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Orders to Show Cause

Nelson Gonzalez, Mercerville, NJ and Bandit Bail Bonds, Trenton, NJ
Order #E12-51, April 23, 2012
Respondents charged with failing to timely return collateral following the discharge of a bail bond.

Leland Grossman, Medford, NJ and Lee Grossman Insurance Agency, Medford, NJ
Order #E12-43, April 5, 2012
Respondents charged with transferring premium funds to their payroll and operating accounts, commingling trust funds, failing to remit premium and misappropriation of premium.   

Consent Orders

Elsie M. Coleman, Plainfield, NJ
Order #E12-44, April 5, 2012
Respondent submitted applications to the New Jersey Personal Automobile Insurance Plan and the New Jersey Special Automobile Insurance Plan with multiple deficiencies.
Sanction: Fine - $500

Yocasta Garcia, Prospect Park, NJ
Order #E12-46, April 13, 2012
Respondent submitted false and misleading information on her auto insurance renewal questionnaires by failing to disclose the name of every driver and resident of her household.
Sanction: Fine - $3,000

Christine R. Lauman, Northfield, NJ
Order #E12-50, April 23, 2012
Respondent agreed, pursuant to a Pretrial Intervention Order of Postponement, to 36 months of probation, payment of restitution of $37,000 and the forfeiture of her insurance licenses, after being charged with 10 counts of forgery and 3 counts of theft by deception, based on her transfer of $37,000 from her employer, an insurance agency, to an account under Respondent’s control. 
Sanction: Revocation

Andrew Lesnak, Toms River, NJ
Order #E12-52, April 23, 2012
Respondent signed an application he did not witness, misrepresented that he was the soliciting agent, misrepresented the state in which the application and other documents were signed, applied for an annuity without the applicant’s knowledge or consent and forged an applicant’s name to a letter rejecting the annuity, on applications and on other documents.
Sanction: Fine - $5,000

David Munck, Jackson, NJ
Order #E12-48, April 23, 2012
Respondent failed to notify the Department of his indictment and conviction of Assault by Auto.
Sanction: Fine - $500

Victor M. Rivera, Clifton, NJ
Order #E12-45, April 5, 2012
Respondent pled guilty to wire fraud that involved defrauding two clients by transferring approximately $94,000 from their accounts to an account under Respondent’s control.
Sanction: Revocation

Kevin M. Smeltz, Glassboro, NJ
Order #E12-49, April 23, 2012
Respondent failed to timely deliver a policy, to obtain a policyholder signature on a delivery receipt and MIB authorization, falsely represented an applicant’s  family medical history on an application, understated premium for coverage to an applicant, submitted an application that was not completed or authorized by the applicant, and submitted several applications with discrepancies.
Sanction: Revocation

Final and Miscellaneous Orders

Brook Hollow Insurance Agency, Inc. and Kevin J. McCoy, Piscataway, NJ
Order #E12-35, March 20, 2012
Respondents sold, solicited or negotiated insurance policies when not licensed as an insurance producer and collected commissions therefrom, fraudulently listed as officers of Brook Hollow persons with no affiliation to that company and renewed a producer license for an individual without his consent, McCoy submitted false information on his application for a producer license, McCoy altered a Department letter and presented it to a prospective employer, McCoy failed to return his insurance license after it was revoked in 1996 and Brook Hollow conducted business without a properly licensed active officer.  
Sanctions: Revocation of Brook Hollow license, Fine - $60,000, Costs - $3,362.50, Respondents to return all commissions paid to them since February 20, 1996

Cynthia Escobar, Concord, NC
Order #E12-30, March 12, 2012
Respondent misappropriated insurance premium, failed to secure insurance coverage and issued a temporary automobile insurance identification card when coverage was not in effect.
Sanctions: Revocation of license, Fine - $6,000, Costs - $787.50

Reina Morales-Peck, Cherry Hill, NJ
Order #E12-34, March 14, 2012
Respondent’s insurance producer license is immediately suspended pending completion of administrative proceedings and entry of a Final Order based on failure to obtain a wavier pursuant to 11 U.S.C. 1033 and 1034 from the Department following her conviction of a felony involving dishonesty or breach of trust.

National Benefits, Inc., Susan Harrison, John Major and Victoria Kuenzler, Parsippany, NJ
Order #E12-33, March 14, 2012
National Benefits, Inc. operated as a third party administrator following the revocation of its third party administrator license on August 11, 2008 and failed to respond to multiple Department inquiries.
Sanctions: Revocation of producer licenses of National Benefits, Victoria Kuenzler and John Major, Fine - $858,000, Costs - $1,250

Consent Orders

Craig M. Barrett, Pennington, NJ
Order #E12-41, March 29, 2012
Respondent signed his name as witness to an application when he did not witness the applicant’s signature and said signature was a forgery and failed to notify the Department of administrative actions taken by other states.
Sanction: Fine - $2,500

Frank J. Conte, Whiting, NJ
Order #E12-32, March 12, 2012
Respondent entered into a loan with a client funded by a withdrawal from the client’s annuity and failed to repay said loan.
Sanction: Revocation of license

Carolann Fastiggi, West Orange, NJ and Biertuempfel Ostertag Agency, Inc., Union, NJ
Order #E12-28A, March 1, 2012
Respondents accepted premiums for commercial coverage but failed to secure coverage or return premiums to the applicant, authorized the issuance and signing of a certificate of insurance by a person who was not licensed as an insurance producer and which certificate contained false information, failed to maintain accurate books and records and failed to establish and maintain a trust account.
Sanction: Revocation of licenses

Pasquale A. Genovese, Turnersville, NJ
Order #E12-38, March 29, 2012
Respondent submitted applications and reinstatements without the authorization of the proposed insureds or their genuine signatures.
Sanction: Fine - $2,500

Harry A. Little, Levittown, PA
Order #E12-39, March 29, 2012
Respondent failed to provide the notice and to obtain the signed disclosure required on sales involving a life insurance replacement.
Sanction: Fine - $500

Michael C. Sanders, Edgewater, NJ
Order #E12-31, March 12, 2012
Respondent submitted annuity applications that listed the incorrect state in which the applications were signed.
Sanction: Fine - $2,500

Lee Schaffer, Marlton, NJ
Order #E12-37, March 29, 2012
Respondent was convicted of theft by illegal retention based on his retention of $14,413.55 in premium received from an applicant.
Sanction: Revocation of license

Paul J. Vinci, Englewood Cliffs, NJ
Order #E12-40, March 29, 2012
Respondent sold, solicited or negotiated insurance policies and received commissions therefrom when not licensed as an insurance producer in New Jersey, failed to notify the Department of a criminal conviction and failed to disclose the conviction on licensing applications.
Sanctions: Suspension of license for 2 ½ years, Fine - $15,000

Orders to Show Cause

Andrew Lesnak, Toms River, NJ
Order to Show Cause #E12-24, February 14, 2012
Respondent is charged with signing an application he did not witness, misrepresenting that he was the soliciting agent, misrepresenting the state in which the application and other documents were signed, applying for an annuity without the applicant’s knowledge or consent and forging an applicant’s name to a letter rejecting the annuity, on applications and on other documents.

Reina Morales-Peck, Cherry Hill, NJ
Orders to Show Cause #E12-25 and 12-26, February 24, 2012
Respondent is charged with conviction of a felony involving dishonesty and breach of trust, failing to obtain a waiver under 18 U.S.C. §1033 (e), failing to report the filing of formal criminal charges and conviction to the Commissioner, PAIP deficiencies, submission of dishonored checks, misappropriation of premium, charging of improper and excessive fees and failure to comply with a department subpoena.

Consent Orders

Glenn Agens, Montclair, NJ
Order #E12-22, February 8, 2012
Respondent improperly indicated on his license renewal application that he did not have a child support obligation in arrearage.
Sanction: Fine - $1,000

Blaze Bail Bonds, Rafael Agliata and EricValentin, Perth Amboy, NJ
Order #E12-19, February 8, 2012
Respondents failed to timely return collateral on a bail bond following discharge of the bond and failed to timely respond to a department inquiry.
Sanction: Fine - $2,000

Exodus Financial Services, Inc., Jersey City, NJ and Phyllis M. Daniel, Oak Ridge, NJ
Order #E12-20, February 8, 2012
Respondents failed to maintain a trust account.
Sanction: Fine - $1,000

James River Insurance Company, Richmond, VA
Order #E12-23, February 8, 2012
Respondent accepted a surplus lines placement without the involvement of a New Jersey surplus lines producer and without a surplus lines transaction number. 
Sanction: Fine - $1,000

Elizabeth Labruna, Little Ferry, NJ
Order #E12-21, February 8, 2012
Respondent pleaded guilty to mail fraud resulting from her preparation of false HUD-1 statements and other closing documents used in a fraudulent down payment assistance scheme.
Sanction: Revocation 

Orders to Show Cause

AmeriChoice of New Jersey, Inc., Newark, NJ
Order to Show Cause #E12-10, January 17, 2012
Respondent is charged with untimely processing requests for authorization of medical day care and personal care assistant services and with improperly denying as untimely certain claims submitted by health care professionals and facilities.

Darrin M. Bradley, Brick, NJ
Order to Show Cause #E12-05, January 13, 2012
Respondent is charged with completing a client profile and annuity application without the client’s knowledge that contained false or inaccurate information, with misrepresenting the terms of the annuity to the applicant, and with failing to timely deliver the prospectus and contract to the applicant.

Devon R. Clarke, Butner, NC
Order to Show Cause #E12-15, January 31, 2012
Respondent is charged with submitting an application completed in New Jersey for a New Jersey resident when he was not licensed in New Jersey, with falsely indicating he witnessed the signature on the application, and with altering the application to indicate that it was signed in North Carolina when the applicant never was in North Carolina.

David E. Katz, Paramus, New Jersey
Order to Show Cause #E12-16, January 31, 2012
Respondent is charged with signing applications that were solicited and completed by a producer whose New Jersey producer license was suspended and then revoked, which applications falsely indicated that they were completed in Pennsylvania when they were completed and signed in New Jersey.  Respondent is also charged with falsely stating that he witnessed the signatures on the applications and on delivery receipts, with paying commissions to an unlicensed producer, and with failing to timely deliver annuity contracts.

Ezekiel Peduto, Fort Lee, NJ and American Bail Bond Associates, Fort Lee, NJ
Order to Show Cause #E12-17, January 31, 2012
Respondents are charged with failing to return excess premium, charging improper and excessive fees, failing to respond to a Department subpoena and failing to advise the Department of new residence and business addresses.

Paul D. Willson, Charlotte, NC
Order to Show Cause #E12-06, January 13, 2012
Respondent is charged with improperly indicating on his renewal application that he had not been involved in any administrative proceedings regarding a professional or occupational license.

Consent Orders

Gracioso P. Balacuit, Jersey City, NJ
Order #E12-03, January 6, 2012
Respondent altered an annuity application to indicate that it was signed in New Jersey when it was signed in Texas.
Sanction: Fine - $2,000

Bernard F. Kurit, West Palm Beach, FL
Order #E12-04, January 6, 2012
Respondent failed to report to the Department actions taken against him by three state insurance departments and improperly indicated on his renewal application that he had not been involved in any administrative proceedings regarding a professional or occupational license.
Sanction: Fine - $250

Horizon Healthcare Services, Inc. and Horizon Healthcare of New Jersey, Inc., Newark, NJ
Order #E12-12, January 25, 2012
Respondents incorrectly processed certain claims for services rendered by out of network providers for persons covered by small employer health plans and individual health coverage plans.
Sanction: Fine - $233,100, Restitution – estimated $4.6 million

William Lawrence, Highland Park, NJ and Xscape Bail Bonds, New Brunswick, NJ
Order #E12-08, January 13, 2012
Respondents transacted business using a business name that was not registered with the Department, disseminated misleading and deceptive advertising, and failed to obtain a bail bond for which premium had been paid, improperly withheld and failed to timely return the premium for said bail bond. 
Sanctions: Fine - $3,000

Sebastian B. Monnier, Jersey City, NJ
Order #E12-02, January 6, 2012
Respondent solicited, negotiated or effectuated insurance prior to being licensed as an insurance producer.
Sanction: Fine - $2,500

Raymond Morrison, Martinsville, NJ
Order #E12-14, January 25, 2012
Respondent failed to timely remit premium, backdated a premium check, deposited premium into his personal account, commingled premium and other funds, failed to maintain a trust account and a record of monies received, deposited, disbursed or withdrawn, and failed to timely report a change of business address.
Sanction: License Suspension – three months, Fine - $5,000, Restitution - $5,450, Costs - $975

Oxford Coverage Inc, Trenton, NJ
Order #E12-07, January 12, 2012
Respondent failed to report to the Department action taken against it by another state insurance departments and improperly indicated on its renewal application that it had not been involved in any administrative proceedings regarding a professional or occupational license.
Sanction: Fine - $500

Joseph A. Petrillo, Greenbrook, NJ
Order #E12-13, January 25, 2012
Respondent offered an inducement to purchase insurance.
Sanction: Fine - $1,000

Praetorian Insurance Company, New York, NY
Order #E12-01, January 6, 2012
Respondent block non-renewed certain business without submitting a plan of block non-renewal to the Department.
Sanction: Fine - $10,000, Restitution – offer to retroactively renew policyholders who were non-renewed and discontinue sending out non-renewal notices based on block non-nonrenewal