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2014 Division of Insurance Enforcement Activity

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Please Note: P.L. 2013, c. 259 became effective on July 1, 2014.  This law amended the Administrative Procedure Act, R.S. 52:14B-1 et seq. One of the amendments requires all state agencies to post on their websites all non-confidential final agency orders, decisions and opinions. Accordingly, all such final agency orders or decisions in disciplinary actions issued subsequent to July 1, 2014 may be accessed by clicking on the link within the summaries below. Orders or decisions issued on such matters prior to July 1, 2014 are available upon request to the Division of Insurance.
 
November


Final Orders

Mark Donahue, Jr. and Arbor Title Agents, Inc., Wenonah, NJ
Order #E14-131, November 12, 2014
Respondents failed to properly disburse funds held in escrow following a real estate closing, commingled funds which were supposed to be held in escrow, misappropriated escrow funds, and failed to respond to a Department inquiry.
Sanctions: Revocation, Fine - $25,000, Restitution - $70,000, Costs - $287.50

Edward Furfey, Pennington, NJ, Jeffrey Gibbs, Princeton, NJ and Clear Advantage Title, Inc., Pennington, NJ
Order #E14-140, November 25, 2014
Respondents commingled premium, failed to hold premium and closing funds in escrow, misappropriated premium and settlement funds, committed forgery, failed to deliver title insurance policies and failed to respond to a Department subpoena.
Sanctions: Revocation, Fine - $314,000 (Furfey and Clear Advantage jointly), $5,000 (Furfey individually), $15,000 (Gibbs individually), Costs - $375

Myrna Daugherty, Millstone Twp, NJ
Order #E14-136, November 17, 2014
Respondent solicited and submitted an application for insurance while she was not licensed as an insurance producer and failed to respond to Department inquiries.
Sanctions: Revocation, Fine - $15,000, Costs - $250

Conditional Order Revoking License

Health Network America, Inc., Tinton Falls, NJ
Order #E14-133, November 17, 2014
Respondent third party administrator failed to file a 2013 audited financial statement.
Sanctions: Revocation, subject to retroactive reinstatement provided 2013 audited financial statement is filed within 30 days and fine of $5,000 is paid within 30 days.

Orders to Show Cause

Rachelle Buck, Williamstown, NJ
Order #E14-135, November 17, 2014
Respondent is charged with multiple instances of misappropriation of premium and payment of premium from the agency’s operating account.

Phyllis Daniel, Oak Ridge, NJ
Order #E14-134, November 17, 2014
Respondent is charged with forging an insured’s name on a claim check and with misappropriation of claim proceeds.

Louis Macaluso,
Westfield and Delmont, NJ and Affinity Title Agency, Westfield and Whippany, NJ
Order #E14-129, November 7, 2014
Respondents are charged with multiple counts of misappropriation of escrow funds, with failing to disburse settlement funds, with failing to deliver title insurance policies and with failing to notify the Department of a change of address.  

Amended Order to Show Cause

John Savadjian, Succasunna, NJ
Order #E14-130, November 7, 2014
Respondent is charged with improperly transferring orphaned accounts to his book of business by fraudulently reusing a fax cover letter, without the knowledge or consent of the policyholders or the insurer, with forging policyholder signatures on forms, and with making multiple calls to an insurer’s customer services office during which he fraudulently identified himself as various other persons, including agents, former agents and policyholders, in order to obtain policy information.

Consent Orders

Thomas Dallmer and Dallmer Adjusters Inc., Bensalem, PA
Order #E14-139, November 25, 2014
Respondent failed to disclose on his license application that he had been involved in an administrative proceeding regarding a professional or occupational license, used an unlicensed person to negotiate, sell or solicit a public adjuster’s contract, and entered into a public adjuster’s contract that did not contain required terms.
Sanction: Fine - $2,500

Francis Gallagher, Union, NJ and Gallagher Financial Services Corp., Springfield, NJ
Order #E14-141, November 25, 2014
Respondents failed to timely remit premium payments to an insurer and return premium to an insured and failed to utilize a trust account.
Sanction: Fine - $5,000

David Madigan, Santa Ana, CA, Insureco Agency & Insurance Services Inc., Santa Ana, CA and American Bankers Insurance Co. of Florida, Miami, FL
Order #E14-132, November 12, 2014
Respondent Insureco operated under a trade name that was not registered and operated a branch office that was not under the direct supervision of an insurance producer, all respondents offered a surety bond program that was sold by unlicensed persons and used marketing material for the surety bond program that was misleading.
Sanction: Fine - $85,000

Luigi Sacco, Fair Lawn, NJ
Order #E14-142, November 25, 2014
Respondent fraudulently surrendered multiple in force life insurance policies, forged policyholder signatures on disbursement request forms and cash surrender checks, misappropriated insurance proceeds and was convicted of criminal insurance fraud and liability for the conduct of another.
Sanction: Revocation and agreement never to re-apply for an insurance license, Fine - $10,500

Angel Santiago Jr., Ozone Park, NY and Intrepid Insurance Brokers, Inc., Jamaica, NY
Order #E14-127, November 7, 2014
Respondent failed to remit premium to an insurer and to timely return unearned premium to an insured.
Sanction: Fine - $2,500

Tonya Stroud, Edgewater Park, NJ and AVS Insurance Agency, Inc., Bordentown, NJ
Order #E14-128, November 7, 2014
Respondent failed to remit premium to an insurer or producer and to timely return unearned premium to an insured
Sanction: Fine - $2,500

 
October


Final Orders

Mark Andreotti and Metropolitan Title and Abstract, LLC, Wyckoff, NJ
Order #E14-109, October 2, 2014
Respondents improperly withheld, misappropriated and converted escrow funds belonging to insureds, failed to abide by the terms of their agency agreement with an insurer, and failed to respond to a Department inquiry.
Sanctions: Revocation, Fine - $25,000, Costs - $1,263.14

Peter Bonnell, III and Investors Union, LLC, Medina, OH
Order #E14-113, October 6, 2014
Respondents engaged in unfair practices resulting from mass mailing solicitations that informed consumers that they may have annuities that reached the end of their surrender period, when in fact, the producers had no reason to believe that the consumers’ annuities were about to expire or that the consumers even owned annuities; engaged in the business of insurance in New Jersey without a current producer license; failed to timely inform the Department of administrative actions taken in other states with regard to the producers’ mass mailings solicitations; and provided a materially misleading, untrue and incomplete statement on the application for licensure of Investors Union.
Sanctions: Revocation, Fine - $279,000


Jacob Eisenstark,
West Orange, NJ
Order #E14-112, October 2, 2014
Respondent was found by the New Jersey Bureau of Securities to have committed securities fraud by defrauding four clients of $850,000.
Sanction: Revocation


Reliant Abstract and Settlement, Inc.
and Thomas Lamparillo, Hillsdale, NJ
Order #E14-119, October 14, 2014
Respondents failed to properly disburse funds as part of a closing, failed to abide by the terms of their agency agreement with a title insurance company, failed to respond to a Department inquiry and subpoena, failed to return funds due to homeowners for a refinancing, failed to record mortgage documents for closings in which they acted as settlement agents, and misappropriated title insurance premium.
Sanctions: Revocation, Fine - $495,000, Costs - $200 and Restitution - $258,354.82

Consent Orders

AmeriHealth HMO, Inc. and AmeriHealth Insurance Company of New Jersey, Cranbury, NJ
Order #E14-116, October 9, 2014
Respondents experienced increased call wait times and abandonment rates, did not timely issue identification cards, did not activate coverage on the chosen effective date, did not timely and accurately process cancellation requests, posted summary of benefits and coverage forms with incorrect information, did not cover annual wellness exams for certain individuals and did not timely and adequately respond to Department inquiries.
Sanction: Fine - $500,000

Elizabeth Brenner, Lyndhurst, NJ
Order #E14-110, October 2, 2014
Respondent misrepresented the broker of record on 20 to 25 applications by signing the name of another producer on the applications.
Sanction: Fine - $2,500

Yolanda Clarke, West Orange, NJ
Order #E14-125, October 29, 2014
Respondent submitted applications that improperly added a person who was not an employee to the group and submitted other applications with inaccurate information.
Sanction: Revocation, Fine for violation of Fraud Act - $1,500, Fraud Act Surcharge - $75

Colonial Title and Abstract Services, LLC and Eugene Riesebeck, Succasunna, NJ
Order #E14-117, October 9, 2014
Respondents provided a credit to the title insurance premium of customers displaying an advertisement for the agency.
Sanction: Fine - $1,500

Evan Flynn, Pittsgrove, NJ
Order #E14-114, October 9, 2014
Respondent issued a solicitation that stated that the product was backed by the NJ Life and Health Insurance Guaranty Association.
Sanction: Fine - $2,000

Freelancers Consumer Operated and Oriented Program of New Jersey, Inc., Newark, NJ
Order #E14-124, October 20, 2014
Respondent failed to issue contracts to its individual and small employer policyholders containing the text of the standard individual and small employer plans, provided contracts with inaccurate text, submitted inaccurate certifications of compliance, posted summary of benefit and coverage forms with inaccurate information, did not provide a grace period to certain individuals, and did not submit or utilize a declaration of understanding of a high deductible health plan.
Sanction: Fine - $400,000

Liberty Claims Adjusters, Inc., Pompano Beach, FL and Joseph Hernandez, Lighthouse Point, FL
Order #E14-126, October 20, 2014
Respondents utilized a public adjuster contract that did not contain the required terms and attempted to bill a 20% fee when the contract stipulated a 10% fee.
Sanction: Fine - $1,000

LISU & Associates, LLC and Suzett McDine, Washington Township, NJ
Order #E14-121, October 20, 2014
Respondents failed to supervise employees in that one employee sold insurance without the appropriate line of authority, a second employee signed the name of another producer to insurance applications and a third employee solicited and sold insurance without being licensed.
Sanction: Fine - $2,500

MedLite, Inc., New Milford, NJ
Order #E14-115, October 9, 2014
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $2,000

John Natale, Patchogue, NY
Order #E14-122, October 20, 2014
Respondent executed public adjuster contracts when he was not licensed, had a licensed public adjuster cosign the contracts even though he did not work on the claims and was not affiliated with the public adjuster agency, and issued a public adjuster contract that did not contain required terms.
Sanction: Fine - $5,000

Gregory Oelerich, Middletown, WI
Order #E14-118, October 9, 2014
Respondent made unauthorized purchases using the credit cards of co-workers and failed to advise the Department that he was criminally charged with 10 felony counts of misappropriation and two misdemeanor charges of theft.
Sanction: Revocation

Gregory Settineri, Sparta, NJ
Order #E14-123, October 20, 2014
Respondent allowed someone other than the proposed insured to sign the proposed insured’s name on an application.
Sanction: Fine - $2,500

Byron Udell, Wheeling, IL
Order #E14-111, October 2, 2014
Respondent used an entity that was not licensed as a producer to send e-mails with misleading information to solicit insurance, in which e-mails did not disclose the insurance producer, the name of the insurer or the relationship between the insurance producer and the insurer.
Sanction: Fine - $500

 
September


Final Orders

Kevin Gavigan, Millville, NJ
Order #E14-102, September 12, 2014
Respondent falsified requests to withdraw funds from annuities, forged annuity owner names on said requests and on the insurance company checks issued in response to the withdrawal requests, misappropriated the proceeds of the withdrawals, and was convicted of theft by deception in the third degree based upon his theft of annuity withdrawal proceeds.
Sanctions: Revocation, Fine - $55,000 for Producer Act violations and $30,000 for Fraud Act violations, Attorneys’ Fees - $2,555, Costs - $412.40 and Insurance Fraud Surcharge - $1,000

PJP Health Agency Inc., James Struss, Philip Teseo, Melville, NY
Order #E14-105, September 18, 2014
Respondents violated an Order of the Commissioner by failing to provide restitution to New Jersey residents who were charged improper fees.
Sanctions: Revocation, Fine - $30,000

Orders to Show Cause

Quinton Long, Mount Holly, NJ
Order #E14-95, September 3, 2014
Respondent is charged with forging client signatures on insurance documents.

Consent Orders

AIG Property Casualty Company, New York City, NY
Order #E14-103, September 12, 2014
Respondent issued homeowner non-renewal notices that failed to contain required information.
Sanction: Fine - $25,000

All US Bail Bonds, LLC, Vauxhall, NJ and Zenia Twumasi, Maplewood, NJ
Order #E14-107, September 18, 2014
Respondents failed to refund collateral on a bail bond in a timely manner, failed to designate on bank records and checks that the premium account is a trust account, issued cash receipts that did not identify the insurance company and did not contain the name, address and telephone number of the insurance agency, and failed to respond to Department inquiries in a timely manner.
Sanction: Fine - $5,000

Citizens Public Adjusters Inc. and Jerome Sacco Sr.,
Bensalem, PA
Order #E14-99, September 5, 2014
Respondents entered into a public adjuster contract that did not clearly define or list the services to be rendered, did not indicate the time the contract was executed, did not list the procedures to be followed by the insured to cancel the contract, did not list the rights and obligations of the parties on cancellation and the costs to the insured or formula for calculation of costs to the insured upon cancellation.
Sanction: Restitution – reduction of fee from 30% to 15%

David Fan, Belle Mead, NJ
Order #E14-96, September 5, 2014
Respondent impersonated two annuity contract holders when calling an insurance company to seek information on contract values, failed to report an administrative action taken against him by another state insurance department and improperly indicated on license renewal applications that he was not named in an administrative proceeding regarding a professional or occupational license.
Sanction: Fine - $2,500

Gallagher Benefit Services, Inc.,
Ithasca, IL
Order #E14-98, September 5, 2014
Respondent failed to register four branch offices in New Jersey, failed to supervise employees who incorrectly described the out-of-network benefits under a group health benefits plan and failed to provide complete information to the Department.
Sanction: Fine - $5,000

Nyaten Gaye
, Johnston, RI
Order #E14-108, September 25, 2014
Respondent failed to disclose his arrest for theft by unauthorized transfer on his license application and failed to respond to Department inquiries.
Sanction: Revocation

Maximize, Inc.,
Lansdale, PA
Order #E14-104, September 12, 2014
Respondent acted as a third party billing service prior to being certified as a third party billing service.
Sanction: Fine - $1,000

Leonard Orloff,
Rydal, PA
Order #E14-97, September 5, 2014
Respondent entered into a public adjuster contract that did not clearly define or list the services to be rendered, did not indicate the time the contract was executed, did not list the procedures to be followed by the insured to cancel the contract, did not list the rights and obligations of the parties on cancellation and the costs to the insured or formula for calculation of costs to the insured upon cancellation.  Respondent also did not deposit insurance proceeds in an interest bearing escrow or trust account and did not maintain a register of all monies received, deposited and disbursed.
Sanction: Fine - $1,500

Inessa Ostrovski, Morganville, NJ
Order #E14-100, September 8, 2014
Respondent issued a certificate of liability insurance which incorrectly indicated that professional liability insurance was in effect, diverted insurance clients of her employer to an agency that she owned in part and failed to notify the Department of a change in business address.
Sanction: Fine - $2,500

Wei-Sheng,
Warren, NJ and Li-Pin Hu, Warren, NJ
Order #E14-106, September 18, 2014
Respondents accepted multiple insurance premium payments from various insureds, deposited them into their personal bank accounts and then transmitted them to the insurance company, failed to maintain proper books and records that reflect all insurance-related transactions and failed to maintain proper receipts documentation for each premium remitted to their agency.  Respondent Wang failed to notify the Department of a FINRA sanction and submitted a life insurance application that misrepresented the applicant’s annual income and net worth.
Sanction: Fine - $35,000 for Producer Act violations and $5,000 for Fraud Act violations, Insurance Fraud Surcharge - $250

Victoria Zarankin,
Monroe, NJ
Order #E14-101, September 5, 2014
Respondent issued a certificate of liability insurance which incorrectly indicated that professional liability insurance was in effect, diverted insurance clients of her employer to an agency that she owned in part, failed to notify the department of a change in business address and submitted an application for commercial liability insurance with an incorrect address.
Sanction: Fine - $3,500 for Producer Act violations and $1,500 for Fraud Act violations, Insurance Fraud Surcharge - $75

 
August

Final Orders

Stephen Hill, Upper Saddle River, NJ
Order #E14-91, August 20, 2014
Respondent misrepresented his education background to investors, defrauded investors by paying less than the guaranteed return on an investment, by procuring a promissory note that provided no benefit to investors and by making an unauthorized transfer from an investor’s account, and failed to report to the Department action taken against him by the New Jersey Bureau of Securities and by FINRA.
Sanctions: Revocation, Fine - $5,000 and Costs - $300

Orders to Show Cause

Jacob Eisenstark, West Orange, NJ
Order #E14-84, August 6, 2014
Respondent is charged with being found by the New Jersey Bureau of Securities to have committed securities fraud by defrauding four clients of $850,000.

Thomas O’Leary, South Amboy, VA and Morgantown, WV
Order #E14-85, August 6, 2014
Respondent is charged with conviction of conspiracy to violate Federal Election Campaign laws by using at least five straw donors to make contributions of $10,000, with admitting that he bribed a government official to maintain insurance contracts with the City of Perth Amboy and the Perth Amboy Board of Education, with conviction of Tax Evasion for concealing over $200,000 in income that he was paid for selling, soliciting and negotiating insurance business with the City of Perth Amboy, and with failing to report the Federal Election Campaign indictment and conviction to the Department.

Consent Orders

Todd Fischer, East Brunswick, NJ
Order #E14-92, August 25, 2014
Respondent failed to notify the Department of criminal charges of shoplifting and arson and conviction of theft by taking and arson.
Sanction: Fine - $5,000


Steven McEvoy
, Moorestown, NJ and Quick Claims Assistance, Inc. Moorestown, NJ
Order #E14-83, August 1, 2014
Respondent Quick Claims entered into a public adjuster agreement and submitted a claim to an insurance company when not licensed as a public adjuster.  Respondent McEvoy assisted Quick Claims in acting as a public adjuster without a license by passing off the work of unlicensed individuals as his own.
Sanction: Revocation, Fine - $5,500

National Educational Services, LLC, Edgewood, KY
Order #E14-94, August 28, 2014
Respondent used an entity that was not licensed as a producer to send emails to NJ residents which failed to disclose the name of the producer and the relationship between the producer and the insurance company and contained misleading information.
Sanction: Fine - $1,500

Pario Group, LLC, Iselin, NJ
Order #E14-89, August 12, 2014
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $1,000

Francisco Ribeiro, New York, NY and Transportation Risk Management, Kearny, NJ
Order #E14-86, August 6, 2014
Respondents refused to allow a department investigator access to the producer’s office in order to interrogate licensees and others and respondent Ribeiro provided an inaccurate residence address in his license application.
Sanction: Fine - $2,500

Graig Vuotto, Staten Island, NY
Order #E14-90, August 20, 2014
Respondent sold a product for a company with whom his employer was not appointed and failed to report his current business address to the Department.
Sanction: Fine - $2,500

 
July


Final Orders

Aquiles Novillo and All Business Managers, Dover, NJ
Order #E14-87, July 10, 2014
Respondents issued certificates of insurance which fraudulently listed coverage limits of $500,000 per vehicle when coverage was limited to $50,000 per vehicle. Respondents failed to notify the Department of their indictments and conviction and improperly indicated on license renewal applications that there were no criminal charges pending against them and they had not been convicted of a crime.
Sanctions: Revocation, Fine - $330,000 and Costs - $1,800


Jovani Morales, Orlando, FL
Order #E14-80, July 15, 2014
Respondent failed to respond to an Order to Show Cause charging him with selling a Medicare Advantage plan for a company when he was not appointed by the company, with misrepresenting to the applicants that if they purchased the Medicare Advantage plan they could use original Medicare for any out-of-network doctor, and with failing to notify the Department of a change in address.
Sanctions: Revocation, Fine - $5,250 and Costs - $1,625

Orders to Show Cause

Francis Gartland, Baltimore, MD, Federal Hill Risk Management, Towson, MD and Gartland & Company of New Jersey LLC, South Amboy, NJ
Order #E14-78, July 8, 2014
Respondents are charged with conviction of mail fraud by paying bribes and kickbacks of at least $3,360,000 to the Toms River Superintendent in return for the school district’s insurance business, with conviction of conspiracy to violate the federal election campaign laws through the use of straw donors, with conviction of theft by deception by accepting $216,495 from Perth Amboy for insurance coverage and services that were not provided, with conviction of financial facilitation of criminal activity by charging $2,593,400 in fees to the Perth Amboy Board of Education for non-existent healthcare services, with forging the signature of the President of the Perth Amboy Board of Education, and with failing to notify the Department of the various indictments and convictions.

Consent Orders

ACI Adjustment Group and Peter Guzzi, Doylestown, PA
Order #E14-81, July 17, 2014
Respondent ACI entered into a public adjuster contract when not licensed as a public adjuster, respondents entered 11 public adjuster contracts that did contain various items required by regulation and respondents entered six public adjuster contracts where the fees were not reasonably related to the services rendered.
Sanction: Revocation, Fine - $5,000, Restitution - $10,094.25


Paul Sauchelli
, New York, NY
Order #E14-82, July 28, 2014
Respondent failed to accurately disclose all medical information material to underwriting of a disability application on himself.
Sanction: Revocation, Fine - $1,050

 
June


Orders to Show Cause

Myrna Daugherty, Millstone Township, NJ
Order #E14-68, June 12, 2014
Respondent is charged with soliciting and submitting an application for insurance while she was not licensed as an insurance producer and with failing to respond to Department inquiries.

Francis Gallagher, Union, NJ and Gallagher Financial Services Corp., Springfield, NJ
Order #E14-76, June 30, 2014
Respondents are charged with failing to timely remit premium to an insurer, failing to timely return unearned premium to an insured and failing to maintain a trust account.

Order to Show Cause Seeking Immediate Suspension

Susan Caines, East Orange, NJ
Order #E14-66, June 2, 2014
Respondent is charged with being convicted of a felony involving dishonesty and/or breach of trust while engaging in the business of insurance and with failing to disclose the conviction on her license renewal application.

Order Suspending License Pending Completion of Administrative Proceedings

Susan Caines, East Orange, NJ
Order #E14-69, June 16, 2014
Respondent’s producer license is immediately suspended pending completion of administrative proceedings and entry of a Final Order based on her conviction of a felony involving dishonesty and/or breach of trust while engaging in the business of insurance without obtaining a written waiver from the Commissioner.

Consent Orders

Gregory Angelillo, Wayne, NJ
Order #E14-67, June 4, 2014
Respondent fraudulently completed, signed and submitted a variable annuity application without the applicant’s knowledge or consent and failed to notify the Department of the revocation of his producer license by New York.
Sanction: Revocation

Douglas Dign, Villas, NJ and FP Concepts, Villas, NJ
Order #E14-75, June 30, 2014
Respondents placed eight advertisements that failed to identify the insurer and solicited business on behalf of an unlicensed entity and failed to respond to a Department inquiry.
Sanction: Fine - $4,000 and Costs - $125

Maria Haro, Jersey City, NJ
Order #E14-72, June 24, 2014
Respondent entered false prior auto insurance carrier information on a minimum of 19 applications for insurance, assisted other employees in entering false prior insurance carrier information on applications for insurance and failed to timely notify the Department of a change in business address.
Sanction: Fine - $5,000

LTC Consulting Services, LLC, Howell, NJ
Order #E14-74, June 27, 2014
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000

 
May


Final Orders

Ralph A. Saviano, Fort Dix, NJ
Order #E14-60, May 21, 2014
Respondent failed to respond to an Order to Show Cause charging him with conviction of wire fraud and failure to notify the Commissioner of his indictment, the filing of criminal charges against him, his conviction and the disposition of FINRA proceedings against him.
Sanctions: Revocation, Fine - $5,000 and Costs - $175

Orders to Show Cause

Susan Caines, East Orange, NJ, Vincent Scaturro, Lodi, NJ and Luigi Sacco, Fair Lawn, NJ
Order #E14-57, May 21, 2014
Respondents are charged with fraudulently surrendering multiple in force life insurance policies, forging policyholder signatures on disbursement request forms and cash surrender checks, criminal conviction of insurance fraud and theft by deception, misappropriating insurance proceeds, failing to report criminal charges and convictions, lying on the producer license renewal application, and working as an insurance producer without obtaining the written consent of the Commissioner.


Brian P. Carr,
Chatham, NJ
Order #E14-56, May 9, 2014
Respondent is charged with having his registration with the New Jersey Bureau of Securities revoked for fraudulent acts, including selling unregistered promissory notes, making misrepresentations and material omissions to investors, failing to provide offering materials or disclosures and misappropriation of investor funds, and with failing to report the revocation and a final judgment against him to the Commissioner.

David Dallmer and David Dallmer Public Adjusters, LLC, Lumberton, NJ
Order #E14-61, May 21, 2014
Respondent David Dallmer Public Adjusters, LLC is charged with acting as a public adjuster without a license and with misrepresenting its license status, both respondents are charged with multiple instances of misappropriation of insurance proceeds for failing to turn over insurance proceeds to insureds and with depositing insurance funds into an account other than an interest bearing escrow account.

Carle A. D’Angelo, Elizabeth, NJ and Veronica Villa, Elizabeth, NJ
Order #E14-65, May 28, 2014
Respondents are charged with submitting a backdated application for homeowners insurance following a burglary without revealing the burglary on the application in order to obtain coverage for the stolen items, with lying to the insurer about the reason for requesting the backdating, with lying to the insurer as to who resided in the home, and with lying to the Department in the course of its investigation.

Kelly A. Dicapua, Jackson and Ocean, NJ, Stacy A. Trautweiler, Harleysville, PA and Associates Title, LLC, Toms River, NJ
Order #E14-58, May 21, 2014
Respondents are charged with theft of escrow funds in multiple cases by failing to pay property taxes following a closing, failing to pay recording fees for the deed and mortgage in another closing and failing to pay a federal tax lien in another closing, with failing to remit premium to NJ Title for at least fifty title insurance policies , with failing to submit required monthly reports to NJ Title and with failing to respond to Department inquiries.

Douglas A. Dign, Villas, NJ and FP Concepts, Villas, NJ
Order #E14-55, May 9, 2014
Respondents are charged with placing eight advertisements for insurance products that did not identify the insurance company and that contained the name of an unlicensed business entity and with failing to respond to Department inquiries.

Robert Hagaman, Toms River, NJ, Jovani Morales, Orlando, FL, Hagaman Financial Group, Toms River, NJ, Hagaman Insurance Group, Toms River, NJ and The Medicare Insurance Store, LLC, Toms River, NJ
Order #E14-54, May 5, 2014
Respondent Hagaman and Hagaman Insurance Group are charged with forging a client’s name on a consumer disclosure form, with failing to remit and misappropriating client funds that were supposed to be used to purchase annuities on several occasions and for multiple clients, with sending said clients forged documents on insurance company letterhead allegedly confirming the purchase of or additions to the nonexistent annuities, with sending clients who were the victims of the misappropriation forged certificates and certificate specifications, with failing to timely remit premium and with depositing premium into accounts that were not premium trust accounts.  Respondents Hagaman, Morales and The Medicare Store are charged with selling a Medicare Advantage plan for a company following that company’s termination of Hagaman for cause, with misstating to the applicants that if they purchased a Medicare Advantage plan they could use original Medicare for any out of network doctor, and with forging the applicants’ signatures on the Medicare Advantage enrollment applications.    

Consent Orders

Walid Ahmed Maghrabi, Springfield, NJ
Order #E14-63, May 28, 2014
Respondent improperly applied policy premium discounts on eight automobile insurance policies in order to lower premiums.
Sanction: Fine - $1,600

Maryann Mahon, Fords, NJ and Marsh & McLennan Agency, LLC, Somerset, NJ
Order #E14-59, May 21, 2014
Respondent repeatedly misrepresented the employee census data to an insurer as to actual number of employees working outside of New Jersey.
Sanction: Fine - $15,000

Gary Poller, Paramus, NJ and Gary’s Insurance Agency, LLC, Linden, NJ
Order #E14-62, May 21, 2014
Respondents charged various insureds improper and/or excessive fees, including fees for completing claim forms, fees to provide forms required by an insurer servicing a policy, fees for services not actually performed and fees for using credit cards, utilized improper service fee and motor club agreements, issued non-itemized receipts and failed to maintain proper books and records.
Sanction: Fine - $50,000

RHM Benefits Inc., Hackettstown, NJ
Order #E14-53, May 5, 2014
Respondent permitted an unlicensed entity to conduct insurance business and procured a self-funded prescription drug plan instead of an insured prescription drug plan as requested by the applicant.
Sanction: Fine - $7,500

 
April


Orders to Show Cause

Mark A. Andreotti, Wyckoff and Rutherford, NJ and Metropolitan Title and Abstract, LLC, Rutherford, NJ
Order #E14-41, April 10, 2014
Respondents are charged with improperly withholding, misappropriating and converting escrow funds belonging to insureds, failing to abide by the terms of their agency agreement with an insurer, and failing to respond to a Department inquiry.


Miriam Charles,
West Orange, NJ
Order #E14-44, April 10, 2014
Respondent is charged with improperly withholding, misappropriating and converting monies received as premium, failing to notify the Department of formal criminal charges filed against her, and failing to respond to a Department inquiry.


Stephen E. Hill,
Upper Saddle River, NJ
Order #E14-36, April 7, 2014
Respondent is charged with misrepresenting his education background to investors, defrauding investors by paying less than the guaranteed return on an investment, by procuring a promissory note that provided no benefit to investors and by making an unauthorized transfer from an investor’s account, and with failing to report to the Department action taken against him by the New Jersey Bureau of Securities and by FINRA.

Meredith A. Miller, Brick, NJ, RMJ Title Agency, Freehold, NJ and Spectrum Title Agency, LLC, Brick, NJ
Order #E14-51, April 23, 2014
Respondents are charged with improperly withholding, misappropriating and converting escrow funds belonging to insureds or property owners and with knowingly facilitating or assisting another person in misappropriating escrow funds.

Lisa A. Mohen, Spring Lake, NJ, Brian Mohen, Spring Lake, NJ and Arden Financial Services, Inc., Spring Lake, NJ
Order #E14-47, April 16, 2014
Respondents are charged with unlawfully withdrawing premium funds held in a trust account, commingling premium and non-premium funds and using the commingled funds to pay personal expenses, with premium defalcation, conversion and misappropriation, with failure to timely remit premium, with bouncing a check to an insurer for premium, with acting as a producer without a license and with conviction of misapplication of entrusted property and failure to file tax returns.

John Savadjian, Old Tappan, NJ
Order #14-46, April 10, 2014
Respondent is charged with improperly transferring orphaned accounts to his book of business by fraudulently reusing a fax cover letter, without the knowledge or consent of the policyholders or the insurer, and with forging policyholder signatures on forms.

James V. Struss, Melville, NY, Philip Eneo Teseo, Melville, NY and PJP Health Agency Inc., Melville, NY
Order #14-38, April 7, 2014
Respondents are charged with violating an Order of the Commissioner by failing to provide restitution to New Jersey residents who were charged improper fees.


Amended Order to Show Cause

Karl V. Brown, Elizabeth, NJ and Guaranteed Bail Bonds, Elizabeth, NJ
Order #E14-48, April 16, 2014
Respondents are charged with failing to return collateral on a bail bond, with forging an insured’s name on a check from the surety company for the return of collateral, with improperly cashing said check and retaining the proceeds, with failure to respond to a Department inquiry, with improperly withholding, misappropriating and converting bond premiums, with failing to abide by the terms of an agency agreement, and respondent Karl Brown is charged with failing to notify the Department of an indictment and criminal conviction.

Conditional Order Revoking License

Prism Health Networks New Jersey, LLC, West Seneca, NY
Order #E14-45, April 10, 2104
Respondent’s license as an organized delivery system is revoked subject to retroactive reinstatement provided it files its 2013 annual report and pays a fine of $4,000 within 30 days.


Consent Orders

Benistar Admin Services Inc., Norwalk, CT
Order #E14-42, April 10, 2014
Respondent sold, solicited or negotiated insurance when not licensed as an insurance producer.
Sanction: Fine - $40,000


CIGNA Health and Life Insurance Company, Bloomfield, CT and Connecticut General Life Insurance Company, Bloomfield, CT
Order #E14-52, April 23, 2014
Respondents incorrectly processed claims for emergency services rendered by out-of-network providers and claims for services rendered by out-of-network providers during hospitalization at network hospitals.
Sanction: Fine - $500,000

Lisa Ann Costello, Franklin Lakes, NJ, Anthony Costello, Franklin Lakes, NJ and Costello & Associates Insurance Group, Inc., Lodi, NJ
Order #E14-40, April 10, 2014
Respondents permitted Costello & Associates Insurance Group, Inc. to employ Anthony Costello even though his producer’s license was revoked since January 20, 2005 and utilized the name Anthony M. Costello, Sr. in advertising and display.  Respondent Costello & Associates failed to fully respond to Department inquiries.
Sanction: Fine - $150,000

Main Street Power Mail, Sheridan, IN
Order #E14-37, April 7, 2014
Respondent solicited for insurance while unlicensed and sent misleading and deceptive solicitations.
Sanction: Fine - $10,000

Waldemar Skowronski, Upper Saddle River, NJ and AW Warta Insurance Agency Inc., Clifton, NJ
Order #E14-39, April 7, 2014
Respondents failed to respond to Department inquiries.
Sanction: Fine - $1,000


Dennis P. Sweenor, Queensboro, NY
Order #E14-50, April 23, 2014
Respondent failed to report an administrative action taken against him by the New York Insurance Department and improperly indicated on his license renewal application that he not been involved in an administrative proceeding in another state.
Sanctions: Fine - $1,000

Jose Taveras, Perth Amboy, NJ and Speedy Bail Bonds, LLC, Hopelawn, NJ
Order #E14-49, April 23, 2014
Respondents issued six checks to municipal courts to satisfy bail judgments that were returned for insufficient funds and failed to establish a trust account for insurance premiums.
Sanction: Fine - $10,000

Simone L. Ur, Old Bridge, NJ
Order #E14-43, April 10, 2014
Respondent improperly enrolled herself and her family members in health and prescription plans for which they were not eligible and without paying any premium or cost for the coverage and failed to notify the Department of her indictment and conviction.
Sanction – Fine - $2,500

 
March

Final Orders

Louis A. Capazzi, Jr., Harrington Park, NJ and East Coast Title Services, Inc., Oradell, NJ
Order #E14-35, March 31, 2014
Respondents failed to respond to an Order to Show Cause charging them with failing to abide by the terms of their agency agreement with NJ Title, commingling premium funds and failing to hold premium funds in a fiduciary capacity, failing to abide by a repayment agreement with NJ Title, misappropriation of premium on120 title insurance policies, failing to timely issue and deliver title insurance policies to 65 insureds, and with failing to respond to a Department subpoena.
Sanctions: Revocation, Fine - $1,885,000 and Restitution - $50,547.50

Alvaro S. Kerr
and ALCO Financial Group LLC, Glen Ridge, NJ
Order #E14-32, March 14, 2014
Respondents failed to respond to an Order to Show Cause charging them with failing to pay a fine levied pursuant to a 2012 consent  order and failing to respond to Department inquiries.
Sanctions: Revocation, Fine - $10,000 and Costs - $150

Amended Order to Show Cause

Asma Norris, Chester, NJ
Order #E14-33, March 19, 2014
Respondent is charged with multiple instances of misrepresenting the nature and scope of policies and annuities sold to clients by, inter alia, stating that an annuity was like a certificate of deposit and funds could be accessed without penalty, of failing to conduct a comprehensive policy review on delivery of the policy, of misrepresenting to a client that purchase of an annuity would assist in qualifying for a government program, of forging client signatures, and of misrepresenting and/or falsifying information on application forms and annuity suitability questionnaire.

Consent Orders

America’s Recommended Mailers, Inc., Lewisville, TX
Order #E14-31, March 14, 2014
Respondent mailed deceptive insurance solicitations to New Jersey residents that referred to “New 2013 Benefit Update For New Jersey Citizens only” and a “New state regulated life insurance program” when there was no such program and no 2013 Benefit Update.
Sanction: Fine - $2,000

Juan E. Cabrera, Yorktown Heights, NY
Order #E14-30, March 16, 2014
Respondent Failed to disclose on his license application that his license had been revoked in Connecticut, conducted business in New Jersey under names that were not licensed or registered, deposited a premium payment in an account that was not a trust account and failed to remit a premium payment.
Sanction: Revocation

Karl M. Friedman and Friedman Benefits Group, Inc., Cherry Hill, NJ
Order #E14-27, March 4, 2014
Respondents submitted two applications for Medicare Advantage when not appointed by the carrier to sell that product and, when the applications were rejected by the carrier, altered the applications by whiting out his name and having another producer sign as the writing agent.
Sanction: Fine - $1,500

Horizon Healthcare Services, Inc. and Horizon Healthcare of New Jersey, Inc., Newark, NJ
Order #E14-34, March 31, 2014
Respondents experienced difficulties in access to the utilization management telephone line and delays in processing prior authorization requests.
Sanction: Fine - $750,000

Anne Miller Wolf and Miller Wolf Financial, LLC, Mt. Laurel, NJ
Order #E14-28, March 4, 2014
Respondents submitted two applications to a carrier that falsely represented that they were the writing agent when another agent had completed and singed the applications.
Sanctions: Fine - $1,500

 
February

Final Orders

Jennifer L. Battiloro, Westfield, NJ
Order #E14-23, February 20, 2014
Respondent submitted an agent/broker of record change form with a forged signature of the insured without the insured’s knowledge or consent and failed to respond to a Department inquiry.
Sanctions: Revocation, Fine - $7,500 and Costs - $250


Michael P. Ippolito,
South Hadley, MA and The Benefit Partnership, Inc., Springfield, MA
Order #E14-19, February 11, 2014
Respondents submitted four applications for voluntary life insurance which falsely represented that the applicants were employees and were eligible for voluntary benefits.  Ippolito failed to notify the Commissioner that his producer license was revoked in fourteen states.
Sanctions: Revocation, Fine Payable by both Respondents- $35,000, Fine Payable by Ippolito - $10,000 and Costs - $400

Order to Show Cause

Ralph A. Saviano, Fort Dix, NJ
Order #E14-14, February 6, 2014
Respondent is charged with conviction of wire fraud, failing to notify the Commissioner of his indictment, the filing of criminal charges against him, his conviction and the disposition of FINRA proceedings against him.

Shawn Wilson, Bridgeton and Galloway, NJ, Ernest Williams, Perth Amboy, NJ and 4 Brothers Bail Bondsman, Perth Amboy, NJ
Order #E14-24, February 20, 2014
Respondents are charged with failing to return a bail bond premium when bail was not posted and with issuing a check for the return of the bail bond premium which was returned for insufficient funds.

Orders Suspending License Pending Administrative Proceedings

Ralph A. Saviano, Fort Dix, NJ
Order #E14-15, February 6, 2014
Respondent’s license is suspended pending completion of administrative proceedings to revoke his license based on, among other things, conviction of wire fraud.

Consent Orders

Frederick P. Grippo, Old Bridge, NJ
Order #E14-21, February 11, 2014
Respondent was convicted of theft by deception due to his involvement in a scheme to defraud mortgage lenders by creating mortgage loan applications and financial statements that contained false and misleading information about the purported borrowers and failed to notify the Commissioner of his conviction.
Sanction: Revocation

James T. Leonard, Garwood, NJ
Order #E14-22, February 11, 2014
Respondent created and presented a fraudulent automobile insurance identification card to a law enforcement officer, failed to notify the Department of his arrest for simulation of a motor vehicle insurance identity card and exhibiting a falsely made and simulated motor vehicle insurance identity care to a law enforcement officer, submitted a back dated application for automobile insurance, and failed to make child support payments.
Sanction: Suspension – Three years, Fine: $5,000, Insurance Fraud Surcharge - $75 and Costs - $450.

John Mesko, Avon by the Sea, NJ
Order #E14-25, February 24, 2014
Respondent circulated misleading public adjuster solicitations that contained inaccurate information relating to victims of Superstorm Sandy and other losses.
Sanction: Fine - $2,000

Allen H. Smith, Jr., West Orange, NJ
Order #E14-20, February 11, 2014
Respondent presented an incomplete and misleading comparison between a client’s current insured health benefits plan and a self-insured health benefits plan.
Sanction: Fine - $500

Beverly Stewart, New York, NY
Order #E14-18, February 6, 2014
Respondent created a false document indicating that a fictitious applicant for an insurance policy had $10 million in assets, which document was used in support of his application for life insurance.  Respondent signed the document using a false name and improperly indicated that she was a financial planner and accountant.
Sanctions: Revocation, Fine - $5,000, Insurance Fraud Surcharge - $125, Attorneys’ Fees - $400.

John Stramiello, Fairlawn, NJ
Order #E14-16, February 6, 2014
Respondent presented an incomplete and misleading comparison between a client’s current insured health benefits plan and a self-insured health benefits plan.
Sanction: Fine - $500

Mark N. Trudel, GMI NA Inc., and Norman Insurance Agency LLC, Phoenixville, PA
Order #E14-17, February 6, 2014
Respondents failed to procure the commercial automobile insurance coverage requested by an applicant, failed to witness the signature of the applicant on the application, made misleading statements in their advertisements, respondents GMI and Trudel failed to accurately respond to a Department inquiry and respondent Norman transacted the business of insurance without a producer license.
Sanction: Fine - $10,000

 
January


Final Orders

Daniel McCorry, Brick, NJ, Marlboro, NJ and Toms River, NJ
Order #E14-10, January 28, 2014
Respondent induced at least 30 individuals to surrender annuity contracts and purchase promissory notes without the requisite due diligence or knowledge, misrepresented said notes as “secured” investments when they were not, failed to notify the Department of a judgment against him obtained by the NJ Bureau of Securities and failed to respond to a Department subpoena.
Sanctions: Revocation, Fine - $335,000 and Costs - $212.50

Orders Suspending License Pending Administrative Proceedings

Andrea L. Tuite, Freehold, NJ
Order #E13-135, December 20, 2013
Respondent’s license is suspended pending completion of administrative proceedings to revoke her license based on, among other things, conviction of fourth degree forgery.

Consent Orders

ACSIA Long Term Care, Inc., Medford, OR
Order #E14-08, January 10, 2014
Respondent disseminated a solicitation for long term care insurance that suggested that the information originated for a state government agency.
Sanction: Fine - $2,000

Angelo Agresti, Newton NJ
Order #E14-12, January 28, 2014
Respondent prepared and submitted inaccurate loss run reports to commercial automobile insurance carriers.
Sanction: Fine - $5,000, Fraud surcharge: $125

Robert S. Bland, Darien, IL and Life Quotes, Inc., Darien, IL
Order #E14-09, January 10, 2014
Respondents disseminated advertisements that failed to clearly identify the name of the insurer and offered an improper inducement to purchase insurance.
Sanction: Fine - $10,000

Harmony Anne Centrello, Saddle Brook, NJ and James R. Centrello, Saddle Brook, NJ
Order #E14-11, January 28, 2014
Respondent James Centrello solicited and completed 15 applications for an insurance company with whom he was not appointed and respondent Harmony Anne Centrello signed the applications even though she did not witness the applicant’s signature or participate in the solicitation of the applications.
Sanction: Fine - $3,750

Michael W. Keleher, Warren, NJ
Order #E14-01, January 6, 2014
Respondent fraudulently induced individuals to surrender and replace existing annuities, executed unauthorized securities transactions in clients’ accounts, opened brokerage accounts for clients without the clients’ consent, withdrew funds from an annuity without the client’s consent, and surrendered and replaced an annuity without client consent.
Sanctions: Revocation, Fine - $10,000 and Costs - $525

League Nation LLC d/b/s/ Lead Nation Media, San Marino, CA
Order #E14-05, January 8, 2014
Respondent disseminated deceptive and/or misleading advertisements for insurance.
Sanction: Fine - $500

Juan V. Papadopulos, Paterson, NJ and Exclusive Financial Services, Inc., Paterson, NJ
Order #E14-06, January 8, 2014
Respondents issued an invalid insurance binder representing coverage for an additional vehicle without having collected the required premium deposit or the required proofs of the vehicle’s purchase.
Sanction: Fine - $1,000

National Western Life Insurance Co., Austin, TX
Order #E14-03, January 6, 2014
Respondent’s agent made misrepresentations in the sale of respondent’s annuity products to New Jersey residents.
Sanctions: Fine - $250,000 and Restitution – Up to $2,723,656

 

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