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2006 Insurance Enforcement Activity

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January


Final Orders

American Transportation Corporation, Vail, AZ
Final Order # E06-11, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent  with operating as an unauthorized insurer and failing to comply with a Department subpoena.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $27,500; Costs - $460.

Cheri Jolley, Santaquin, UT
Final Order # E06-10, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with conducting the business of insurance without a license.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $75,000.

Thomas W. Hurd, Bensalem, PA
Hurd Insurance Agency, Bensalem, PA
TIC Brokerage, Bayville, NJ
Final Order # E06-06, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondents with: sale of policies from an ineligible insurer (T. Hurd and Hurd Agency); creating letters with false information and forgery (T. Hurd and Hurd Agency); conspiracy (T. Hurd and Hurd Agency); issuing false insurance ID cards (T. Hurd, Hurd Agency and TIC); sale of insurance through unregistered purchasing groups (T. Hurd and Hurd Agency); engaging in the business of insurance through an unlicensed producer (T. Hurd and Hurd Agency); selling insurance from an unauthorized insurer (T. Hurd, Hurd Agency and TIC); failing to remit or return premium (T. Hurd and Hurd Agency); failing to secure coverage (T. Hurd and Hurd Agency); making misrepresentations to the Department (T. Hurd and Hurd Agency); financing insurance premium without a license (T. Hurd and Hurd Agency);  allowing unlicensed persons to conduct the business of insurance (T. Hurd and TIC); presenting checks that were subsequently dishonored (T. Hurd and TIC); and failing to notify the Department of PA license revocation (T. Hurd and Hurd Agency).  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of licenses (T. Hurd, Hurd Agency, and TIC); Fine - $309,200 (T. Hurd and Hurd Agency); Fine - $110,000 (T. Hurd and TIC); Costs - $5,978 (T. Hurd and Hurd Agency); Costs - $460 (T. Hurd and TIC); Restitution - $912,845.94 (T. Hurd and Hurd Agency); Restitution - $ 65,636 (T. Hurd and TIC).

Henry J. Krauze, Long Branch, NJ
Final Order # E06-07, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with: sale of policies from an ineligible insurer; advising others to create letters with false information; conspiracy; failing to remit premium; charging improper policy fees; charging improper inspection fees; placing insurance business on behalf of an unlicensed entity; failing to notify the Department of a change in business address; and attempting to provide assistance to a person in handling allegations of fraud against her in exchange for money or sexual contact.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Fine - $736,150; Costs - $5,978; Restitution - $512,583.91.

Christopher J. Melilli, Bensalem, PA
Final Order # E06-09, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with: sale of policies from an unauthorized insurer; and conducting the business of insurance without a license.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $5,000; Costs - $460.

David Pohida, Elizabeth, NJ
Gerald Pohida, Elizabeth, NJ
United Risk Management Services, Inc., Elizabeth, NJ
Final Order # E06-08, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondents with: sale of policies from an ineligible insurer (D. Pohida, G. Pohida and URM); advising others to create letters with false information (D. Pohida, G. Pohida and URM); conspiracy (D. Pohida, G. Pohida and URM); failing to remit or return premium (D. Pohida, G. Pohida and URM); charging improper fees (D. Pohida, G. Pohida and URM); transacting the business of insurance without a license (D. Pohida, G. Pohida and URM); and allowing an unlicensed person to conduct the business of insurance (D. Pohida, G. Pohida and URM). Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license (URM); Fine - $793,000 (D. Pohida, G. Pohida and URM); Costs - $5,978 (D. Pohida, G. Pohida and URM); Restitution - $ 883,816.36 (D. Pohida, G. Pohida and URM).

Orders to Show Cause

Harry DelBosco, Fair Lawn, NJ
Garden State Brokers, Inc., Fair Lawn, NJ
Order to Show Cause # E06-14, January 18, 2006; Producers are charged with being unworthy of continued licensure by reason of DelBosco’s conviction of the crime of Theft by Failure to Make Required Disposition of Property; respondents failed to remit or return insurance premium payments in the aggregate amount of $887,000; accepting funds from clients but failing to secure insurance coverage; failing to timely notify the Department of the filing of criminal charges against DelBosco; and failing to timely notify the Department of DelBosco’s conviction.

Israel Grossman, New York, NY
Order to Show Cause # E06-03, January 6, 2006; Producer is charged with failing to disclose on his license application his conviction of 19 counts of utilizing a manipulative or deceptive device in the trading of a security and 19 counts of mail fraud; being unworthy of continued licensure by reason of his conviction; failing to disclose on his license application that he had been disbarred from the practice of law in NY; falsely denying on an agent appointment agreement that he had been convicted of a felony; submitting an application for an appointment in which he falsely denied that the had been convicted of a felony; failing to notify the Department of a change of business address and change of employer; failing to notify the Department of the institution of disciplinary proceedings by the NY Insurance Department; failing to notify the Department of the institution of criminal proceedings in the NY federal district court; and failing to respond to a Department communication.

Consent Orders

Frank P. Costa, Clifton, NJ
Consent Order # E06-02, January 6, 2006; Producer issued  certificates of insurance without authority to do so; charged fees to insureds without a written fee agreement; utilized an improper form of fee agreement; used a trade name without prior approval by the Department; and issued non-compliant auto insurance ID cards. Sanctions: Fine - $15,000; Costs - $2,500.

Edward Furfey, Hamilton, NJ
Clear Advantage Title, Inc., Hamilton, NJ
Consent Order # E06-19, January 23, 2006; Clear Advantage failed to issue an endorsement to a lender’s title policy in a timely manner (Furfey is the designated responsible producer for Clear Advantage) Sanctions: Fine - $2,000; Costs – $500.

General Security Indemnity Company of Arizona., New York, NY
Consent Order # E06-15, January 18, 2006; Insurer accepted a surplus lines placement without a transaction number. Sanction:  Fine - $500.

Abraham A. Goldenberg, Lakewood, NJ
Consent Order # E06-18, January 23, 2006; Producer failed to disclose a disorderly persons conviction on his license application. Sanction: Fine - $1,000.

Barry Mittman, Maple Glen, PA
Consent Order # E06-05, January 6, 2006; Producer used an unregistered trade name and conducted sales activity without identifying himself as an insurance producer. Sanction: Fine - $2,000.

Frederick J. Palmieri, Runnemede, NJ
Consent Order # E06-17, January 23, 2006; Producer knowingly submitted false insurance claim requesting payment for the theft of his Jaguar, when in fact he knew that the vehicle had not been stolen; he knowing misrepresented that a set of golf clubs and a suit of clothing were also stolen; and he knowingly submitted a false vehicle theft report to the Philadelphia Police Department.  Sanctions: Revocation of license; Fine - $5,000.

Jasper E. Parrella, Jr., Aberdeen, NJ
Dickstein Associates Agency, LLC, Aberdeen, NJ
Consent Order # E06-13, January 18, 2006; Dickstein and an individual producer demonstrated a lack of due diligence in compiling information and completing an insurance application (Parrella is the designated responsible producer for Dickstein).  Sanctions: Fine - $1,000; Costs - $500.

Frank A Reilly, Freehold, NJ
First Jersey Insurance Agency, Inc., Freehold, NJ
Consent Order # E06-20, January 23, 2006; Producers distributed deceptive and misleading insurance solicitations.  Sanctions: Fines - $3,750 (Reilly) and $3,750 (First Jersey).

Joseph Shammah, Elizabeth, NJ
Northeast Claims Group, LLC, Elizabeth, NJ
Consent Order # E06-16, January 18, 2006; Public Adjusters solicited business using improper advertisements that contained claims that customers would “receive more money for a claim” handled by respondents and also offering free gifts to people willing to hire respondents to adjust claims.  Sanction: Fine - $1,000.

Lydia Wan, New York, NY
Consent Order # E06-01, January 6, 2006; Producer knowingly submitted an auto insurance application in an attempt to obtain insurance using an incorrect home address.  Sanctions:
Revocation of license; Fine - $2,500; Costs - $500.

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February


Final and Miscellaneous Orders

Zoila Del Sol, Elizabeth, NJ
Carlos Goncalves, Elizabeth, NJ
Carlos Goncalves & Associates, Inc., Elizabeth, NJ
Order # E06-31, February 15, 2006; Prior findings - Final Order # E04-38, May 24, 2004. Order to Show Cause No. E03-06, issued January 13, 2003, charged that Del Sol and the Goncalves Agency (vicariously) committed fraudulent acts based on the knowing submission by Del Sol of a backdated photo inspection report to an insurer in an attempt to obtain property damage benefits; Del Sol and the Goncalves Agency aided, abetted or assisted another person in violating the Insurance Fraud Prevention Act; Carlos Goncalves and Del Sol, as owners, directors or officers of the Goncalves Agency were responsible for the charged violations.  On August 18, 1999, a Superior Court jury found Del Sol guilty of violating the Insurance Fraud Prevention Act.  The Superior Court ordered Del Sol to pay a civil penalty of $1,000 and $3,225.16 in attorney’s fees.  The Superior Court also concluded that the Goncalves Agency was vicariously liable for the violations and penalties.  On appeal, the lower court ruling was affirmed.  Based on the Superior Court findings, an administrative decision was entered revoking Del Zol’s producer license.  That determination was upheld on appeal and the case was remanded for review of fines.  In Order #E06-31 it is determined that Goncalves is vicariously liable and the Goncalves Agency is directly liable for the actions of Del Sol; however, no bad faith is attributable to them.  Sanctions:  Revocation of License – Del Sol; Fines - $5,000 (Del Sol); $5,000 (total for Goncalves and Goncalves Agency); Costs - $312.50.

Joseph A. Landolfi, Springfield, NJ
Final Order # E06-29, February 9, 2006; Order to Show Cause E05-144 issued November 18, 2005 charged respondent with failing to notify the Department, insurers and clients of his intention to close his office and abandon his insurance business; failing to notify the Department of a change in his business address; multiple instances of failure to remit clients’ premiums to the insurer; presenting a premium trust account check to an insurer, which check was dishonored due to insufficient funds; receiving a premium refund check but failing to remit the funds to the insureds; and failing to comply with a Department subpoena..  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Restitution - $55,800.04; Fine - $177,500; Costs - $460.

DeWayne A. Ogletree a/k/a Alan Ogletree, Ocean, NJ
Final Order # E06-39, February 24, 2006; Order to Show Cause E05-110 issued August 18, 2005 charged respondent with providing a false Social Security Number on his license application; failing to disclose convictions for official misconduct and theft by deception on his license application; being convicted of crimes of moral turpitude that adversely reflect on his fitness for licensure; 69 instances of failing to remit premiums in a timely manner to an insurer in the aggregate amount of $5,611.49; failing to comply with a Department subpoena; and failing to advise the Department of his current home and business addresses.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Restitution - $4,730.99; Fine - $87,000; Costs - $562.50.

Patricia Bickford, Mahwah, NJ
Order # E06-37, Febuary 27, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with executing an application for auto insurance  in which she failed to disclose a prior conviction for a motor vehicle violation.  Respondent’s conduct constituted the commission of a fraudulent act and her misrepresentations were material and willful.  Furthermore, her conduct demonstrated a disregard for the standards of professional conduct expected of producers.  Sanctions: To be considered at a future hearing.

Orders to Show Cause

Christopher J. Santarsiero, Freehold, NJ
You’re Out Bail Bonds, Freehold, NJ
Order to Show Cause # E06-26, February 3, 2006; Respondents are charged with conducting business using the unregistered fictitious trade name “Dave’s Bail Bonds;” permitting unlicensed persons to engage in the business of insurance; failing to procure a bail bond while also failing to return the $33,000 premium and collateral until the Department intervened; failing to provide information in response to a Department subpoena; failing to timely notify the Department of federal criminal charges and a plea agreement charging Santarsiero with knowingly and willfully conspiring and agreeing with others to make materially false, fictitious and fraudulent statements and representations, to use false writing and documents knowing them to contain materially false, fictitious and fraudulent statements and entries, and to conceal and cover up by trick, scheme and device material facts, all in matters within the jurisdiction of the executive branch of the United States, namely HUD; and being unworthy for licensure by virtue of Santarsiero’s conviction on January 18, 2006 for his role in a class D federal felony offense.

Related Action:  Order to Show Cause Seeking Immediate License Suspension #E06-25, February 3, 2006

Consent Orders

Roger L. Burgdorf, Cedar Knolls, NJ
Burgdorf & Co., Inc., Cedar Knolls, NJ
Consent Order # E06-30, February 14, 2006; Producers offered to solicit offers to viaticate two life insurance policies without first obtaining a viatical settlement broker license from the Department; used unlicensed viatical brokers to assist in an attempted viatical transaction; unreasonably advised a client to accept viatical settlement offers that were more than $2 million below other offers presented, and advised a client that they would provide a service for a commission rate of $25,000 to $30,000, even though they would have split a $400,000 commission with the unlicensed viatical broker pursuant to a viatical settlement contract (that was ultimately rescinded by the client). Sanctions:  Probation of license for one year (Burgdorf); Fine - $10,000 ($5,000 each – Burgdorf and Burgdorf & Co.).

Lance C. Cansino, Lubbock, TX
Consent Order # E06-24, February 2, 2006; Producer failed to advise the Department of current business address. Sanction: Fine - $250.

James C. Falkenstine, Wyoming, OH
Consent Order # E06-32, February 15, 2006; Producer failed to advise the Department of current home address. Sanction: Fine - $250.

Michael C. Funk, Hazlet, NJ
Consent Order # E06-33, February 21, 2006; Producer failed to advise the Department of current home and addresses. Sanction: Fine - $500.

David Gorczyca, Cranford, NJ
Consent Order # E06-40, February 24, 2006; In order to seek future business, Gorczyca solicited and obtained personal information concerning a person scheduled for insurance-related medical testing when the person was not his client or a prospective client; when the person’s insurance agent questioned Gorczyca about how he obtained the personal information, Gorczyca misrepresented that he obtained the information from the examiner who performed the medical test; and as a result of Gorczyca’s misrepresentation, the medical testing facility terminated the innocent examiner’s employment.  Sanction: Fine - $10,000.

Kevin Minehan, Glenside, PA
Christi Insurance Group, Inc., Glenside, PA
Consent Order # E06-35, February 22, 2006; Respondents issued numerous certificates of liability coverage indicating the existence of a $10 million umbrella coverage when, in fact, the policy provided on $5 million in coverage; respondents bound a policy without having the required level of binding authority from the insurer and sold the policy at a time when Minehan did not have a NJ producer’s license.  Sanction: Fine - $4,000 ($2,000 each - Minehan and Christi).

Elliot J. Paul, Tulsa, OK
Consent Order # E06-38, February 24, 2006; Producer conducted financial planning seminars for senior citizens in which he discussed insurance products yet failed to identify himself as an insurance producer prior to commencing his solicitation; he conducted financial planning seminars using the unregistered names “Retire Wiser” and “Warton Archon Financial Advisor;” offered an improper inducement in the form of a $149 certificate to be used toward a reduced financial planning fee; and maintained a unregistered branch office.  Sanction: Fine - $8,500.

Carlos Ricra, Kearny, NJ
Consent Order # E06-28, February 10, 2006; Producer conducted insurance business during a period in which his license was inactive.  Sanctions: Fine - $1,500.

Marc D. Goldberg, Turnersville, NJ
Consent Order # E06-27, February 10, 2006; Producer mailed misleading insurance solicitations and used an unapproved trade name.  Sanctions: Fine - $2,500.

Alan Schulman, Springfield, NJ
TMR Risk Managers, Inc., Springfield, NJ
Consent Order # E06-41, February 24, 2006; Respondents improperly permitted a property manager to allocate and apportion insurance premium for rental locations in a manner such that certain property owners were  unfairly assigned a disproportionately large portion of the premium.  Restitution in the amount of $20,000 was agreed upon pursuant to the settlement of a civil lawsuit.  Sanction: Fine - $10,000 (allocated $7,500 to Schulman and $2,500 to TMR).

Syndicate #33 at Lloyd’s, London, England
Consent Order # E06-42, February 24, 2006; Insurer accepted a surplus lines placement without a transaction number. Sanction:  Fine - $500.

Syndicate #2488 at Lloyd’s, London, England
Consent Order # E06-42, February 24, 2006; Insurer accepted surplus lines placements without a transaction number. Sanction:  Fine - $1,500.

Melissa L. Trought, Cherry Hill, NJ
American Collectors Insurance, Inc., Cherry Hill, NJ
Consent Order # E06-34, February 22, 2006; Producers permitted unlicensed employees to transact insurance business.  Sanction: Fine - $7,000 (allocated $3,500 to Trought and $3,500 to American).


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March


Final and Miscellaneous Orders

Anthony Michael Feliz, Wall, NJ
AMF Insurance Services, Inc., Tinton Falls, NJ
Order #E06-50, March 13, 2006; Order to Show Cause #E02-207, issued August 7, 2002, charged that respondents accepted insurance premium yet failed to obtain requested coverage in a timely manner, remit the premium to an insurer or return the funds to the insureds; issued documents to clients purporting to provide insurance coverage, when no such coverage was in force; failed to cooperate with the Department’s investigation; and failed to timely remit return premium due the insured.  A hearing was conducted at the Office of Administrative Law and summary judgment was entered in favor of the Department.  On remand, the following sanctions have been imposed:  Revocation of licenses; Fines - $114,500; Restitution - $38,425.28, plus pre-judgment interest; Costs - $4,012.50.

Christopher J. Santarsiero, Freehold, NJ
You’re Out Bail Bonds, Freehold, NJ
Order Suspending License Pending Completion of Administrative Proceedings #E06-45, March 9, 2006.  (Order to Show Cause # E06-26 was previously filed on February 3, 2006.)
 
William C. Yarnall, Jr., Ridgewood, NJ
C.L. Hargert & Company, Inc., Ridgewood, NJ
Final Order #E06-47, March 8, 2006; Order to Show Cause # E05-151, December 8, 2005, charged respondents with failing to remit to insurers premiums received from clients and instead converting the funds to their own use; failing to timely respond to a Department inquiry; issuing nonconforming temporary auto insurance ID cards that also referred to nonexistent policy numbers and which were issued at a time when the respondents lacked authority to issue them; and failing to adhere to an agreement made with a client to pay restitution.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions: Revocation of licenses; Restitution - $2,673; Fine - $72,500; Costs - $950.

Orders to Show Cause

Cheryl Ann Monahan, Massapequa, NY
Order to Show Cause #E06-53, March 14, 2006; Producer is charged with being unfit for licensure by reason of her federal conviction of the crimes of conspiracy to commit fraud by use of the mails and perjury before a grand jury; failing to disclose her federal conviction on her producer license application; failing to apply for an 1033 waiver prior to her employment with an insurer; failing to cooperate in the Department’s investigation; and failing to timely report the revocation of her New York producer license.

            Related Action:   Order to Show Cause Seeking Immediate License Suspension
            #E06-52, March 14, 2006

Consent Orders

Elsie M. Coleman, Plainfield, NJ
Consent Order #E06-46, March 8, 2006.  Producer submitted numerous applications containing deficiencies to NJPAIP.  Sanction: Fine - $500.

Marshall David Ellis, Simi Valley, CA
Nancy Ellis, Simi Valley, CA
Lead Masters Insurance Marketing & Financial Network, Inc., Simi Valley, CA
Consent Order #E06-49, March 8, 2006.  Producers mailed solicitation letters which were deceptive or misleading; used a fictitious unapproved trade name; Marshall David Ellis failed to timely notify the Department that he was no longer the designated responsible licensed producer for a business entity producer; Marshall David Ellis failed to comply with Consent Order #E01-74 in which he agreed to cease and desist issuing false and misleading solicitation letters; and Marshall David Ellis failed to timely notify the Department of his change of business address.  Sanctions:  Fine - $15,250 (allocated $7,000 to Marshall David Ellis, $1,000 to Nancy Ellis and $7,250 to Lead Masters).

Health Net of New Jersey, Inc., Shelton, CT
Consolidated Consent Order #E06-44, March 3, 2006; HMO’s predecessor, Physician’s Health Services of New Jersey, Inc., engaged in improper business practices set forth in a market conduct examination report adopted on January 2, 2003; and Health Net improperly refused to cover certain out-of-network surgical center charges and issued inaccurate, deceptive and misleading letters to certain SEH members that created the false impression that the services were not covered benefits.  Sanctions:  Fine - $325,000; Restitution:  Approximately $100,000 – to be determined by audit.

Malcolm K. Kimbro, Mabelvale, AR
Consent Order # E06-60, March 30, 2006; Producer failed to advise the Department of current home address. Sanction: Fine - $250.

John A. Rocco, Florham Park, NJ
SAN-PRO, Inc., Florham Park, NJ
Consent Order #E06-48, March 8, 2006; Producer failed to properly designate an account as a trust account.  Sanction:  Fine - $1,000.

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April


Final and Miscellaneous Orders

Perry A. Maciolek, Fort Dix, NJ
Pre-Need Network of New England, Inc., Fort Dix, NJ
Final Order #E06-58, April 3, 2006; Order to Show Cause # E05-41 issued April 21, 2005 charged producers with receiving but failing to disburse or return 41 commission checks, payable to others, in the aggregate amount of $104,284.92; endorsing the name of  other persons on 5 of the checks; failing to respond to a Department inquiry; failing to appear in response to a Department subpoena; and failing to notify the Department of Maciolek’s 2003 criminal indictment charging a theft of $104,284.92 and of his subsequent plea of guilty to charges in that indictment.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of licenses; Restitution - $104,284.92; Fine - $246,000; Costs - $712.50

Cheryl Ann Monahan, Massapequa, NY
Order Suspending License Pending Completion of Administrative Proceedings #E06-61, April 4, 2006.  (Order to Show Cause #E06-52 was previously filed on March 14, 2006.)

Orders to Show Cause

Chasity Burns, Somerset, NJ
Order to Show Cause #E06-55, April 3, 2006; Producer is charged with falsely reporting a personal auto accident to the police and to her insurance company, claiming that her auto was damaged in front of her residence when in fact the damage was caused in an undisclosed hit-and-run accident; accepting payment from her insurance company for the fraudulently reported accident; failing to comply with her insurance company’s request for the return of the payment; and failing to respond to the Department’s request for information regarding the fraudulently reported accident.

Thomas Dobrek, Mt. Holly, NJ
Mr. Lucky Bail Bonds, Greta, LA
Amended Order to Show Cause E04-56, April 21, 2006; Order to Show Cause # E04-56, originally filed June 23, 2004, charged respondents with issuing a $35,000 check for payment of a court-ordered bail bond forfeiture judgment that was dishonored for lack of sufficient funds; accepting premium payments but failing to obtain or post bail bonds; collecting bail bond premiums that were excessive, inadequate or unfairly discriminatory; and misappropriating or converting for their own use a $10,000 collateral payment.  The pleading was amended to add the charge that in 2005 Dobrek made misrepresentations in a producer application submitted to an insurer.

Irvin Erwin, Newtonville, NJ
Order to Show Cause #E06-72, April 24, 2006;  Producer is charged with submitting premium payments to PAIP using checks that were dishonored by his bank for insufficient funds; numerous instances of failing to remit premiums; failing to maintain a premium trust account; failing to maintain and intentionally destroying records; issuing temporary insurance identification cards when no insurance was in effect because the applications and premium payments were never submitted by him to the insurer and to CAIP; submitting applications that failed to comply with PAIP standards; and failing to timely report an administrative disciplinary action taken by the NASD.

Donald R. Readlinger, Cranford, NJ
Hale Insurance Brokerage, LLC, Cranford, NJ
Order to Show Cause #E06-71, April 24, 2006;  Producers are charged with forging the signature of a municipal official on change of broker request letters with respect to the municipality’s employees’ health and dental benefits insurance; submitting the change of broker requests to the municipality’s insurer without the knowledge of or authority from the municipality; initially falsely denying committing the forgeries and submissions when Readlinger responded to an inquiry from a municipal official; misrepresenting to municipal officials that his firm had never committed similar types of actions, when in fact, similar types of conduct were admitted to in a prior consent order, Consent Order E04-88, entered on August 16, 2004, wherein Readlinger consented to the placement of his license on probationary status for 12 months and the payment of a $5,000 fine; and failing to timely notify the Department of a change of business address.

Leonard R. Rhett, Trenton, NJ
Order to Show Cause #E06-68, April 21, 2006;  Producer is charged with failing to remit numerous premium payments to insurers and converting premium payments to his own use (when Rhett’s conduct was discovered, his employer/agency effectuated coverage for the consumers and paid premium to the affected insurers, and Rhett made full restitution to his employer/agency in the full amount of the misappropriated funds); paying his license fee with a check that was returned for insufficient funds; stating to the Department that he would remit the license fee payment but failing to do so; failing to respond to a Department communication; and failing to timely advise the Department of changes of business address.

Thomas M. True, Westfield, NJ
True Group Benefits & Life, LLC, Westfield, NJ
Order to Show Cause #E06-56, April 3, 2006; Producers are charged with charging fees to a client without a written fee agreement; misrepresenting to the client that fees were necessary because the insurer did not pay commissions, when in fact the respondents were paid commissions by the insurer; failing to provide requested information to the Department; receiving funds in connection with the client’s cancellation of policies but failing to timely pay or credit the funds to the client; and using a trade name that had not been filed with the Department.

Consent Orders

David G. Frey, Howell, NJ
Consent Order #E06-67, April 21, 2006; Producer issued change of broker letters to an insurer that were not properly signed by the insureds.  Sanction:  Fine - $2,500.

Granite Financial, LLC, Cutchogue, NY
Consent Order #E06-59, April 4, 2006; Producer failed to advise the Department of its current business address.  Sanction:  Fine - $250.

Martin W. Melendez, Newark, NJ
d/b/a Around the Clock Bail Bonds, Newark, NJ
Consent Order #E06-57, April 3, 2006; Respondent failed to return collateral for a bail bond after the bail had been discharged (Melendez represented that he forwarded the collateral to the surety’s general agent) – collateral that was ultimately returned to the indemnitor by the surety; and using an unregistered trade name.  Sanctions:  Suspension of license for 60 days; Fine - $1,500.

Charles Newton, Jr., Midlothian, VA
Consent Order E06-70, April 5, 2006; Producer failed to advise the Department of his current home address.  Sanction: Fine - $250.

Hao D. Nguyen, Houston, TX
Consent Order E06-73, April 24, 2006; Producer submitted life insurance applications on behalf of residents on NY purporting to have been signed in NJ but which in fact were signed in NY.  Sanction: Fine - $10,000.

James L. Pray, East Orange, NJ
Consent Order #E06-66, April 21, 2006; Producer issued electronic binding numbers for which PAIP did not receive applications.  Sanction:  Fine - $1,000.

Lorraine Anne Wilson, San Francisco, CA
BISYS Commercial Insurance Services, Inc., San Francisco, CA
Consent Order #E06-75, April 24, 2006; Producers accepted two surplus lines placements from a producer unlicensed in NJ; failed to assign and provide required transaction numbers; and  failed to properly file the required tax returns on two surplus lines transactions.  Fine - $1,500 (allocated $750 to Wilson and $750 to BISYS).


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May


Final Order

James Adams, Dallas, TX
Program Resource Management (PRM), Dallas, TX
Final Decision and Order #E06-85, May 24, 2006; Adams and PRM conducted insurance business without being licensed as producers in NJ; Adams owned three risk purchasing groups that were not registered to do business in NJ; Adams was solicited to place coverage for NJ insureds with an insurer that was not admitted in NJ, something Adams did not know or seek to determine; unlicensed PRM received commissions on policies placed with the nonadmitted insurer; Adams and PRM aided and abetted the Hurd Agency in violating NJ insurance l
aws.  Sanctions: Fine - $45,000; Restitution - $79,500 plus pre-judgment interest; Costs - $460.

Order to Show Cause

Robert J. Sutton, Plainfield, NJ
Order to Show Cause #E06-79, May 10, 2006; Producer is charged with, on numerous occasions, falsely certifying that he witnessed a named insured’s signature on an insurance application (and in three instances the named insured was not aware of the existence of the policies); he falsely stated that an applicant suffered from “no illnesses” and was in good health, when in truth the applicant was terminally ill in a hospital; and  Sutton signed Consent Order No. 2001-07562-39 with the Office of the Insurance Prosecutor in which he admitted falsely certifying the insured’s signature on three applications, such admitted misconduct demonstrating Sutton’s unfitness for licensure.

Consent Orders

Steven J. Bellon, Stony Point, NY
Consent Order #E06-81, May 10, 2006; Producer paid his license renewal fee with a check that did not clear for insufficient funds.  Sanction: Fine - $500.

Mitchell G. Berlin, Rockville,MD
Consent Order #E06-76, May 2, 2006;  Producer failed to timely advise the Department of his current home address.  Sanction: Fine - $250.


Peter L. Clark,
Cherry Hill, NJ
Clark-Fish Associates, LLC, Cherry Hill, NJ
Consent Order #E05-80, May 10, 2006;  Producers admit the violations set forth in Order to Show Cause # E05-117, issued August 29, 2005, to
wit: knowingly submitting annuity applications to insurers on Clark’s behalf and on behalf of members of Clark’s family together with worthless premium checks in the aggregate amount of over $3 million; instructing the insurers to electronically deposit the commission payments for these annuities into their checking accounts in the aggregate amount of over $300,000; failing to return these unearned commission payments; failing to cooperate with the Department’s investigation (Peter Clark); being unfit for continued licensure as a result of his indictment/charge and subsequent conviction on second degree crimes of theft by deception and theft by failure to make required disposition of property; and failing to timely notify the Department of Clark’s indictment/charge and conviction.  Sanctions:  Revocation of licenses; Fine - $20,000.

Matters Resolved Without Determination of Violation

Barbara A. Endres;
Consent Order #E06-78, May 9, 2006; Issue: licensee address information; Administrative sanction - $500.

Dale J. Fratianne; Consent Order #E06-82, May 10, 2006; Issue: licensee address information; Administrative sanction - $500.

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June


Final and Miscellaneous Orders


Patricia Bickford,
Mahwah, NJ
Decision and Order on Second Partial Summary Decision #E06-103, June 26, 2006 originating from Order to Show Cause # E04-112, issued September 27, 2004 and Order # E06-37, issued February 27, 2006.  Producer failed to disclose material facts in her application for auto insurance.  Sanctions: Revocation of license; Fine - $5,000; Costs - $1,312.50.

Israel Grossman, New York, NY

Final Order #E06-87, June 1, 2006;  Order to Show Cause # E06-03, January 6, 2006 charged producer with failing to disclose on his license application his conviction
of 19 counts of utilizing a manipulative or deceptive device in the trading of a security and 19 counts of mail fraud; being unworthy of continued licensure by reason of his conviction; failing to disclose on his license application that he had been disbarred from the practice of law in NY; falsely denying on an agent appointment agreement that he had been convicted of a felony; submitting an application for an appointment in which he falsely denied that the had been convicted of a felony; failing to notify the Department of a change of business address and change of employer; failing to notify the Department of the institution of disciplinary proceedings by the NY Insurance Department; failing to notify the Department of the institution of criminal proceedings in the NY federal district court; and failing to respond to a Department communication.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions:  Revocation of license; Fine - $19,000; Costs - $925.

Jay A. Phillips, Pennsauken, NJ
Jay Phillips, Inc. a/k/a Phillips Title Agency, Pennsauken, NJ
Final Decision and Order #E06-102, June 23, 2006;  Order to Show Cause # E 04-22, March 31, 2004 charged producers with multiple counts of failing to properly disburse loan proceeds; failing to properly complete the duties of a closing agent; converting or misappropriating loan proceeds; converting or misappropriating settlement funds; presenting a check that was dishonored for insufficient funds; failing to record and discharge mortgages; and settling transactions without having obtained authority from the parties to the transaction.  Prior to the Final Decision and Order, the matter was referred to the Office of Administrative Law and an Initial Decision was issued on May 9, 2006.  Sanctions:  Revocation of Licenses; Restitution - $4,309,055.25, plus post-judgment interest; Fine - $90,000; Costs - $950.

Christopher J. Santarsiero, Freehold, NJ
You’re Out Bail Bonds, Freehold, NJ
Final Order #E06-88, June 1, 2006;  Order to Show Cause # E06-26, February 3, 2006 charged respondents with conducting business using the unregistered fictitious trade name “Dave’s Bail Bonds;” permitting unlicensed persons to engage in the business of insurance; failing to procure a bail bond while also failing to return the $33,000 premium and collateral until the Department intervened; failing to provide information in response to a Department subpoena; failing to timely notify the Department of federal criminal charges and a plea agreement charging Santarsiero with knowingly and willfully conspiring and agreeing with others to make materially false, fictitious and fraudulent statements and representations, to use false writing and documents knowing them to contain materially false, fictitious and fraudulent statements and entries, and to conceal and cover up by trick, scheme and device material facts, all in matters within the jurisdiction of the executive branch of the United States, namely HUD; and being unworthy for licensure by virtue of Santarsiero’s conviction on January 18, 2006 for his role in a class D federal felony offense.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of licenses; Fine - $25,000; Costs - $525.

Order to Show Cause

Denise Hill, Delran, NJ
Order to Show Cause #E06-99, June 19, 2006; Producer is charged with binding an application for PAIP coverage for her brother without receiving, accepting or documenting receipt of premium monies from her brother; issuing a check from her employer’s trust account to pay her brother’s premium; when terminated from employment, improperly removing and taking possession of proprietary items belonging to her former employer; and preparing and submitting a cancellation request/policy release form which contained a forged signature.

Robert J. Kirner, Cedar Grove, NJ
Kirner Insurance Agency, Bloomfield, NJ
Order to Show Cause #E06-96, June 16, 2006; in multiple incidents, producers are charged with failing to forward clients’ premium payments to a premium finance company, PAIP and an insurer; issuing checks to PAIP that were returned for insufficient funds; exhibiting conduct demonstrating dishonesty, incompetence, untrustworthiness and lack of fitness as reflected by the revocation of respondents’ PAIP and CAIP certifications; and failing to maintain a dedicated premium trust account.

Related Action:  Order to Show Cause Seeking Immediate License. Suspension #E06-97, June 16, 2006.

Joan M. Merola, East Brunswick, NJ
John P. Merola, East Brunswick, NJ
Order to Show Cause #E06-92, June 7, 2006; despite having had his public adjuster license revoked, on multiple occasions John Merola held himself out as a public adjuster, aided and abetted by Joan Merola; and respondents forged an endorsement on a claim payment check and misappropriated, converted or improperly withheld payment to an insured in the amount of $85,095.59.

Consent Orders

Keith A. Alexander, Florham Park, NJ
Alexander Financial Group, LLC, Florham Park, NJ
Consent Order #E06-93, June 7, 2006; producers published an advertisement which contained untrue, deceptive or misleading statements.  Sanction:  Fine - $500.

Hilb Rogal & Hobbs of New York, LLC, New York, NY
Consent Order #E06-100, June 1, 2006;  producer placed coverage without first obtaining surplus lines authority; placed coverage with an ineligible unauthorized insurer; and failed to file with the Department its legal business name that it maintains in its resident state.  Sanction: Fine - $5,000.

John B. Iannetta, Hainesport, NJ
Weichert Title Insurance Agency, Morris Plains, NJ
Consent Order #E06-90, June 1, 2006; Iannetta transacted insurance business after his producer license expired and prior to its reinstatement, Weichert Title having responsibility for permitting such violations.  Sanctions: Fine - $3,000 (allocated $1,500 to Iannetta and $1,500 to Weichert Title).

Louis M. Maione, Parlin, NJ
Consent Order #E06-95, June 14, 2006; Producer failed to advise the Department of current home address.  Sanction:  Fine - $250.

Christopher Truscello, Newtown Square, PA
Consent Order #E06-105, June 27, 2006; Producer failed to advise the Department of current business address.  Sanction:  Fine - $250.

Zenia Twumasi, Maplewood, NJ
Consent Order #E06-91, June 1, 2006; producer was responsible for allowing an unlicensed entity, “All USA Bail Bonds,” and an unlicensed individual, Ian Burrowes, to conduct the business of insurance; and she failed to reply to a Department communication.  Sanction:  Fine - $1,500.

Matters Resolved Without Determination of Violation

AAA Mid-Atlantic Insurance Company of New Jersey; Consent Order #E06-94, June 2, 2007; Issue: market conduct examination (auto).  Administrative sanction:  $50,000.

Cumberland Mutual Fire Insurance Company; Consent Order #E06-98, June 19, 2006; Issue: market conduct examination (homeowner and dwelling fire).  Administrative sanction - $50,000.

Princeton Insurance Company; Consent Order #E06-89, June 1, 2006; Issue: market conduct examination (resolution of policyholder credit balances).  Administrative sanction:  $20,000.

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July


Final and Miscellaneous Orders

Yvette C. Binn-Graham, Marlton, NJ
Amalgamated Title Abstract Company, Inc., Mt. Laurel, NJ
Order #E06-106, July 13, 2006; Producers failed to remit premium on 375 occasions; failed to disburse loan proceeds and failed to discharge a prior mortgage; failed to make disbursements toward outstanding liens in five real estate transactions; wrote two checks for reimbursement of premiums with checks that were dishonored for insufficient funds; and failed to keep real estate settlement proceeds and insurance premium payments segregated and in trust.  Sanctions:  Revocation of Licenses; Costs - $1,200.  The matter has been remanded to the OAL on the issue of the amount of fines to be imposed.


Leonard R. Rhett
, Lawrenceville, NJ
Final Order #E06-107; July 21, 2006; Producer failed to remit numerous premium payments to insurers and converted premium payments to his own use (when Rhett’s conduct was discovered, his employer/agency effectuated coverage for the consumers and paid premium to the affected insurers, and Rhett made full restitution to his employer/agency in the full amount of the misappropriated funds); paid his license fee with a check that was returned for insufficient funds; stated to the Department that he would remit the license fee payment but failed to do so; failed to respond to a Department communication; and failed to timely advise the Department of changes of business address.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of License; Fine - $13,000; Costs - $1,150.

Consent Orders

James R. Philbin, Clementon, NJ
Consent Order #E06-109; July 21, 2006; Public Adjuster issued a check in payment of his license fee which was dishonored for insufficient funds.  Sanction:  Fine - $500.

QualCare, Inc., Piscataway, NJ
Consent Order #E06-113; July 21, 2006; Since surrendering its HMO authority, this producer improperly continued to identify itself as an HMO.  Sanction:  Fine - $5,000.


Chris Randall
, Bellevue, WA
National Specialty Underwriters, Inc., Bellevue, WA
Consent Order #E06-110: July 21, 2006; Producers placed two NJ risks without first obtaining surplus lines authority.  Sanction:  Fine - $500 ($250 each – Randall and National Specialty Underwriters).

Jennise L. Sarmiento, Jersey City, NJ
Big Lou’s Bail Bond, LLC, Jersey City, NJ
Consent Order #E06-111; July 21, 2006; Producers issued noncompliant premium receipts.  Sanction:  Fine - $1,000 ($500 each – Sarmiento and Big Lou’s).


Christopher M. Vitale
, Turnersville, NJ
Consent Order #E06-112; July 21, 2006; Producer failed to disclose on his license application an offense to which he pleaded guilty in municipal court; failed to timely notify the Department of a change of home or business address; and failed to respond to a Department inquiry.  Sanctions:  Revocation of License; Costs - $250.


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August


Final and Miscellaneous Orders

Stanley F. Span, Springfield, NJ
Span Associates Insurance Agency, Springfield, NJ
Final Order #E06-123, August 17, 2006;  Order to Show Cause # E05-16, issued February 23, 2005 charged that Span’s criminal acts and conviction reflect adversely on his fitness for licensure; and charged producers with accepting premium payments, yet failing to remit the funds to an insurer or returning the funds to the consumers; converting to their own use and altering checks payable to others; issuing checks that were subsequently dishonored for insufficient funds; issuing auto insurance ID cards purporting to show coverage, when in fact coverages were never placed and no insurance was in force; issuing non-compliant temporary auto insurance ID cards; issuing a Certificate of Insurance when no coverages were in force because they failed to place the requested coverages; submitting deficient applications to PAIP and having their certification revoked by PAIP as a result of those deficiencies; submitting deficient applications to CAIP; and failing to comply with Department subpoenas.  Although provided with notice and an opportunity to contest these charges, Span and Span Associates failed to do so.  Sanctions:  Revocation of Licenses; Restitution - $16,605.53; Fine - $113,500; Costs - $1,100.

Robert Kirner, Bloomfield, NJ
Kirner Insurance Agency, Bloomfield, NJ
Consent Order Suspending Licenses Pending Completion of Administrative Proceedings #E06-114; August 2, 2006.  Order to Show Cause #E06-96 was previously filed on June 16, 2006 and charged respondents with failing to forward clients’ premium payments to a premium finance company, PAIP and an insurer; issuing checks to PAIP that were returned for insufficient funds; exhibiting conduct demonstrating dishonesty, incompetence, untrustworthiness and lack of fitness as reflected by the revocation of respondents’ PAIP and CAIP certifications; and failing to maintain a dedicated premium trust account.  Pursuant to this Consent Order respondents’ licenses are voluntarily suspended pending completion of the administrative proceedings.

Henry P. Mendoza, Jersey City, NJ
Consent Order #E06-124; August 16, 2006; Producer failed to provide notice to the Department of the existence of criminal charges against him (theft by deception in excess of $75,000).  Pursuant to this Consent Order Mendoza’s license is suspended pending resolution of the criminal charges.

Orders to Show Cause

Patricia Weg, Paterson, NJ
Order to Show Cause #E06-118, August 8, 2006; Producer is charged with engaging in the business of insurance prior to obtaining a license; collecting fees totaling more than  $300,000 without proper fee agreements and in excess of the maximum allowed fees; conducting insurance business as Sean’s Rapid Agency prior to registering the name with the Department; and conducting insurance business as Sean’s Travel & Insurance Agency without registering the name with the Department.

Consent Orders

Automall 46, Inc., Totowa, NJ
Consent Order #E06-121, August 7, 2006; Unlicensed entity (auto dealer) charged fees for temporary physical damage and liability auto insurance coverage (spot delivery auto insurance).  Sanctions:  Restitution - $11,175; Fine - $16,000.

Ramon Feliciano, Egg Harbor Township, NJ
Consent Order #E06-125, August 25, 2006;  Producer failed to timely report his indictment on criminal charges, the initial pretrial hearing regarding the indictment, and his third degree conviction under the indictment (distribution of cocaine within 1,000 feet of school property).  Sanctions:  Revocation of license; Fine - $500; Costs - $250.


Anthony Mento,
Hammonton, NJ
Consent Order #E06-117, August 8, 2006; Producer failed to timely report his criminal conviction for a third degree controlled dangerous substance offense.  Sanction:  Fine - $1,000.

Michael Lee Parks, Rowlett, TX
CRC Insurance Services, Inc., Birmingham, AL
Consent Order #E06-120, August 8, 2006;  Parks placed surplus lines business without the required producer license; respondents charged a fee to the originating broker that exceeded the allowable fee; and CRC allowed Parks to negotiate a contract of surplus lines insurance without the required license.  Sanction: Fine - $1,500 ($750 each – Parks and CRC).

Thomas G. Piegari, Tewksbury Township, NJ
Brown & Brown Metro, Clark, NJ
Consent Order #E06-119; August 8, 2006; Respondents submitted courtesy filings on behalf of producers who lacked surplus lines authority.  Sanction:  Fine - $3,500 ($1,750 each – Piegari and Brown & Brown Metro).

Matters Resolved without Determination of Violation

Aetna Health, Inc.; Consent Order #E06-116, August 4, 2006; Issue: market conduct examination (health); Administrative sanction - $200,000.

Ross M. Arnel; Consent Order #E06-115; August 1, 2006; Issue: licensee address information; Administrative sanction - $500.

Albert E. Czyzewicz, Consent Order #E06-122; August 15, 2006; Issue: licensee address information; Administrative Sanction - $250.

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September


Final Orders

Chasity Burns, Somerset, NJ
Final Order #E06-140, September 25, 2006; Order to Show Cause # E06-55, issued April 3, 2006 charged Burns with falsely reporting a personal auto accident to the police and to her insurance company, claiming that her auto was damaged in front of her residence when in fact the damage was caused in an undisclosed hit-and-run accident; accepting payment from her insurance company for the fraudulently reported accident; failing to comply with her insurance company’s request for the return of the payment; and failing to respond to the Department’s request for information regarding the fraudulently reported accident.  Burns responded to the OTSC, denying the allegations; however, she did not request a hearing.  A deficiency letter was issued; however, Burns did not file a response or request a hearing.  Burns responded to a final letter and stated that she was not requesting a hearing.  Accordingly, Burns waived the opportunity for a hearing and the charges are deemed admitted.  Sanctions: Revocation of license; Restitution - $1,325.24, plus interest; Fine - $13,500; Costs - $537.50.

Denise Hill, Delran, NJ
Final Order #E06-139, September 25, 2006; Order to Show Cause # E06-55, issued June 19, 2006 charged Hill with binding an application for PAIP coverage for her brother without receiving, accepting or documenting receipt of premium monies from her brother; issuing a check from her employer’s trust account to pay her brother’s premium; when terminated from employment, improperly removing and taking possession of proprietary items belonging to her former employer; and preparing and submitting a cancellation request/policy release form which contained a forged signature.  Hill responded to the OTSC, declining the opportunity for a hearing.  Accordingly, Hill waived the opportunity for a hearing and the charges are deemed admitted.  Sanctions: Revocation of license; Fine - $12,500; Costs - $700.

Orders to Show Cause

Lisa M. Dumey, Phillipsburg, NJ
Order to Show Cause #E06-138, September 25, 2006; Dumey is charged with preparing fraudulent title insurance commitments; failing to remit and converting to her own use premium payments; failing to report her criminal indictment on charges of second degree Conspiracy to Commit Theft by Deception; failing to report her criminal accusation charging the crime of Theft by Deception; failing to report her criminal convictions; misrepresenting her place of employment and thereafter failing to correct her business address; and failing to respond to a Department inquiry.

Derrick L. Jenkins, New Brunswick, NJ
Order to Show Cause #E06-128, September 6, 2006; Jenkins is charged with transacting the business of insurance using the name “First Choice Bail Bonds,” without having registered the name with the Department; making and disseminating an advertisement that was untrue, deceptive and misleading in claiming he offered the lowest rates for bail bonds; and failing to respond to a Department inquiry.

Leonardo Efren Palmer, Newport Beach, CA
Order to Show Cause #E06-137, September 25, 2006; Palmer submitted four separate payments to the National Insurance Producer Registry (NIPR) for payment of non-resident license fees in four states (NJ, PA, VA and DE) with a credit card he lacked authority to use; and applying for a NJ producer license using a wrongfully converted form of payment.

Consent Orders

Robert Ellison, New Brunswick, NJ
Dependable Bail Bonds, LLC, New Brunswick, NJ
Consent Order #E06-130, September 18, 2006; Producers issued nonconforming premium receipts.  Sanction: Fine - $1,000 ($500 each – Ellison and Dependable Bail Bonds).

Salvatore Guttadauro, Middletown, NJ
Consent Order #E06-132, September 18, 2006; Producer failed to disclose on his license application a plea to a disorderly person’s offense.  Sanction: Fine - $1,000.

John N. Mason, Hancock, NY
Chenango Brokers, LLC, Hancock, NY
Consent Order Imposing Probation and Fine E06-129, September 6, 2006; Producers distributed an advertisement seeking business relationships with other NJ producers, which advertisement was misleading and exaggerated.  Sanctions: Probation of license for six months (Mason); Fines – $1,250 Mason and $1,250 Chenango Brokers.

Prime Insurance Syndicate, Inc., Salt Lake City, UT
INEX Insurance Exchange, Chicago, IL
Consent Order #E06-135, September 25, 2006; From 2000 to April 15, 2001, Prime, a syndicate member of INEX (an eligible surplus lines insurer), issued 209 commercial auto policies without a Certificate of Eligibility for this class of risk.  Subsequent to April 15, 2001, Prime added over 100 vehicles to these existing commercial auto policies.  Although Prime knew that it could issue no new policies, it added the vehicles based on its agent’s misrepresentations that the new vehicles were part of an insurable interest for existing insureds.  During the same approximate time period, Prime’s agent collected improper fees from insureds.  Sanctions: Restitution - $65,176 (Prime); Fine - $25,000 (to be paid by Prime, with Prime and INEX being jointly liable for payment).

Princeton Insurance Company, Princeton, NJ
Consent Order #E06-133; September 25, 2006; Princeton offered and sold a commercial insurance program called “The Clinic Program” that provided coverages to medical clinic caregivers for which it had not filed a rating plan.  Sanction: Fine - $3,000.

Eleanor V. Selvaggi, West Haven, CT
Consent Order #E06-131, September 18, 2006; Selvaggi misappropriated and converted to her own use commission checks payable to her employer.  Sanctions: Revocation of license; Fine - $5,000.

Henry S. Sulikowski, Jackson, NJ
No Jail Time Bail Bonds, Howell, NJ
Consent Order #E06-136, September 25, 2006; Producers issued nonconforming premium receipts.  Sanction: Fine - $500 ($250 each – Sulikowski & No Jail Time).

Universal Insurance Exchange, Dallas, TX
Consent Order #E06-134, September 25, 2006;  Insurance policies of Universal Insurance Exchange (a commercial life carrier domiciled in Texas but not licensed or authorized to sell insurance in NJ) were sold in New Jersey by producers (which producers were named as respondents in OTSC E04-112, issued September 27, 2004).  Sanction: Fine - $10,000.


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October


Final Orders

Raymond Wayne Hrdlicka, Elizabeth, NJ
Timothy Medini, Trenton, NJ
Final Decision and Order #E06-141, October 2, 2006; Order to Show Cause # E03-19, issued February 19, 2003 charged former limited insurance representatives with engaging in a practice and pattern of failing to promptly pay judgments resulting from forfeited bail bonds (Hrdlicka); causing the State to expend unnecessary costs and institute litigation for the collection of forfeited bail bonds as a result of the failure to promptly pay judgments (Hrdlicka); failing to comply with court directives and court rules governing the payment of bail bond forfeiture judgments (Hrdlicka); issuing checks that lacked sufficient funds as payment of court ordered bail bond forfeiture judgments (Hrdlicka); paying commissions to inmates at the Susex County jail (Hrdlicka and Medini); lacking integrity, acting in bad faith, dishonesty, financial irresponsibility and incompetence to continue as registered limited representatives (Hrdlicka).  Order to Show Cause #E-14-107, issued September 17, 2004, charged Medini with providing incorrect, misleading and materially untrue information on his application for a producer license.  This Final Order enforces the terms of an unexecuted consent order with respect to Medini.  With respect to Hrdlicka, the administrative law judge had issued orders striking defenses, barring him from introducing testimony or evidence and granting summary judgment against him.  Sanctions:  Revocation of license (Medini) and limited insurance representative registrations (Hrdlicka and Medini); Fines - $33,000 for Hrdlicka and $3,500 for Medini; Costs - $875 for Hrdlicka and $500 for Medini.

Marco Nicolo, Philadelphia, PA
Final Decision and Order #E06-142, October 12, 2006; Order to Show Cause # E04-129 issued October 18, 2004 charged the public adjuster with submitting a false receipt to State Farm for repairs to a client’s fence.  The factual allegations had been admitted by Nicolo, however, the issue of sanctions had been contested.  Sanctions:  Revocation of license; Fine - $2,500; Costs - $687.50.

Orders to Show Cause

Milagros Bonaparte, Perth Amboy, NJ
Order to Show Cause E#06-151, October 25, 2006; Producer is charged with paying for his producer license with a check that was subsequently dishonored; failing to respond to Department inquiries; and failing to notify the Department of a change of business address.

Martin K. Goldstein, New York, NY
Order to Show Cause #E06-148, October 3, 2006; Producer is charged with paying for the renewal of his producer license with a check that was subsequently dishonored; failing to notify the Department of changes of his home and business addresses; and failing to respond to Department inquiries in a timely manner.

Consent Orders

Ernest Johnson, Pleasantville, NJ
Consent Order #E06-143, October 3, 2006; Producer is responsible for the conduct of an employee who issued a PAIP insurance ID card without having first received the required down payment.  Sanction:  Fine - $5,000.

Miller Devro & Associates, Inc., Point Pleasant, NJ
Consent Order #E06-146, October 3, 2006;  Miller Devro operated as a third-party billing service without being properly certified by the Department.  Sanction:  Fine - $2,500.

Jed Novak, Rye, NY
Consent Order #E06-145, October 3, 2006;  Producer using the unlicensed name “Glenwood Associates” issued a fraudulent certificate of insurance; he failed to timely notify the Department of a change of home and business addresses.  Sanctions: Revocation of license; Fine - $1,000.

Fred Orentlich, Southboro, MA
Consent Order #E06-147, October 3, 2006; Producer mailed life insurance solicitations which were deceptive and misleading in that the advertisements were labeled “Important Notice,” did not properly identify the sender as a producer, and by placing the name of the prospect’s lender in the envelope window created the false impression that the solicitation was sent by the lender.  Sanction:  Fine - $5,000

Westport Insurance Corporation, Overland Park, KS
Consent Order #E06-144, October 3, 2006;  Insurer initiated the issuance of nonrenewal notices advising the discontinuance of its program of Lawyers Part Time Professional Liability coverage without filing a plan for block non-renewals with the Department.  The insurer voluntarily ceased its plan to block non-renew.  Sanction:  Fine - $3,000.

Matters Resolved without Determination of Violation

University Health Plans, Inc., Newark, NJ; Consent Order #E06-152, October 26, 2006; Issue: calculation and payment of interest on adjusted claims; Administrative sanction - $70,000; disgorgement representing unpaid interest - $333,000.

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November

Orders to Show Cause

Stacy A. Bates, Millville, NJ
Pladeck Associates, Inc., d/b/a Bates General Insurance Agency, Millville, NJ
Order to Show Cause #E06-158, November 21, 2006; Bates is charged with misappropriating premium payments in the amount of from 106 clients.  (Bates pleaded guilty to a criminal accusation charging one count of theft in the amount of $105,552.62.)


Michael B. Chamberlain,
Basking Ridge, NJ
Order to Show Cause #E06-160, November 21, 2006; Chamberlain is charged with improperly withdrawing annuities belonging to a client in the aggregate amount of $303,756.92 and using the funds for his own personal benefit.  (Chamberlain pleaded guilty to one count of second degree theft relating to the improper withdraw of annuity funds.)

Nelson Gonzales, Perth Amboy, NJ
Order to Show Cause #E06-159, November 21, 2006; Gonzales is charged with unworthiness in that during the course of his employment with Blaze Bail Bonds, he went to post bail for a prisoner whereupon he acted in an unprofessional manner with lock-up staff, refused to leave lock-up and was thereafter arrested and charged with possession of marijuana and interference with a police officer (the latter charge being a township ordinance offense).  (Gonzales was found guilty of the township ordinance offense and the marijuana charged was dismissed.)


Victor Pastor,
Gibbsboro, NJ
Order to Show Cause #E06-155, November 22, 2006; Pastor is charged with forging client requests and cash surrendering for his own personal benefit client annuities; Pastor failed to timely notify the Department that he was charged with four counts of forgery, two counts of theft by unlawful taking and one count of conspiracy; and he failed to timely notify the Department of his conviction (based on a guilty plea) to one count of forgery and one county of theft by unlawful taking.

Related Action (Victor Pastor):  Order to Show Cause Seeking Immediate Suspension of Producer License and Mortgage Solicitor Registration #E06-156, November 22, 2006

James P. Philbin, Bridgewater, NJ
First Amended Order to Show Cause #E06-154, November 15, 2006; Philbin is charged with sponsoring investment seminars where the principal purpose was to generate leads and thereafter commissions from the sale of insurance, and doing so using the unregistered trade name Senior Income Solutions, LLC; using coercive and deceptive practices by charging a $2,165 fee for insurance related services without an executed fee agreement and despite promising there would be no charge for the services, where the purpose of imposing the fee was to coerce a consumer into purchasing an annuity at a time when the consumer had already declined to do so; charging an unreasonable fee; issuing an improper inducement by offering to forgive payment of a fee if the consumer purchased insurance; failing to timely notify the Department of a change in business address; failing to report to the Department that he was the subject of a disciplinary action by the NJ Bureau of Securities alleging that he sold 18 worthless promissory notes in an amount of $490,542.74; failing to disclose to the Department the existence of Bureau of Securities Order BOS 5368-03, which directed that he pay a fine to the NASD, disgorge commissions, pay partial restitution to his victims and pay a civil penalty to the Bureau of Securities; and demonstrating lack of integrity, dishonesty and incompetency by recommending that two client liquidate annuities, incur penalties for the liquidation and invest the funds in “safe” and “guaranteed” promissory notes, even though Philbin failed to adequately research the financial soundness of the investments.

Consent Orders

AmeriChoice of New Jersey, Inc., Newark, NJ
Consent Order #E06-157, November 21, 2006; HMO failed to timely file with the Department seven prompt pay reports.  Sanction:  Fine - $10,000.


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December


Final Orders


Lisa M. Dumey,
Phillipsburg, NJ
Final Order #E06-165, December 18, 2006; Order to Show Cause #E06-138, issued September 25, 2006; charged Dumey with preparing fraudulent title insurance commitments; failing to remit and converting to her own use premium payments; failing to report her criminal indictment on charges of second degree Conspiracy to Commit Theft by Deception; failing to report her criminal accusation charging the crime of Theft by Deception; failing to report her criminal convictions; misrepresenting her place of employment and thereafter failing to correct her business address; and failing to respond to a Department inquiry.  Although provided with notice and an opportunity to contest these charges, Dumey failed to do so.  Sanctions:  Revocation of license; Fine - $30,000; Costs - $875.

Derrick L. Jenkins, New Brunswick, NJ
Final Order #E06-163, December 13, 2006; Order to Show Cause #E06-128, issued September 6, 2006 charged Jenkins with transacting the business of insurance using the name “First Choice Bail Bonds,” without having registered the name with the Department; making and disseminating an advertisement that was untrue, deceptive and misleading in claiming he offered the lowest rates for bail bonds; and failing to respond to a Department inquiry.  Although provided with notice and an opportunity to contest these charges, Jenkins failed to do so.  Sanctions:  Revocation of License; Fine - $7,500.

Orders to Show Cause

First Keystone Risk Retention Group, Inc., Philadelphia, PA 

Four Seasons Insurance Agency, Inc., Langhorne, PA 

Michael R. Etemad,  Philadelphia, PA

Joseph B. Schmidt, Langhorne, PA

Christopher R. Stewart, Langhorne, PA

Polina Krass, Philadelphia, PA

Order to Show Cause #E06-161, December 13, 2006;  charges against First Keystone Risk Retention Group and the other respondents (affiliated producers and individuals) include: soliciting insurance without a producer license; aiding and abetting in such solicitation activities; charging rates that were inconsistent with First Keystone’s actuarial studies or which were inadequate or discriminatory, and aiding and abetting in charging such rates; failing to timely inform the Department of Etemad’s and Stewart’s criminal information filed by the U.S. Attorney and Stewart’s subsequent guilty plea; unworthiness due to Etemad’s and Stewart’s federal charges relating to conspiracy to defraud Washington Mutual Bank by submitting numerous fraudulent loan applications and overstating the value of collateral; Stewart’s failure to timely report a PA DOI disciplinary action resulting from fraudulent and dishonest practices and the commission of a felony; Stewart’s ineligibility to hold a NJ producer license in view of the fact that he was no longer licensed in good standing in PA, his home state; issuing proof of insurance for liability limits in excess of those permitted to be issued by First Keystone; failing to follow various provisions of First Keystone’s business plan or feasibility study, including using an unapproved risk retention limit, assessing unreasonable fees, improperly charging insureds for payment of premium taxes, false or deceptive solicitations, writing in unapproved territories and applying split apportionment to a combined single limit; and financing insurance premiums without obtaining a premium finance company license.

Consent Orders

Frank Bruzzese, Somerdale, NJ

Consent Order #E06-164; Producer mailed life insurance solicitations which were deceptive and misleading in that the solicitations did not properly identify the sender as a producer, and, by placing the name of the prospect’s lender in the envelope window with the words “Important Notice,” created the false impression that the solicitations were sent by the lender.  Sanction:  Fine - $2,500.

 

David S. Rosen, Freehold, NJ

Financial Insurance Services, LLC, South Amboy, NJ

Consent Order #E06-162, December 13, 2006; Producers mailed insurance solicitations which were deceptive and misleading in that the solicitations did not properly identify the sender as a producer and did not clearly convey to the recipients that they were insurance sales solicitations.  Sanction:  Fine - $5,000 (allocated $2,500 each to Rosen and Financial Insurance Services).

The Bail Agency, Inc.,
Woodstown, NJ
Consent Order #E06-166, December 18, 2006; Producer issued a check in payment of its license fee which was dishonored for insufficient funds.  Sanction:  Fine - $500.


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