FILED JAN 17 2014 CHIEF FINANCIAL OFFICER IEF FINANCIAL OFFIC Docketedby_ 73 STATE OF FLORIDA. IN THE MATTER OF: CARLOS MANUEL ALVAREZ CASE NO.: 132220-13-AG ge / ADMINISTRATIVE COMPLAINT CARLOS MANUEL ALVAREZ 1660 SW 19" Street | Miami, Florida 33145 You, CARLOS MANUEL ALVAREZ, license I.D. # A307414, 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 limited surety (bail bond) agent in this state, as a result of which it is alleged: oo : GENERAL ALLEGATIONS H 1, Pursuant to Chapter 648, Florida Statutes, you, CARLOS MANUEL ALVAREZ, are currently licensed in this state as a limited surety (bail bond) agent (2-34). 2. At all times relevant to the dates and occurrences referred to herein, you, — CARLOS MANUEL ALVAREZ, were licensed in this state as a limited surety (bail bond) agent with license number A307414. 3. Pursuant to Chapter 648, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. 4, At all times relevant to the dates and occurrences referred to herein, you, CARLOS MANUEL ALVAREZ, did not have any appointments and were not affiliated with any bail bond agency. . COUNT I 5. The general allegations numbered one through four are re-alleged and fully incorporated herein by reference. 6 You, CARLOS MANUEL ALVAREZ, issued a fraudulent collateral receipt. 7. You, CARLOS MANUEL ALVAREZ, appropriated funds under the guise of collecting collateral. 8. On or about August 19, 2011, you, CARLOS MANUEL ALVAREZ, represented to P.M. that you would execute a bond on his behalf in the amount of two hundred and sixty-one thousand dollars ($261,000.00), in Alachua County, Florida, case number 2011-CF-3152-A. 9. You charged P.M. twenty-four thousand dollars ($24,000.00) for the bail bond premium. P.M.’s wife paid you, CARLOS MANUEL ALVAREZ, twenty-four thousand dollars ($24,000.00) in cash. 10. You, CARLOS MANUEL ALVAREZ, provided a “Receipt for Collateral ~~~" Deposited” numbered 157843 which indicated that “B-B.Co.” was the corresponding surety” company. You, CARLOS MANUEL ALVAREZ, did not indicate a power number on the collateral receipt. 11. B.B.C. Surety Company, or any name variations thereof, was not and is not a registered insurance carrier or other entity in the state of Florida. 12. After accepting the payment, you, CARLOS MANUEL ALVAREZ, refused to write a bond on behalf of P.M. Page 2 of 14 ) dy, 13, P.M. remained in confinement for approximately six and a half months, during which time you, CARLOS MANUEL ALVAREZ, did not return the collateral. 14. P.M. was released from confinement on his own recognizance on February 9, 2012. 15, You, CARLOS MANUEL ALVAREZ, continued to refuse to return the collateral upon multiple requests from P.M., his wife, and legal counsel. 16. To date, you, CARLOS MANUEL ALVAREZ, have failed to return two thousand dollars ($2,000.00) of the twenty-four thousand dollars ($24,000.00) given to you as collateral to hold in trust. IT IS THEREFORE CHARGED that, you, CARLOS MANUEL ALVAREZ, have violated 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 a Florida limited surety (bail bond) agent: A. Section 648.295, Florida Statutes, which provides, in pertinent part: qd) All premiums, return 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.” (3) Any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her or his own use commits larceny by embezzlement, punishable as provided by law. B. Section 648.442(3), Florida Statutes, which provides: (3) Collateral security shall be received and held in the insurer’s name by the bail bond agent in a fiduciary capacity and, prior to any forfeiture of bail, shall be kept separate and apart from any other funds or assets of such bail bond agent. When collateral security in excess of $5,000 cash or its equivalent is received by a bail bond agent, the entire amount shall be immediately forwarded to the insurer. [...] If the bail bond agent or managing general agent fails to return the collateral to the indemnitor Page 3 of 14 J ) upon final termination of liability on the bond, the surety shall be liable for the collateral and shall return the actual collateral to the indemnitor or, in the event that the surety cannot locate the collateral, the surety shall pay the indemnitor pursuant to the provisions of this section. C. Section 648.45, Florida Statutes, which provides, in pertinent part: 2) GB) The department shall deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, and it shall suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or if the person: (e). Has demonstrated lack of fitness or trustworthiness to engage in the bail bond business. (g) Has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. (h) 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. (j) 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. (n) Has failed to return collateral. (0)1. Has signed and filed a report or record in the capacity of an agent which the licensee knows to be false or misleading; “The department may deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, or it may suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or for any of the following: (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. (e) 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. Page 4 of 14 COUNT II 17. The general allegations numbered one through four are re-alleged and fully incorporated herein by reference. 18. You, CARLOS MANUEL ALVAREZ, acted as a bail bond agent without being properly licensed and appointed. 19, Between February 2011, and November 5, 2012, you, CARLOS MANUEL ALVAREZ, were not appointed by a surety company. 20. You, CARLOS MANUEL ALVAREZ, purported to write a bond for P.M. around August 19, 2011. 21. You, CARLOS MANUEL ALVAREZ, knew or should have known that you could not act as a bail bond agent without the proper appointments. IT IS THEREFORE CHARGED that you, CARLOS MANUEL ALVAREZ, have violated one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitutes grounds for the suspension or revocation of your license as a limited surety (bail bond) agent in the state: A. Section 648.30, Florida Statutes, which provides, in pertinent part: ‘(1) 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. B. Section 648.45, Florida Statutes, which provides, in pertinent part: (2) The department shall deny, suspend, revoke, or reftise to renew any license or appointment issued under this chapter or the insurance code, and it shall suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or if the person: Page 5 of 14 Gj) 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. C. Section 648.45, Florida Statutes, which provides, in pertinent part: (3) The department may deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, or it may suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or for any of the following causes: (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. COUNT IIT 22. The general allegations numbered one through four are re-alleged and fully incorporated herein by reference. 23. Section 626.551, Florida Statutes, provides that every licensee shall notify the Department in writing within sixty (60) days after a change of name, residence address, principal business street address, mailing address, contact telephone numbers, including business telephone number, or email address. 24, The business address on file with the Department for you, CARLOS MANUEL ALVAREZ, has ‘remained 1465 NW North River Drive #H, Miami, Florida 33125, since September 20, 2006. 25. During the course of its investigation, the Department determined that you, CARLOS MANUEL ALVAREZ, had been conducting business at a new address, to-wit: 2127 SW 27" Avenue, Miami, Florida 33145. 26. You, CARLOS MANUEL ALVAREZ, failed to provide the Department with an updated business address. Page 6 of 14 ) ) IT IS THEREFORE CHARGED that you, CARLOS MANUEL ALVAREZ, have violated one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitutes grounds for the suspension or revocation of your license as a limited surety (bail bond) agent in the state: A. Section 648,421, Florida Statutes, which provides, in part, every bail bond licensee shall notify the department in writing within 10 working days after a change of principal business address or telephone number. B. Section 648.45, Florida Statutes, which provides, in pertinent part: (2) The department shall deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, and it shall suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or if the person: q) 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. (3) The department may deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, or it may suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or for any of the following causes: (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code, COUNT IV 27,__The_general_allegations_numbered_one_through_four_are_re-alleged_and_fully..._.__. - incorporated herein by reference. 28. You, CARLOS MANUEL ALVAREZ, failed to maintain a place of business accessible to the public. Page 7 of 14 29. During the course of its investigation, the Department determined that you, CARLOS MANUEL ALVAREZ, had been conducting bail bond business at the address of 2127 SW 27" Avenue, Miami, Florida 33145. 30. At all times relevant to the dates and occurrences referenced herein, the business located at 2127 SW 27" Avenue, Miami, Florida 33145 was Alfredongo’s Barber Shop. 31. Rule 69B-221.051, Florida Administrative Code, provides in part that each bail bond agency and each branch office shall have an entrance easily accessible to the public and used by the bail bond agent in the regular course of their business dealings with the public with an entrance suitably designated by a sign or other display, readable from a distance, which provides at a minimum, the agency name. Ifa bail bond agency is located in a building that maintains a uniform office director on its premises, the directory shall provide at a minimum the current name of that bail bond agency. 32. The sign on the building at 2127 SW 27" Avenue, Miami, Florida 33145, did not indicate the bail bond agency name or any other identifying information for you, CARLOS MANUEL ALVAREZ, IT IS THEREFORE CHARGED that you, CARLOS MANUEL ALVAREZ, have violated one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitutes grounds for the suspension or revocation of your license as a limited surety (bail bond) agent in the state: A, Rule 62B-221.051, Florida Administrative Code, which provides in pertinent part that each bail bond agency and branch office shall have an entrance easily accessible to the public and suitably designated by a sign or other display, readable from a distance, which provides at a minimum, the agency name. Page 8 of 14 > ) B. Section 648.45, Florida Statutes, which provides, in pertinent part: (2) The department shall deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, and it shall suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or if the person: Gg) 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. '(3) The department may deny, suspend, revoke, or refuse to renew any license or appointment issued under this chapter or the insurance code, or it may suspend or revoke the eligibility of any person to hold a license or appointment under this chapter or the insurance code, for any violation of the laws of this state relating to bail or any violation of the insurance code or for any of the following causes: (c) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. WHEREFORE, you, CARLOS MANUEL ALVAREZ, are hereby notified that the Chief Financial Officer, through his designee, intends to enter an Order suspending or revoking your licenses and appointments as a limited surety (bail bond) agent, or to impose penalties, including administrative fines and restitution, as may be provided under the provisions of sections 648.442, 648.45, 648.49, 648.50, 648.51, 648.52, 648.53 and 648.571, Florida Statutes, and under the referenced sections of the Florida Statutes and 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 Chapter 648, Florida Statutes. You-are further notified that any-order-entered-in-this-case-reveking-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. Page 9 of 14 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. FAILURE TO ENSURE THAT YOUR WRITTEN RESPONSE IS RECEIVED BY THE DEPARTMENT 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 A FINAL 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 ————Fesponse 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"). Page 10 of 14 ) ) (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 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. Page 11 of 14 ) ) 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 free form 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 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 \4_ day of _Janvary » 2014. Gregory Thomas Director, Agent & Agency Services Page 12 of 14 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: ZELIKA BOZANIC, ESQ. on behalf of CARLOS MANUEL ALVAREZ, 701 SW 27" Avenue, Suite 1208, Miami, Florida 33135, by Certified Mail this \\t-_ day of _ Januar Sy , 2014, l Rachic’ A, Wilson Senior Attorney Department of Financial Services Division of Legal Services 200 East Gaines Street Tallahassee, Florida 32399-0333 Page 13 of 14

Docket for Case No: 14-001471PL