for United Republic Title, LLLP who maintained escrow account number 3766617569 at the Bank of America. You caused this escrow account to be subject to an automated overnight sweep investment account to earn interest on the consumer's cash balances. In 2005, this account earned interest of $23,210.38, and in 2006, interest of $73,268.64. Under this arrangement, 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 consumers and are not in compliance with statutory requirements regarding deposits of escrow moneys. IT IS THEREFORE CHARGED that you, CHARLES L. ANANTA, 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 witbholding 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]; (o) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Flotida Statutes]; May 20 2008 3:26 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 28 2668 &7:33AM Pa-12 (c) Engaging in unfair methods of competition or in business, as prohibited under part (X of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or to be detrimental to the public interest. [Scction 626.844(5), Florida Statutes}; (d) All funds received by a title insurance agent . . . shall be trust finds received in a 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 state and is a member of the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. These funds shall be invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds ins. 17.57, where the funds shall be kept until disbursement thereof as properly authorized. [Section 626.8473(3), Florida Statutes]; (fy 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, of 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.]. WITEREFORE, you, CHARIL.ES L. ANANIA, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agenct 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. May 20 2008 8:27 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 24 2686 BP SsAM P4-12 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 Departinent 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 (han 5:00 p.m. on the twenty-first day alter 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) 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. May 20 2008 8:27 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 28 2668 B7:34AM PS-12 (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. Ifa hearing of any type is requested, you have the right to be represented by counsel or other qualified representalive at your expense, to present evidence and argument, to call and cross-exarnine 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 J udge 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. Al) 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. May 20 2008 8:27 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 28 2668 @7:34AM Pele Mediation of this matter pursuant to Section 120.57 3, Florida Statutes, is not available. No Department attorney will discuss this matter with you until the response has been received by the Department. DATED and SIGNED this 0. ad@-_ day of 2008. KAREN 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: CHARLES I., ANANIA, United Republic Title, LLLP, 2691 E Oakland Park Blvd, Suite 203, Ft. Lauderdale, FL, 33306; and CHARLES L, ANANIA, 10 Fort Royal Isle, Ft. Lauderdale, FL 33308; by Certified Mail this 24a, day of fag Le , 2008. AZZ 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: 08-002428PL