() () | FILED DEC 28 2014 Docketed by__§ =, CHIEF FINANCIAL OFFICER JEFF ATWATER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 153158-14-AG DESIREE L. OWNBY / ADMINISTRATIVE COMPLAINT TO: Desiree L. Ownby 1776 Oak Grove Drive Green Cove, FL 32043-9464 The Chief Financial Officer of the State of Florida has made an investigation of Desiree L. Ownby’s activities while licensed as a title agent, and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to chapter 626, Florida Statutes, Desiree L. Ownby (“Desiree Ownby”) is currently licensed in this state as a title agent and a home warranty agent. 2. At all times relevant to the dates and occurrences referenced herein, Desiree Ownby has been licensed as a title agent and a home warranty agent. 3. The Florida Department of Financial Services (the “Department”) has jurisdiction over Desiree Ownby’s licenses and appointments, having issued license number E020422. 4. At all times relevant to this case, Desiree Ownby was listed as the president of First Coast Title and Escrow, a Florida for profit corporation (“First Coast’), C) () 5. At all times material herein, Desiree Ownby conducted insurance business by, through, and with First Coast. . COUNTI 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. In May 2012, D.C. (“Buyer”) approached J.N., his landlord, and made it known that he wanted to purchase land on Russel Road in Middleburg, Florida, but did not have the necessary funds to purchase same. 8. J.N. suggested she herself purchase the land for the anticipated purchase price of $130,000.00, and that D.C. would buy it from her and pay the full principle by August 1, 2012, two months after the closing. 9. J.N. drew a check in the amount of $130,000 made payable to the title agency, First Coast. 10. On or about June 1, 2012, First Coast acted as settlement agent in the sale of property located on Russel Road. 11. Desiree Ownby, as settlement agent, executed the Housing and Urban Development Settlement Statement (hereinafter referred to as “HUD-1”). 12, Line 101 of the HUD-1 reflected a sales price of $130,000. 13. Line 202 of the HUD-1 reflected a loan amount of $130,000. 14. The Buyer, an acquaintance of Desiree Ownby, represented to Desiree Ownby that the $130,000 check was a personal loan that would be payable over a period of twenty years with a five percent interest rate. C) () 15. Desiree Ownby relied on the Buyer’s representations and drafted documents to reflect a twenty year mortgage with a five percent interest rate. 16. J.N. did not agree to the financial arrangement established in the Note and Mortgage. 17. Desiree Ownby closed the transaction on or about June 1, 2012, relying solely on the Buyer’s representation and without obtaining instructions from J.N. 18. Asa neutral third-party, Desiree Ownby owed fiduciary duties to all of the parties to the transaction—seller, buyer and lender. IT IS THEREFORE CHARGED that Desiree Ownby has violated or is accountable under one or more of the following provisions of the Florida Insurance Code! which constitutes grounds for the suspension or revocation of her licenses as an insurance agent in this state: (a) Section 626.8473(2), Florida Statutes, which provides that all funds received by a title insurance agent shall be trust funds received in a fiduciary capacity by the title insurance agent and shall be the property of the person or persons entitled thereto. (b) Section 624.10, Florida Statues, which provides that transacting insurance includes any of the following, in addition to other applicable provisions of the Florida Insurance Code: 1) solicitation or inducement; 2) preliminary negotiations; 3) effectuation of a contract of insurance; and 4) transaction of matters subsequent to effectuation of a contract of insurance and arising out of it. ' Chapters 624 through 632, 634, 635, 636, 641, 642, 648, and 651, Florida Statutes, constitute the “Florida Insurance Code.” See § 624.01, Fla. Stat. (2012). References to chapters, sections and subsections in this Administrative Complaint are to Florida Statutes (2012) and Florida Administrative Code (2012), except where otherwise stated. C) C) (c) Section 626.611(7), Florida Statutes, which provides that it is a violation for any agent to demonstrate a lack of fitness and trustworthiness to engage in the business of insurance. (d) —- Section 626.611(8), Florida Statutes, which provides that it is a violation for any agent to demonstrate a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. (e) Section 626.621(6), Florida Statutes, which provides that it is a violation for any agent to, in the conduct of business under the license or appointment, engage in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of chapter 626, or having otherwise shown himself or herself to be a source of injury or loss to the public. (63) Section 626.621(2), Florida Statutes, which provides that it is a violation for any agent to violate any provision of the Florida Insurance Code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. (g) Section 626.621(3), Florida Statutes, which provides that it is a violation for any agent to violate any lawful order or rule of the department, commission, or office. (h) —_ Section 626.8473(4), Florida Statutes, which provides that funds required to be maintained in escrow trust accounts pursuant to section 626.8473 shall not be subject to any debts of the title insurance agent and shall be used only in accordance with the terms of the individual, escrow, settlement, or closing instructions under which the funds were accepted. (i) Section 626.8437(4), Florida Statutes, which provides that it is a violation for a licensee to demonstrate a lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. Gj) Section 626.8437(5), Florida Statutes, which provides that it is a violation for a licensee to demonstrate a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. (k) Section 626.844(2), Florida Statutes, which provides that it is a violation to violate any provision of Part V of chapter 626 in the course of dealing under the license or appointment. qd) Section 626.844(5), Florida Statutes, which provides that-it is a violation to engage in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of business, as prohibited under part IX of chapter 626, or having otherwise shown himself or herself to be a source of injury or loss to the public or to be detrimental to the public interest. (m) Rule 690-186.008, Florida Administrative Code, which prohibits a title agent from using, endangering, or encumbering money held in trust without the permission of the owner of such money, given after full disclosure of the circumstances. WHEREFORE, Desiree L. Ownby is hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking her licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of sections 626.611, 626.621, 626.844, 626.8437, 626.8443, and 626.8457, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. DATED this 2.3" day of December 2014. Tre Gregory Thomas Director, Agent & Agency Services 5 () () 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 chapter 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 a petition for administrative hearing are required. 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. Specifically, your response must contain: (a) The name, address, telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the respondent"). os YY C) (b) The name, address, telephone number, and 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. (ec) 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 an administrative law judge of the State of Florida Division of Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. C) C) 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 before 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 during the time frame in which you have to request a hearing. —~ / af —, 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: Desiree L. Ownby, . . are 1776 Oak Grove, Florida 32043-9464, mailed on this a 3 day of Decem per, 2014. Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 Florida Bar Number 30942 (850) 413-4156 zaynab.salman@myfloridacfo.com Certified Article Number 7ib0 39012 9845 Tb28 7650 SENDERS RECORD STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 153158-14-AG DESIREE L. OWNBY 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 I understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) Lt] 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 licenses and appointments as may be appropriate. I do not dispute any of the Department's factual 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 (CHOOSE ONE): [1 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 ofa 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. I have attached to this election form the information required by Rule 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; Julie Jones, 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 attorney or qualified Phone No.: representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No.: E-mail: 10

Docket for Case No: 15-000490PL