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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.
 
April


Final Order

Francis X. Gartland, Baltimore, MD and Fort Dix, NJ, Federal Risk Management LLC, Fort Dix, NJ and Gartland & Company of New Jersey LLC, Fort Dix, NJ
Order #E15-33, April 8, 2015
Respondents failed to respond to an Order to Show Cause charging them with conviction of mail fraud by paying bribes and kickbacks of at least $3,360,000 to the Toms River Superintendent in return for the school district’s insurance business, with conviction of conspiracy to violate the federal election campaign laws through the use of straw donors, with conviction of theft by deception by accepting $216,495 from Perth Amboy for insurance coverage and services that were not provided, with conviction of financial facilitation of criminal activity by charging $2,593,400 in fees to the Perth Amboy Board of Education for non-existent healthcare services, with forging the signature of the President of the Perth Amboy Board of Education, and with failing to notify the Department of the various indictments and convictions.
Sanctions: Revocation, Fine - $275,000 and Costs - $137.50

Order to Show Cause

Catarina Young and Elite Benefits Corp., Metuchen, NJ
Order #E15-44, April 28, 2015
Respondent is charged with enrolling her parents in a multiple employer health plan when they were not eligible for such coverage and misappropriating $462,341.78 from the multiple employer health plan.

Amended Order to Show Cause

Carle D’Angelo, Elizabeth, NJ and Veronica Villa, Elizabeth, NJ
Order #E15-31, April 8, 2015
Respondents are charged with submitting a backdated application for homeowners insurance following a burglary without revealing the burglary on the application in order to obtain coverage for the stolen items, with lying to the insurer about the reason for requesting the backdating, with lying to the insurer as to who resided in the home, and with lying to the Department in the course of its investigation.  Mr. DeAngelo is also charged with stealing $13,956 in premium.  

Consent Orders

Assurance Medical Billing, LLC, Holmdel, NJ
Order #E15-41, April 23, 2015
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000


Colonial Remodeling
, Fairfax, VA
Order #E15-42, April 28, 2015
Respondent is not licensed as a public adjuster and advertised that it worked with insurance companies to obtain claim recovery, is an insurance recovery expert and works directly with insurance companies in restoring and repairing homes.
Sanction: Fine - $1,000


Justin Diaczuk, Philadelphia, PA
Order #E15-35, April 8, 2015
Respondent failed to report to the Department and to disclose on his producer license application that he was banned from telemarketing and from selling any type of credit card product or service and ordered to pay $7,552,473 in restitution by the Federal Trade Commission and failed to notify the Department that he was convicted of conspiracy to commit mail fraud, mail fraud and aiding and abetting mail fraud.
Sanction: Revocation


Marsh & McLennan Agency LLC, New York, NY and Charles Pessagno, Mount Laurel, NJ
Order #E15-39, April 20, 2015
Respondents gave gifts of sporting event, concert and golf tournament tickets worth in excess of $25 to persons employed by in-force policyholders.
Sanction: Fine imposed on Marsh - $50,000, Fine imposed on Pessagno - $100,000


Natalie Mera, Weehawken, NJ
Order #E15-40, April 23, 2015
Respondent applied for insurance coverage for an employer without the employer’s knowledge or consent, forged the employer signature on the application, enrolled individuals who were not employees, falsely indicated on the enrollment forms that the individuals were employees, provided false information to an investigator of the insurance company and failed to notify the Department of her indictment for forgery.
Sanctions: Revocation, Producer Act Fine - $5,000, Fraud Act Fine - $5,000, Fraud Surcharge - $250, Costs - $1,000 and Attorneys’ Fees - $1,000


Meredith Miller, Brick, NJ, and Spectrum Title Agency, LLC, Brick, NJ
Order #E15-34, April 8, 2015
Respondents engaged in multiple instances of escrow theft.
Sanction: Revocation, Fine - $5,000


Alan Neafach, Smyra, GA
Order #E15-38, April 17, 2015
Respondent failed to properly supervise a producer who sold insurance policies to parents of college-bound high students as college funding vehicles which were not suitable for that purpose.
Sanction: Revocation, Fine - $20,000


Precision Medical Information Systems, LLC, Wantage, NJ
Order #E15-32, April 8, 2015
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000


Romarke Insurance Brokerage LLC, Kelly Bolton, Robert Miller, Hyannis, MA
Order #E15-43, April 28, 2015
Respondents placed a risk in the surplus lines market when they did not have surplus lines authority and with respect to Ms. Bolton, when she was not licensed as a producer in New Jersey.
Sanction: Fine - $7,500
 
March


Orders to Show Cause

Michael Burt, Brick, NJ, Lawrence Chrebet, Matawan, NJ and Metro Public Adjustment Inc., Bensalem, PA
Order #E15-26, March 12, 2015
Respondents are charged with asking a plumber to write a false cause of water damage on an invoice, with offering the plumber $50 if he would falsely state the cause of the water damage when contacted by the insurance company, and with including the false invoice in an estimate submitted to an insurance company.


Metro Public Adjustment Inc.
, Bensalem, PA, Harold Wells, Bensalem, PA, Steven McCaffrey, Bensalem, PA, and Arnold Grodzinski, Bensalem, PA
Order #E15-25, March 12, 2015
Respondents are charged with using a public adjuster contract that did not contain required terms, with failing to provide insureds with a detailed written summary of the work performed or a copy of their estimate of damages, with charging fees that were not reasonably related to services, and with suing insureds for fees after advising the Department that the fees were waived.

Consent Orders

Ameritas Life Insurance Corp, Lincoln, NE
Order #E15-23, March 9, 2015
Respondent was charged with having agents that sold its products in an unfair, deceptive, misleading and/or fraudulent manner. Respondent did not admit the charges, but agreed to remediate in settlement of the charges against the insurer.
Sanction: Offer of penalty-free rescission to active, lapsed and surrendered policyholders, up to $2,524,290.12


John Anderson, Red Bank, NJ
Order #E15-28, March 18, 2015
Respondent sold two Medicare supplement health insurance policies when his license was expired and failed to respond to Department inquiries.
Sanction: Fine - $3,000


Comprehensive Healthcare Solutions, LLC, Lakewood, NJ
Order #E15-22, March 3, 2015
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000

Otterstedt Insurance Agency, Inc., Englewood Cliffs, NJ
Order #E15-27, March 18, 2015
Respondent employed a producer whose license was suspended.
Sanction: Fine - $5,000

Lisa Vito, Point Pleasant, NJ
Order #E15-24, March 11, 2015
Respondent failed to timely remit premium and timely return unearned insurance premium.
Sanction: Fine - $5,000

 
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

 
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