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Home > Insurance Division > 2015 Division of Insurance Enforcement Activity
2015 Division of Insurance Enforcement Activity

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


Order to Show Cause

Steven Suib, Chester Springs, Pennsylvania
Order #E15-19, February 25, 2015
Respondent is charged with completing a suitability form for an applicant and misrepresenting her financial information on the form, transacting business under a name that is not registered or approved, and with failing to report to the Commissioner a fine levied by another state.

Amended Order to Show Cause

Lisa Mohen, Brian Mohen and Arden Financial Services, Inc., Spring Lake, NJ
Order #E15-14, February 6, 2015
Respondents are charged with unlawfully withdrawing premium funds held in a trust account, commingling premium and non-premium funds and using the commingled funds to pay personal expenses, with premium defalcation, conversion and misappropriation, with failure to timely remit premium totaling $772,782.22, with bouncing a check to an insurer for premium, with acting as a producer without a license and with conviction of misapplication of entrusted property and failure to file tax returns.


Consent Orders

Arthur Bernaducci, Brick, NJ
Order #E15-18, February 25, 2015
Respondent transacted business using a business name that was not filed with or approved by the Department.
Sanction: Fine - $2,500

David Chapman,
Holmdel, NJ
Order #E15-15, February 10, 2015
Respondent applied for reinstatement of an automobile policy that had lapsed for a policyholder he through was displaced by Superstorm Sandy by signing the policyholder’s name to the reinstatement application and submitting a no loss letter when the policyholder was deceased.
Sanction: Fine - $7,500

Alexander Huaman,
Elizabeth, NJ
Order #E15-16, February 13, 2015
Respondent allowed a person other than the applicant to complete and sign a Medicare Advantage application form, misrepresented to the Department that the applicant did complete and sign the application and failed to respond to Department inquiries.
Sanction: Fine - $10,000

 
January


Final Orders

Weiran Dobrek and Thomas Dobrek, Bordentown, NJ
Order #E15-09, January 15, 2015
Wieran Dobrek, a licensed producer, falsely stated on her automobile insurance application that she was single and lived alone, falsely stated to her automobile insurance company that she was driving the insured vehicle at the time of the accident when her husband, Thomas, was the driver, and failed to report to the Department a consent order she entered into with the Office of Insurance Fraud Prosecutor.  Thomas Dobrek misrepresented himself as Weiran Dobrek when speaking with the automobile insurance company and conspired with Weiran Dobrek to provide false information to an automobile insurance carrier in support of a claim.
Sanctions:    
Weiran Dobrek - Revocation, Fine (Producer Act Violations) - $7,500, and Costs - $675;
Thomas Dobrek – Fine (Fraud Act Violations) - $5,000, Fraud Surcharge - $1,000 and Attorneys’ Fees - $3,623.50

Orders to Show Cause

Solomon Weinstein and American Agency Services Inc., Pennsauken, NJ
Order #E15-11, January 20, 2015
Respondents are charged with signing and submitting an automobile insurance application that did not identify all drivers, did not accurately list the garage location for one of the vehicles, and falsely indicated that none of the vehicles were kept at school.

Consent Orders

Bell Consulting, LLC, Monroe Township, NJ
Order #E15-05, January 6, 2015
Respondent acted as a third party billing service prior to being certified by the Commissioner.
Sanction: Fine - $1,000

Kellar Covington Jr., Brooklyn, NY and Kellar Tax Services, Hillside, NJ
Order #E15-06, January 9, 2015
Respondents were convicted of tax fraud based on their willful assistance in the preparation of a false income tax return and failed to advise the Commissioner of the criminal charges and conviction.
Sanction: Revocation

Michael Gavlick and Sunshine Adjustment, Palm Harbor, FL
Order #E15-03, January 6, 2015
Respondent Sunshine Adjustment entered into 207 public adjuster contracts when it was not licensed as a public adjuster in New Jersey although Respondent Gavlick was licensed.
Sanction: Fine - $2,500

Lauren Guastella, Bridgewater, NJ
Order #E15-02, January 6, 2015
Respondent forged the name of one insured on a policy delivery receipt, forged the names of two other insured on life insurance application and replacement forms and failed to respond to Department inquiries.
Sanction: Revocation

Thomas O’Leary, Morgantown, WV
Order #E15-04, January 6, 2015
Respondent was convicted of conspiracy to defraud the Federal Election Committee, admitted bribing government officials by donating to their political campaigns to maintain insurance contracts sold to the City of Perth Amboy and the Perth Amboy Board of Education, failed to notify the Department of his indictment and conviction, and was also convicted of federal tax evasion by concealing income he was paid for selling insurance business to the City of Perth Amboy.
Sanctions – Revocation, Fine - $5,000

Patriot Land Transfer, LLC,
Turnersville, NJ
Order #E15-08, January 13, 2015
Respondent opened a branch office using a business name that was not registered with and approved by the Commissioner.
Sanction: Fine -$1,000

Rider Insurance Company, Springfield, NJ
Order #E15-07, January 13, 2015
Respondent reclassified motorcycle types from regular to sport without filing the requisite change to its rating system, on at least three occasions filed and obtained the Department’s approval of changes that affected a schedule, class, classification, rule, guide, standard, manual, table, rating plan and/or compilation that would have decreased rates or provided additional benefits for some insureds and the company failed to implement said changes, and implemented a transfer discount revision without filing the requisite change to its rating system.  
Sanction: Fine - $50,000, Restitution - $52,700

Suburban General Insurance Agency, Paramus, NJ
Order #E15-13, January 28, 2015
Respondent entered into fee agreements which did not comply with N.J.A.C. 11:17B-3.1.
Sanction: Fine - $2,500

Mark Trudel, Downington, PA and GMI NA Inc., Phoenixville, PA
Order #E15-01, January 6, 2015
Respondents failed to notify an insured or its broker that a vehicle had been determined by the insurer to be ineligible for coverage and had been deleted from the policy and accepted business from an unauthorized broker.
Sanctions: Fine - $5,000, Restitution - $7,731

 
Previous Years
 
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