Oct 21 2008 3:10 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 87:16AM PS oe ‘FILED ALEX SINK CHILE FINANCIAL OFFICER STATE OF FLORIDA Sep 11 2008 IN THE MATTER OF: . Pocksted by; ie : a JOSE MIGUEL MASTRAPA CASE NO.: 93885-08-AG / ADMINISTRATIVE COMPLAINT TO: JOSE MIGUEL MASTRAPA 13001 Lerida Street Coral Gables, Florida 33156 JOSE MIGUEL MASTRAPA c/o AAA Bail Yes Bonding Agencies Inc. 2299 SW 27TH AVE Miami, Florida 33145-3497 You, JOSE MIGUEL MASTRAPA, 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 limited surety (bail bond) agent (2-34) in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, JOSE MIGUEL MASTRAPA, currently are licensed in this state as a limited surety (bail bond) (2-34) agent (License Number A167883). 2, At all times pertinent to the dates and occurrences referred to herein, you, JOSE MIGUEL MASTRAPA, were licensed in this state as-a limited surety (bail bond) (2-34) agent. 3. Pursuant to Chapter 648, Florida Statutes, and the Florida Insurance Code, the Florida Department of Financial Services (hereinafler “Department”) has jurisdiction over your bail bond agent license, appointments and eligibility for licensure, Oct 21 2008 3:10 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 7:16AM P4 4, Your bail bond license was suspended pursuant to a Notice of Temporary Suspension entered January 27, 2005 in DFS Case Number 79801-05-AG based on felony charges pending in the state of New York, Under the temporary suspension you, JOSE MIGUEL MASTRAPA, were ordered not to engage in any transaction or business for which a license is required. You, JOSE MIGUEL MASTRAPA, were prohibited from writing, issuing, or soliciting any bail bonds in the state of Florida. Further, you were prohibited from effecting any additional bail bonds. You, JOSE MIGUEI. MASTRAPA, could thereafter only discharge any liability on bonds effected prior to the suspension. 5. You, JOSE MIGUEL MASTRAPA, regularly utilize the name Joe Mastrapa and occasionally utilize the names Joseph Mastrapa and Joseph M. Mastrapa, among your numerous aliases. 6. According to information on file with the Florida Department of State, Division of Corporations, AAA Bail Yes Bonding Agencies, Inc. (“AAA Bail”), is an incorporated bail bond agency located at 2299 SW 27th Avenue, Suite 200, Miami, Florida, 33145. 7. You, JOSE MIGUEL MASTRAPA, operated AAA Bail. Further, you, JOSE MIGUEL MASTRAPA, exercised control over the bail bond activities of AAA Bail. 8. According to information on file with the Florida Department of State, Division of Corporations, Bail Yes, Inc. was a corporation located at 2299 S.W, 27" Avenue, Suite 200, Miami, Florida that was administratively dissolved on October !, 2004 for the lack of filing an annual report. You, JOSE MIGUEL MASTRAPA, were the President and Secretary of Bail Yes, Inc., which was located at the same address as AAA Bail. 9. According to information on file with the Florida Department of State, Division of Corporations, Bail Yes is a fictitious name that is registered to Surety Financial of America Oct 21 2008 3:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 Bi: 1rAM PS Corporation. 10, According to information on file with the Florida Department of State, Division of Corporations, Surety Financial of America Corporation (“Surety”) is a corporation located at 2299 §.W. 27" Avenue, Suite 200, Miami, Florida. The officers and directors listed for Surety are as follows: President -- Joseph M. Mastrapa, Vice-President and Treasurer - Robert D. Mastrapa, and Secretary and Director —- Delores M. Mastrapa. 11. Bankers Insurance Company (“Bankers”) is a surety company for whom you, JOSE MIGUEL MASTRAPA, were an appointed agent before the expiration of your appointment on January 31, 2007. AAA Bail continues to have agents appointed by Bankers. COUNT 1 12. The above General Allegations are hereby realleged and fully incorporated herein by reference. 13. On or about July 7, 2006, Matthew King (“Mr. King”) was arrested and jailed in Houston, Texas on two counts. His bail was set at thirty thousand dollars ($30,000.00) on one count and fifteen thousand dollars ($15,000.00). on the second count for a total of forty-five thousand dollars ($45,000.00). 14. Soon after Mr. King’s arrest, his mother, consumer Brenda Sheffield Ms, Sheffield”), contacted AAA Bail, to arrange for the issuance of two bail bonds for Mr. King, Dolores Mastrapa, on behalf of AAA Bail, sent an email containing the necessary forms and instructions to Ms. Sheffield. The bail bonds for Mr. King were issued by Bankers through power numbers 527031767-7 and 555015727-2. 15. Ms. Sheffield, pursuant to the instructions, wired twenty-two thousand, five hundred dollars ($22,500.00) to Ocean Bank in Miami, Florida, The fax sheet, entitled “Bank Oct 21 2008 3:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 87:17AM Pe Wire Transfer Instructions,” that was utilized in the transaction indicates that the beneficiary of the transfer from Ms. Shefficld was Bail Yes Bonding Agencies, Inc. 16. There are no records on file with the Florida Department of State, Division of Corporations, indicating an entity with the name Bail Yes Bonding Agencies or Bail Yes Bonding Agencies, Inc. ever existed. 17. _ Bail Yes Bonding Agencies, Inc. and Bail Yes Bonding Agencies are unregistered fictitious names utilized by AAA Bail to transact business. 18, The premium on Mr. King’s bonds was four thousand, five hundred dollars ($4,500.00), The total premium was listed as four thousand, five hundred dollars ($4,500.00) on Bankers premium receipt number 1066281, with zero balance due. 19, The Bankers collateral receipt number [0 or 8]72915 on the transaction with Ms. Sheffield indicates that the only collateral given was an indemnity agreement and promissory note. 20... You, JOSE MIGUEL MASTRAPA, through your status in AAA Bail and/or Surety, actually held eighteen thousand dollars ($18,000.00) as additional collateral that was not listed on the collateral receipt. 21. Because she was unable to contact Mr. King, Ms. Sheffield faxed a letter to Dolores Mastrapa at AAA Bail on or about August 22, 2006 asking that the ‘Texas bail bond agent surrender Mr. King and have the bonds discharged, Dolores Mastrapa, in her role with AAA Bail, forwarded this letter to “Madelienc” at the Texas bail bond agency on the same day. The surrender of Mr, King required nothing else from you or your agency. 22, Mr. King surrendered himself to the court in Harris County, Texas on the following day and the bonds were discharged by the court that same day. Oct 21 2008 3:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 Bri 1rAM Pr 23. The Texas bail bond agent charged four hundred and fifty dollars ($450.00) to surrender Mr. King to the court in Harris County, Texas. . 24, After Mr. King surrendered and the bonds were discharged, Ms. Sheffield called Dolores Mastrapa at AAA Bail with regard to obtaining the return of the collateral and any unearned premium. Dolores Mastrapa informed Ms. Sheffield that she could not help her because you, JOSE MIGUEL MASTRAPA, referred to as “Joe Mastrapa,” was responsible for all disbursements for the agency. 25. After repeated phone calls to AAA Bail, Ms. Sheffield received a partial return of her collateral in the amount of thirteen thousand, five hundred dollars ($13,500.00). The check for the returned collateral, written through check number 6643 on the “Bail Yes Bonding Agencies Inc., Collateral Account” at Ocean Bank in Miami, Florida, was signed by you, JOSE MIGUEL MASTRAPA. 26. The aforementioned collateral account was the same account into which Ms. Sheffield wired the twenty-two thousand, five hundred dollars ($22,500.00) for Mr. King’s bonds. 27, You, JOSE MIGUEL MASTRAPA, informed Ms. Sheffield in a telephone conversation that, in addition to the four thousand, five hundred dollars ($4,500.00) premium and the four hundred and fifty dollar ($450.00) surrender fee owed to the Texas bail agent, you retained four thousand dollars ($4,000.00) as a fee for searching for Mr. King. 28. Mr. King voluntarily appeared in court on all dates required by the court. The bonds for Mr. King were never forfeited and a judgment against the bonds was never entered. Mr. King did not violated any term of the bonds or of the indemnity agreement. 29, You, JOSE MIGUEL MASTRAPA, through your operation of AAA Bail/Bail Oct 21 2008 3:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 87:18AM Pe Yes and through your control of AAA Bail/Bail Yes’s checking account(s), continue to retain possession of four thousand, fifty dollars ($4,050.00) of Ms. Shefficld’s collateral allegedly charged for searching for Matthew King. 30. Neither you, JOSE MIGUEL MASTRAPA, nor any other representative of AAA Bail, responded to Sheffield’s request for an accounting of the four thousand, fifty dollars ($4,050.00). 31. You, JOSE MIGUEL MASTRAPA, through your operation ‘of AAA Bail/Bail Yes and through your control of AAA Bail/Bail Yes’s checking account(s), knew or reasonably should have known about the retention of Ms. Sheffield’s collateral in violation of provisions of the Florida Insurance Code. IT 18 THEREFORE CHARGED that you, JOSE MIGUEL MASTRAPA, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Florida Department of Financial Services, which constitute grounds for the suspension or . revocation of your licenses and appointments as a bail bond agent: a) No surety, bail bond agent, temporary bail bond agent, or managing general agent engaged in the bail bond business shall make any charge, collect, or receive any fee or consideration unless permitted by statute or rule other than the premium based on rates in current use, provided, however, that nothing in this section shall prohibit collateral security or co-indemnity agreements, and provided further than in instances where an additional surety, bail bond agent, or managing general agent located in a county different from the originating agent or bail bond agent executes the bond the premium may additionally include as a part thereof an execution and transfer fee, not to exceed a total of one hundred ($100.00) dollars for any one defendant. [Rule 69B-221.105(1), Oct 21 2008 3:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 87:18AM Po Florida Administrative Code]. b) No bail bond agent shall charge, collect, or receive any fee or consideration for services rendered to the principal or indemnitor in connection with a bail bond, except those fees listed in paragraph (4) and costs necessary to apprehend the principal in the event the principal attempts to flee the jurisdiction of the courts, [Rule 69B-221.105(2), Florida Administrative Code], c) Prohibited fees include, but are not limited to, any costs regarding arrest, transportation, and surrender within the specified jurisdiction of the court, charges for storage, maintenance or return of collateral, including releases of liens or satisfactions of mortgages, charges for researching case dispositions or obtaining bond discharges or any charge for other services ordinarily performed by a bondsman or their employees in the regular course of business and any other expenses not documented by check or receipt. [Rule 69B-221.105(3), Florida Administrative Code]. d) Allowable fees include: a) Attorney's fees and court costs associated with filing of motions; b) Documented transportation and lodging expenses outside the jurisdiction of the court; c) Law enforcement costs for housing, re-arrest, transportation, and extradition; and d) A maximum fee of $100 for a surrender allowed by law when there has been no forfeiture of the bond. [Rule 221.105(4), Florida Administrative Code]. €) Every bail bond agent who accepts money or any other consideration for any bail bond or undertaking which they execute must for cach and every payment reccived give to the person or persons paying the money or giving the consideration a pre-numbered receipt as evidence of payment which receipt shall state the date, name of the principal, amount of money or consideration received and purpose for which received, number of Oct 21 2008 3:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 87:19AM Pla Power of Attorney form attached to the bond, penal sum of the bond, and name of person making payment or giving consideration. Every receipt must contain the name, address and telephone number of both the surety company and agent. Every bail bond agent must retain, in the individual file for each defendant, a duplicate copy of cach receipt issued as part of their records pursuant to Section 648,36, Florida Statutes. [Rule 69B-221.115, Florida Administrative Code]. f) Alt premiums, retum premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds. [Section 648.295(1), Florida Statutes]. . g) Collateral security or other indemnity accepied by a bail bond agent, except a promissory note ot an indemnity agreement, shall be returned upon final termination of liability on the bond. Such collateral security or other indemnity required by the bail bond agent must be reasonable in relation to the amount of the bond. Collateral security may not be used by the bail bond agent for personal benefit or gain and must be returned in the same condition as received. [Section 648.442(1), Florida Statutes]. h) When a bail bond agent accepts collateral, a written, numbered receipt shall be given, and this receipt shall give in detail a full account of the collateral received. The bail bond agent shall also give copies of documents rendered under subsection (1) to the indemnitor. [Section 648.442(2), Florida Statutes]. i) When the obligation of the surety on the bond ot bonds has been released in writing by the court, the collateral shall be returned to the rightful owner named in the Oct 21 2008 3:13 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2668 7:19AM Pil collateral receipt unless another disposition is provided for by legal assignment of the right to receive the collateral to another person. [Section 648.442(4), Florida Statutes], iP) Lacks one or more of the qualifications specified in this chapter for a license or appointment, [Section 648,45(2)(a), Florida Statutes]. k Has willfully used, or intended the use, of the license or appointment to circumvent any of the requirements or prohibitions of this chapter or the insurance code. (Section 648.45(2)(d), Florida Statutes). D Has demonstrated lack of fimess or trustworthiness to engage in the bail bond business. [Section 648.45(2)(e), Florida Statutes). m) — Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes). n) Is guilty of misappropriation, conversion, or unlawful withholding of moneys belonging to a surety, a principal, or others and received in the conduct of business under a license. [Section 648.45(2)(h), Florida Statutes}. 0) Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code, [Section 648.45(2)(j), Florida Statutes]. p) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. (Section 648.45(2)(1), Florida Statutes]. q) Has failed to return collateral. [Section 648.45(2)(n), Florida Statutes]. r) Has demonstrated a course of conduct or practices which indicate that the licensee ig incompetent, negligent, or dishonest or that property or rights of clients cannot safely be entrusted to him or her. [Section 648.45(2)(p), Florida Statutes]. Oct 21 2008 3:13 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2885 @7:19AM Pl2 s) If a discharge is provided to the surety or the surety’s agent pursuant to chapter 903, the collateral shall be returned to the indemnitor within 21 days after the discharge is provided. [Section 648.571(1), Florida Statutes]. t) Upon demand, following the written request for discharge and upon diligent inquiry by the surety or surety's agent to determine whether the bond has been discharged, the failure of the court to provide a written discharge to the surety or surety's agent pursuant to chapter 903 within 7 days automatically cancels the bond, and the collateral shall be returned to the indemnitor within 21 days after the written request for discharge, [Section 648.571(2), Florida Statutes]. u) In addition to the criminal penalties and any other penalties provided in this chapter, the department shall impose against any person violating this section an administrative fine of five times the dollar amount of the collateral. [Section 648.571(4), Florida Statutes]. COUNT II 32. The above General Allegations are hereby realleged and fully incorporated herein by reference. 33. Before January 10, 2007, you, JOSE MIGUEL MASTRAPA, were operating AAA Bail as a bail bond agency. 34. Before January 10, 2007, no primary agent form for AAA Bail was submitted to the Department. 35. You, JOSE MIGUEL MASTRAPA, have not designated a primary bail bond agent for any of the entities or agencies referenced in paragraphs 6, 7, 8, 9 or 17, above, which you operate as bail bond agencies. 10 ' Oct 21 2008 3:13 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2885 @?i28AM P1s IT IS THEREFORE CHARGED that you, JOSE MIGUEL MASTRAPA, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Florida Department of Financial Services, which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: (a) The owner or operator of a bail bond agency shall designate a primary bail bond agent for cach location, and shall! file with the department the name and license number of the person and the address of the location on a form approved by the department. ‘The designation of the primary bail bond agent may be changed if the department is notified immediately. Failure to notify the department within 10 working days after such change is grounds for disciplinary action pursuant to Section 648,45, Florida Statutes, Section 648,387(1), Florida Statutes]. (b) — Has willfully failed to comply with or willfully violated any proper order or rule of the department or willfully violated any provision of this chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes). (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code, [Section 648,45(3}(c), Florida Statutes). WHEREFORE, you, JOSE MIGUEL MASTRAPA, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a limited surety (bail bond) agent or to impose such penalties as may be provided under the provisions of Sections 648.387, 648.442, 648.45, 648.49, 648.50, 648.51, 648.52, 648.53 and 648.571, Florida Statutes, and under the other referenced Sections of the Florida Statutes and the Florida Administrative Code as set out in this Administrative Complaint. Additionally, the Department intends to enter an order to cease and desist from violation of Oct 21 2008 3:14 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2865 @7i2HAM P14 Chapter 626, Part IX, Florida Statutes. 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. 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 bearing, YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONF (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 fortn conforms to these requirements. Specifically, your response must contain: (a) The name, address, and telephone number, and facsimile number (if any) of the Oct 21 2008 3:14 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. 21 26688 7:26AM P1S 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. (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (4d) 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 al 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 fcel that a hearing is necessary, one will be conducted in Tallahassee, Florida, or by telephonic conference call upon your request. Ilowever, 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 clsewhere, 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 Oct 21 2008 3:15 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Oct. 21 2668 @fr2iAM Pile 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. DATED and SIGNED this __// tf _ day of Vptunba __, 2008. Oct 21 2008 3:15 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Oct. 21 2665 @fi2iAM P17? CERTIFICATE OF SERVICE IL HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: JOSE MIGUEL MASTRAPA 13001 Lerida Street Coral Gables, Florida 33156 JOSE MIGUEL MASTRAPA c/o AAA Bail Yes Bonding Agencies Inc. 2299 SW 27TH AVE Miami, Florida 33145-3497 by U.S. Certified Mail, restricted delivery, return receipt requested, this i B day of , 2008. . ee oe Thomas A. “Tad” David, Esq. Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4164 Florida Bar Number 0706868

Docket for Case No: 08-005235PL