FILED FEB 17 2010 ALEX SINK Docketed by CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: DFS Case No: 105643-09-AG STEPHEN CASPARI . / ADMINISTRATIVE COMPLAINT To: Stephen Caspari P, O, Box 357 Placida, Florida 33946 Stephen Caspari 132 Mark Twain Lane Rotunda West, Florida 33947 STEPHEN CASPARI is hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of his activities while approved as a continuing education Instructor and School Official in this state, as a result of which it is alleged: 1, The Chief Financial Officer, as head of the Florida Department of Financial Services (“Department”) has jurisdiction over the subject matter hereof and the parties hereto, 2. Persons licensed by the Department under the Florida Insurance Code are required to earn continuing education credits in accordance with sections 626.2815, 626.869(5), and 648.386, Florida Statutes. Filed March 2, 2010 12:24 PM Division of Administrative Hearings. 3. The Department adopted Chapter 69B-228, Florida Administrative Code, to establish standards for continuing education programs. 4, The Department disciplines licensees, course providers, instructors, and school officials who violate the provisions of the Insurance Code. Stephen Caspari 5. Currently and at all times relevant to this complaint, Respondent, Stephen Caspari (“Caspari”), is licensed by the Department as a life and health agent in the state of Florida, license 11D, A042958. Educo 6. Educo, Inc. (“Educo”), is an active Florida corporation, document no. P02000072756, FEIN no, 020628355. 7. Currently and at all times relevant to this complaint, Caspari is the President of Educo. 8. Currently and at all times relevant to this complaint, Educo is approved by the Department as a Course Provider, Provider # 1118. 9, Currently and at all times relevant to this complaint, Caspari is approved by the Department as an Instructor for Educo, Instructor # 313589. 10, Currently and at all times relevant to this complaint, Caspari is approved by the Department as the School Official for Educo, FCCI Mutual Insurance Company 11. FCCI Insurance Company f/k/a FCCI Mutual Insurance Company -(“FCCI Mutual”) is an active Florida corporation, document nos. N94000005712 and P98000077873, FEIN no. 59-1365094, 12, Currently and at all times relevant to this complaint, FCCI Mutual is approved by the Department as a Course Provider, Provider # 363020. 13. Currently and at all times relevant to this complaint, Stephen Caspari is approved by the Department as the School Official for FOCI Mutual. COUNT I 14, The allegations contained in paragraphs 1 through 12 are hereby realleged and fully incorporated herein. 15, Educo, FCCI Mutual, and Caspari created or caused to be created a continuing education module known as CETrack, 16. Currently and at all times relevant to this Count, Educo, FCCI Mutual, and Caspari offered or caused to be offered a continuing education module known as CETrack to licensed Florida insurance agents and public adjusters. 17. At all times relevant to this Count, CETrack was and/or is located on the following websites: www.cetrack.com; www.fidfsagents.com; www.onlineceschools.com; and www.onlineceschools2.com. 18. All times relevant to this Count, the CETrack websites purported to offer continuing education credits via email. The program was designed to work as follows: Licensees subscribe to an email service where, according to the website, they “read the required material and correctly answer one question per week.” Thereafter, “[a]s long as you, the licensed agent, commit to meeting the requirements set by the program you will satisfy your State of Florida continuing education obligation.” 19. Caspari never presented CETrack to the Department for approval. 20. The Department has not approved any of Educo, Inc.’s classroom or self- study courses in the CETrack format. 21, The Department has not approved any of FCCI Mutual’s classroom or self- study courses in the CETrack format. 22. A new course application is required for “{aJny previously approved classroom study method course that is submitted for approval as self-study whether submitted as a computer based or textbook program,” and, “[a]ny previously approved self-study, seminar or classroom course that is submitted for approval as an interactive on- line course.” Rule 69B-228.080(1 1)(a), F.A.C. 23. Everi though CETrack was not approved as a continuing education course, Educo, FCCI Mutual, and Caspari advertised and sold such program as a continuing education course to unknowing agents, 24, — Teresita Duran (“Duran”) is licensed by the Department as an Independent Adjuster in the state of Florida, license I.D. A073879. 25. On February 18, 2009, Duran authorized payment of $7.95 a month for enrollment in the CETrack program. 26. Between February 18, 2009 and May 9, 2009, Duran received approximately eleven emails from CETrack. 27. Each email included a short description, definition or fact pattern and a question related to insurance. 28. Approximately every three weeks, Duran received a message indicating that because she passed 70% of the questions on CETrack, her continuing education credits were being reported to the Department. 29, However, Educo, FCCI Mutual, and Caspari did not report these continuing education hours to the Department. 30. Rather, on May 6, 2009 Caspari entered, or caused to be entered, into the Department’s Education Database, two credit hours on Teresita Duran’s continuing education transcript for her attendance of FCCI Mutual’s offering of the April 4, 2009 classroom course offering, # 48418 Adjuster Ethics. 31. However, Duran did not attend this classroom course, IT IS THEREFORE CHARGED that STEPHEN CASPARI has violated or is accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the revocation of his approval as a Life and Health Insurance Agent, Instructor, and School Official and other penalties as authorized by law: (a) Offered a course or advertisement of a course prior to approval by the Department. [69B-228.080(1)(a), F.A.C.]; (b) Presented parts of an approved course separately from the entire approved outline material. [Rule 69B-228.080(6), F.A.C.]; (c) Advertised courses in any manner as an approved insurance continuing education course without course approval granted, in writing, by the Department, [Rule 69B-228.150(1)(a), F.A.C.]; (d) Utilized advertising that is not truthful, clear, but rather deceptive or misleading. [69B-228.150(2), F.A.C.]; (e) Failed to conduct classes for the total required hours. [Rule 69B- 228.160(2), F.A.C.}; (f) Falsified any course completion record or other.document related to the course, [Rule 69B-228.160(4), F.A.C.]; (g) Engaged in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), F.8.]; (h) Knowingly made, published, disseminated, circulated, or placed before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: 1, In a newspaper; magazine, or other publication, 2. In the form of a notice, circular, pamphlet, letter, or poster, 3. Over any radio or television station, or 4, In any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. [Section 626.9541(1)(b), F.S.]; (i) Knowingly: a. Filed with any supervisory or other public official, b, Made, published, disseminated, circulated, c. Delivered to any person, d. Placed before the public, e, Caused, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement, [Section 626,9541(1)(e)1., F.8.]; (j) Willful use of the license or appointment to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; (k) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (db) Demonstrated lack of reasonably adequate knowledge and_ technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8)}, Florida Statutes]; (m) Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (n) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; (0) 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 code. [Section 626.611(13), Florida Statutes]; (p) ‘Violated any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; (q) Violated any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]; Q) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626,621(6), Florida Statutes]. COUNT II 32. The allegations contained in paragraphs 1 through 11 and 14 through 22 are hereby realleged and fully incorporated herein, 33. The CETrack websites have changed content numerous times during the Department’s investigation. 34, As of the date of this Administrative Complaint, the websites www.cetrack.com and www.fldfsagents.com (“websites”) utilize an introduction that flashes a series of pages before ending on the home site of the webpage. Both websites flash a page containing the seal of the state of Florida accompanied by text, “[aJll of our course material is approved by the state.” 35. Not only are Educo, FCCI Mutual, and Caspari falsely claiming that CETrack material has been approved by the Department, they are in violation of the provision requiring that one may not use, display, or otherwise employ the great seal of the State of Florida (“the seal”) without approval of the Department of State. Section 15.03(3), F.S. 36. | Educo, FCCI Mutual, and/or Caspari have not obtained approval from the state of Florida to use the seal. IT IS THEREFORE CHARGED that STEPHEN CASPARI has violated or is accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the revocation of his approval as a Life and Health Insurance Agent, Instructor, and School Official and other penalties as authorized by law: (a) Utilized advertising that is not truthful, clear, but rather deceptive or misleading. [69B-228.150(2), F.A.C.]; (b) — Engaged in this state in any trade practice which is defined in this part as, or determined pursuant to s, 626,951 or s, 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), F.S.]; (c) Knowingly made, published, disseminated, circulated, or placed before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: 1. In a newspaper, magazine, or other publication, 2. In the form of a notice, circular, pamphlet, letter, or poster, 3. Over any radio or television station, or 4. In any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. [Section 626.9541(t)(b), F.S.]; (d) Knowingly: a, Filed with any supervisory or other public official, b. Made, published, disseminated, circulated, c. Delivered to any person, d. Placed before the public, e. Caused, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e)1., F.S.]; (e} Willful use of the license or appointment to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; ® Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (g) | Demonstrated lack of reasonably adequate knowledge and_ technical competence to engage in the transactions authorized by the license or appointment. . [Section 626.61 1(8), Florida Statutes]; (h) Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (i) 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 code. [Section 626.611(13), Florida Statutes]; @) Violated any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621 (2), Florida Statutes]; (k) Violated any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]; qd) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited 10 under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]. COUNT III 37. The allegations contained in paragraphs 1 through 12, 14 through‘21, and 33 through 36 are hereby realleged and fully incorporated herein, 38. | Educo, FCCI Mutual, and Caspari have engaged in pattern of behavior to mislead the public into concluding that they are owned, affiliated, or approved by the Department. 39. One of the Department’s internet domain names is www.fldfs,.com, 40. Sometime before December 6, 2007, the Department and Educo, FCCI Mutual, and Caspari were in a dispute over Educo, FCCI Mutual, and Caspari’s use of the domain name www. fidfsagents.com and the use of the Department’s logo in the upper left hand corner of their websites. 41, On December 6, 2007, the Department consented to this use, so long as such use was accompanied by a disclaimer that, “[t]his website and Educo are not affiliated with the Department of Financial Services or its’ Division of Agents and Agency Services.” (Emphasis contained in original text.) 42, At some time subsequent to December 6, 2007, Educo, FCCI Mutual, and Caspari removed this disclaimer from the websites, 43. In spite of removing said disclaimer, Educo, FCCI Mutual, and Caspari continued to use the domain name www.fldfsagents.com. 44. In spite of removing said disclaimer, Educo, FCCI Mutual, and Caspari continued to use the Department logo in the upper left hand corner of their websites for a period of time. 45. Jeffrey Young is a licensed insurance agent as well as a Department employee. 46. On January 17, 2009, Edueo, FCCI Mutual, and Caspari sent an email to Jeffrey Young with the subject line “CE Compliance Reminder ~ JEFFERY LYNN YOUNG #A292549,” 47, The email was designed to look as if it had been sent by the Department and was replete with email addresses that utilized the domain name www.fldfsagents.com, 48. The header of the email stated it was from “CESupport@fldfsagents.com.” 49, The email stated that it was “being sent as a reminder that your Florida CE compliance period ends on 01/31/2009... [a]fter this date your insurance license may be subject to fines and/or suspension.” 50. The email then stated that “[oJur CETrack program gets you into compliance IMMEDIATELY and keeps you IN COMPLIANCE.” 51. The email was signed by “Your CE Support Staff CESupport@fldfsagents.com” 52. The removal of the disclaimer language combined with the use of the Department logo for a period of time, use of email designed to look as if it had been sent by the Department, continued use of the domain www.fidfsagents.com, and continued use 12 of the state seal is intended to make Educo, FCCI Mutual, and Caspari appear as if they were owned, affiliated, or approved by the Department. IT IS THEREFORE CHARGED that STEPHEN CASPARI has violated or is accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the revocation of his approval as a Life and Health Insurance Agent, Instructor, and School Official and other penalties as authorized by law: (a) Utilized advertising that is not truthful, clear, but rather deceptive or misleading. [69B-228.150(2), F.A.C.]; (b) — Engaged in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), F.S.]; (c) Knowingly made, published, disseminated, circulated, or placed before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: 1, In a newspaper, magazine, or other publication, 2. In the form of a notice, circular, pamphlet, letter, or poster, 3. Over any radio or television station, or 4. In any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. [Section 626.9541(1)(b), F.S.]; (d) Willful use of the license or appointment to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; 13 (e) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626.611(7), Florida Statutes); ( Demonstrated lack of reasonably adequate knowledge and_ technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes}; (g) . Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment, [Section 626.61 1(9), 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 code. [Section 626.61 1(13), Florida Statutes]; . (i) Violated any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626,621(2), Florida Statutes]; (i) Violated any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]; (k) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]. COUNT IV 53. The allegations contained in paragraphs 1 through 8 are hereby realleged and fully incorporated herein. 14 54, Stanley Frost (“Frost”) is an insurance agent licensed by the Department, license # A090782, and an employee of Primerica Financial Services (“Primerica”). 55. Frost is the manager of Primerica’s Pensacola office. 56. Glen Fullerton (“Fullerton”) is an insurance agent licensed by the Department, license # E1 14234, and an employee of Primerica at its Pensacola office. 57, Ella Gant (“Gant”) is an insurance agent licensed by the Department, license # A092803, arid an employee of Primerica at its Pensacola office. 58. On or before August 2006, Caspari contacted Frost with an offer for a continuing education program for the insurance agents at Primerica’s Pensacola office. 59. The aforementioned continuing education program offered by Caspari consisted of 21 to 25 hours of continuing education credit, at a cost of $199.00 per attendee. 60. On or about August 2006, Stanley Frost, Glen Fullerton, and Ella Gant, and seven other Primerica insurance agents attended a one-day classroom course taught by Caspari at Primerica’s Pensacola office. 61. | The aforementioned one-day classroom course lasted approximately six to eight hours. 62. Between August 2006 and September 2006, Stanley Frost, Glen Fullerton, and Ella Gant did not earn any other credit hours from Caspari or Educo. 63. In spite of Stanley Frost earning only 6 to 8 hours of continuing education credit, on September 5, 2006, Steven Caspari entered, or caused to be entered, into the 15 Department’s Education Database 30 hours of continuing education on Stanley Frost’s transcript, including: a. Twelve (12) credit hours for August 10, 2006, for the course # 41726, Framework For Risk Control; and b. Eighteen (18) credit hours for August 14, 2006, for the course # 43347, Investing & Financial Planning. 64. In spite of Glen Fullerton earning only 6 to 8 hours of continuing education credit, on September 5, 2006, Steven Caspari entered, or caused to be entered, into the Department’s Education Database 25 hours of continuing education credit on Glen Fullerton’s transcript, including: a. Four (4) credit hours for August 5, 2006, for the course # 30791, Errors & Omissions/Ethics/ Rules and Regs; b. Three (3) credit hours for August 5, 2006, for the course # 56691, Educo Ethics 2006/2007; and c. Eighteen (18) credit hours for August 14, 2006, for the course # 43347, Investing & Financial Planning. 65. In spite of Ella Gant earning only 6 to 8 hours of continuing education credit, on September 5, 2006, Steven Caspari entered, or caused to be entered, into the Department’s Education Database 21 hours of continuing education credit on Ella Gant’s transcript, including: a. Three (3) credit hours for August 5, 2006, for the course # 56691, Educo Ethics 2006/2007; and b. Eighteen (18) credit hours for August 14, 2006, for the course # 43347, Investing & Financial Planning. IT IS THEREFORE CHARGED that STEPHEN CASPARI has violated or is accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the revocation of his approval 16 as a Life and Health Insurance Agent, Instructor, and School Official and other penalties as authorized by law: (a) Offered a course or advertisement of a course prior to approval by the Department, [69B-228.080(1)(a), F.A.C.]; (b) Failed to conduct classes for the total required hours. [Rule 69B- 228,160(2), F.A.C.]; (c) Falsified any course completion record or other document related to the course, [Rule 69B-228.160(4), F.A.C.]; (d) —_ Engaged in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), F.S.]; (e) Knowingly made, published, disseminated, circulated, or placed before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: 1. In a newspaper, magazine, or other publication, 2. In the form of a notice, circular, pamphlet, letter, or poster, 3. Over any radio or television station, or 4,. In any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. [Section 626.9541(1)(b), F.S.]; ¢3) Knowingly: a. Filed with any supervisory or other public official, b. Made, published, disseminated, circulated, c, Delivered to any person, d. Placed before the public, e. Caused, directly or indirectly, to be made, published, disseminated, circulated, 17 delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e)1., F.S,]; (g) Willful use of the license or appointment to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; (h) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626.611(7), Florida Statutes]; (¢) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626,61 1(8), Florida Statutes]; Gg) Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (k) —_ Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes); (1) 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 code. [Section ~ 626.611(13), Florida Statutes]; (m) ‘Violated any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; (n) _—_—- Violated any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]; 18 (0) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]. WHEREFORE, you, STEPHEN CASPARI, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an Instructor or School Official or to impose such penalties as may be provided under the provisions of Sections 624.310, 626.2815, 626.2816, 626.611, 626.621, 626,681, 626.691, 626.692, 626.9521, and 626.9581, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the 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 Julie Jones, DFS Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. 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 hearing. 19 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 REVOKING YOUR STATUS AS AN INSURANCE AGENT, INSTRUCTOR, AND SCHOOL OFFICIAL AND OTHER PENALTIES AS AUTHORIZED BY LAW MAY 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. (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 of the administrative complaint. If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative at your expense, to present evidence and 20 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 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 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. 21 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_! T+day of Feb rugy y 2010, pil “ Qa J (¢ NANCY ROWELL Director, Division of Agent and Agency Services 22 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: DFS Case No: 105643-09-AG STEPHEN CASPARI ELECTION OF PROCEEDING I have received and have read the ADMINISTRATIVE COMPLAINT filed by the Florida Department of Financial Services (“Department”) against me, including the Notice of Rights contained therein, and ] understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) 1.) 3.0] I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my ticenses and appointments as may be appropriate. I do not dispute any of the Department's factuat allegations and I hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes. In this regard, I desire to: () Submit a written 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. I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. Lhave altached to this election form the information required by Rute 28-106,2015, Florida Administrative Code as specified in subparagraph (c) of the Notice of Rights. Specifically, I have identified the disputed issues of material fact. 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: General Counsel acting as Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: __. Address: Date Administrative Complaint Received: If you are represented by an attorncy or qualified Phone No.: representatlve, please attach te this election form his or her name, address, telephone and fax numbers Fax No.: 23 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 the following by certified mail restricted delivery this | ay of Febru aloe , 2010: Stephen Caspari P, O. Box 357 Placida, Florida 33946 Stephen Caspari 132 Mark Twain Lane Rotunda West, Florida 33947 Regina Keenan Senior Attorney Florida Bar No. 0634948 Florida Department of Financial Services Division of Legal Services 200 East Gaines Street, 612 Larson Tallahassee, Florida 32399-0333 Telephone: (850) 413-4236 Facsimile: (850) 488-0697 Email: regina. keenan@myfloridacfo.com 24

Docket for Case No: 10-001035PL