Feb 2 2009 12:10 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, 2 2669 12:28PM Pe FILED aR FEB 19 2008 REPRESENT (NG ALEX SINK cu Cry ec icon Biiceetea vy: Saabs IN THE MATTER OF: M & M AGENTS, INC, A Florida For Profit . CASE NO,; 90698-07- AG Corporation. / ADMINISERATIVE COMPLAINT TO: M&M Agents, Inc. tes c/o Pamela B. Jackson, Registered Agent 2422 University Boulevard West Jacksonville, FL 32217 ' You, M & M AGENTS, INC., license LD. #D063558, 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 a managing general agent (0-60) in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, M & M AGENTS, INC., are currently licensed in this state as the managing general agent in Florida for American Contractors Indemnity Company, a California Corporation authorized to do business in the State of Florida, and further authorized and licensed by the Florida Department of Financial Services (hereinafter “Department”), 2, Pursuant to Chapter 648, Florida Statutes, the Department has jurisdiction over your managing general agent license and appointments. 3. At all times material hereto Pamela Burke Jackson (hereinafter “Ms. Jackson”) was the registered agent and president of you, M & M AGENTS, INC., as shown on documents filed with the State of Florida, Secretary of State. 4. Before November 5, 2004 and after May 5, 2006, Ms. Jackson did not and does not hold a valid license from the Department. Between November 5, 2004 and after May 5, 2006 Feb 2 2009 12:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, G2 2669 12:28PM Po Ms. Jackson held only a (T2-35) T emporary Resident Limited Surety Agent (Bail Bond Agent) license from the Department. 3. On or about October 1, 2004, Ms. Jackson signed a contract and an addendum to that contract with American Contractors Indemnity Company (hereinafter “ACIC”). This contract made Ms. Jackson the managing general agent in Florida for ACIC. It is through this contract that you. M & M AGENTS, INC., by and through authorized representatives, established your relationship and authority with ACIC. 6, On you, M & M AGENTS, INC.’s, behalf, with your authorization and in furtherance of your business, Ms. Jackson conducted business as, acted in the capacity of, or held herself out to be a bail bond agent. This was done by, among other activities, arranging for transfer bonds or arranging for the transfer of bonds between various agents and/or jurisdictions and by establishing the procedures and charges for such services, COUNT 1 7. The above General Allegations ate hereby realleged and fully incorporated herein by reference, 8. On multiple occasions, you, M & M AGENTS, INC., by and through authorized representatives including Ms. Jackson, charged more than the rate allowed by law for executing and/or transferring a bond. 9. For example and not in limitation, on or about May 9, 2005 and with regard to defendant J. Hilbert, you, M & M AGENTS, INC., by and through authorized representatives including Ms. Jackson, charged Paul Ortelli Bail Bonds a transfer fee in the amount of One Hundred- Fifty Dollars ($150.00), as documented on a “Transfer Billing” statement. 10, As a further example and not in limitation, on or about May 14, 2005 and with regard to defendant J. Albritton, you, M & M AGENTS, INC., by and through authorized representatives including Ms. Jackson, charged Paul Ortelli Bail Bonds a transfer fee in the amount of One Hundred- Fifty Dollars ($150.00), as documented on a “Request For Transfer Bond” statement. Feb 2 2009 12:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, @2 2663 12:21PM Pla 11. As a further example and not in limitation, on or about June 24, 2005 and with tegard to defendant J. Ysidron, you, M & M AGENTS, INC., by and through authorized representatives including Ms. Jackson, charged Paul Ortelli Bail Bonds a transfer fee in the amount of One Ilundred- Fifty Dollars ($150.00), as documented on a “Request For Transfer Bond” statement. IT IS THEREFORE CHARGED that you, M & M AGENTS, INC., have violated or are accountable under one or more of 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 license and appointments as a managing general agent (0-60) and your eligibility for licensure and appointment: 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 excced a ‘otal of one hundred ($100.00) dollars for any one defendant, ... [69B-221.105(1), Florida Administrative Code; (emphasis added)]; 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 [d), below] and costs necessary to apprehend the principal in the event the principal attempts to flee the jurisdiction of the courts, [69B-221 .1035(2), Florida Administrative Code; (cmphasis added)]; 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 Jiens or satisfactions of mortgages, Feb 2 2009 12:11 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, G2 2669 le:2iPM Pil 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. [69B-221.105(3), Florida Administrative Code; (emphasis added)); 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; ¢) 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. [69B-221,105(4), Florida Administrative Code: (emphasis added)]; e) [A bail bond agent or temporary bail bond agent may not]... Accept anything of value from a principal for providing a bail bond except the premium and transfer fee authorized by the office, except that the bail bond agent may accept collateral security or other indemnity from the principal or another person in accordance with the provisions of s, 648.442, Together with documentary stamp taxes, if applicable. [Section 648,44(1)(j), Florida Statutes]; f) Except as between licensed and appointed bail bond agents, a bail bond agent may not divide with others, or share in, any commissions payable on account of any bail bond. [Section 648.44(5), Florida Statutes]; g) Any misleading or false advertisement or deceptive trade practice is prohibited as provided in part IX of chapter 626. [Section 648.44(6)(b), Florida Statutes]; h) Bail bond rates are subject to the provisions of part I of chapter 627 of the insurance code. [Section 648.33(1), Florida Statutes]: i) {t is unlawful for a bail bond agent to execute a bail bond without charging a premium therefore, and the premium rate may not exceed or be less than the premium rate as filed with and approved by the department. [Section 648,33(2), Florida Statutes]; jp Demonstrated lack of fitness or trustworthiness to engage. in the bail bond business. [Section 648.45(2)(e), Florida Statutes]; Feb 2 2009 12:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, G2 2663 l2:2iPM Pl2 k) Fraudulent or dishonest practices in the conduct of business under the license ot appointment. [Section 648.45(2)(g), Florida Statutes]; h Willful failure 10 comply with or willful violation of any proper order or tule of the department or willful violation of any provision of this chapter or the insurance code. [Section 648,45(2)(j), Florida Statutes]; m) Has demonstrated lack of good faith in carrying out contractual obligations and agreements, [Section 648.45(2)(1), Florida Statutes]; n) Has demonstrated a course of conduct or practices which indicate that the licensee is 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]; 0) 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]; p) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648,45(3)(e), Florida Statutes]. Cc TH 12, The above General Allegations are hereby realleged and fully incorporated herein by reference. 13. Paragraphs 9, 10 and 11, above, are hereby realleged and fully incorporated herein by reference. 14, Tm her representation of you, M & M AGENTS, INC., and conduct of your business on the occasions identified in paragraphs 9, 10 and 11, above, as well as numerous similar occasions, you, M & M AGENTS, INC., permitted Ms. Jackson a “person [who was] not licensed [at the time], as required under Chapter 648, Florida Statutes, to solicit or engage in the bail bond business in [your] behalf.” IT 18 THEREFORE CHARGED that you, M & M AGENTS, INC., have violated or are accountable under one or more of the following provisions of the Florida Insurance Code and Feb 2 2009 12:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, @2 26639 t2i22PM Pls Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your license and appointments as a managing general agent (0-60) and your eligibility for licensure and appointment: a) Any licensed bail bond agent, temporary bail bond agent, or managing general agent engaged in the bail bond business, who permits any person not licensed, as required under Chapter 648, Florida Statutes, to solicit or engage in the bail bond business in his behalf shall be deemed in violation of Section 648.30, Florida Statutes. A bail bond agent or duly licensed person from another state may apprehend, detain, or arrest a principal on a bond, as provided by law. [69B-221,001; Florida Administrative Code]; b) A person may not act in the capacity of a bail bond agent or temporary bail bond agent or perform any of the functions, duties, or powers prescribed for bail bond agents or temporary bail bond agents under this chapter unless that person is qualified, licensed, and appointed as provided in this chapter. [Section 648.30(1), Florida Statutes |; c) A person may not represent himself or herself to be a bail bond enforcement agent, bounty hunter, or other similar title in this state. [Section 648.30(2), Florida Statutes]; d) Any misleading or false advertisement or deceptive trade practice is prohibited as provided in part TX of Chapter 626. [Section 648.44(6)(b), Florida Statutes]; e) Demonstrated lack of fitness or trustworthiness to engage in the bail bond business [Section 648.45(2)(e), Florida Statutes]; f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; 2) 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 chapter or the insurance code. [Section 648.45(2)(), Florida Statutes]; h) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(1), Florida Statutes]; Feb 2 2009 12:12 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, B2 2663 t2i2ePM P14 i) 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]; D Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648.45(3)(c), Florida Statutes}. COUNT III 15. The above General Allegations are hereby realleged and fully incorporated herein by reference. 16, Paragraphs 9, 10 and 11, above, are hereby realleged and fully incorporated herein by reference. 17, As previously stated in Paragraph 3, above, Ms. Jackson was and is the president of you, M & M AGENTS, INC, 18. In her representation of you, M & M AGENTS, INC., as a corporate officer and in her conduct of your business on the occasions identified in paragraphs 9, 10 and 11, above, as well as numerous similar occasions, Ms. Jackson demonstrated “ownfership], control, or otherwise havjing] a pecuniary interest in [you, M & M AGENTS, INC. as] a bail bond agency.” IT IS THEREFORE CHARGED that you, M & M AGENTS, INC., have violated or are accountable under one or more of 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 license and appointments as a managing general agent (0-60) and your eligibility for licensure and appointment: a) A person may not own, control, or otherwise have a pecuniary interest in a bail bond agency unless such individual is a licensed and appointed bail bond agent. Any agency that is not in compliance with this subsection shall be subject to the issuance of an immediate final order of suspension of all operations until the agency achieves compliance. [Section 648.285 (1), Florida Statutes]; FROM : Feb 2 2009 12:13 DEPT OF FINANCIAL SERWICES FAX NO. + S584o7r4ogr Feb, G2 2663 l2:2ePM Pls b) Any licensed bail bond agent, temporary bail bond agent, or managing general agent engaged in the bail bond business, who permits any person not licensed, as required under Chapter 648, Florida Statutes, to solicit or engage in the bail bond business in his behalf’ shall be deemed in violation of Section 648.30, Florida Statutes, A bail bond agent or duly licensed person from another state may apprehend, detain, or arrest a principal on a bond, as provided by law. [69B-221.001, Florida Administrative Code}; c) A person may not act in the capacity of a bail bond agent or temporary bail bond agent or perform any of the functions, duties, or powers prescribed for bail bond agents or temporary bail bond agents under this chapter unless that person is qualified, licensed, and appointed as provided in this chapter. [Section 648,30(1), Florida Statutes]; d) A person may not represent himself or herself to be a bail bond enforcement agent, bounty hunter, or other similar title in this state. [Section 648.30(2), Florida Statutes]; e) Any misleading or false advertisement or deceptive trade practice is prohibited as provided in part IX of Chapter 626. [Section 648,44(6)(b), Florida Statutes]; f) Demonstrated lack of fitness or trustworthiness to engage in the bail bond business [Section 648.45(2)(e), Florida Statutes]; 2) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 648.45(2)(g), Florida Statutes]; h) 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 chapter or the insurance code. [Section 648.45(2)(j), Florida Statutes]; i) Has demonstrated lack of good faith in carrying out contractual obligations and agreements. [Section 648.45(2)(), Florida Statutes]; ap) 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, M & M AGENTS, INC., are hereby notified that the Chief Financial Officer intends to enter an Order revoking your license and appointments as a Feb 2 2009 12:13 . : P16 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, G2 2089 12:25PM Pi6 managing general agent (0-60) or to impose such lesser penalties as may be provided under the provisions of Sections 648.45, 648.46, 648.49, 648.50, 648.52, 648.53 and 648.57, Florida Statutes, and under any and all of the other referenced Sections of the Florida Statutes, procedures, and Rules as set forth in this Administrative Complaint. 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 tequest 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 Strect, 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 lo 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 requitements 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: Feb 2 2009 12:14 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, G2 2663 12:23PM P17? (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, (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 tight to‘be represented by counsel or othcr 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 chal lenging 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 10 Feb 2 2009 12:14 : : Pig FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, G2 2663 12:24PM 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 reccived 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 mattef with you until the response has been received by the Department of Financial Services, DATED and SIGNED this . / Yep Mia ee , oe KAREN CHANDLER Deputy Chief Financial Officer Feb 2 2009 12:14 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Feb, B2 2663 t2:24PM Plo CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: M&M Agents , Inc. c/o Pamela B. Jackson, Registered Agent 2422 University Boulevard West Jacksonville, FL 32217 By Certified Mail, return receipt requested and restricted delivery, this _/ % day of February, 2008. ee, THOMAS A DAVID, Florida Bar Number 706868 Division of Legal Services Larson Building, Suite 624 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone (850)413-4164 Feb 2 2009 12:14 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Feb, G2 2663 l2:24PmM Pee STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES IN THE MATTER OF: CASE NO.: 90698-07-AG M & M AGENTS, INC. / ELECTION OF PROCEEDING Thave received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand iy options. I am requesting disposition of this matter as indicated below. (Choose one) 1.0] T do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my tight to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate. 2. T do not dispute any of the Department's factual allegations and 1 hercby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes, In this regard, I desire to (Choose one): [1 Submit a writlen statement and documentary evidence in lieu of a hearing; or [] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [] Attend that same hearing by way of a telephone conference call. 3. [] I do dispute one or more of the Department's factual allegations. I hereby request a hearin ursuant to p Bi y req is P Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings, TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: Gencral Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333, Signature Print Name Date: Address: am re Phone No.: 13

Docket for Case No: 09-000563