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2008 Insurance Enforcement Activity

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January


Final Orders

Cynthia R. Colon, Mays Landing, NJ
Final Order #E08-03, January 3, 2008; Order to Show Cause #E07-74, issued September 17, 2007, charged producer with misappropriating insurance premiums and failing to timely notify the Department of her indictment and subsequent criminal conviction for the crime of theft by unlawful taking. Although provided with notice and an opportunity to contest these charges, Colon failed to do so.  Sanctions:  Revocation of license; Restitution - $5,254.21; Fine - $22,500; Costs - $250.

Orders to Show Cause

Michael Gitzes, Marlton, NJ
Rammco Surety, Inc., Voorhees, NJ
Order to Show Cause #E08-02, January 2, 2008; Producers are charged with issuing and forging signatures on performance surety bonds without the knowledge or authorization of the surety insurer; being unworthy for licensure as a result of an order by the Pennsylvania Insurance Department resulting in the revocation of Rammco’s producer license and the surrender of Gitzes’ producer license for conduct related to the performance surety bonds; failing to notify the Department of the licensing actions taken in Pennsylvania; failing to forward insurance premiums to an insurer; and failing to respond to Department subpoenas.

Related Action:  Order to Show Cause Seeking Immediate License Suspensions of Gitzes and Rammco, #E08-01, January 2, 2008.

Consent Orders

James S. Currier, Bloomfield Hills, MI
Leonard and Company, Troy, MI
Consent Order #E08-05, January 3, 2008; Producers failed to timely disclose to and notify the Department of violations of NASD rules and sanctions imposed by the NASD; and Leonard and Company renewed its business entity license without immediately renewing the license of its designated responsible producer. Sanction:  Fine - $1,500 (allocated $1,000 to Leonard and Company and $500 to Currier).

Edward D. DiPietro, Gilbertsville, PA
Cumberland Brokerage Corporation, Vineland, NJ
Consent Order #E08-04, January 3, 2008; Cumberland continued to conduct insurance business after the expiration of its producer license: DiPietro was the designated responsible producer for the business entity.  (DiPietro’s individual producer license did not and has not expired.) Sanction:  Fine - $4,700.

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February


Final Orders

Tri-Continental Insurance, Ltd.
   t/a Combined Insurance Services, Ltd., Kingston, St. Vincent
Final Order #E08-06, February 1, 2008;  OTSC #E04-112, issued September 27, 2004 charged various respondents with sales of insurance by an ineligible insurer; sales of insurance from an ineligible insurer; providing false information in connection with the placement of insurance; forgery; conspiracy; conducting the business of insurance without a license; allowing unlicensed persons to conduct the business of insurance; issuing false insurance identification cards and certificates of insurance; sale of insurance through unregistered purchasing groups; engaging in the business of insurance through unlicensed persons; sales of insurance by an unauthorized insurer; sales of insurance from an unauthorized insurer; failing to remit or return premium received from insureds; failing to secure coverage; making misrepresentations to the Department; failing to return premium to premium finance companies; financing insurance premiums without a license; failing to remit premium to insurer; charging improper policy fees; charging improper inspection fees; failing to notify the Department of a change in business address; making misrepresentations on an insurance application; unworthy activity (attempting to provide assistance in handling allegations of application fraud in exchange for money or sexual contact); failing to comply with a Department subpoena; submitting checks that were subsequently dishonored for insufficient funds; and failing to notify Department that producer licenses had been revoked in another state.  Sanctions against above  listed respondent (sanctions against other respondents were set forth in prior orders):  Fine - $27,500; Costs - $250.

Orders to Show Cause

William C. Kloss, Montville, NJ
Pringle Kloss & Associates, Inc., Montville, NJ
Order to Show Cause #E08-12, February 25, 2008; Producers are charged with misappropriating premium; Kloss’ resulting criminal conviction and the underlying misconduct reflect adversely on fitness for licensure; and failing to timely notify the Department about Kloss’ criminal accusation.

Angela M. Long, Beach Haven, NJ
Order to Show Cause #E08-11, February 26, 2008;  Producer is charged with failing to timely submit a life insurance application to the insurer, and in submitting a revised application, using documents that did not contain the genuine signature of the insureds, without the insureds’ knowledge or authorization (in addition, the untimely submission resulted in higher premiums because one of the insured’s age increased by a year); failing to cooperate with the Department’s investigation; and conducting business using a company name that was not licensed as a business entity.

Raymond J. Morrison, Springfield, NJ
Order to Show Cause #E08-08, February 13, 2008; Producer is charged with misappropriating premium; failing to establish and maintain a trust account; failing to maintain books of account; after a loss was reported, backdating a check to the NJIUA to attempt to cover his failure to remit premium; during investigations, making false statements to the Department and to an insurer; and failing to timely notify the Department of charges settled with the NASD.

Consent Orders

CK Bail Bonds, LLC, Asbury Park, NJ
Consent Order #E08-13, February 26, 2008; Producer charged premium that varied from filed rates and issued noncompliant receipts.  Sanction:  Fine - $1,000.

Robert Ellison, New Brunswick, NJ
Dependable Bail Bonds, LLC, New Brunswick, NJ
Consent Order #E08-10, February 15, 2008; Respondents failed to pay the full amount of a fine imposed pursuant to a 2006 Consent Order and failed to timely notify the Department of a change of business address.  Sanction:  Fine - $750 (in addition to satisfying the unpaid $600 balance of the prior fine).

Richard D. Gaynor, Newton, NJ
Suzanne L. Howell, Newton, NJ
Middleton & Company, Newton, NJ
Consent Order #E08-15, February 28, 2008; Gaynor is the designated responsible producer for Middleton.  Howell erroneously prepared a certificate of insurance with incorrect coverage limits and the certificate was signed by Gaynor. After being notified by the carrier of the correct limits, Middleton issued a corrected certificate.  Sanction:  Fine - $4,000 (allocated $2,000 to Gaynor and Middleton, and $2,000 to Howell).

Vito B. Gruppuso, Cedar Knolls, NJ
National Program Services, Inc., Cedar Knolls, NJ
National Premium Financing Services, LLC, Cedar Knolls, NJ
Consent Order #E08-14, February 28, 2008; Respondents’ producer and insurance premium finance company licenses have been suspended since 2002/2003 pending State and federal criminal prosecutions and sentencing upon conviction.  Gruppuso committed theft and bank fraud and is incarcerated as a result of State and federal court convictions for insurance related crimes.  Sanctions:  Revocation of licenses; Restitution - $78.75 million (Gruppuso & National Program Services, Inc.); Fine - $225,000 (Gruppuso & National Program Services, Inc.).

Phyllis Iskowitz, Lumberton, NJ
Consent Order #E08-16, February 28, 2008; Producer failed to disclose criminal convictions.  Sanction:  Fine - $1,000.

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March


Final Orders

Muhammed A.Nasir, New York, NY
Final Order #E08-19, March 26, 2008; Producer committed insurance fraud by attempting to obtain monies through a claim upon his disability policy based on false information; and he failed to satisfy Superior Court judgments.  Pursuant to Final Decision and Order # E05-56, issued May 27, 2005, Nasir’s license was revoked; and he was fined $17,000 and assessed costs of $700.  The matter was remanded for reconsideration of the monetary sanctions, which were determined to be appropriately calculated and assessed.

Consent Orders

Dennis J. Dale, Mahwah, NJ
Dale and Dale Associates, Mahwah, NJ
Consent Order #E08-17, March 24, 2008; Producers made an inappropriate and unprofessional comment in a letter response to a consumer inquiry.  Sanctions:  Fine - $1,000; Costs - $250.

Frank Donofrio, Bloomfield, NJ
Estate Title Management, Inc., Bloomfield, NJ
Consent Order #E08-18, March 24, 2008; Producers knowingly accepted insurance business derived from the insurance sales, solicitation and negotiation of an unlicensed person; made, published or disseminated an advertisement or representation that was untrue, deceptive or misleading, to wit, that the unlicensed person was an “issuing agent” of Chicago Title; employed the unlicensed person in the business of insurance without a criminal disqualification waiver as required by federal and state law; and they knowingly facilitated or assisted the unlicensed person to violate federal and state insurance laws. Sanctions:  Revocation of licenses; Fine - $7,500

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April


Final Orders

Michael Gitzes, Huntington Valley, PA
Rammco Surety, Inc., Huntington Valley, PA
Final Order #E08-24, April 11, 2008; OTSC #E08-02, issued January 8, 2008 charged producers with issuing and forging signatures on performance surety bonds without the knowledge or authorization of the surety insurer; being unworthy for licensure as a result of an order by the Pennsylvania Insurance Department resulting in the revocation of Rammco’s producer license and the surrender of Gitzes’ producer license for conduct related to the performance surety bonds; failing to notify the Department of the licensing actions taken in Pennsylvania; failing to forward insurance premiums to an insurer; and failing to respond to Department subpoenas.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of licenses; Restitution - $34,897.84; Fines - $65,000; Costs - $237.50.

Orders to Show Cause

Jesse D. McCaskill, Fair Lawn, NJ
Order to Show Cause #E08-21, April 11, 2008; Producer is charged with failing to satisfy the payment obligations set forth in a November 19, 1997 consent order.

Consent Orders

Chicago Title Insurance Company, New York, NY
Consent Order #E08-23, April 11, 2008;  Insurer accepted business from Estate Title, its agent, which business was solicited by Estate Title’s unlicensed employee; Chicago Title issued business cards that may have unknowingly and unintentionally created the false impression that the unlicensed employee was a title insurance agent of the insurer.  Sanction:  Fine - $20,000.

Joshua Paul Novello, Woodbridge, NJ
Consent Order #E08-22, April 11, 2008; Producer issued a check to the Department for payment of a licensing fee which was dishonored for insufficient funds, and he failed to replace this check.  Sanctions:  Fine - $1,000; Costs - $125.

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May


Orders to Show Cause

Arthur S. Pellechio, Jr., Wharton, NJ
Robert M. Dash, Springfield, NJ
Warren F. Losey, Sr., Union, NJ
Warren F. Losey, Sr., Inc., Union, NJ
Order to Show Cause #E08-29, May 6, 2008; allegations against these producers include the following: Pellechio completed an application on behalf of a client to purchase an annuity from an insurer even though he was not an authorized agent of that insurer; in doing so Pellechio solicited and received the assistance of Dash to procure the signature of Losey (who was an agent of the insurer) on the application; Losey (on behalf of Losey, Inc.) signed the application as the agent even though he had never met the client; had never discussed whether the annuity was appropriate, and knew that the application was completed by an unauthorized producer; 

Lee V. Williams, Philadelphia, PA
Order to Show Cause #E08-28, May 6, 2008; producer is alleged to have issued a check for renewal of his license, which check was subsequently dishonored for insufficient funds; when contacted by the Department, Williams nevertheless failed to timely replace the funds (which were replaced approximately 6 months later) or provide a timely explanation in response to the Department’s inquiry.

John R. Pintak, Sayreville, NJ
Order to Show Cause #E08-39, May 5, 2008; Producer is charged with misappropriating premium funds; misappropriating premium refunds; fraudulently endorsing checks; forging a signature and falsifying documents needed to reinstate a policy; failing to cooperate in the Department’s investigation and failing to comply with a Department subpoena.


Consent Orders

AmeriChoice of New Jersey, Inc., Newark, NJ
Consent Order #E08-35, May 27, 2008, modifying in Part Order #E07-45; AmeriChoice withdraws its contest of Order #E07-45 imposing sanctions for its failure to adhere to quality assurance and utilization management regulations with regard to a member’s care and its failure to fully respond to a Department subpoena.  Sanction:  Fine - $300,000 ($250,000 payable immediately with the $50,000 balance suspended contingent upon continued compliance).

First Keystone Risk Retention, Philadelphia, PA
Four Seasons Insurance Agency, Langhorne, PA
Michael R. Etemad, Philadelphia, PA
Joseph B. Schmidt, Langhorne, PA
Christopher Stewart, Langhorne, PA
Consent Order #E08-33, May 22, 2008, related to OTSC #E06-161 issued December 13, 2006 ); Stewart failed to provide timely notice of his criminal charges and plea to the Department; Four Seasons facilitated First Keystone’s writing insurance in territories prior to receiving Department approval; Four Seasons facilitated First Keystone’s failure to fully identify all charges on invoices; First Keystone’s rates failed to fully conform with its filed business plan; a 2004 Market Conduct Examination conducted but not finalized by the South Carolina Department of Insurance disclosed numerous instances of actions and practices of First Keystone which failed to conform with NJ law and regulations.  Sanctions:  Revocation of licenses (Stewart and Four Seasons); voluntary surrender of license (Schmidt); the issue of First Keystone’s continued insurance operations in NJ to be determined by the Department on or after May 22, 2009; Fine - $20,000 ($4,000 per respondent); Costs - $10,000.

Kenneth McCoy, Hamilton, NJ
Kevin McCoy, Hamilton, NJ
Joshua McCoy, a/k/a Earl J. McCoy, Jr., Newtown, PA
Earl J. McCoy Agency, Hamilton, NJ
Alan C. Chen, Marlton, NJ
Consent Order #E08-32, May13, 2008; Respondents submitted insurance applications to insurers containing inaccurate information; and Kenneth McCoy and Kevin McCoy failed to exercise appropriate oversight over the business conducted at the agency.  Sanctions:  Fines - $90,000 (Kenneth McCoy, Kevin McCoy, Joshua McCoy and the McCoy Agency); $22,500 (Chen); Costs - $10,000 (Kenneth McCoy, Kevin McCoy, Joshua McCoy and the McCoy Agency); $2,500 (Chen). In addition, the individual respondents have entered into separate agreements with the Office of the Insurance Fraud Prosecutor in which they agreed to additional fines and attorney fees totaling $125,000. 

Dennis J. Mojares, Chatham, NJ
Consent Order #E08-27, May 6, 2008; Mojares paid his license renewal fee with a check that could not be negotiated (the renewal fee was later paid via cashier’s check).  Sanction:  Fine - $500.

Patricia Weg, Englewood Cliffs, NJ
Consent Order #E08-34, May 27, 2008; Weg engaged in the business of insurance prior to obtaining a license; collected fees without proper fee agreements and in excess of the maximum allowed fees; conducted insurance business as Sean’s Rapid Agency prior to registering the name with the Department; and conducted insurance business as Sean’s Travel & Insurance Agency without registering the name with the Department. Sanctions:  Revocation of license; Restitution - $273,277.55; Fine - $27,000; Costs - $3,412.50.

Matters Resolved without Determination of Violation

William McLaughlin
Consent Order #E08-30, May 7, 2008; Issue:  licensee address information; administrative sanction - $500.

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June


Final and Miscellaneous Orders

International Missions, Inc., d/b/a Christar, Reading, PA
Conditional Order Revoking Special Permit #E08-40, June 5, 2008;  Special permit to issue charitable annuities is revoked due to deficiencies in annual statements, but may be reinstated provided Christar satisfies regulatory concerns within 30 days.

Orders to Show Cause

Anthony T. Elliott-Anderson, New York, NY
Order to Show Cause #E08-47, June 23, 2008; Producer is charged with issuing two checks to the Department (for renewal and addition of an authority) which were dishonored by the bank; failing to timely respond to a Department request to replace the funds (which eventually were replaced with good funds); and failing to timely respond to three Department letters.

Andrew MacGregor, Cohoes, NY
Order to Show Cause #E08-43, June 16, 2008; Producer is charged with failing to timely notify the Department of a change of business and residence addresses; and failing to respond to Department communications.

Consent Orders

William Kanehann, Conshohocken, PA
Norman-Spencer McKernan, Inc., Conshohocken, PA
Consent Order #E08-42, June 16, 2008; Surplus lines producers charged fees to originating brokers in excess of allowable amounts. Sanctions:  Restitution - $58,565; Fine - $5,000.

Angela M. Long, Beach Haven West, NJ
Consent Order Imposing Probation and Fine #E08-44, June 16, 2008; Producer failed to timely submit a client’s life insurance applications to the insurer; failed to provide complete responses to Department inquiries; and issued documents to the Department displaying the name of an unlicensed business entity. Sanctions:  Probation of license for one year; Fine - $5,000.

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July


Final Orders

William C. Kloss, Montville, NJ
Pringle Kloss and Associates, Inc., Montville, NJ
Final Order #E08-53, July 18, 2008; Order to Show Cause #E08-12, issued February 25, 2008 charged producers with misappropriating premium; charged that Kloss’ resulting criminal conviction and the underlying misconduct reflect adversely on fitness for licensure; and with failing to timely notify the Department about Kloss’ criminal accusation. Although provided with notice and an opportunity to contest these charges, the respondents failed to do so. Sanctions: Revocation of licenses; Fine - $7,500; Costs - $300.

Orders to Show Cause

Robert I. Berlin, Manalapan, NJ
National Western Life Insurance Company, Austin, TX
Order to Show Cause #E08-46, June 20, 2008; Respondents (Berlin individually or National Western through the acts of Berlin, its agent) are charged with numerous instances of misrepresenting annuity features in selling annuities to senior citizens; “twisting;” (utilizing misrepresentations to induce consumers to act); refusing to rescind annuities despite a pattern of misrepresentations regarding the annuities; altering annuity applications (forgery); National Western’s failure to supervise, investigate and report Berlin’s fraudulent practices; and engaging in unfair and deceptive practices.

            Related Action:  Order to Show Cause Seeking Immediate License Suspension Pending Completion of Administrative Action #E08-45, June 20, 2008

Keonna S. Brown, Neptune, NJ
Order to Show Cause #E08-54, July 18, 2008; Producer is charged with numerous instances of misappropriating premium and failing to forward applications for insurance to the insurer; failing to timely notify the Department that she was charged with the crime of theft; failing to adhere to the terms of an order to pay restitution; failing to notify the Department of her conviction for the crime of theft; and failing to respond to Department inquiries.

Jose A. Fernandez, t/a F & M Insurance Agency, Clark, NJ
Order to Show Cause #E08-60, July 28, 2008; Producer is charged with submitting numerous applications to PAIP which contained deficiencies, and issuing checks payable to PAIP that were returned due to insufficient funds; failing to appear before the PAIP Review Panel; failing to replace the funds owed on account of the bad checks or cure the deficiencies; failing to respond to Department inquiries; and failing to notify the Department of a change of business address.

Glenda A. Morgan, Jersey City, NJ
Carib Insurance Agency, Inc., Jersey City, NJ
Order to Show Cause #E08-50, July 14, 2008; Producers are charged with numerous instances of misappropriating premium and with failing to comply with a Department subpoena.

Consent Orders

Richard N. Hartman, Colts Neck, NJ
Consent Order E08-61, July 28, 2008; Producer was a co-owner of Thomas J. Sharp & Associates, Inc., which agency: withdrew client funds from its premium trust account to pay operating expenses; disbursed commission from the premium trust account, not supported by a written record; and failed to prepare and maintain proper trust account reconciliations. Sanctions:  Revocation of license; Fine - $6,250.

James Rhett Kennedy, Lawrenceville, GA
Consent Order #E08-51, July 14, 2008; Producer failed to timely report to the Department administrative actions taken against him by other state insurance regulators. Sanction:  Fine - $250.

Jeffrey J. Lehman, Mountain Lakes, NJ
Philip Lehman Company, Ltd., Mountain Lakes, NJ
Consent Order #E08-49, July 14, 2008;  Producers failed to maintain appropriate complaint handling procedures; failed to timely remit premium refunds and credits to insureds; commingled operating and premium funds; and failed to maintain proper and accurate records of financial transactions.  Sanctions:  Revocation of licenses; Fine - $50,000.

Thomas J. Sharp, IV,  Flemington, NJ
Thomas J. Sharp & Associates, Inc., Somerville, NJ
Consent Order #E08-62, July 28, 2008; Producer was a co-owner of Thomas J. Sharp & Associates, Inc., which agency: withdrew client funds from its premium trust account to pay operating expenses; disbursed commission from the premium trust account, not supported by a written record; and failed to prepare and maintain proper trust account reconciliations.  Sanctions:  Revocation of licenses; Fine - $12,500.

Kimberly A. Weiss, Newton, NJ
Consent Order #E08-59, July 28, 2008; Producer diverted insurance agency funds to her own use and failed to notify the Department about her pre-indictment hearing and agreement to plead to an accusation. Sanctions:  Revocation of license; Fine - $10,000.

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August


Final and Miscellaneous Orders

Robert I. Berlin, Manalapan, NJ
Final Decision and Order #E08-63, August 11, 2008, issued in consequence of an administrative hearing on Order to Show Cause #E03-38, issued April 16, 2003 as amended April 13, 2004. Berlin misrepresented the terms and conditions and premium amounts regarding insurance and annuity policies; engaged in fraudulent conduct in selling annuities; and demonstrated unworthiness for continued licensure. Sanctions: Revocation of license; Restitution - $4,251.80; Fine - $25,000; Costs - $7.500.

Robert I. Berlin, Manalapan, NJ
Order of Dismissal (of Order to Show Cause #E08-45 without Prejudice) #E08-69, August 12, 2008; Dismisses without prejudice OTSC #E08-45 seeking the immediate suspension of Berlin’s producer license in view of the fact that his license was revoked effective August 11, 2008 pursuant to Final Decision and Order #E08-63.

Managed Benefit Plans, Inc., Hackettstown, NJ
Conditional Order Revoking License, #E08-68, August 11, 2008; Third party administrator license revoked due to failure to file a 2007 audited annual report. However, the license may be retroactively reinstated provided Managed Benefit Plans files its 2007 report within 30 days and pays a fine of $5,000.

National Benefits, Inc., Parsippany, NJ
Conditional Order Revoking License #E08-67, August 11, 2008; Third party administrator license revoked due to failure to file a 2007 audited annual report. However, the license may be retroactively reinstated provided National Benefits files its 2007 report within 30 days and pays a fine of $5,000.

John R. Pintak, Sayreville, NJ
Final Order #E08-65, August 11, 2008; Order to Show Cause #E08-39, issued May 5, 2008 charged Pintak with misappropriating premium funds; misappropriating premium refunds; fraudulently endorsing checks; forging a signature and falsifying documents needed to reinstate a policy; failing to cooperate in the Department’s investigation and failing to comply with a Department subpoena. Although provided with notice and an opportunity to contest these charges, Pintak failed to do so. Sanctions: Revocation of license; Restitution - $21,399.45; Fine - $50,000; Costs - $387.50.

Orders to Show Cause

Peter J. Bonnell, III, Medina, OH
Investors Union, LLC, d/b/a The Annuity Service Center, Medina, OH
Order to Show Cause #E08-66, August 11, 2008; producers are charged with engaging in unfair practices resulting from mass mailings 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; engaging in the business of insurance in New Jersey without a current producer license; multiple instances of failing to timely inform the Department of administrative actions taken in other states with regard to the producers’ mass mailings solicitations; and providing a materially misleading, untrue and incomplete statement on the application for licensure of Investor Union.

Juan M. Guzman, Clifton, NJ
La Raza Bail Bonds, Inc., Passaic, NJ
Order to Show Cause #E08-70, August 12, 2008; producers, who are bail agents, are charged with multiple instances of failing to return collateral and instead misappropriating the funds; failing to timely remit premiums and fees and return legal documents to the insurer; and failing to respond to Department inquiries.

Consent Orders

Health Net of New Jersey, Inc., Shelton, CT
Consent Order #E08-71
(PDF), August 26, 2008; Health Net systemically under-reimbursed certain types of claims, affecting approximately 88,000 members; failed to initially disclose to the Department the true extent of under-reimbursements; failed to initially properly remediate under-reimbursements; and improperly denied certain claims for lack of pre-authorization, Sanctions: Restitution - $26 million; Fine - $13 million; Costs - $2 million.

Willis of Seattle, Inc., Seattle, WA
Consent Order E08-64, August 11, 2008; Producer failed to timely notify the Department of administrative action taken in other states; failed to disclose these administrative actions in responses on its license renewal application; and failed to appoint a Designated Responsible Licensed Producer to replace the producer no longer employed. Sanction:  Fine - $1,750.

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September


Final and Miscellaneous Orders

Sammy Battista, Hamilton, NJ
John H. Lay, II, Jersey City, NJ
Final Decision and Order #E08-72, September 2, 2008 issued in consequence of an administrative determination on Order to Show Cause #E07-04, issued January 16, 2007. Battista requested Lay to misrepresent his identity to an insurer by impersonating a client of Battista who had applied for a life insurance policy; Lay impersonated the client in a telephone conversation with the insurer; and Lay failed to notify the Department of changes in his home and business addresses.  Sanctions:  Revocation of license (Battista); Suspension of license for two years (Lay); Fines - $2,500 to Battista and $2,300 to Lay; Costs - $250.

Keonna S. Brown, Neptune, NJ
Final Order #E08-80, September 10, 2008; Order to Show Cause #E08-54, issued July 18, 2008 charged Brown with numerous instances of misappropriating premium and failing to forward applications for insurance to the insurer; failing to timely notify the Department that she was charged with the crime of theft; failing to adhere to the terms of an order to pay restitution; failing to notify the Department of her conviction for the crime of theft; and failing to respond to Department inquiries.  Although provided with notice and an opportunity to contest these charges, Brown failed to do so.  Sanctions:  Revocation of license; Restitution - $4,777; Fine - $27,500; Costs - $175.

Anthony T. Elliott-Anderson, New York, NY
Final Order #E08-76, September 8, 2008; Order to Show Cause #E08-47, issued June 23, 2008 charged Elliott-Anderson with issuing two checks to the Department (for renewal and addition of an authority) which were dishonored by the bank; failing to timely respond to a Department request to replace the funds (which eventually were replaced with good funds); and failing to timely respond to three Department letters.  Although provided with notice and an opportunity to contest these charges, Elliott-Anderson failed to do so.  Sanctions:  Fine - $2,000; Costs - $250.

Beatriz Montesinos, Paterson, NJ
Premier Agency, Inc., Paterson, NJ
Final Decision and Order #E08-83, September 19, 2008 issued in consequence of an administrative determination on Order to Show Cause #E07-32, issued April 17, 2007.  Respondents collected fees without a proper fee agreement and in excess of the maximum allowed fee for insurance brokers or consultants; failed to issue receipts; failed to maintain accurate books, records and a register containing the minimum required information regarding all monies received, deposited, disbursed or withdrawn in connection with insurance transactions; deposited and maintained premium funds received from clients in an account that was not a dedicated premium trust account; and failed to notify the Department of the change in Montesinos’ business address. Sanctions:  Revocation of licenses; Restitution - $1,200; Fine - $12,750; Costs - $1,012.25.

Muhammed A. Nasir, New York, NY
Order on Motion for Reconsideration of Monetary Penalties #E08-77, September 9, 2008; Penalty portion of Final Decision and Order #E08-19 issued on March 26, 2008 was reduced from $17,000 to $14,000.

Kirti Shah, Parsippany, NJ
Final Decision and Order #E08-73, September 2, 2008 issued in consequence of an administrative determination on Order to Show Cause #E05-58, issued June 14, 2005.  Shah altered a receipt and submitted it to an insurer in support of an insurance claim; and failed to timely notify the Department of his indictment.  Sanctions:  Suspension of license for six months (rather than revocation due to extraordinary mitigating circumstances); Fine -$1,000; Costs - $725.

Robert Stone, Voorhees, NJ
Final Decision and Order #E08-82, September 15, 2008; issued in consequence of an administrative determination on Order to Show Cause #E07-33 issued April 19, 2007.  Stone failed to disburse $20,415.33 received from a premium finance company; demonstrated lack of fitness for licensure by reason of this conviction of theft by failure to make required disposition of property; and failed to timely notify the Department of his indictment and convictions.  Sanctions:  Revocation of license; Restitution - $20,415.33; Fine - $25,000; Costs - $400.

Orders to Show Cause

GE Casualty Insurance Company, Philadelphia, PA
Order to Show Cause #E08-81, September 10, 2008; insurer is alleged to have implemented premium rate increases on group Medicare supplement insurance policies on 19 occasions without the Department’s approval.

Marvin Mann, Old Tappan, NJ
Order to Show Cause #E08-79, September 10, 2008; producer is alleged to have failed to return unearned commissions on a policy returned by the insured during the “free look option” period.

Consent Orders

Burnie Alton Genwright, Trenton, NJ
Consent Order #E08-78, September 10, 2008; producer conducted business using an unapproved trade name.  Sanction:  Fine - $500. 

Robert J. Moore, Hawthorne, NJ
Consent Order #E08-75, September 8, 2008; Sanction:  Extends a previously imposed probation of license six additional months to January 19, 2009.
 

Matters Resolved without Determination of Violation

Dreyfus Service Organization, Inc.; Consent Order #E08-74, September 8, 2008; Issue:  non-resident license expiration; Administrative Sanction - $4,000.

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October


Final and Miscellaneous Orders

Marva S. Ransom, Newark, NJ
Final Order #E08-97, October 28, 2008; Producer paid her renewal license fee with a check that was subsequently dishonored for insufficient funds, and failed to respond to Department inquiries.  Sanctions:  Fine - $1,500; Costs - $250; Other - License is not to be reissued unless and until the unpaid renewal fee, fines and costs are paid in full.

Orders to Show Cause

Otis M. Boone, Trenton, NJ
Order to Show Cause #E08-91, October 16, 2008; Boone, a public adjuster and producer, is alleged to have:  started fires at six different locations with the purpose of collecting insurance for the destruction or damage to properties; agreed to knowingly engage in conduct constituting the crime of aggravated arson; failed to timely notify the Department of the filing of formal criminal charges against him; and failed to timely notify the Department of his conviction of six counts of third degree aggravated arson and one count of conspiracy (convictions demonstrating unfitness to continue to hold licenses).

Michael D. Cook, Pleasantville, NJ
Order to Show Cause #E08-90, October16, 2008; Producer is alleged to have knowingly submitted a backdated application to an insurer, and failed to timely notify the Department that he entered into a Consent Order with the Office of the Insurance Fraud Prosecutor regarding the backdated insurance application submission.

William Lawrence, New Brunswick, NJ
Xscape Bail Bonds, New Brunswick, NJ
Order to Show Cause #E08-93, October 27, 2008; Lawrence is alleged to have transacted business under an unregistered trade name and disseminated misleading and deceptive ads offering “lowest rates;” and Lawrence and Xscape are alleged to have accepted a premium but failed to post the corresponding bail bond, and to have improperly withheld and failed to timely return the premium.                                                                                                                                                               

Jonathan Eric Yellin, Trenton, NJ
ABC Bail Bonds, Inc., Morrisville, NJ
Lexington National Insurance Company, Baltimore, MD
Order to Show Cause #E08-89, October 16, 2008;  Allegations include that:  respondents attempted to charge interest on late payments pursuant to a bail bond premium promissory note (respondents are not licensed premium finance companies); respondents attempted to charge a “service charge,” “investigative fees” and “bad check fees” under the promissory note; Lexington failed to adequately supervise the conduct of its agents; respondents unlawfully attempted to collect fugitive costs of $40,000.00 (costs not based on the actual reasonable expenses incurred) and attorney fees of $13,953.50 from an indemnitor; Lexington failed to maintain case-specific records related to the actual expenses incurred in the investigation and apprehension of the fugitive (the fugitive was apprehended 12 days after he failed to appear in court); Lexington never entered into a proper and enforceable contract with the indemnitor for fugitive fees; and respondents unlawfully pursued a Judgment, Order of Wage Execution and Writ of Execution against the indemnitor in the amount of $71,870.91, resulting in wage garnishment from the indemnitor’s wages in the amount of $320.25 bi-weekly.

Consent Orders

Nelson Diaz, West New York, NJ
Consent Order #E08-94, October 27, 2008; Producer conducted business under a corporate name without securing a business entity producer license.  Sanction:  Fine - $500.

Mary E. Eichler, Kendall Park, NJ
LYJAC Travel, Kendall Park, NJ
Consent Order #E08-86, October 2, 2008; LYJAC conducted the business of insurance with an expired license (Eicher was the designated responsible insurance producer for LYJAC).  Sanction:  Fine -$500.

Susan P. Fanciullo, New York, NY
Consent Order #E08-96, October 27, 2008; Producer paid her license fee with a check that was subsequently dishonored for insufficient funds and failed to timely respond to Department inquiries.  Sanction:  Fine - $750.

Pham Khuyen, Piscataway, NJ
EFN Title Group, LLC, New Brunswick, NJ
Consent Order #E08-95, October 27, 2008; Producers paid the license fee for EFN with a check that was subsequently dishonored for insufficient funds.  Sanction:  Fine - $500.

Monumental Life Insurance Company, Cedar Rapids, IA
Bollinger, Inc., Short Hills, NJ
Consent Order #E08-92, October 27, 2008; Respondents issued group accident and sickness coverage pursuant to a non-compliant plan, using non-compliant forms and which terms of coverage failed to comply with NJ law; utilized a Preferred Provider network that was not certified or licensed as an ODS; provided certain coverages that included network and out-of-network benefits, but failed to seek or obtain Department approval of a selective contracting arrangement.  Respondents corrected deficiencies, and remediated all claims-related issues, including paying interest as applicable.  Sanctions:  Fine - $350,000 (allocated $250,000 to Monumental and $100,000 to Bollinger)

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November


Consent Order

Robert M. Ryerson, Freehold, NJ
Consent Order #E08-99, November 6, 2008; Producer failed to notify the Department of a formal investigation initiated and subsequent penalty imposed by NASD/FINRA.  Sanction:  Fine - $500.

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December


Final and Miscellaneous Orders

Vincent P. Ascolese, Morganville, NJ
Final Decision and Order #E08-101, December 3, 2008; Order finalized settlement of the following violations:  Ascolese, while a Limited Registrant (bail bonds), failed to timely notify the Department of his criminal conviction; engaged in sales, solicitations and negotiations of insurance without obtaining a waiver under 18 U.S.C. 1033; and disseminated untrue, deceptive or misleading information to the effect that he was an issuing agent of Chicago Title Insurance Company.  Sanctions:  Revocation of expired limited representative registration (and time limitation barring ability to apply for a producer license) ; Fine - $7,500.

Glenda A. Morgan, Jersey City, NJ
Carib Insurance Agency, Inc., Jersey City, NJ
Final Order #E08-106, December 18, 2008; Order to Show Cause #E08-50, issued July 14, 2008, charged producers with numerous instances of misappropriating premium and with failing to comply with a Department subpoena.   Sanctions:  Revocation of licenses; Fine - $107,500; Costs - $750.

Brian Petrone, New Brunswick, NJ
Nicholas G. Pappas, Elizabeth, NJ
Final Decision and Order #E08-104, December 11, 2008; respondents used unregistered trade names while conducting bail bond business; converted premium to their own use; Pappas charged an illegal fee; Petrone collected twice the amount of a court judgment and refused to return the amount wrongfully collected.  Sanctions:  Revocation of licenses; Restitution - $19,202.25 (Petrone); Fine - $41,000 (Petrone) and $21,000 (Pappas); Costs - $350 (Petrone).

Peterman, Ltd., d/b/a Century Healthcare, Irving, TX
Conditional Order Revoking License #E08-108, December 17, 2008; Third-party administrator license revoked due to failure to file a 2007 audited annual report and filing fee.  However, the license may be retroactively reinstated provided Century Healthcare files its 2007 audited annual report, pays the $100 filing fee and a fine of $10,000.

Pioneer Management Systems, Inc., West Springfield, MA
Conditional Order Revoking License #E08-107, December 17, 2008; Third-party administrator license revoked due to failure to file a 2007 audited annual report and filing fee.  However, the license may be retroactively reinstated provided Pioneer Management files its 2007 audited annual report, pays the $100 filing fee and a fine of $10,000.

Orders to Show Cause

Paul J. Vinci, Englewood Cliffs, NJ
Order to Show Cause #E08-105, December 15, 2008; Producer is charged with soliciting, negotiating and selling insurance without a license and receiving commissions from these activities; willfully and fraudulently instructing an employee of Vinci’s employer to recode commission reference numbers in order to receive commissions due others; failing to return unearned commissions; failing to timely notify the Department of his criminal indictment; and failure to disclose his criminal conviction.

Consent Orders

AmWins Brokerage of New York, Inc., New York, NY
Consent Order #E08-110, December 22, 2008;  Producer submitted surplus lines transactions on behalf of other producers who lacked surplus lines authority; submitted quarterly reports on behalf of out-of-states affiliates that lacked surplus lines authority; and charged an improper service/broker fee.  Sanctions:  Fine - $30,600; Restitution - $1,500.

Matters Resolved without Determination of Violation

Leonard J. Migliore, Lansdale, PA
Consent Order #E08-111, December 31, 2008; Issue:  licensee address information. License was submitted by former producer for cancellation, as he is not currently selling, soliciting or negotiating insurance.

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