The Issue The issue in this case is whether Respondent, Pearlie M. Butler, committed the offenses alleged in an Administrative Complaint issued by Petitioner, the Department of Financial Services, on December 29, 2004, and, if so, what penalty should be imposed.
Findings Of Fact The Parties. Petitioner, the Department of Financial Services (hereinafter referred to as the "Department"), is the agency of the State of Florida charged with the responsibility for, among other things, the investigation and prosecution of complaints against individuals licensed to conduct insurance business in Florida. Ch. 626, Fla. Stat. (2003). Respondent, Pearlie Mae Butler, is licensed in Florida as a Life Including Variable Annuity Agent (2-14), a Life and Health Agent (2-18), and a Health Agent (2-40). Ms. Butler's license number is D068258. At the times relevant to this matter, the Department has had jurisdiction over Ms. Butler's insurance licenses and appointments. Ms. Butler's Failure to Remit. At the times relevant to this matter, Ms. Butler was employed as an agent of Monumental Life Insurance Company (hereinafter referred to as "Monumental"). Ms. Butler, on behalf of Monumental, collected payments for insurance on a monthly basis, often in cash. Pursuant to Monumental's policies and procedures, Ms. Butler was required to give customers a receipt for all premium payments, which she signed in acknowledgement of a payment, and to record the receipt of the payment in Monumental's records. In September 2003 Ms. Butler voluntarily left Monumental. As a consequence, an audit was conducted of Ms. Butler's records. This audit included a comparison of actual insurance premium receipts which Ms. Butler had give to her customers with the insurance premium payments recorded by her in Monumental's records. As a result of the audit, it was found that Ms. Butler had collected a total of $483.21 in premiums she had received from three different customers which she did not report or remit to Monumental. These funds constituted trust funds pursuant to Section 626.561(1), Florida Statutes (2003), and were received in a fiduciary capacity by Ms. Butler. As such they should have been accounted for and paid to Monumental. Ms. Butler was informed by letter of the findings of the audit and was requested to remit the unaccounted-for funds. Ms. Butler had not, as of the date of the final hearing, responded to this request. Monumental, despite not having received the premiums, gave the three customers credit for their payments.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a final order be entered by the Department finding that Pearlie Mae Butler violated the provision of Chapter 626, Florida Statutes (2003), described, supra, and revoking her licenses. DONE AND ENTERED this 8th day of September, 2005, in Tallahassee, Leon County, Florida. S LARRY J. SARTIN 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 8th day of September, 2005. COPIES FURNISHED: James A. Bossart, Esquire Division of Legal Services Department of Financial Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Pearlie M. Butler Post Office Box 924013 Homestead, Florida 33032 Honorable Tom Gallagher Chief Financial Officer Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0300 Carlos G. Muniz, General Counsel Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0307
