Aug 24 2010 14:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 B2:25PM PS FILED AUG 02 2010 At Sie Dooteted by Is) _—— CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF; CASE NO.: 110126-10-AG RICHARD G. CONNETTE ee ADMINISTRATIVE COMPLAINT RICHARD G, CONNETTE 4050 SW 72" Way Davie, Florida 33314 You, RICHARD G. CONNETTE, license LD, # A208089, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS, lL. Pursuant to Chapter 626, Florida Statutes, you, RICHARD G. CONNETTE, are currently licensed in this state as a public adjuster. , 2, At all times pertinent to the dates and occurrences referred to herein, you, RICHARD G, CONNETTE, were licensed in this state ag a public adjuster. 3. At all times relevant to the dates and occurrences referred to herein you, RICHARD G, CONNETTE, were the Managing Member/Manager of New Beginnings, LLC (“New Beginnings”), Aug 24 2010 14:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 2:26PM P4 4, At all times relevant to the dates and occurrences referred to herein, you, RICHARD G, CONNETTE, were a co-owner of New Beginnings. 5. At all times relevant to the dales and occurrences referred to horein, Ira Rosen was a co-owner of New Beginnings. 6, At all times relevant to the dates and occurrences referred to herein, you, RICHARD G. CONNETTE, were @ signatory on New Beginnings’ bank accounts at Bank of Ameri¢a, NLA. 7, At all times relevant to the datos and occurrences referred to herein, Ira Rosen was the only other signatory on New Beginnings’ bank accounts at Bank of America, N.A. 8. Onor around May 8, 2008, Ira Rosen died, 9, Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. COUNTI 10, The above general allegations are hereby realleged and fully incorporated herein by reference, Il, On Apri] 24, 2007, Arthur Johnson’s and Lillie Atkins’, a/k/a Lillie Johnson, (“Johnsons”) home was damaged by fire, 12, On April 25, 2007, the Johnsons entered into an adjusting contract with New Beginnings. 13. On or around May 8, 2007, State Farm paid $11,308.39, via check, in relation to the Johnsons’ personal property destroyed in the fire, 14. The personal properly damage check was endorsed by the Johnsons and you, RICHARD G, CONNETTE, on behalf of New Beginnings. Aug 24 2010 14:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 2:26PM PS 15. On or around March 15, 2007, the personal property damage check was deposited into one of New Beginnings’ bank accounts at Bank of America. . 16, Through three checks issued on August 2, 2007, August 13, 2007, and December 6, 2007, respectively, State Farm paid the Johnsons $42,071.46 to repair the damage caused to the structure of the Johnsons’ home, 17, The structural damage checks were endorsed by the Johnsons, Paul Beers, an adjuster working for New Beginnings, and All County Remediation, 18. The structural damage checks were deposited into Midland Mortgage Co., the Johnsons’ mortgagor. 19, The entire amount of the siructural damage checks, $42,071.46, was used to pay All County Remediation and/or Cityworks, a contractor(s) hired by the Johnsons to repair their home. 20, Pursuant to the adjusting contract, New Begitmings was entitled to receive a service fee of ten percent (10%) of the amount of the loss recovered from State Farm in relation to the Johnsons’ fire damage claim, 21. New Beginnings recovered $53,379.85 in loss from State Farm in relation to the Johnsons’ fire damage claim. 22, ‘Therefore, New Beginnings was entitled to receive a service fee of $5,337.99. 23. Since none of the funds from the structural damage checks were used to pay New Beginnings’ service fee, New Beginnings deducted the entire service fee from the $11,308.39 personal property damage check, 24. The Johnsons were entitled to receive $5,970.40 from the proceeds of the personal property damage check. Aug 24 2010 14:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2616 2:26PM Pe 25. Paul Beers paid the Johnsons $800.00, 26. Paul Beers paid Badcock Furniture $869.93 on behalf of the Johnsons, 27, . If these payments, made directly by Paul Beers to the Johnsons and Badcock Furniture, are deemed to have been on behalf of New Beginnings, then the Johnsons’ have only received $1,669.93 from New Beginnings in relation to the proceeds of the personal property damage check. 28. The Johnsons are still owed $4,300.47 from the proceeds of personal property damage check, 29, You, RICHARD G. CONNETTE, have misappropriated, converted or unlawfully withheld $4,300.47 from the Johnsons. TT IS THEREFORE CHARGED that you, RICHARD G, CONNETTE, have violated or are accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Section 626.561(1), Florida Statutes, which statics all premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other pcrson entitled thereto; , (b) — Section 626.611(7), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent io demonstrate a lack of fitness or trustworthiness to engage in the business of insurance; Aug 24 2010 14:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 24 2618 B2:2rPM Pr (c) Section 626,611(8), Florida Statutes, which provides that it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of reasonably adequate knowledge and technical competence to engage it the transactions authorized by license or appointment; (d) Section 626,611(7), Florida Statutes, which provides that 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 by any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent is a violation; (e) Section 626.611(7), Florida Statutes, which provides that violation of 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 by any applicant, agent, title agency, adjuster, customer representative, acrvice representative, or managing general agent is a violation; () Section 626,621(6), Florida Statutes, which provides tliat it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or Managing general agent, in the conduct of business under the license or appointment, to engage in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or otherwise show onesclf to be a source of logs; and (g) Section 626.8698, Florida Statutes, which provides that it is a violation for any adjuster to violate any provision of Chapter 626 or a rule or order of the Department, WHEREFORE, you, RICHARD G, CONNETTE, are hereby nofified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the Aug 24 2010 14:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 Bei2rPM Pe provisions of Sections 626.611, 626,621, 626.681, 626.691, 626.8698 and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set oul in this Administrative Complaint. NOTICE OF RIGHTS You have the right to request a procceding 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 Hlection of Proseeding form and/or a petition for administrative hearing will suffice as a written request, The request must be filed with Julie Jones, DF'S Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 Mast Gaines Street, Tallahassce, 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. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A. WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU, If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Administrative Code, As noted above, completion of the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: Aug 24 2010 14:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 B2i2rPM Po (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. (e) 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 _tespondent received notice of the adininistrative complaint, (e) A statement including the file number of the administrative complaint. Ifa hearing ofany type is requested, you have the right to be represented by counsel or other 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. Ia 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 fecl that a hearing is necessary, one will be conducted in Tallahassee, Florida, or by telephonic conference call upon your requesi. 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), Plotida Statutes. These proceedings are held before a State Administrative Law Judge of the Division of Aug 24 2010 14:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 24 2616 G2:25PM Plea Adminisirative 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. Mediation of this matter pursuant to Section 120.573, Florida Statutcs, is not available. No Department attorney will discuss this matter with you until the response has been received by the Department. . DATED and SIGNED thif Yd day oCduguscl to» Aug 24 2010 14:27 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2618 @2:25PM Pil STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: RICHARD G, CONNETTE CASE NO.: 110126-10-AG ELECTION OF PROCEEDING Lhave recvived and have read the Administrative Complaint filed by the Florida Departinent of Financial Services (“Department”) against me, ineluding the Notlee of Rights contained therein, and | understand my options, [ am requesting disposition of this matter as indicated below, (CHOOSE ONE) £7 T do nol dispute any of the Department's factual atlegations and I de.not desire a hearing. I underatand that by waiving my right to 4 hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my liccnsos and appointments as may he appropriate, 2. (donot dispute any of he Department's factual allegations and | hereby elect a proceeding to be conducted In accordance with Section 120.57(2), Florida Statutes. In this regard, 1 desive to (CIEOOSE ONE): [] Submit a written statement and documentary evidence {n lieu of a hearing; or C] Personally attend a hoaring conducted by a department hoarlng officer in Tallahassee; or [] Altend that same hearing by way of a telephone conferonee call. 3.6] I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.87(1), Florida Statutes, to be held before the Division of Administrative Heavings. have attached tw this election form the information required by Ruto 28-106,2015, Florida Administrative Code, as specified in subparagraph (¢) of the Notice of Rights. Speciflealty, | have identified the disputed Issues of matorlal fact, TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) RAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT, THE RESPONSE MUST BE RECRIVED BY THR DRPARTMENT NO LATER THAN 5:00 P.M, ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT, ‘The address for filing is: Julle Jones, DFS Agoncy Clerk, Florida Department of Financial Services, 612 Larson Buliding, 200 East Gaines Stieat, Tallahassee, Florida 32399-0390, Signature meee PrintNane Date: _ peat Ades. ne ct Date Administrative _ moat we ome Complyint Received: ee ee teen If you are represented by au attorney or qualified Phone Not representative, please adiach to this election form his or her mime, address, telephone and fax dunibers Fax Now: 10 Aug 24 2010 14:27 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 24 2616 2:26PM Pl2 CERTIFICATE OF SERVICE UHEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: RICHARD G. CONNETTE at 4050 SW 72" Way, Davie, Florida 33314, by Certified Mail thi day of Khe Robert Alan Fox Senior Attorney Department of Financial Services Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4106

Docket for Case No: 10-008249PL