FILED jue 1.2 2009 - Chief Financial Oificer ALEX SINK ug f . : CHIEF FINANCIAL OFFICER ov AA Poaystes by STATE OF FLORIDA o 001524 IN THE MATTER OF: sors M & M Roofing, LLC : Case Number: 08-385-1A-09-WC / FINAL ORDER THIS PROCEEDING came on for final agency action and Alex Sink, Chief Financial Officer of the State of Florida, or her designee, having considered the record in this case, including the Stop-Work Order and Order of Penalty Assessment and the Amended Orders of Penalty Assessment served in Division of Workers’ Compensation Case No. 08-385-1A, and being otherwise fully advised in the premises, hereby finds that: 1. On November 18, 2008, the Department of Financial Services, Division of Workers’ Compensation (hereinafter “Department”) issued a Stop-Work Order and Order of Penalty Assessment in Division of Workers’ Compensation Case No. 08-385-1A to M & M Roofing, LLC. 2. On December 8, 2008, the Stop-Work Order and Order of Penalty Assessment was served by personal service on M & M Roofing, LLC. A copy of the Stop-Work Order and Order of Penalty Assessment is attached hereto as “Exhibit A” and incorporated herein by reference. 3. On January 16, 2009, the Department issued an Amended Order of Penalty Assessment in Case No. 08-385-1A to M & M Roofing, LLC which assessed a total penalty of $153,187.40 against M & M Roofing, LLC. A copy of the Amended Order of Penalty Assessment is attached hereto as “Exhibit B” and incorporated herein by reference. 4. On May 21, 2009, the Department issued a 2°4 Amended Order of Penalty Assessment in Case No. 08-385-1A to M & M-Roofing, LLC which assessed a total penalty of $153,556.44 against M & M Roofing, LLC. A copy of the 2° Amended Order of Penalty Assessment is attached hereto as “Exhibit C” and incorporated herein by reference. 5. The Employer timely requested a Formal Hearing on or about February 27, 2009. A copy. of the Request for Hearing is attached hereto as “Exhibit D” and incorporated herein by reference. 6. On March 23, 2009, the request for formal hearing was forwarded to the Division of Administrative Hearings for assignment of an administrative law judge for a formal hearing. The matter was assigned to Judge Cleavinger and assigned case number 09-1578. 7. A formal hearing was scheduled for May 27, 2009, in Pensacola, Florida. A copy of the Notice of Hearing is attached hereto as “Exhibit E”. 8. A Motion to Continue Hearing was filed by the Department on April 30, 2009. 9. An Amended Motion to Continue Hearing was filed by the Department on May 5, 2009. The motion stated that Petitioner had been contacted and did not oppose the Motion. 10. An Order Granting Continuance and Re-Scheduling Hearing was entered on May 18, 2009. The hearing was re-scheduled for June 30, 2009, in Pensacola, Florida. A copy of the Order Granting Continuance and Re-Scheduling Hearing is attached as “Exhibit F”. 11.. A Letter of Request for Continuance was filed by M & M Roofing, LLC on June 22, 2009. 12. The Request for Continuance was denied on June 23, 2009. The Order Denying Continuance of Final Hearing is attached as “Exhibit G”. 13. A final hearing was held on June 30, 2009. M & M Roofing, LLC failed to appear at the hearing. 14. An Order Relinquishing Jurisdiction and Closing File was entered on July 2, 2009. A copy of the Order Relinquishing Jurisdiction and Closing File is attached as “Exhibit H”. | FINDINGS OF FACT 15. The factual allegations contained in the Stop-Work Order and Order of Penalty Assessment issued on November 18, 2008, the Amended Order of Penalty Assessment issued on January 16, 2009, and the 2™4 Amended Order of Penalty Assessment issued on May 21, 2009 which are fully incorporated herein by reference, are hereby adopted as the Department’s Findings of Fact in this case. CONCLUSIONS OF LAW 16. Based upon the Findings of Fact adopted herein, the Department concludes that M & M Roofing, LLC violated the specific statutes and rules alleged in the Stop-Work Order and Order of Penalty Assessment, and the 2nd Amended Order of Penalty Assessment, and hereby adopts the violation(s) charged in the Stop-Work Order and Order of Penalty Assessment, and the 2™ Amended Order of Penalty Assessment as the Conclusions of Law in this case. PENALTY IMPOSED 17. The Stop-Work Order and Order of Penalty Assessment, and the 24 Amended Order of Penalty Assessment, taken together with the Findings of Fact and Conclusions of Law adopted herein, constitute grounds for the Chief Financial Officer to impose the penalty as set forth herein. IT IS THEREFORE ORDERED that: M& M Roofing, LLC is assessed the total penalty of $153,556.44. M & M Roofing, LLC shall immediately cease all business operations in the State of Florida until such time as the Department issues an Order releasing the Stop-Work Order and 2"! Amended Order of Penalty Assessment. The Department shall not issue an Order releasing the Stop-Work Order and 2"4 Amended Order of Penalty Assessment until M & M Roofing, LLC has come into compliance with the coverage requirements of Chapter 440, Florida Statutes and has paid a total penalty of 153, 50-44 CM $453-18740 to the Department. DONE and ORDERED this _ 42" _ day of Fase ia , 2009. BRIAN LONDON DEPUTY CHIEF FINANCIAL OFFICER NOTICE OF RIGHTS Any party to these proceedings adversely affected by this Order is entitled to seek review of this Order pursuant to Section 120.68, Florida Statutes, and Florida Rule of Appellate Procedure 9.110. Review proceedings must be instituted by filing a Notice of Appeal with Tracey Beal, DFS Agency Clerk, Department of Financial Services, Room 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida, 32399-0390 and a copy of the Notice of Appeal, a copy of this Order and filing fee with the appropriate District Court of Appeal within thirty (30) days of rendition of this Order. COPIES FURNISHED TO: JOSEPH MORGAN M & M ROOFING, LLC 2996 VIA CONQUISTADORES NAVARRE, FLORIDA 32566 PAIGE SHOEMAKER ; FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES 200 EAST GAINES STREET TALLAHASSEE, FLORIDA 32399-4229 HONORABLE DIANE CLEAVINGER DIVISION OF ADMINISTRATIVE HEARINGS 1230 APALACHEE PARKWAY TALLAHASSEE, FLORIDA 32399-3060 EXHIBIT A 4 “VISION OF WORKERS’ COMPENSATIC’ : STOP-WORK ORDER No.: 08-385-1A ISSUANCE DATE: 11/18/2008 EMPLOYER NAME: M&M Roofing, LLC FEIN: : 202914527 EMPLOYER ADDRESS: 2996 Via Conquistadores CITY: Navarre . WORKSITE POSTING ADDRESS: 5960 Co Hwy 30A CITY: Santa Rosa Beach INDUSTRY OF EMPLOYER: Florida ZIP: STATE: Florida ZIP: 32459 “TJNon-construction ~ {| jAgriculture [m] Construction STOP-WORK ORDER Pursuant to section 440.107, F.S., the above-referenced Employer is hereby ORDERED TO CEASE ALL BUSINESS OPERATIONS FOR ALL WORKSITES IN THE STATE based on the following violation(s): [Failure to secure the payment of workefs' compensation in violation of sections 440.10(1), 440.38(1), and 440.107(2) F. S., by: : [Bl failing to obtain coverage that meets the requirements of Chapter 440, F. S., and the Insurance Code; (1 materially understating or concealing payroll; ; . L] materially misrepresenting or concealing employee duties so as to avoid proper classification for premium calculations; . (1 materially misrepresenting or concealing information pertinent to the computation and application of an experience rating modification factor. . . H Failure to produce required business records within 5 business days in violation of section 440.107(7)(a), F.S. Failure to produce required documents within 3 business days in violation of section 440.05(11), F.S. THIS STOP-WORK ORDER MAY BE AMENDED TO INCLUDE ADDITIONAL VIOLATIONS AND SHALL REMAIN IN EFFECT UNTIL THE DIVISION ISSUES AN ORDER RELEASING THE STOP-WORK ORDER FOR ALL WORKSITES. _ IF THE EMPLOYER CONDUCTS ANY BUSINESS OPERATIONS IN VIOLATION OF THIS STOP-WORK ORDER, A PENALTY OF $1,000.00 PER DAY FOR EACH DAY OF VIOLATION SHALL BE ASSESSED. ORDER OF PENALTY ASSESSMENT; A penalty against the Employer is hereby ORDERED in an amount: {m] Equal to 1.5 times the amount the employer would have paid in premium when applying approved manual rates to the employer's payroll during periods for which it failed to secure the payment of workers’ compensation required by this chapter within the preceding 3-year period, or $1,000, whichever is greater. Section 440.107(7)(d), F.S. (CJ Up to $5,000 for each employee the Employer misclassified as an independent contractor. Sections 440.10(1)(f) and 440.107(7\f), F. S. . The penalty may be amended until a Final Order or an Order of Conditional Release from Stop-Work Order is issued. Pursuant to section 440.107(11), F.S., the Department may initiate lien proceedings to collect any penalty due that has not been-paid. In addition, the Department may refer any unpaid penalty that is due to a collection agency for the initiation of proceedings to collect the unpaid penalty. : Please see the Notice of Rights on the reserve side that pertains to your rights regarding this action. CERTIFICATE OF SERVICE Pursuant to section 440.107(4), F.S., Robert Borden, Compliance Investigator {print name and Wile of server) served a true copy of this Stop-Work Order: [H] By posting at the Worksite: Date: 11/18/2008 __; Time: 1:02:59PM__; Server:__R. Borden | Xl By hand delivery: Date: OF _; Time: f80Fyr7_, Server: 6 Back. (1 By certified mail: Date: 4 ; Time: ; Article: January 3, 2006 7S . EXHIBIT B wnt SIAL PLURIDA, DEPARIMEN! OF FINANUIAL-SERVICES tt : . VISION OF WORKERS' COMPENSATIC EMPLOYER NAME: STOP-WORK ORDER No.: . M&M Roofing LLC : ) 08-385-1A FEIN: . . ; ISSUANCE DATE: 202914527 4/46/2009 EMPLOYER ADDRESS: 2996 Via Conquistadores CITY: Navarre STATE: Fl: 32566 AMENDED ORDER OF PENALTY ASSESSMENT The Division of Workers' Compensation issued a Stop-Work Order in this case on 11/18/2008 . The Stop- Work Order included an Order of Penalty Assessment that identified the penalties assessable under sections 440.10 and 440.107, F.S. The Division hereby amends the Order of Penalty Assessment based_on the following penalties: [a] Failure to secure the payment of workers‘ compensation within the meaning of section 440.107(2), F.S., by: failing to obtain coverage that meets the requirements of Chapter 440, F.S., and the Insurance Code; materially understating or concealing payroll; ; materially misrepresenting or concealing employee duties so as to avoid proper classification for premium calculations; materially misrepresenting or concealing information pertinent to the computation and application of an experience rating modification factor. O OO For such violation(s) the Employer is assessed a penalty of $ 153,187.40 (section 440.107(7)(d), F.S.) as detailed in the attached PENALTY. WORKSHEET, which is incorporated herein by reference; : , {C1 Conducting business operations in violation of the Stop-Work Order as detailed in the attached PENALTY WORKSHEET, which is incorporated herein by reference, for which the Employer is assessed a penalty of $ (section 440.107(7)(c), F.S.); ; (J Misrépresenting the status of the employee(s) as an independent contractor(s), as detailed on the attached PENALTY WORKSHEET, which is incorporated herein by reference, for which the Employer is assessed a penalty of $ (section 440.10(1)(f), F.S..). It is hereby ORDERED that the Employer is assessed a TOTAL PENALTY of § 153,187.40 The penalties assessed herein supersede any penalties previously assessed in this case. The Employer shall pay the TOTAL PENALTY by money order or cashier's check, made payable to the DFS-Workers' Compensation Administration Trust Fund. Periodic Payment of Penalty. Pursuant to section 440.107(11), F.S, the Department may initiate lien proceedings to collect any penalty due that has not been paid. In addition, the Department may refer any unpaid penalty that is due to a collection agency for the initiation of proceedings to collect the unpaid penalty. Please see the Notice of Rights on the reserve side that pertains to your rights regarding this action. CERTIFICATE OF SERVICE Pursuant to section 440.107(4), F.S., Robert Borden, Compliance Investigator ; (rintname and ttle of Server) 7 served a true copy of this Amended Order of Penalty Assessment: 7 id By hand delivery: Date: 2/11/2009 ‘ Time: 9:25:39 AM : Server, Robert Borden CIBy certified mail: Date: : Time: : Article: January 3, 2006 :7 EXHIBIT C STATE OF FLORIDA, DEPARTMENT OF FINANCIAL SERVICES DIVISION OF WORKERS’ COMPENSATION STOP-WORK ORDER No.: 08-385-1A ISSUANCE DATE: 5/21/2009 EMPLOYER NAME: M & M Roofing, LLC FEIN: 202914527 EMPLOYER ADDRESS: 2996 Via Conquistadores city: Navarre _2nd_ AMENDED ORDER OF PENALTY ASSESSMENT The Division of Workers’ Compensation issued a Stop-Work Order against the above-referenced Employer on 11/18/2008. The Stop-Work Order included an Order of Penalty Assessment that identified the penalties assessable under sections 440.10 and 440.107, F.S. , the Division Based upon Corecions 277172008__and assesses the penalty(s) as hereby amends the Amended Order of Penalty Assessment issued on specified in the Penalty Worksheet, which is attached hereto and made a part hereof. Itis ORDERED that the Employer is hereby assessed a TOTAL PENALTY of $ 153,556.44 . The penalty(s) assessed herein supersedes any penalty(s) previously assessed in this case. The Employer shall pay the TOTAL PENALTY by money order or cashier's check, made payable to the DFS-Workers' Compensation Administration Trust Fund, or enter into a Payment Agreement Schedule for Periodic Payment of Penalty with the Division of Workers’ Compensation. If the total penalty assessed in this Amended Order of Penalty Assessment is less than the total penalty assessed in the Amended Order of Penalty Assessment issued on __ 2/11/2009 _ the Division will mail a refund in the amount of the difference to the Employer. Pursuant to section 440.107(11), F.S, the Department may initiate lien proceedings to collect any penaity due that has not been paid. In addition, the Department may refer any unpaid penalty that is due to a collection agency for the initiation of proceedings to collect the unpaid penalty. Please see the Notice of Rights on the reserve side that pertains to your rights regarding this action. CERTIFICATE OF SERVICE Pursuant to section 440.107(4), F.S., Robert Borden, Compliance Investigator . (ef name an le of Server) served a true copy of this 2nd Amended Order of Penalty Assessment: (1By personal service: Date: ; Time: ; Server: COBy certified mail: Date: . Time: : Article: tL January 3, 2006 EXHIBIT D M&M - ROOFING LLC. 2996 VIA CONQUISTADORES Le NAVARRE FL wil BBCeingp SEATD A024 sd? 6 . yw 850-936-1066 OR 850-499-4439 FEB 9 § ee OF en TALS Ci 2-11-09 Aaya a WAC es ANCE TO:DIVISION OF WORKER’S COMPENSATION, Bureau of Compliance Notice To Appeal Under Statue 120.569 and 120.57(1) We plead for review and mercy for we are in no way able to respond to this action. We petition for a hearing is needed under section 120.569 and 120.57 It appears excessive in the amount of pay at least and would show were these individuals have not been employed by my business nor did I have a contract to be on the job mentioned . We are working with dpbr and workers comp.fraud investigation.to help with matters surrounding this matter. 1 ask for your help as we are willing to help in any way possible. MEM ROOFING Joseph Tohwss Nesom , a

Docket for Case No: 09-001578

Orders for Case No: 09-001578