Findings Of Fact Respondent, Theodore L. Aubuchon, Jr., has been licensed by the Department of Insurance as a general lines agent and limited surety agent for a period of approximately 12 years. Other than the instant Administrative Complaint and its attendant Emergency Order of Suspension, Respondent has never been the subject of an Administrative Complaint or the subject of disciplinary action by the Department of Insurance. Respondent was served with an Emergency Order of Suspension in November of 1985, to which he failed to respond, and as of the date of the hearing in this cause, his licenses as a general lines agent and as a limited surety agent have been suspended since November of 1985. Pioneer Bonding & Insurance Agency, Inc. (hereinafter "Pioneer"), was formed in 1963 by its first president, Respondent's grandfather. Respondent's father took over control of the company in approximately 1965, and Respondent succeeded to the position of president in 1979. Respondent remained as an employee of Pioneer and its president until some time in 1985. Pioneer acted as a general agent for American Druggists' Insurance Company (hereinafter "ADIC") from 1973 until approximately March of 1984, pursuant to an agency agreement. That agreement specifically sets forth the respective responsibilities of ADIC and Pioneer as it pertains to the bail bond business, including but not limited to the processing of claims, reports, disposition of collateral, and the return of collateral. All counts of this Administrative Complaint deal with bonds underwritten by ADIC. By letter dated October 3, 1983, ADIC advised Petitioner that Respondent d/b/a Pioneer had satisfactorily performed all duties as general agent for ADIC, that no claims were outstanding against Respondent, that any claims preceding the date of the letter were forever waived by ADIC, and that all funds collected were being maintained in accordance with the law. Shortly after the letter of October 3, 1983, ADIC advised Respondent that it was exercising its 120-day option for termination of its agency agreement. Upon being so advised, Respondent began negotiating with ADIC in an attempt to enter into a limited agency agreement solely for the purpose of servicing outstanding and continuing bonds beyond March of 1984. No formal limited agency agreement was ever consummated, and by May 29, 1984, ADIC employee Norman Stotts had been sent by ADIC to handle the transition, to audit Pioneer's books and records regarding ADIC bonds, and to essentially take control over all bonds written by Pioneer on behalf of ADIC. Because no limited agency agreement regulating the servicing of outstanding and continuing bonds was entered into between them, both ADIC and Pioneer sought to control the disposition of collateral and to resolve forfeitures. ADIC at no time gave any written directions to Pioneer as to the manner in which collateral was to be disposed of upon the termination of the agency agreement between them. Further, as of June 1984, Norman Stotts was in possession of the books and records of Pioneer on behalf of ADIC. In June of 1984, ADIC filed a civil action in the United States District Court for the Southern District of Florida against Pioneer, Respondent, and others. On August 24, 1985, that federal court issued an injunction prohibiting the release of any funds previously received by Pioneer or by Respondent in connection with the issuance of ADIC bonds. ADIC voluntarily dismissed the federal litigation on July 8, 1986. On April 30, 1986, the Court of Common Pleas in Franklin County, Ohio, issued an Order of Liquidation and Injunction against ADIC, which Order had the effect of prohibiting the disbursement of funds or collateral held by any agents or brokers of that company. On the following day, pursuant to a motion filed by Petitioner, the Circuit Court of the Second Judicial Circuit in and for Leon County, Florida, issued an Order Appointing Ancillary Receiver for purposes of liquidation, which Order also contained an injunction directed against ADIC agents. On January 7, 1983, Karla Myers obtained a surety bond in the amount of $5,000 for Robert Myers Painting, Inc. with ADIC as surety. Respondent signed the surety bond as agent for the surety. Similarly, Respondent signed the collateral security receipt as attorney-in-fact for ADIC. By its terms, the surety bond expired February 28, 1985. By an unnotarized letter dated March 5, 1985, the Tri-County Painters and Decorators Joint Trade Board, Inc. released Robert Myers Painting, Inc. from the surety bond, which letter was received by Karla Myers on March 8, 1985. Subsequent to March 8, 1985, Karla Myers made numerous telephone calls to Pioneer to obtain the return of her $5,000 in collateral. She was advised by employees at Pioneer that Respondent was no longer employed at Pioneer, and on one occasion, Myers contacted Respondent at his home. Respondent advised her that he would need to confer with his attorney regarding the matter. By March, 1985, Respondent was no longer in control of the books and records of Pioneer, with those books and records being in the control and custody of Norman Stotts. A notarized release, along with the original copy of the Collateral Security Agreement, was not provided by Karla Myers to Respondent or Pioneer in order to secure the release of the $5,000 in collateral, and Pioneer and Respondent were already engaged in litigation with ADIC, Respondent having been advised by his attorney not to discuss that litigation. On approximately August 20 1986, ADIC authorized Respondent to return the Myers collateral. Respondent then obtained the authorization of Petitioner, and the collateral was returned to Myers in August of 1986. On August 10, 1983, Pioneer accepted from Antonio and Jane Mininni $10,000 as collateral for a beverage wholesaler's bond underwritten by ADIC. A subsequent increase in the bond to $15,000 was required by the Florida Division of Alcoholic Beverages and Tobacco. On April 9, 1985, ADIC advised Mininni d/b/a Old Bridge, Inc., that its bond was being cancelled effective June 10, 1985, and that there would be a 90-day waiting period before the collateral would be returned. That waiting period would have expired on September 10, 1985, after the entry of the federal injunction. On June 13, 1985, the Old Bridge, Inc. bond was transferred from ADIC to Southland Insurance Company in order that Old Bridge, Inc. would continue to have the state-required coverage. Mininni participated in and approved that transfer. At all times Old Bridge, Inc. had coverage for the total amount of coverage it had purchased. In August of 1986, Mr. and Mrs. Mininni on behalf of their business, Old Bridge, Inc., executed a release releasing Pioneer, ADIC, and Respondent; the federal court litigation had been dismissed; Respondent obtained authorization from ADIC and from Petitioner to return to Old Bridge, Inc. its collateral; and the collateral was returned. On behalf of a client, attorney Sam Pendino needed to make arrangements for collateral on four bail bonds. In a telephone conversation with Respondent, Pendino advised that he wanted an attorney, rather than an insurance company, to hold the collateral under an escrow agreement. Respondent suggested the name of attorney Terence T. O'Malley, Sr. Pendino subsequently satisfied himself that O'Malley was a licensed attorney authorized to practice law in the State of Florida, and on January 13, 1984, an escrow agreement was entered into by and between Pendino and O'Malley under which O'Malley became the escrow agent for the collateral. That escrow agreement was later signed by Respondent on behalf of ADIC. Pendino and O'Malley physically put the collateral, with an approximate value of $100,000 made up of $57,500 in cash and the balance in precious metals, into a safe deposit box which they rented on the same day that the escrow agreement was signed. Respondent was not a signator on the safe deposit box and was not present at the time the actual transfer of the collateral took place. No evidence was offered to indicate that Respondent ever came into possession of any of the collateral. Under the terms of the escrow agreement, O'Malley was responsible for returning the collateral with no further authorization needed upon the discharge of the bonds for which the collateral had been placed. The bonds were discharged on September 3, 1985, after entry of the federal court injunction. Pendino contacted O'Malley, but O'Malley failed to return the collateral. Pendino filed a lawsuit against O'Malley. He included Respondent as a defendant because Respondent had signed the escrow agreement. According to Pendino's attorney who was the only witness to testify on Petitioner's behalf regarding this transaction, at all stages of the litigation Respondent was disassociated from O'Malley's position, had agreed to the return of the collateral, and had requested the Court to enter orders returning the collateral to Pendino. By the time of the final hearing in this cause, O'Malley had already been held in civil contempt of court and there was presently pending an indirect criminal contempt proceeding regarding false testimony given by O'Malley as to the location of the collateral in question. Respondent, on behalf of Pioneer and ADIC, wrote a bail bond in the amount of $250,000 to guarantee the appearance of John Lee Paul, Sr., in the Circuit Court of St. Johns County, Florida. Certain real property in Georgia was placed as collateral for the bond. The bond was subsequently ordered forfeited, and judgment was entered against ADIC on January 16, 1984. The real property which was the collateral for the bail bond was sold, and the proceeds were transferred to the general operating account of Pioneer. On June 20, 1984, the legal representative of ADIC and Pioneer, the Assistant State Attorney, the St. Johns County Attorney, the Clerk of the Circuit Court for St. Johns County, and the attorney for the Clerk of the Circuit Court entered into a stipulation for a payment schedule on that final judgment. The payment schedule set forth in that stipulation was approved by the Court on June 21, 1984. Since that time, the bond has been paid in full. It is a common practice for a surety company, with the approval of the Court, to arrange an extended payment schedule when such a large bond has been estreated.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a Final Order be entered finding Respondent not guilty of the allegations contained within the Administrative Complaint filed against him, dismissing that Administrative Complaint with prejudice, and immediately reinstating Respondent's suspended licenses. DONE and RECOMMENDED this 9th day of April, 1987, in Tallahassee, Florida. LINDA M. RIGOT Hearing Officer Division of Administrative Hearings 2009 Apalachee Parkway The Oakland Building Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 9th day of April, 1987. APPENDIX TO RECOMMENDED ORDER, CASE NO. 86-0660 Specific rulings as to Petitioner's proposed findings of fact are as follows: Adopted. Rejected as being immaterial. Adopted. Adopted. Rejected as not constituting a finding of fact. Rejected as being immaterial. Adopted. Adopted. Rejected as being secondary. Rejected as being secondary. Adopted. Adopted. Adopted. Rejected as being secondary. Adopted. Rejected as not constituting a finding of fact. Rejected as not constituting a finding of fact. Adopted. Adopted. Rejected as not constituting a finding of fact. Adopted. Specific rulings as to Respondent's proposed findings of fact are as follows: Rejected as not constituting a finding of fact. Rejected as not constituting a finding of fact. Rejected as not constituting a finding of fact. Adopted as to Respondent's licensure; remainder rejected since marital status and education are irrelevant. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Rejected as being secondary. Adopted. Adopted. Rejected as not constituting a finding of fact. Rejected as not constituting a finding of fact. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Adopted. Rejected as being secondary. Adopted. Adopted. Adopted. Rejected as being secondary. Adopted. Rejected as being secondary. Rejected as being secondary. Rejected as not constituting a finding of fact. COPIES FURNISHED: Howard L. Greitzer, Esquire Post Office Box 1778 Ft. Lauderdale, Florida 33302-1778 Lealand L. McCharen, Esquire 413-B Larson Building Tallahassee, Florida 32399-0300 Honorable William Gunter State Treasurer and Insurance Commissioner The Capitol, Plaza Level Tallahassee, Florida 32399-0300
The Issue The issue in the case is whether the allegations of the Administrative Complaints filed by the Petitioner against the Respondents are correct and if so, what penalty should be imposed.
Findings Of Fact The Petitioner is the state agency responsible for licensure and regulation of limited surety agents (bail bondsmen) operating in the State of Florida. The Respondents are individually licensed as limited surety agents in Florida and are officers and directors of "Big John Bail Bonds, Inc.," a bail bond agency. In November of 1999, Gustavo Porro contacted the Respondents regarding bail for Jessie James Bray, a friend of Mr. Porro's son. Mr. Porro did not know Mr. Bray. Based on the charges against Mr. Bray, four bonds were issued, two for $1,000 each and two for $250 each, for a total bond amount of $2,500. The $1,000 bonds were related to pending felony charges and the small bonds were related to pending misdemeanor charges. Mr. Porro signed a contingent promissory note indemnifying American Bankers Insurance Company for an amount up to $2,500 in the event of bond forfeiture. Bray did not appear in court on the scheduled date and the two $1,000 bonds were forfeited. For reasons unclear, the two $250 bonds were not forfeited. The contingent promissory note signed by Mr. Porro provided that no funds were due to be paid until the stated contingency occurred, stated as "upon forfeiture, estreature or breach of the surety bond." After Bray did not appear for court, the Respondents contacted Mr. Porro and told him that the bonds were forfeited and he was required to pay according to the promissory note. On April 15, 2000, Mr. Porro went to the office of Big John Bail Bonds and was told that he owed a total of $2,804, which he immediately paid. Mr. Porro was not offered and did not request an explanation as to how the total amount due was calculated. He received a receipt that appears to have been signed by Ms. Vath. After Mr. Porro paid the money, Ms. Vath remitted $2,000 to the court clerk for the two forfeited bonds. The Respondents retained the remaining $804. Bray was eventually apprehended and returned to custody. The Respondents were not involved in the apprehension. On July 11, 2000, the court refunded $1,994 to the Respondents. The refund included the $2,000 bond forfeitures minus a statutory processing fee of $3 for each of the two forfeited bonds. On August 9, 2000, 29 days after the court refunded the money to the Respondents, Mr. Porro received a check for $1,994 from the Respondents. Mr. Porro, apparently happy to get any of his money back, did not ask about the remaining funds and no explanation was offered. In November of 2000, Ms. Vath contacted Mr. Porro and informed him that a clerical error had occurred and that he was due to receive additional funds. On November 6, 2000, Mr. Porro met with Ms. Vath and received a check for $492. At the time, that Ms. Vath gave Mr. Porro the $492 check she explained that he had been overcharged through a clerical error, and that the additional amount being refunded was the overpayment minus expenses. She explained that the expenses included clerical and "investigation" expenses and the cost of publishing a notice in a newspaper. There was no documentation provided of the expenses charged to Mr. Porro. At the time the additional refund was made, there was no disclosure that the two $250 bonds were never forfeited. At the hearing, the Respondents offered testimony asserting that the charges were miscalculated due to "clerical" error and attempting to account for expenses charged to Mr. Porro. There was no reliable documentation supporting the testimony, which was contradictory and lacked credibility.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is recommended that the Department of Insurance enter a Final Order requiring that the Respondents be required to refund $318 to Mr. Porro, which, combined with the previous payments of $1,994 and $492, will constitute refund of the total $2,804 paid by Mr. Porro to the Respondents. It is further recommended that the limited surety licenses of Matilda M. Vath and John L. Vath be suspended for a period of not less than three months or until Mr. Porro receives the remaining $318, whichever is later. DONE AND ENTERED this 22nd day of February, 2002, in Tallahassee, Leon County, Florida. WILLIAM F. QUATTLEBAUM Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 22nd day of February, 2002. COPIES FURNISHED: James A. Bossart, Esquire Department of Insurance Division of Legal Services 200 East Gaines Street, Room 612 Tallahassee, Florida 32399 Joseph R. Fritz, Esquire 4204 North Nebraska Avenue Tampa, Florida 33603 Mark Casteel, General Counsel Department of Insurance The Capitol, Lower Level 26 Tallahassee, Florida 32399-0307 Honorable Tom Gallagher State Treasurer/Insurance Commissioner Department of Insurance The Capitol, Plaza Level 02 Tallahassee, Florida 32399-0300
The Issue Whether the Respondent is indebted to Petitioner as alleged in the Complaint filed with the Department of Agriculture and Consumer Services.
Findings Of Fact Robert Sepos is the comptroller for Ben-Bud Growers, Inc. As such Mr. Sepos maintains the company records which document amounts owed to it by others. As to this case, Mr. Sepos presented the invoices and statements due and owing from the Respondent. Based upon the unpaid invoices, Respondent owes Petitioner the sum of $10,471.80. Respondent acknowledged that the sum of $10,471.80 is owed to Petitioner but claimed that such amount was not for the purchase of agricultural products as contemplated by Chapter 604, Florida Statutes. According to Mr. Towell the bulk of the debt owed to Petitioner is for packaging and shipping fees for produce from growers represented by Fantastic Produce. Mr. Towell maintains that packing and shipping fees are not encompassed within Chapter 604, Florida Statutes. Mr. Sepos could not verify what sum, if any, of the total amount claimed was for agricultural products (versus packing or shipping). Based upon the admissions made by Mr. Towell, Respondent owes the Petitioner for agricultural products the sum of $775.00 in this case.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Agriculture and Consumer Services enter a Final Order approving Petitioner's claim in the amount of $775.00 and disallowing the remainder. DONE AND ENTERED this 7th day of November, 1997, in Tallahassee, Leon County, Florida. J. D. Parrish Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (904) 488-9675 SUNCOM 278-9675 Fax Filing (904) 921-6847 Filed with the Clerk of the Division of Administrative Hearings this 7th day of November, 1997. COPIES FURNISHED: Brenda D. Hyatt, Chief Department of Agriculture and Consumer Services Mayo Building, Room 508 Tallahassee, Florida 32399 Richard Tritschler, General Counsel Department of Agriculture and Consumer Services The Capitol, Plaza 01 Tallahassee, Florida 32399 Ben Litowich, President Ben-Bud Growers, Inc. 6261 West Atlantic Boulevard Margate, Florida 33063 George Towell, President George Towell Distributors, Inc. d/b/a Fantastic Produce Post Office Box 159 Belle Glade, Florida 33430 American Southern Insurance Company Legal Department 3715 Northside Parkway, 8th Floor Atlanta, Georgia 30327
Findings Of Fact Based upon all of the evidence, the following findings of fact are determined: At all times relevant hereto, respondent, Robert Mitchell Thomas, was licensed and eligible for licensure and appointment as a limited surety agent (bail bondsman) by petitioner, Department of Insurance and Treasurer (Department). When the events herein occurred, respondent was employed as manager/agent of the Fort Myers office of Hamilton Bonding, Inc. (Hamilton). At hearing respondent represented he has been licensed as a bail bondsman for approximately fifteen years. The facts which underlie this dispute are as follows. On November 16, 1989, Debra Rahn, a resident of Cape Coral, Florida and the wife of Richard A. Rahn, had Richard arrested for possession of a controlled substance and/or narcotic paraphanelia. She did this so that Richard could be placed in a drug treatment program. His bond was thereafter set in the amount of $2500. In order to get Richard released from jail and placed in the drug program, Debra contacted respondent at Hamilton's Fort Myers office and, after conferring with respondent, agreed to enter into an indemnity agreement with Thomas wherein respondent, acting as agent for Hamilton, agreed to post a $2500 surety bond with the Lee County Sheriff's Department for the release of Richard. In return for this service, Debra paid respondent a premium in the amount of $250. In addition to paying the foregoing sum of money, Debra was asked to sign a blank security agreement, notice of lien and power of attorney, and to deliver to respondent the title to her 1983 Chevrolet Chevette. After doing so, she received a receipt for the premium and automobile title. Finally, Debra was told there would be no other fees for this service. A few weeks later, Debra decided she wanted off of the bond because Richard was not responding favorably to the drug treatment. She accordingly telephoned Thomas who offered her several alternatives. One alternative suggested by respondent was for Debra to file new charges against Richard so that he would be arrested and shown to be in violation of the terms of the bond. Acting on respondent's advice, in early January 1990 Debra filed additional unspecified charges against her husband. On January 10, 1990, Ronald W. Millette, a licensed bail bondsman who had worked for respondent on previous occasions, was told by respondent that Debra wanted off of the bond and to pick up Richard and return him to the Lee County jail. He was paid a $50 fee for this service. That evening Millette went to Debra's house and advised her to go to respondent's office because Richard might seek retribution against her. Later on that evening, Millette apprehended Richard and carried him to respondent's office. Respondent and Millette then transported Richard to the jail. It may be reasonably inferred from the evidence that on a later date, the obligation of the surety on the bond was released by the court. In accordance with Millette's instructions, Debra went to respondent's office the evening of January 10 and was told by respondent that Richard was handcuffed in the next room. Whether this statement was accurate is not of record. In any event, respondent told Debra she must pay an additional $250 pick-up fee or he would not return her automobile title. This amount was derived by taking ten percent of the original $2500 bond. Respondent requested this fee even though there is no evidence that he forfeited any portion of Richard's bond or that the court ordered any fees. Debra replied she did not have the money but would return on Saturday to pay the money due. On a later undisclosed date, Debra's Chevette was "totaled" in an automobile accident. Because of this, she claimed she was unable to promptly pay the $250 fee. Even so, respondent continued to make demands for the money. The record does not show whether the automobile title was returned to Debra although Millette believes another employee in respondent's office did so at a later date. On May 29, 1990, respondent sent Debra a letter in which he again demanded payment of the $250 fee. However, based upon advice from a Department employee, he apologized to her for calling the fee a "pick-up fee" and instead characterized the charge as a "principal's apprehension fee" for expenses incurred in having Millette place Richard in custody on January 10. The record reflects that on June 10, 1990, Debra sent respondent a $10 check as partial payment on the demand but the check was never cashed. There is no evidence that respondent's license has ever been disciplined during his lengthy tenure as a bail bondsman.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that respondent be found guilty of violating Subsections 648.44(1)(g), 648.45(2)(d), (g), (j), (l), and 648.45(3)b) and (d), Florida Statutes (1989), and that his license be suspended for ten days and a $500 administrative fine be imposed. DONE and ENTERED this 22nd day of August, 1991, in Tallahassee, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, FL 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 22nd day of August, 1991.
Findings Of Fact Respondent, Larry K. Sechrest, was at all times relevant to the charges contained in the Administrative Complaint, licensed as limited surety agent in the State of Florida representing Allied Fidelity Insurance Company ("Allied"). In February, 1982, Respondent's accounts with Allied were audited by their representative at which time it was discovered that Respondent executed but did not report 202 powers of attorney. The aforementioned powers represented $11,464.51 in premiums due Allied, and an additional $5,732 due the buildup fund. On March 4, 1982, Allied demanded that the Respondent remit to them these premiums and buildup fund payments and account for and return the missing powers of attorney. Respondent had failed to comply with Allied's demands as of the date this Administrative Complaint was filed by Petitioner (July 20, 1982). Respondent subsequently offered to repay Allied at the rate of $1,000 per month, but this was refused. At the final hearing on February 16, 1983, Respondent offered to repay the total amount due within 30 days. On April 29, 1981, Respondent attempted to post a ne exeat bond in the amount of $25,000 for Douglas R. Valentine of Manatee County, Florida, based on power of attorney number FL2800913 issued by Allied. Respondent had not been given authority by Allied to post ne exeat bonds. Power of attorney number FL2800913 was by its language to be issued for appearance bonds only.
Recommendation Based on the foregoing, it is RECOMMENDED: That Petitioner enter a Final Order finding Respondent guilty of violating Subsections 648.45(1)(d), (h) and (j), Florida Statutes (1981), as charged in Count I of the Administrative Complaint, and suspending his limited surety agent's license for one year; provided, however, that such license shall not be reinstated until Respondent has made restitution to the Allied Fidelity Insurance Company. DONE and ENTERED this 20th day of May, 1983, in Tallahassee, Florida. R. T. CARPENTER Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 FILED with the Clerk of the Division of Administrative Hearings this 20th day of May, 1983. COPIES FURNISHED: Clark R. Jennings, Esquire Department of Insurance The Capitol Tallahassee, Florida 32301 Jerry Surfus, Esquire 150 East Avenue, South Sarasota, Florida 33577 The Honorable Bill Gunter Insurance Commissioner Department of Insurance The Capitol Tallahassee, Florida 32301 ================================================================= AGENCY FINAL ORDER ================================================================= STATE OF FLORIDA DEPARTMENT OF INSURANCE AND TREASURER IN THE MATTER OF LARRY K. SECHREST Revocation of License and Case No. 82-L-162J Eligibility for Licensure DOAH Case No. 82-2617 Limited Surety Agent / ORDER REVOKING RESPONDENT'S LICENSES AND ELIGIBILITY TO HOLD LICENSES THIS MATTER came on to be considered upon the transcript of record of hearing held on February 16, 1983, in Sarasota, Florida, and the Report, Findings, Conclusions and Recommendations of the Hearing Examiner dated May 20, 1983. Upon consideration thereof and being otherwise fully advised in the premises, it is ORDERED: The Findings of Fact of the Hearing Examiner are adopted. The Conclusions of Law of the Hearing Examiner are adopted. The Recommendation of the Hearing Examiner is rejected for the following reasons: Section 648.49, Florida Statutes prohibits the establishment of a period of suspension in excess of one (1) year. The Department lacks the authority to condition any Order upon financial restitution by a Respondent to any aggrieved party listed in an Administrative Complaint. Revocation of license and eligibility for licensure is an appropriate remedy under the statutory authority cited in the Administrative Complaint, and the Hearing Officer's Conclusions of Law. All licenses of the Respondent, LARRY K. SECHREST, heretofore issued within the purview of the Florida Department of Insurance and eligibility to hold said licenses be, and the same are hereby revoked. DONE and ORDERED at Tallahassee, Florida, this 28th day of June , 1983. BILL GUNTER Insurance Commissioner and Treasurer WILLIAM D. RUBIN Assistant Insurance Commissioner and Treasurer COPIES FURNISHED: Jerry Surfus, Esquire 150 East Avenue, South Sarasota, Florida 33577 Clark R. Jennings, Esquire Department of Insurance 413-B Larson Building Tallahassee, Florida 32301
Findings Of Fact Upon consideration of the oral and documentary evidence adduced at the hearing, as well as the stipulated facts, the following relevant facts are found: At all times relevant to this proceeding, respondent Joseph Aloysius Von Waldner has been licensed as a limited surety agent. He has been in the bail bond business for nine years and has had no previous or subsequent complaints issued against him. On five occasions during January and February of 1979, respondent did authorize, hire and remunerate Delbert Leroy Sams to pick up principals or skips and surrender them to the Orange County Jail. Delbert Leroy Sams was not and has not been previously licensed in any capacity by the Department of Insurance. On March 2, 1979, Mr. Sams was denied a license by the Department of Insurance. At the time respondent engaged the services of Mr. Sams, respondent believed that Mr. Sams was working as a bail bond runner for another bail bondsman. Respondent did not inquire of Sams as to whether Sams was or was not licensed by the Department of Insurance. Respondent knew that other bail bondsmen had used Sams as a runner, and Sams showed respondent some business cards and forms which Sams used when picking up principals. Respondent admits that he was negligent for not inquiring into Mr. Sams' licensure. Respondent was called in for an investigation by the petitioner's chief investigator, Melvin R. Thayer, on February 28, 1979. After talking with Mr. Thayer and becoming aware that Mr. Sams was not licensed, respondent no longer used Sams as a runner.
Recommendation Based upon the findings of fact and conclusions of law recited herein, it is RECOMMENDED that the Department of Insurance enter a final order finding that respondent violated the provisions of Florida Statutes, s648.45(1)(j) and imposing an administrative penalty against respondent in the amount of $100.00, said penalty to be paid within thirty (30) days of the date of the final order. Respectfully submitted and entered this 27th day of June, 1980, in Tallahassee, Florida. DIANE D. TREMOR Hearing Officer Division of Administrative Hearings 101 Collins Building Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 27th day of June, 1980. COPIES FURNISHED: Thomas A. T. Taylor, Esquire Room 428-A, Larson Building Tallahassee, Florida 32301 Richard L. Wilson, Esquire 100 South Orange Avenue Orlando, Florida 32801 Insurance Commissioner Bill Gunter The Capitol Tallahassee, Florida 32301
