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2012 Insurance Enforcement Activity

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December

Orders to Show Cause

Joseph Bigica and Joseph Bigica, LLC, Franklin Lakes, NJ
Order #E12-145, December 12, 2012
Respondents are charged with being convicted of corrupt interference with the administration of the internal revenue laws due to avoidance of at least $2.2 million in federal taxes and conspiracy to violate the federal election campaign act by making contributions to federal candidates in the names of other persons.

Consent Orders

Auto Insurance Store Insurance Agency LLC, Brown Mills, NJ and John Beachy, Medford, NJ
Order #E12-143, December 11, 2012
Respondent failed to timely remit two premium payments, failed to designate the premium account as a trust account and failed to include required information on premium receipts.
Sanction: Fine - $1,500

Tai Yuan Chen, Warren, NJ
Order #E12-149, December 21, 2012
Respondent retained custody and failed to deliver two insurance policies for almost four years.
Sanction: Fine - $1,000

Richard M. Cohen, Randolph, NJ
Order #E12-137, December 6, 2012
Respondent ordered reweigh of applicant without the knowledge or authorization of the insurance company and altered the weight indicated on the reweigh report.
Sanction: Fine - $1,000

Yvonne Derricotte, Woodbridge, NJ
Order #E12-139, December 8, 2012
Respondent submitted an application for life insurance and premium without the knowledge or consent of the applicant. 
Sanction: Fine - $2,500

Rai Ja Hsieh, Warren, NJ
Order #E12-148, December 21, 2012
Respondent retained custody and failed to deliver two insurance policies for almost four years.
Sanction: Fine - $1,000

Mortgage Protection Insurance Services, Roseville, CA and Brian Pope, Looms, CA
Order #E12-144, December 11, 2012
Respondents distributed deceptive and/or misleading sales solicitation letters to New Jersey residents.
Sanction: Fine - $1,000

Anna Shea, Millville, NJ
Order #E12-140, December 6, 2012
Respondent pled guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering resulting from her participation in the sale and refinancing of properties at inflated prices by obtaining mortgage loans for unqualified applicants using fraudulent loan applications, HUD-1 settlement statements and other documents.
Sanction: Revocation

John Stackpole, New Rochelle, NY
Order #E12-150, December 31, 2012
Respondent co-signed and submitted an application for life insurance which falsely stated that he witnessed the insured’s signature and failed to notify the Department of a penalty imposed on him by the New York State Department of Financial Services.
Sanction: Fine - $2,000

TBA Bail Bonds Inc., Woodstown, NJ, Sun Surety Insurance Co., Rapid City, SD and Raymond J. Steward, III, Magnolia, NJ
Order #E12-146, December 15, 2012
Respondents failed to return collateral to an indemnitor of bail bond, failed to satisfy a March 23, 2012 final judgment by default resulting from the failure to return said collateral and failed to respond to Department inquiries.
Sanction: Fine - $2,000

The Investment Center Inc., Bedminster, NJ and Ralph J. Devito, Warren, NJ
Order #E12-142, December 11, 2012
Respondents failed to report to the Department disciplinary action taken them by the New Jersey Bureau of Securities and improperly indicated on the business entity renewal application that it had not been involved in any administrative proceedings.
Sanction: Fine - $500

Michael Troise, Cherry Hill, NJ
Order #E12-138, December 6, 2012
Respondent fraudulently sold, solicited or negotiated three life insurance policies, submitted three applications for life insurance without the knowledge or consent of the applicants and forged the signatures of three applicants on applications for life insurance.
Sanction: Revocation, Fine - $5,000 and Costs - $412.50  

 
November

Final Orders

John R. Montague, Bayonne, NJ
Order #E12-132, November 19, 2012
Respondent failed to respond to an Order to Show Cause charging him with misappropriation of premium and other client funds and failure to report a FINRA action.  
Sanctions: Revocation, Fine - $11,000, Costs - $525

Consent Orders

Bienvenido J. Calaf, Cherry Hill, NJ
Order #E12-125, November 9, 2012
Respondent failed to properly supervise an employee who misrepresented the identity of the vehicle owner on an application for automobile insurance.
Sanction: Fine - $500

Daniel J. Carlucci, Martinsville, NJ
Order #E12-131, November 20, 2012
Respondent submitted a broker of record change request for an insured without the insured’s knowledge or authorization.
Sanction: Fine - $1,000

Gregg Costello, Franklin Lakes, NJ
Order #E12-126, November 10, 2012
Respondent failed to timely refund unearned premium following cancellation and failed to create a receipt for a premium payment.
Sanction: Fine - $1,000

Joseph Gogliormella, Freehold, NJ
Order #E12-134, November 27, 2012
Respondent misappropriated premium and used credit cards of certain insureds to pay premium for other insureds. 
Sanction: Revocation

John C. Heden, South River, NJ
Order #E12-130, November 20, 2012
Respondent submitted a broker of record change request for an insured without the insured’s knowledge or authorization.
Sanction: Fine - $1,000

Jeffrey D. Jones, Bordentown, NJ 08505-4703
Order #E12-129, November 19, 2012
Respondent disseminated advertisements with false information as to his academic credentials and professional designations.
Sanction: Revocation

David E. Katz, Hackensack, NJ
Order #E12-128, November 20, 2012
Respondent submitted annuity applications that falsely stated that he witnessed the signature of the applicant, sold annuities to New Jersey residents which were not approved for sale in New Jersey, falsely stated on delivery receipts that he witnessed the signature of the applicants, accepted annuity applications from and paid commissions to a producer whose license was revoked, and failed to timely deliver annuities.
Sanction: 6 month license suspension, Fine - $10,000, Costs - $550

LTC Financial Partners, LLC., Kirkland, WA
Order #E12-127, November 20, 2012
Respondent mailed flyers promoting the purchase of long term care insurance that failed to disclose that it was a solicitation for the purchase of insurance and that an agent or carrier would contact the individual.  
Sanction: Fine -$500

Robert J. Stillwell Agency, Inc., Springhouse, PA
Cynthia J. Fitzgerald, Maple Glen, PA
Order #E12-133, November 27, 2012
Respondents failed to report a consent agreement with the Pennsylvania Department of Insurance and incorrectly indicated on the agency renewal application that it had not been involved in any administrative proceedings.
Sanction: Fine - $1,000

 
October


Final Orders

Brian M. Campbell, Bayonne, NJ
Order #E12-115, October 4, 2012
Respondent failed to respond to an Order to Show Cause charging him with being convicted of 33 counts of mail fraud affecting a financial institution by diverting hundreds of thousands of dollars in commissions and fees due to his employer for the sale of variable life insurance, stocks, bonds and mutual funds to himself.  
Sanctions: Revocation, Fine - $5,000, Costs - $375

Marissa Fischer and Marrick Corporation, Elizabeth, NJ
Order #E12-122, October 19, 2012
Respondent failed to satisfy judgments in favor of insurance companies and a premium finance company for improper withholding of premium, failed to notify the department of changes in business address and failed to notify the department of indictment and conviction of corporate misconduct and theft in connection with the insurance business. 
Sanctions: Revocation, Fine - $30,500, Costs - $6,337.50

Orders to Show Cause

John D. Martosella, Medford, NJ
Order #E12-117, October 12, 2012
Respondent is charged with submitting annuity and life insurance applications without the authorization of the purported applicants, with submitting annuity and life applications with false information, with providing fictitious checks in support of said applications and with commission of insurance fraud.

Joel Pruzansky, Clifton, NJ
Order #E12-120, October 12, 2012
Respondent is charged with submitting applications and related forms for small employer health coverage which contained false information.

Consent Orders

Michael S. Culnen, Far Hills, NJ
Order #E12-121, October 18, 2012
Respondent charged fees without a written agreement and imposed the PLIGA surcharge on certain of those fees.
Sanction: Fine - $15,000

Rebecca L. Deperi-Grande, Jackson, NJ
Order #E12-118, October 12, 2012
Respondent pled guilty to misapplication of entrusted funds as a result of misappropriating settlement funds for her personal use.
Sanction: Fine - Revocation

Philip E. Fontaine, Mt. Laurel, NJ
Order #E12-124, October 17, 2012
Respondent failed to timely remit premium and/or failed to deposit said funds into a premium trust account.
Sanction: Fine - $250

Ferdinando J. Gismondi, Jr., National Park, NJ
Order #E12-123, October 10, 2012
Respondent submitted life insurance applications with inaccurate information as to medical conditions and previous declinations. 
Sanction: Fine - $2,000

Hennion & Walsh, Inc., Parsippany, NJ
Order #E12-119, October 12, 2012
Respondent failed to report a formal disciplinary action taken against him by FINRA and incorrectly responded to a question on its license renewal application.
Sanction: Fine - $1,000

 
September

 

Final Orders

Stephen Locrotondo, Bridgewater, NJ
Order #E12-110, September 28, 2012
Respondent failed to respond to an Order to Show Cause charging him with conviction of two counts of wire fraud, solicitation of persons to enroll in non-existent group coverage, fraudulent conspiracy to obtain premium financing for the non-existent life insurance, sale to a factoring company of non-existent commissions for the non-existent life insurance through the creation and presentation of false documents, failure to report federal and state indictments and federal conviction, failure to pay state income tax and to comply with a court order directing payment of state income tax, failure to report a FINRA action and incorrect statement on a renewal application.

Sanctions: Revocation, Fine - $11,500, Costs - $687.50

Orders to Show Cause

Nancy R. Ziering and Madison Financial Aid Consultants, LLC, Chatham, NJ
Alan M. Neafach, Atlanta and Smyrna, Georgia
Ameritas Life Insurance Company, Lincoln, NE
Order #E12-102, September 5, 2012

Respondents are charged with the inappropriate and deceptive sale of insurance and annuity products to parents of college-bound students under the guise of college planning and funding services, using misleading and deceptive advertisements, business cards and websites, conducting solicitations without disclosing licensure as an insurance producer, failure to explain the material terms, benefits and detriments of the insurance products being sold, and failing to promptly and adequately respond to consumer complaints.

Consent Orders

Darrin M. Bradley, Brick, NJ
Order #E12-107, September 25, 2012
Respondent failed to fully and completely inform an annuitant of the nature, liquidity and risk attributes of an annuity contract and failed to deliver an annuity contract within ten calendar days of receipt.
Sanction: Fine - $5,000, Costs - $362.50

David L. Ciano, Hawthorne, NY
Order #E12-112, September 28, 2012
Respondent failed to report formal disciplinary actions taken against him by the New Jersey Bureau of Securities and FINRA.
Sanction: Fine - $1,000

Freddy A. Duran and Freddy Duran Agency, LLC, Jersey City, NJ
Order #E12-108, September 25, 2012
Respondents entered false prior auto insurance carrier information on applications for insurance, permitted licensed persons at the agency to enter false prior auto insurance information on applications for insurance and failed to produce documents requested by the Department.
Sanction: Fine - $5,000

Colin S. Griffin and Barnegat Bay Title Insurance Agency Inc., Barnegat, NJ
Order #E12-109, September 25, 2012
Respondents misappropriated settlement proceeds and failed to maintain and produce records. 
Sanction: Revocation

Alvaro S. Kerr, Glen Ridge, NJ
Order #E12-105, September 13, 2012
Respondent signed the name of an insured to a broker of record without the insured’s knowledge and consent and signed names of six other insured on broker of record letters with the consent of those insureds.
Sanction: Fine - $1,750

Steven I. Kolinsky, Upper Saddle River, NJ
Order #E12-113, September 28, 2012
Respondent failed to report formal disciplinary actions taken against him by the New Jersey Bureau of Securities and FINRA and incorrectly responded to a question on his license renewal application.
Sanction: Fine - $1,000  

Reina Morales-Peck, Voorhees, NJ
New Jersey Insurance Specialists, Magnolia, NJ
Order #E12-111, September 28, 2012
Ms. Morales-Peck was convicted of a felony involving dishonesty and breach of trust, failed to obtain a waiver under 18 U.S.C. §1033 (e) and failed to report the filing of formal criminal charges and conviction to the Commissioner.  Respondents committed PAIP deficiencies, submitted dishonored checks and failed to comply with a department subpoena.
Sanctions: Revocation, Fine - $5,000

Severino Stellatella, Toms River, NJ
Order #E12-104, September 7, 2012
Respondent used an advertisement for life insurance that failed to identify the name of the insurer.
Sanction: Fine - $100

Thoga Viswam, Edison, NJ
Order #E12-114, September 28, 2012
Respondent signed the names of two applicants to application related documents without their knowledge or consent and failed to notify the Department of an action taken against him by the Virginia Department of Insurance.
Sanction: Revocation

 
August
 

Final Orders

Caroline Jacquez-Castillo, Bayonne, NJ
Order #E12-99, August, 29, 2012
Respondent failed to respond to an Order to Show Cause charging her with submission of a fraudulent personal injury protection claim, failing to notify the Commissioner of an indictment and failing to abide by the payment terms of a Consent Order.
Sanction: Revocation, Fine - $6,000, Costs - $187.50

Orders to Show Cause

Nancy L. Henry and Ms. Nancy's EZ-Out Bail Bonds, Burlington and Mt. Holly, NJ; Telecia L. Palmer, Jacksonville, NJ
Order #E12-85 August, 3, 2012
Respondents are charged with fraudulently altering the date, principal's name and relationship on an Indemnitor's Personal Information Affidavit, failing to properly supervise the insurance business of an insurance agency and its licensed employees, and failing to respond to a Department subpoena and Department requests for information.

John R. Montague, West Deptford, NJ
Order #E12-89, August 17, 2012
Respondent is charged with misappropriation of premium funds and failure to provide a receipt for premium funds.


Consent Orders

Ace Public Adjusters, Inc. and Anthony J. Hoffman, Philadelphia, PA
Order #E12-98, August 29, 2012
ACE Public Adjusters Inc. settled property insurance claims when ACE did not have a public adjusters license and collected public adjuster fees without executing a written fee memorandum.
Sanction: Fine - $1,000, Refund of Fees - $17,472.96

Lorenza J. Callis, Roselle and Newark, NJ
Order #E12-87, August 17, 2012
Respondent failed to forward premium to an insurer and failed to produce and maintain records of premium payments.
Sanction: Revocation

Sheena Clarke, Englewood, NJ
Order #E12-92, August 24, 2012
Respondent made false and inaccurate claims for insurance benefits to insurance companies on behalf of homeowners she represented as a public adjuster, misappropriated insurance benefit payments, failed to respond to a Department subpoena, refused to cooperate with a Department investigation and failed to notify the Commissioner of an indictment.
Sanction: Revocation, Restitution - $42,200, Fine - $2,500

Horizon Healthcare Services, Inc. and Horizon Healthcare of New Jersey, Inc., Newark, NJ
Order #E12-100, August 30, 2012
Respondents committed various claims processing errors between October 2011 and May 2012.
Sanction: Fine - $100,000

Indecs Corporation, Lyndhurst, NJ 07071
Order #E12-94, August 13, 2012
Respondent continued to employ an individual after her producer license was revoked.
Sanction: Fine - $2,500

Kamran H. Khan, Jamaica, NJ
Order #E12-84, August 3, 2012
Respondent transferred customer signatures to policy delivery receipts, illustrations and amendments without the customers' knowledge or consent.
Sanction: Fine - $5,000

Palais Title Agency, LLC and Wendy P. Canarte, Flanders, NJ
Order #E12-93, August 24, 2012
Respondents issued title insurance commitments when not an authorized agent for the title insurer.
Sanction: Fine - $3,000

Tri State Public Adjusters, Inc., Wildwood Crest, NJ and Joseph L. Digirolamo, Philadelphia, PA
Order #E12-88, August 17, 2012
Respondents allowed a person not licensed as a public adjuster to act as a public adjuster, failed to maintain and produce records, and permitted submission of a revised proof of loss which contained a non-genuine signature of the insured.
Sanction: Fine - $2,500

Jose A. Uribe, Jersey City, NJ and Jose D. Uribe, Union City, NJ
Order #E12-86, August 17, 2012
Respondents were convicted of felonies or crimes of the fourth degree or higher, which crimes constitute unfair trade practices or fraud and reflect adversely on their fitness for licensure, honsety and trsutworthiness.
Sanction: Revocation, Fine - $10,000

Alejandro Valdez, East Brunswick, NJ
Order #E12-91, August 24, 2012
Respondent failed to remit premium to an insurer and issued a certificate of insurance when no coverage was in effect.
Sanction: Fine - $1,500

ValuAmerica, Inc., Pittsburgh, PA
Order #E12-97, August 29, 2012
Respondent failed to timely report administrative actions of other states and incorrectly responded "no" to the question on the license renewal application that asks if the producer has been named or involved in an administrative proceeding.
Sanction: Fine - $500

 
July


Orders to Show Cause

Phillip G. Edwards, East Orange, NJ
Order #E12-83, July 31, 2012
Respondent charged with misappropriation of premium, commingling of premium funds, engaging in the business of insurance while unlicensed, failing to comply with a Department subpoena and failure to maintain records.

Stephen Locrotondo, Bridgewater, NJ
Order #E12-76, July 9, 2012
Respondent charged with conviction of two counts of wire fraud, solicitation of persons to enroll in non-existent group coverage, fraudulent conspiracy to obtain premium financing for the non-existent life insurance, sale to a factoring company of non-existent commissions for the non-existent life insurance through the creation and presentation of false documents, failure to report federal and state indictments and federal conviction, failure to pay state income tax and to comply with a court order directing payment of state income tax, failure to report a FINRA action and incorrect statement on a renewal application.

Jose A. Uribe and Jose D. Uribe, Union City, NJ and Jersey City, NJ
Order #E12-74, July 5, 2012
Respondents charged with conviction of felonies involving insurance fraud, conspiracy to commit insurance fraud and/or theft, commission of fraud, lack of fitness for licensure, honesty and trustworthiness and failure to timely notify the Department of the conviction.

Consent Orders

Kevin K. Burgman, Dayton, NJ
Order #E12-79, July 18, 2012
Respondent entered false prior auto insurance carrier information on nine applications for insurance.
Sanction: Fine - $5,000

Phillip Cannella, King of Prussia, PA
Order #E12-77, July 12, 2012
Respondent sold, solicited or negotiated an insurance policy while his insurance producer license was inactive.
Sanction: Fine- $1,000

Robert J. Connors, Toms River, NJ and Landserv Title Agency, LLC, Howell, NJ
Order #E12-80, July 26, 2012
Respondents failed to maintain oversight of a licensed employee who misappropriated $10,000 in trust funds.
Sanction: Fine- $1,000

Joseph W. Duff, Atco, NJ
Order #E12-81, July 26, 2012
Respondent misappropriated $193,603 in client funds, was convicted of bank larceny as a result thereof and failed to notify the Commissioner of the criminal charges or conviction.
Sanction: Revocation.

Main Street Title and Settlement Services, Hackensack, NJ
Order #E12-75, July 5, 2012
Respondent failed to timely notify the Commissioner of an administrative action by the Virginia Insurance Department and incorrectly indicated on his renewal application that he had not been involved in an administrative proceeding regarding any professional or occupational license.
Sanction: Fine- $1,000

Ronald Richard Spay, Jr., Philadelphia, PA
Order #E12-82, July 26, 2012
Respondent conducted business as a public adjuster while unlicensed, submitted a proof of loss with a non-genuine signature of the insured and failed to maintain and produce client records.
Sanction: Fine- $5,000

Paul D. Willson, Charlotte, NC
Order #E12-78, July 12, 2012
Respondent failed to timely notify the Commissioner of two administrative actions by the New Hampshire Department of Insurance and incorrectly indicated on his renewal application that he had not been involved in an administrative proceeding regarding any professional or occupational license.
Sanction: Fine- $1,000

June

Final Order

Devon R. Clarke, Butner, NC
Order #12-69, June 27, 2012
Respondent failed to answer an Order to Show Cause charging him with signing an application for a New Jersey resident when he was not licensed in New Jersey and did not witness the applicant’s signature, with then altering said application to indicate that it was signed on a later date in North Carolina where he was licensed, without obtaining the applicant’s consent to such alterations, and with submitting the altered application to the insurer.
Sanctions: Revocation, Fine - $15,000 and Costs - $275

Consent Orders

Jason Chang and New Age Underwriters Agency, Inc., Flushing, NY
Order #E12-67, June 20, 2012
Respondents failed to report a fine imposed by the New York Department of Insurance to the Department and improperly indicated on the agency’s license renewal application that it had not been a party in an administrative proceeding.
Sanction: Fine - $250

Paul Gelman, Cherry Hill, NJ
Order #E12-66, June 15, 2012
Respondent, as the designated responsible licensed producer, officer and minority shareholder for an agency, was responsible for the oversight of the agency when the president and majority shareholder of the agency converted $1.3 million from the agency’s escrow account for his personal benefit.
Sanction: Fine - $6,000

John Palmucci and John Palmucci Insurance Agency, Inc., Colonia and Clark, NJ
Order #E12-65, June 14, 2012
Respondents submitted a premium check that was returned as unpaid for insufficient funds and was not replaced for approximately 18 months, failed to remit premium payments for automobile insurance, issued automobile insurance identification cards when no coverage was in effect, obtained premium financing without the applicant’s knowledge or consent, committed multiple violations of NJPAIP rules and pled guilty to Theft by Failure to Make Required Disposition, Third Degree with respect to the failure to transmit premium. 
Sanction: Revocation, Fine - $7,500

Spectrum Insurance Brokerage, Mount Holly, NJ
Order #E12-70, June 25, 2012
Respondent did not timely report a fine levied by the New York Department of Insurance and improperly indicated on its renewal application that it had not been a party in an administrative proceeding.
Sanction: Fine - $1,000

 
May

Orders to Show Cause

Brian M. Campbell, Fairton, NJ
Order #E12-53, May 1, 2012
Respondent charged with being convicted of 33 counts of mail fraud as a result of diverting commissions and fees resulting from his employment as a registered investment advisor, including the sale of variable life insurance, due to his employer to himself and with failing to report his indictment and conviction to the Commissioner.

Weiran Dobrek, Bordentown, NJ
Order #E12-55, May 4, 2012
Respondent charged with providing false information in an insurance application and in statements to an insurance company in regard to a claim.  Respondent also charged with failing to report a Consent Order with the Office of the Insurance Fraud Prosecutor to the Department.

Carolina Jacquez-Castillo, Bayonne, NJ
Order #E12-62, May 29, 2012
Respondent charged with filing a fraudulent claim with an automobile insurance company by stating that she sustained injuries in an accident when she was not a passenger in the vehicle and by altering a police report.  Respondent also charged with failing to report her indictment on charges of insurance fraud and attempted theft by deception to the Department and with failing to comply with the payment terms of a Consent Order with the Department. 

Final Order

Guy Gundy, Ewing, NJ
Order #12-64, May 24, 2012
Respondent failed to return and misappropriated collateral paid for multiple bail bonds, failed to procure bail bonds and misappropriated premium paid for said bonds, failed to notify the Department of criminal charges filed against him and his conviction of said charges, committed forgery and failed to respond to a Department inquiry.
Sanctions: Revocation, Fine - $70,000 and Costs - $650

Consent Orders

AmeriChoice of New Jersey, Inc., Newark, NJ
Order #E12-61, May 29, 2012
Respondent untimely processed certain prior authorization requests and inappropriately denied certain claims as untimely.
Sanction: Fine - $324,000

Salikha Berkovich, Fair Lawn, NJ
Order #E12-58, May 11, 2012
Respondent charged a fee without providing the applicant with a separate written agreement outlining the fee and services to be rendered.
Sanction: Fine - $500

Philip Dipietro, Howell, NJ
Order #E12-54, May 1, 2012
Respondent failed to timely remit funds to the carrier or to deposit said finds in his trust account.
Sanction: Fine - $500

Nancy L. Henry and Ms. Nancy’s E-Z Out Bails, LLC, Mount Holly, NJ
Order #E12-57, May 11, 2012
Respondents transacted business following the expiration of their licenses and prior to license reinstatement.
Sanction: Fine - $500

Elyssa LaBruna, Little Ferry, NJ
Order #E12-56, May 4, 2012
Respondent was convicted of burglary in the third degree.
Sanction: Revocation

Michele Miller and Olde Gotham Title and Settlement, South Toms River, NJ
Order #E12-63, May 29, 2012
Respondents were responsible for the conduct of the unlicensed owner of Olde Gotham, who was convicted of theft by failure to make required disposition of property received and money laundering for diverting $3.8 million in mortgage lender closing proceeds from the Olde Title escrow account to his personal investment account.
Sanction: Revocation

 
April

Orders to Show Cause

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

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

Consent Orders

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

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

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

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

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

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

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

 
March

Final and Miscellaneous Orders

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

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

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

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

Consent Orders

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

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

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

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

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

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

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

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

 
February


Orders to Show Cause

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

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

Consent Orders

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

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

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

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

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

 
January


Orders to Show Cause

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

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

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

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

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

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

Consent Orders

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

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

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

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

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

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

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

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

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

 

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