FILED FEB 27 2019 Docketed by- DA CHIEF FINANCIAL OFFICER JIMMY PATRONIS STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES, DIVISION OF INSURANCE AGENT AND AGENCY SERVICES, CASE NOs.: 208135-17-AG, Petitioner, 208126-17-AG and 208128-17-AG Vv. ELIJEANA ESTHER KING, STEVEN S. THOMPSON AND THE CHAISTELI GROUP, INC., Respondents. ADMINISTRATIVE COMPLAINT Elijeana Esther King, individually and on behalf of The Chaisteli Group, Inc. 5400 South University Drive Suite 405 Davie, Florida 33328-5311 and Steven S. Thompson, individually 1431 SW 72 Ave Plantation, FL 33317 Elijeana Esther King (King), license number A141353, is hereby notified that the Chief Financial Officer of the State of Florida, as agency head of the Florida Department of Financial Services (Department), has caused to be made an investigation of Respondents’ activities while licensed under the Florida Insurance Code, as a result of which it is alleged: GENERAL ALLEGATIONS 1. King is currently licensed as a general lines agent (2-20) and life including variable annuity and health agent (2-15), having been issued license number A141353. 2; At all times material to this administrative complaint, King was the owner, officer and agent-in-charge of the licensed insurance agency, The Chaisteli Group, Inc. (TCG or the Agency), having license number L054190. 3. Pursuant to chapter 626, Florida Statutes, the Department has jurisdiction over Respondents’ licenses and appointments. 4. Steven S. Thompson (Thompson) is King’s husband. 5. The Department of State, Division of Corporations, listed King and Thompson as officers of TCG, following its incorporation on February 1, 2008. 6. On December 28, 2006, the Department denied Thompson an insurance license due to his having pled guilty to a charge of grand theft. On March 14, 2013, Thompson was again denied a license for the same reason. q According to records filed with the Department, Thompson was added as an officer of TCG on January 28, 2014. 8. The Department did not grant Thompson a customer representative license (4- 40) until May 12, 2015. The Department did not grant Thompson a General Lines (Property & Casualty) license (2-20) until December 29, 2016. 9. King knew of Thompson’s criminal history and she knew that he was not licensed as a General Lines Agent prior to December 29, 2016. COUNT I 10. The above general allegations are realleged and fully incorporated herein by reference. 11. On or about February 26, 2008, King submitted an application to the Department on behalf of TCG for licensure as an agency. 12, In response to questions contained on the application for licensure, King falsely answered “No” when asked, “Have the firm/agency, majority owners, partners, officers or directors ever been convicted, found guilty or pled guilty or nolo contendere (no contest) to a felony under the laws of any municipality, county, state territory or country whether or not adjudication was withheld or a judgment of conviction was entered?” 13. King falsely answered “No” on the application when asked, “Have the firm/agency, majority owners, partners, officers or directors ever been refused a securities, real estate broker, or other license by a state agency or a public authority in any jurisdiction?” 14. King falsely answered “No” on the application when asked, “Have the firm/agency, majority owners, partners, officers or directors ever had an application for a license declined or denied by this or any other insurance regulatory body?” IT IS THEREFORE CHARGED that King has violated one or more of the following provisions of the Florida Statutes, which constitutes grounds for the suspension or revocation of King’s licenses in this state: (a) Section 626.0428(4)(d), Florida Statutes, which provides: that an “agent in charge” is the licensed and appointed agent who is responsible for the supervision of all individuals within an insurance agency location, regardless of whether the agent in charge handles a specific transaction or deals with the general public in the solicitation or negotiation of insurance contracts or the collection or accounting of moneys. (b) Section 626.0428(4)(e), Florida Statutes, which provides that an agent in charge of an insurance agency is accountable for misconduct or violations of this code committed by any person under her supervision while acting on behalf of the agency. (c) Section 626.172(2)(a), Florida Statutes, which provides that the application for an insurance agency license must include the name of each owner, partner, officer, director, president, senior vice president, secretary, treasurer, and limited liability company member who directs or participates in the management or control of the insurance agency. (ad) Section 626.611(1)(b), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds that the licensee madé a material misstatement, misrepresentation, or committed fraud in obtaining the license or appointment. (e) Section 626.611(1)(g), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds that the licensee demonstrated lack of fitness or trustworthiness to engage in the business of insurance. (¢3) Section 626.611(1)(i), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds that the licensee engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. (g) Section 626.621(1), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds any cause for which issuance of the license or appointment could have been refused had it then existed and been known to the department. (h) Section 626.621(2), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds that the licensee 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. (i) Section 626.621(11), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to continue the license of any agent or customer representative if it finds that the licensee knowingly aided, assisted, procured, advised, or abetted any person in the violation of or to violate a provision of the insurance code or any order or rule of the Department. (Gj) Section 626.734, Florida Statutes, which provides that any general lines insurance agent who is an officer, director, or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under her direct supervision and control while acting on behalf of the corporation. (k) Section 626.9541(1)(e), Florida Statutes, which provides that it is an unfair or deceptive act or practice to knowingly deliver to any person any false material statement. ()) Section 626.6115(3), Florida Statutes, which provides that the Department shall deny, suspend, revoke, or refuse to continue the license of any insurance agency if it finds, as to any majority owner, partner, manager, director, officer, or other person who manages or controls such agency, that his or her license to practice or conduct any regulated profession, business, or vocation relating to the business of insurance by this state has been denied, suspended, or revoked. COUNT I 15. The above allegations are hereby realleged and fully incorporated herein by teference. 16. On or around May 10, 2011, King submitted an application to the Department on behalf of TCG for a renewal of its agency license. 17; King answered “No” on the application when asked, “Have the firm/agency, majority owners, partners, officers or directors ever been convicted, found guilty or pled guilty or nolo contendere (no contest) to a felony under the laws of any municipality, county, state territory or country whether or not adjudication was withheld or a judgment of conviction was entered?” 18. King answered “No” on the application when asked, “Have the firm/agency, majority owners, partners, officers or directors ever been refused a securities, real estate broker, or other license by a state agency or a public authority in any jurisdiction?” 19. King answered “No” on the application when asked, “Have the firm/agency, majority owners, partners, officers or directors ever had an application for a license declined or denied by this or any other insurance regulatory body?” IT IS THEREFORE CHARGED that King has violated one or more of the provisions of the Florida Statutes as listed under Count I above. COUNT III 20. The aboye allegations are hereby realleged and fully incorporated herein by reference. 21. At all times pertinent to the dates and occurrences referred herein, Anna Sciortino, and Carmen Orsini were employed with TCG. 22. On or around January 10, 2014, Thompson and Carmen Orsini bound or wrote a commercial package policy for client David Labella’s business ““Labella Group 1161 LLC, Labella Group 2831, Labella Group 2861 LLC” on behalf of TCG. 23. On or around January 10, 2014, client David Labella mailed Thompson the insurance paperwork and a check (Check # 551) to pay the premium in full in the amount of $13,270.57 made payable to Chaistelli Insurance Group. 24. Onor around January 10, 2014, despite client David Labella paying the premium in full, Thompson prepared a premium finance agreement with E.T.I Financial Corporation, which was used to finance client David Labella’s premium. Moreover, the premium finance agreement was signed with a signature purportedly that of client David Labella, which was not genuine nor done with the consent of client David Labella. The premium finance agreement reflected a down payment of just $2,708.08, an overcharge of $10,562.49. Additionally, Thompson falsely represented client David Labella’s address on the premium finance agreement, which belonged to TCG not client David Labella. This false address further deprived client David Labella of the ability to receive any mail from E.T.I Financial Corporation. 25. | Onoraround January 10, 2014, Thompson also prepared a second premium finance agreement with Pro Premium Finance Company, which was also used to finance the same premium of client David Labella. Moreover, the premium finance agreement was also signed with a signature purportedly that of client David Labella, which was not genuine nor done with the consent of client David Labella. The premium finance agreement reflected a down payment of just $2,708.08, an overcharge of $10,562.49. Additionally, Thompson falsely represented client David Labella’s address on the premium finance agreement, which belonged to TCG not client David Labella. This false address further deprived client David Labella of the ability to receive any mail from Pro Premium Finance Company. 26. On or around March 4, 2014, a draft check from E.T.I Financial Corporation was sent to Morstan General Agency of FL in the amount of $10,832.32 to pay client David Labella’s policy with Hudson Specialty Insurance Company. 27. Onor around March 4, 2014, TCG sent an Acord insurance application purportedly signed by agent Carmen Orsini. Carmen Orsini’s signature was not genuine nor done with the consent of Carmen Orsini. 28. On or around February 24, 2014, Morstan General Agency of FL generated a commission statement, which reflected that TCG, not agent Carmen Orsini, received a net agency commission of $2,720.54 on the policy sold to client David Labella. IT IS THEREFORE CHARGED that that you, STEVEN 8S. THOMPSON and you, ELIJEANA ESTHER KING have violated one or more of the provisions of the Florida Statutes, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) No person shall transact insurance in this state, or relative to a subject if insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this code. [Section 624.11(1), Florida Statutes] (b) Ifthe license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(1)(d), Florida Statutes] (c) Willful misrepresentation of any insurance policy or annuity contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(1)(e), Florida Statutes] (d) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(1)(g), Florida Statutes] (ec) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(1)(h), Florida Statutes] (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(1)(i), Florida Statutes] (g) 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(1)(), Florida Statutes] (h) Willful failure to comply with, or willful violation of, any proper order or rule of the department, commission, or office or willful violation of any provision of this code. [Section 626.611(1)(m), Florida Statutes] COUNT IV. 29. | Onor around September 28, 2012, Thompson wrote an insurance-related article on the Internet entitled, “Why You Are Better Off With A Quality Home Insurance Package” on the website http://thecgins.blogspot.com. In the post, Thompson wrote the following: “There are a vast number of ways in which you benefit with a quality home insurance plan. If anything untoward happens to your house the immense cost of reconstruction can make a gaping hole in your finances.” 30. On or around September 21, 2012, Coleen Garcia wrote on an insurance-related blog on the.on the website http://merchantcircle.com the following: “I was tired of paying an arm and a leg for my SR-22 car insurance through another company. After a lot of searching and comparing quotes of other companies, I came across Chaistelli Insurance and spoke with Steven Thompson. He was not only extremely helpful and answered all my questions but he also gave me a quote that saved me literally thousands of dollars off my annual SR-22 car insurance payment! Top quality service!” 31. On or around March 19, 2015, Anna Sciortino stated in pertinent part in her affidavit the following: “When I was being trained on their sales I would listen in on Steven Thompson’s conversation as he spoke to clients and explained coverages, deductibles and premium.” IT IS THEREFORE CHARGED that Thompson and King have violated one or more of the provisions of the Florida Statutes as listed under Count III above and the following Department tule: Rule 69B-222.060, Florida Administrative Code, which provides that the following actions are never allowable by unlicensed personnel: 1) Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverages. 2) Binding new, additional, or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies. 3) Soliciting the sale of insurance by telephone, in person, or by other communication. WHEREFORE, King and the agency are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking their licenses, appointments and eligibility for licensure as an insurance agent and agency in this atate or to impose such penalties as may be provided under the provisions of sections 626.611, 626.621, 626.681, 626.691, 626.692, 626.9521, 626.6115, 626.6215, 626.641, 626.651, 626.6515, 626.681(2), 626.691, 626.692, and 10 626.6215(5)(c), (d), (e), (g), (h), Gj), and (k), Florida Statutes and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. King and the agency are further notified that the Department intends to seek aggravation of all such penalties in accordance with the provisions of Rule 69B-231.160, Klorida Administrative Code, and that any order entered in this case revoking or suspending any license or eligibility for licensure held by them shall also apply to all other licenses and eligibility held by them under the Florida Insurance Code. DATED and SIGNED this 27 e day of Fobra 2019. Gregory Thomas Director, Insurance Agent & Agency Services 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. 11 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"). (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. (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 fecl 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. 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. 13 FU 7095 9991 7039 567? 97K 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 certified mail to Elijeana Esther King on behalf of herself and The Chaisteli Group, Inc., at The Chaisteli Group, Inc., 5400 South University Drive, Suite 405, Davie, Florida 33328-5311, and by certified mail to Steven S. Thompson, at 1431 SW 724 Ave, Plantation, FL 33317, this 19! - tay of «~ David J, Busch Florida Bar No.: 140945 Department of Financial Services Office of the General Counsel 200 East Gaines Street Tallahassee, Florida 32399-0333 41 2199 9951 7039 5677 9753 Phone: (850) 413-4146 rea ; ; E-mail: david.busch@mytloridacfo.com Attorney for the Department 14 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES OFFICE OF THE GENERAL COUNSEL ELIJEANA ESTHER KING, STEVEN S. CASE NOs.: 208135-17-AG THOMPSON AND THE CHAISTELI GROUP, 208126-17-AG INC. 208128-17-AG ELECTION OF PROCEEDING [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.[] I do not dispute any of the Department's factual allegations and I do not desire a hearing. 1 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 licegses and appointments as may be appropriate. 25 1 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 (Bett Personally attend a hearing conducted by a department hearing officer in Tallahassee; or fl Attend that same hearing by way of a telephone conference call. 3:-[ J 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, | 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, DFS Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. Signature i Print Name Date: . Address: __ Date Administrative —E = Complaint Received: Se If you are represented by an attorney or qualified Phone No.: representatlve, please attach to this election form his or her name, address, telephone and fax numbers Fax No.: =. — E-mail z ——— 15 § UNITED STATES POSTAL SERVICE March 15, 2019 Dear Sarah Marcos: The following is in response to your request for proof of delivery on your item with the tracking number: 9171 9999 9170 3956 7797 60. | Item Details Status: Delivered, Front Desk/Reception/Mail Room Status Date / Time: March 4, 2019, 1:33 pm Location: FORT LAUDERDALE, FL 33328 Postal Product: First-Class Mail® Extra Services: Certified Mail™ Return Receipt Electronic Shipment Details Weight: 6lb, 14.30z Recipient Signature Signature of Recipient: IZ Address of Recipient: We thet b Note: Scanned image may reflect a different destination address due to Intended Recipient's delivery instructions on file. 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Docket for Case No: 19-001841