CHIEF FINANCIAL OFFICER JIMMY PATRONIS STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES, Petitioner, Case No.: 266059-20-AG v. MATHIU MUNOZ PEREZ AND D NAKAMA FACTION CORP, Respondents. / ADMINISTRATIVE COMPLAINT Mathiu Munoz Perez, Individually and as President of D Nakama Faction Corp 777 NW 72™ Avenue, Ste. 1115 Miami, Florida 33126 Mathiu Munoz Perez, Individually and as President of D Nakama Faction Corp 1011 NW 184" Terrace, Apt. 321 Pembroke Pines, Florida 33029 e-mail: DRMATHIU@GMAIL.COM and DNFCORPORATION@DNAKAMAFACTION.COM Mathiu Munoz Perez (Respondent Perez), license number W301548 and D Nakama Faction Corp (Respondent Faction), license number L104623 are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of their activities while licensed in this state. as a result it is alleged: GENERAL ALLEGATIONS 1. Pursuant to chapter 626, Florida Statutes, Respondents are currently licensed in this state, Respondent Perez as a resident life including variable annuity agent, a resident health agent and as legal expense agent. Respondent Faction is a licensed insurance agency, listing the Social Security number of Respondent Perez (XXX-XX-1490) in its Licensee Profile Information. 2. At all times pertinent to the dates and occurrences referred to herein, Respondent Perez was licensed in this state as a resident life including variable annuity agent and a resident health agent and was appointed as an agent for Combined Insurance Company (Combined). Respondent Perez is the owner, president and agent in charge of Respondent Faction. 3. At the time of the allegations listed below Respondent was working with CR Insurance Group, LLC (the agency). Respondent Perez formed Respondent Faction on February 12, 2019. 4. Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over Respondents’ insurance license and appointments. 5. On June 19, 2019, Combined reported to the Department that Respondent Perez was terminated for cause due to his fraud and forgery in the marketing of Combined insurance policies. COUNT I 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. Combined provided the Department with a total of eighteen insurance applications submitted by Respondent Perez that contained alleged fraudulent insured addresses. In order to confirm those allegations, contact letters were issued by the Department to the addresses listed on the applications. 8. Fifteen letters were returned by the United States Postal Service with the following 39 cee statements stamped on one or more of the returned envelopes: “return to sender”, “insufficient address”, “unable to forward”, “attempted not known”, “no such number” and “not deliverable as addressed”. 9. The Department also confirmed that Respondent Perez had included fraudulent policyholders’ phone numbers on the policy applications. 10. These unbillable policies submitted by Respondent Perez were done so for the purpose of obtaining upfront commissions and bonuses from Combined. As of February 7, 2019, Respondent Perez was in a debit balance of $14,125 due to commission chargebacks (monies paid to Respondent Perez for policies later determined to be fraudulent). In addition, Combined paid Respondent Perez $10,400 in commissions resulting from his submission of fraudulent sales. IT IS THEREFORE CHARGED that Respondents have violated one or more of the following provisions of the Florida Statutes, which constitute grounds for the suspension or revocation of their insurance licenses in this state: (a) Section 626.611(1)(e), Florida Statutes, which provides the Department shall take disciplinary action if it finds a licensee committed a willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising. (b) Section 626.611(1)(g), Florida Statutes, which provides the Department shall take disciplinary action if it finds a licensee demonstrated a lack of fitness or trustworthiness to engage in the business of insurance. (c) Section 626.611(1)(h), Florida Statutes, which provides the Department shall take disciplinary action if it finds that a licensee has demonstrated a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. (d) Section 626.611(1)(j), Florida Statutes, which provides the Department shall take disciplinary action if it finds a licensee has misappropriated, converted, or unlawful withheld moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. (e) Section 626.6115, Florida Statutes, which provides the Department shall suspend or revoke the license of an insurance agency if it finds, as to any insurance agency or as to any majority owner, partner, manager, director, officer, or other person who manages or controls such agency, the following applicable ground exists: suspension, or revocation of a license to practice or conduct any regulated profession, business, or vocation relating to the business of insurance by this state, any other state, any nation, any possession or district of the United States, any court, or any lawful agency thereof. (f) Section 626.9541(1)(k), Florida Statutes, which provides that it is an unfair method of competition and an unfair or deceptive act or practice to knowingly make a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. (g) Section 626.9521(2), Florida Statutes, which provides that any person who violates any provision of this part is subject to a fine in an amount not greater than $5,000 for each non-willful violation and not greater than $40,000 for each willful violation. COUNT II 11. The above general allegations are hereby realleged and fully incorporated herein by reference. 12. In November 2018, Mr. RP, in response to an online job advertisement for a health insurance agent proffered by Respondent Perez, contacted him in an effort to accept such employment. 13. Respondent Perez met with Mr. RP and offered him a position as a life and health insurance agent after receiving all necessary training and licensure. 14. Respondent Perez explained to Mr. RP the many benefits he would receive, including a $500 stipend while he received training in Chicago, Illinois and medical insurance coverage, all of which would be paid by Combined. 15. | Mr. RP provided Respondent Perez with his personal information that included his social security number and signed what he believed were insurance papers related to his future employment as an insurance agent. 16. Instead, Respondent Perez fraudulently presented Mr. RP with insurance papers that made him Respondent Perez’s insurance client for which he received a commission from Combined. IT IS THEREFORE CHARGED that Respondents have violated one or more of the of the provisions of the Florida Statutes as described under Count I above, which constitute grounds for the suspension or revocation of their insurance licenses in this state. COUNT III 17. The above general allegations are hereby realleged and fully incorporated herein by reference. 18. On or about December 6, 2018, Respondent Perez participated in the uploading of an unauthorized recruiting video to Facebook. 19. The video references Combined sales products and commissions, including the showing of an agent’s commission statement. 20. The video falsely states components related to Combined and its parent company Chubb Insurance Company. It also falsely states commissions earned by Combined agents. IT IS THEREFORE CHARGED that Respondents have violated one or more of the of the provisions of the Florida Statutes as described under Count I above and the following provision, which constitute grounds for the suspension or revocation of her license as a resident life and variable annuity agent and health agent in this state: Section 626.9541(1)(b), Florida Statutes, which defines an unfair method of competition and unfair or deceptive act or practice as including knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: 1. Inanewspaper, magazine, or other publication, 2. Inthe form of a notice, circular, pamphlet, letter, or poster, 3. Over any radio or television station, or 4. Inany other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive, or misleading. WHEREFORE, the Respondents are hereby notified that the Chief Financial Officer intends to enter an Order imposing such penalties as may be provided under the provisions of chapter 626, Florida Statutes to include section 626.9521, Rule 69B-231, Florida Administrative Code, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. DATED and SIGNED this aK day of July 2020. es SS Gregory Thomas, Director Division of Insurance Agent and 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. 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 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 that 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 from 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. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint and the Election of Proceeding below have been furnished to Mathiu Munoz Perez, Individually and as President of D Nakama Faction Corp at 777 NW 72"4 Avenue, Ste. 1115, Miami, Florida 33126 and at 1011 NW 184" Terrace, Apt. 321 Pembroke Pines, Florida 33029 by USPS certified mail and by e-mail to DRMATHIUi@:GMAIL.COM and DNFCORPORATION‘@DNAKAMAFACTION.COM this BD say of July, 2020. /s/ ql 7199 9991 7039 Sb78 4122 David I Busch : — Florida Bar No. 140945 Senior Attorney Department Financial Services, Office of the General Counsel 200 East Gaines Street — AL 7099 9991 7039 578 4115 Tallahassee, FL 32399-4229 Tel: 850-413-4134 Email: David.Busch:@imyfloridacfo.com STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES OFFICE OF THE GENERAL COUNSEL DEPARTMENT OF FINANCIAL SERVICES, Petitioner, v CASE NO.: 266059-20-AG MATHIU MUNOZ PEREZ AND D NAKAMA FACTION CORP, Respondents. / 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. [ ] I donot 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. 2s I do not dispute any of the Department's factual allegations and | 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. 3. [ ] 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, DFS 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: 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

Docket for Case No: 21-000381