() C) FILED FEB 0 62016 CHIEF FINANCIAL OFFICER JEFF ATWATER STATE OF FLORIDA IN THE MATTER OF: DEREK ANDREW JONES CASE NO.: 139100-15-AG / ADMINISTRATIVE COMPLAINT TO: DEREK ANDREW JONES Derek Jones West Coast Bail Bonds 1789 Desoto Road Sarasota, FL 34234 Derek Andrew Jones is hereby notified that the Chief Financial Officer of the State of Florida, and the Department of Financial Services, has caused to be made an investigation of his activities in this state as a licensed limited surety (bail bond) agent, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to chapter 648, Florida Statutes, at all times pertinent to the dates and occurrences referred to herein, Derek Andrew Jones (“Derek Jones”) was licensed in this state as a limited surety (bail bond) agent with License #E020376. 2. At all times pertinent to the dates and occurrences referred to herein, Derek Jones was the owner and president of Derek Jones West Coast Bail Bonds (“West Coast”), a bail bond agency located at 1943 Northgate Boulevard, Sarasota, Florida 34276-2143. Docketed by -777C.__. C) C) 3. At all times pertinent to the dates and occurrences referred to herein, Derek Jones was designated as the primary bail bond agent for West Coast having been designated as such pursuant to section 648.387, Florida Statutes. 4. At all times pertinent to the dates and occurrences referred to herein, Derek Jones was the office manager for West Coast. 5. At all times pertinent to the dates and occurrences referred to herein, Derek Jones was the owner and president of E-Z Out Bail Bonds, Inc, (“E-Z Out”), a bail bond agency located at 2247 North Washington, Boulevard, Sarasota, Florida 34234. 6. Derek Jones Bail Bonds, a fictitious name registered with the Florida Department of State, Division of Corporations, is owned by Derek Jones, 7. E-Z Out, a registered corporation with the Florida Department of State, Division of Corporations, is owned by Derek Jones. COUNT I 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. On or about August 17, 2000, D.S. entered a plea of no contest to a felony charge in a criminal proceeding. 10. From 2007 through 2011, Derek Jones allowed D.S. to work at his bail bond agency and allowed D.S. to conduct bail bond business. 11. Derek Jones knew or should have known D.S. was not licensed by the Department and that D.S, had entered a plea of no contest to a felony charge in a criminal proceeding. IT IS THERFORE CHARGED that Derek Jones has violated one or more of the following provisions of the Florida Statutes, which constitutes grounds for the suspension or revocation of his license as a Florida limited surety (bail bond) agent: () () a) Section 648.387(4), Florida Statutes (201 1), which provides that an owner, operator, or primary agent may not employ, contract with, or use the services of any person in a bail bond agency who has been charged with, found guilty of, or pled guilty or nolo contendere to a felony or a crime punishable by imprisonment of 1 year or more under the law of any jurisdiction, without regard to whether judgment was entered or withheld by the court. COUNT II 12. The above general allegations are hereby realleged and fully incorporated herein by reference. 13. On or about May 5, 2011, West Coast entered into an agreement to ‘post an appearance bond for S.C with power number #PS5095710. 14. S.C. delivered five hundred dollars ($500.00) to serve as collateral security for the appearance bond. 15. The collateral was to be returned to S.C. once the conditions of the bond had been satisfied. 16, On or about November 16, 2011, the conditions of this bond were satisfied and the liability on the underlying bond was terminated. 17. Derek Jones failed to timely return cash collateral despite demands from S.C. 18. On or about February 1, 2012, Derek Jones issued a refund check in the amount of three hundred seventy dollars ($370.00) to S.C. IT IS THERFORE CHARGED that Derek Jones has violated one or more of the following provisions of the Florida Statutes, which constitutes grounds for the suspension or revocation of his license as a Florida limited surety (bail bond) agent: 1 The conduct at issue in Counts One (I) through Four (IV) of this Administrative Complaint is alleged to have occurred, in large part, between 2005 and 2011. The applicable provisions of chapter 648, Florida Statutes, did not materially change during that time period. Accordingly, all statutory references in this Administrative Complaint are to 2011. C) C) a) Section 648.442(1), Florida Statutes (2011), which provides, in part, that collateral shall be returned upon final termination of liability on the bond(s) for which the collateral was paid; b) Section 648.442(3), Florida Statutes (2011), which provides, in part, that collateral shall be received and held in a fiduciary capacity, separate and apart from any other funds or assets of a bail bond agent; c) Section 648.442(4), Florida Statutes (2011), which provides, in part, that collateral shall be returned to the rightful owner named in the collateral receipt when the bond or bonds has or have been released in writing by the court; d) Section 648,571(1), Florida Statutes (2011), which provides, in part, that a bail bond agent or managing general agent, shall, upon demand, make a written request for a discharge of a bond to be delivered to the surety or to the surety’s agent. Collateral shall be returned to an indemnitor within twenty-one days after the discharge is provided; e) Section 648.571(2), Florida Statutes (2011), which provides, in part, that following an agent’s written request for discharge of a bond and diligent inquiry by the agent to determine whether a bond has been discharged, a bond is automatically cancelled if the court does not provide the discharge, pursuant to chapter 903, Florida Statutes, within 7 days from the agent’s request. In such a case, the collateral shall be returned to the indemnitor within twenty- one days following the written request for a discharge; f) Section 648.571(4), Florida Statutes (2011), which provides, in part, that the failure to return collateral, pursuant to the procedural requirements set forth under section 648.571, Florida Statutes, shall result in an administrative fine of five times the dollar amount of the collateral; C) () g) Section 648.45(2)(e), Florida Statutes (2011), which provides, in part, that the Department shall suspend or revoke a bail bond agent’s licenses and appointments if the agent has demonstrated a lack of fitness or trustworthiness to engage in the bail bond business; h) Section 648.45(2)(h), Florida Statutes (2011), which provides, in part, that the Department shall suspend or revoke a bail bond agent’s licenses and appointments if the agent has misappropriated, converted, or withheld moneys belonging to another and received in the conduct of business under the agent’s insurance license(s); i) Section 648.45(2)(j), Florida Statutes (2011), which provides, in part, that the Department shall suspend or revoke a bail bond agent’s licenses and appointments if the agent has willfully failed to comply with or willfully violated any proper order or Department rule or willfully violated any provision of the Florida Insurance Code; j) Section 648.45(2)(1), Florida Statutes (2011), which provides, in part, that the Department shall suspend or revoke a bail bond agent’s licenses and appointments if the agent has demonstrated a lack of good faith in carrying out contractual obligations and agreements; k) Section 648.45(3)(c), Florida Statutes (2011), which provides, in part, that the Department may suspend or revoke a bail bond agent’s licenses or appointments if the agent has violated any law relating to the bail bond business or and provision of the Florida Insurance Code; 1) Section 648.45(3)(e), Florida Statutes (2011), which provides, in part, that the Department may suspend or revoke a bail bond agent’s licenses or appointments if the agent is found by the Department to be a source of injury or loss to the public, detrimental to the public interest, to be no longer carrying on the bail bond business in good faith; C) C) m) Section’ 648.387(2), Florida Statutes (2011), which provides, in part, that the primary bail bond agent is responsible for the overall operation and management of a bail bond agency, including the supervision of all individuals working at the agency. COUNT III 19, The above general allegations are hereby realleged and fully incorporated herein by reference, 20. On or about February 18, 2011, G.Y. entered into an agreement with West Coast to post an appearance bond with power number P$5091380. 21. The total bond amount for all charges was set at two thousand dollars ($2,000.00). 22. West Coast charged and collected two thousand dollars ($2,000.00) as collateral. 23. On or about July 18, 2011, the conditions of this bond were satisfied and the liability on the underlying bond was terminated. 24. The collateral was to be returned to G.Y. once the conditions of the bond had been satisfied. 25. Derek Jones failed to timely return cash collateral despite demands from G.Y. 26. On or about February 2, 2012, Derek Jones issued a refund check to G.Y. in the amount of eight hundred seventy dollars ($870.00). IT IS THERFORE CHARGED that Derek Jones has violated one or more of the following provisions of the Florida Statutes, which constitutes grounds for the suspension or revocation of his license as a Florida limited surety (bail bond) agent: section 648.442(1), section 648.442(3), section 648.442(4), section 648.571(1), section 648.571(2), section 648.571(4), section 648.45(2)(c), section 648.45(2)(h), section 648.45(2)(j), section 648.45(2)(1), section 648.45(3)(c), section 648.45(3)(e), and section 648.387(2), Florida Statutes (2011), all of which are alleged in detail in Count II. () C) COUNT IV 27. The above general allegations are hereby realleged and fully incorporated herein by reference. 28. On or about July 29, 2010, West Coast entered into an agreement to post bond for CN, with power number AS15K83907. 29, The total bond amount for all charges was set at sixty thousand two hundred fifty dollars ($60,250.00). 30. C.N.’s spouse delivered her Volkswagen Passat to serve as collateral security for the appearance bond. | 31. On or about August 5, 2010, the conditions of the bond were satisfied and the liability on the underlying bond was terminated. 32. Derek Jones charged C.N. a five thousand five hundred sixty-five dollars ($5,565.00) storage fee for maintaining the Volkswagen Passat at his personal residence. IT IS THERFORE CHARGED that Derek Jones has 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 his license as a Florida limited surety (bail bond) agent: a) Section 648.442(1), Florida Statutes (2011), which provides, in part, that collateral shall be returned upon final termination of liability on the bond(s) for which the collateral was paid; b) Section 648.571(3)(a), Florida Statutes (2011), which provides that fees or charges other than those provided in this chapter or by rule of the department or commission may not be deducted from the collateral due; C) ©) c) Rule 69B-221.105(3), Florida Administrative Code, which prohibits bail bond agents from collecting fees for storage, maintenance or return of collateral; d) Section 648.45(2)(j), Florida Statutes (2011), which provides, in part, that the Department shall suspend or revoke a bail bond agent’s licenses and appointments if the agent has willfully failed to comply with or willfully violated any proper order or Department rule or willfully violated any provision of the Florida Insurance Code; e) Section 648.45(3)(c), Florida Statutes (2011), which provides, in part, that the Department may suspend or revoke a bail bond agent’s licenses or appointments if the agent has violated any law relating to the bail bond business or and provision of the Florida Insurance Code. WHEREFORE, Derek Jones is hereby notified that the Chief Financial Officer, through his designee, intends to enter an Order ‘suspending or revoking his licenses and appointments as a limited surety (bail bond) agent, and imposing such penalties as may be provided under the provisions of the Florida Statutes and Florida Administrative Code as set forth in this Administrative Complaint. Derek Jones is further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by Derek Jones shall also apply to all other licenses and eligibility held by Derek Jones under the Florida Insurance Code. DATED and SIGNED this _ 57? day of Februar. 2016. Gregory Thomas Director, Agent & Agency Services C) “~ SY NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services (“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 a petition for administrative hearing are required. The request must be filed with Julie Jones, 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 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 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: (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) C) (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. 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 10 C) ©) 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 during the timeframe in which you have to request a hearing. m“N~ ) C) STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: DEREK ANDREW JONES CASE NO.: 139100-15-AG / 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) 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 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): [] 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, 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 32399-0390. Signature Print Name Date: Address: Date Administrative Complaint Received: Phone No.: File No. (if any): Fax No.: Jf you are represented by an attorney or qualified representative, please attach to this election form his or her name, address, telephone and fax numbers, 12 C C) NS CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint and Election of Proceeding has been furnished by U.S. Certified Mail to: Derek Andrew Jones at 1943 Northgate Blvd., Sarasota, Florida 34234-2143, and via electronic mail at djonespi@yahoo.com on this 4 H day of +&bruar vi , 2016. S ms A. GRAY, ESQUIRE c } Florida Bar No.: 087560 Assistant General Counsel Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 P: (850) 413-4156 F: (850) 487-4907 41 7199 9991 7032 7168 0833 13

Docket for Case No: 16-002831PL