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2014 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.
 
June


Orders to Show Cause

Myrna Daugherty, Millstone Township, NJ
Order #E14-68, June 12, 2014
Respondent is charged with soliciting and submitting an application for insurance while she was not licensed as an insurance producer and with failing to respond to Department inquiries.

Francis Gallagher, Union, NJ and Gallagher Financial Services Corp., Springfield, NJ
Order #E14-76, June 30, 2014
Respondents are charged with failing to timely remit premium to an insurer, failing to timely return unearned premium to an insured and failing to maintain a trust account.

Order to Show Cause Seeking Immediate Suspension

Susan Caines, East Orange, NJ
Order #E14-66, June 2, 2014
Respondent is charged with being convicted of a felony involving dishonesty and/or breach of trust while engaging in the business of insurance and with failing to disclose the conviction on her license renewal application.

Order Suspending License Pending Completion of Administrative Proceedings

Susan Caines, East Orange, NJ
Order #E14-69, June 16, 2014
Respondent’s producer license is immediately suspended pending completion of administrative proceedings and entry of a Final Order based on her conviction of a felony involving dishonesty and/or breach of trust while engaging in the business of insurance without obtaining a written waiver from the Commissioner.

Consent Orders

Gregory Angelillo, Wayne, NJ
Order #E14-67, June 4, 2014
Respondent fraudulently completed, signed and submitted a variable annuity application without the applicant’s knowledge or consent and failed to notify the Department of the revocation of his producer license by New York.
Sanction: Revocation

Douglas Dign, Villas, NJ and FP Concepts, Villas, NJ
Order #E14-75, June 30, 2014
Respondents placed eight advertisements that failed to identify the insurer and solicited business on behalf of an unlicensed entity and failed to respond to a Department inquiry.
Sanction: Fine - $4,000 and Costs - $125

Maria Haro, Jersey City, NJ
Order #E14-72, June 24, 2014
Respondent entered false prior auto insurance carrier information on a minimum of 19 applications for insurance, assisted other employees in entering false prior insurance carrier information on applications for insurance and failed to timely notify the Department of a change in business address.
Sanction: Fine - $5,000

LTC Consulting Services, LLC, Howell, NJ
Order #E14-74, June 27, 2014
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000

 
May


Final Orders

Ralph A. Saviano, Fort Dix, NJ
Order #E14-60, May 21, 2014
Respondent failed to respond to an Order to Show Cause charging him with conviction of wire fraud and failure to notify the Commissioner of his indictment, the filing of criminal charges against him, his conviction and the disposition of FINRA proceedings against him.
Sanctions: Revocation, Fine - $5,000 and Costs - $175

Orders to Show Cause

Susan Caines, East Orange, NJ, Vincent Scaturro, Lodi, NJ and Luigi Sacco, Fair Lawn, NJ
Order #E14-57, May 21, 2014
Respondents are charged with fraudulently surrendering multiple in force life insurance policies, forging policyholder signatures on disbursement request forms and cash surrender checks, criminal conviction of insurance fraud and theft by deception, misappropriating insurance proceeds, failing to report criminal charges and convictions, lying on the producer license renewal application, and working as an insurance producer without obtaining the written consent of the Commissioner.


Brian P. Carr,
Chatham, NJ
Order #E14-56, May 9, 2014
Respondent is charged with having his registration with the New Jersey Bureau of Securities revoked for fraudulent acts, including selling unregistered promissory notes, making misrepresentations and material omissions to investors, failing to provide offering materials or disclosures and misappropriation of investor funds, and with failing to report the revocation and a final judgment against him to the Commissioner.

David Dallmer and David Dallmer Public Adjusters, LLC, Lumberton, NJ
Order #E14-61, May 21, 2014
Respondent David Dallmer Public Adjusters, LLC is charged with acting as a public adjuster without a license and with misrepresenting its license status, both respondents are charged with multiple instances of misappropriation of insurance proceeds for failing to turn over insurance proceeds to insureds and with depositing insurance funds into an account other than an interest bearing escrow account.

Carle A. D’Angelo, Elizabeth, NJ and Veronica Villa, Elizabeth, NJ
Order #E14-65, May 28, 2014
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.

Kelly A. Dicapua, Jackson and Ocean, NJ, Stacy A. Trautweiler, Harleysville, PA and Associates Title, LLC, Toms River, NJ
Order #E14-58, May 21, 2014
Respondents are charged with theft of escrow funds in multiple cases by failing to pay property taxes following a closing, failing to pay recording fees for the deed and mortgage in another closing and failing to pay a federal tax lien in another closing, with failing to remit premium to NJ Title for at least fifty title insurance policies , with failing to submit required monthly reports to NJ Title and with failing to respond to Department inquiries.

Douglas A. Dign, Villas, NJ and FP Concepts, Villas, NJ
Order #E14-55, May 9, 2014
Respondents are charged with placing eight advertisements for insurance products that did not identify the insurance company and that contained the name of an unlicensed business entity and with failing to respond to Department inquiries.

Robert Hagaman, Toms River, NJ, Jovani Morales, Orlando, FL, Hagaman Financial Group, Toms River, NJ, Hagaman Insurance Group, Toms River, NJ and The Medicare Insurance Store, LLC, Toms River, NJ
Order #E14-54, May 5, 2014
Respondent Hagaman and Hagaman Insurance Group are charged with forging a client’s name on a consumer disclosure form, with failing to remit and misappropriating client funds that were supposed to be used to purchase annuities on several occasions and for multiple clients, with sending said clients forged documents on insurance company letterhead allegedly confirming the purchase of or additions to the nonexistent annuities, with sending clients who were the victims of the misappropriation forged certificates and certificate specifications, with failing to timely remit premium and with depositing premium into accounts that were not premium trust accounts.  Respondents Hagaman, Morales and The Medicare Store are charged with selling a Medicare Advantage plan for a company following that company’s termination of Hagaman for cause, with misstating to the applicants that if they purchased a Medicare Advantage plan they could use original Medicare for any out of network doctor, and with forging the applicants’ signatures on the Medicare Advantage enrollment applications.    

Consent Orders

Walid Ahmed Maghrabi, Springfield, NJ
Order #E14-63, May 28, 2014
Respondent improperly applied policy premium discounts on eight automobile insurance policies in order to lower premiums.
Sanction: Fine - $1,600

Maryann Mahon, Fords, NJ and Marsh & McLennan Agency, LLC, Somerset, NJ
Order #E14-59, May 21, 2014
Respondent repeatedly misrepresented the employee census data to an insurer as to actual number of employees working outside of New Jersey.
Sanction: Fine - $15,000

Gary Poller, Paramus, NJ and Gary’s Insurance Agency, LLC, Linden, NJ
Order #E14-62, May 21, 2014
Respondents charged various insureds improper and/or excessive fees, including fees for completing claim forms, fees to provide forms required by an insurer servicing a policy, fees for services not actually performed and fees for using credit cards, utilized improper service fee and motor club agreements, issued non-itemized receipts and failed to maintain proper books and records.
Sanction: Fine - $50,000

RHM Benefits Inc., Hackettstown, NJ
Order #E14-53, May 5, 2014
Respondent permitted an unlicensed entity to conduct insurance business and procured a self-funded prescription drug plan instead of an insured prescription drug plan as requested by the applicant.
Sanction: Fine - $7,500

 
April


Orders to Show Cause

Mark A. Andreotti, Wyckoff and Rutherford, NJ and Metropolitan Title and Abstract, LLC, Rutherford, NJ
Order #E14-41, April 10, 2014
Respondents are charged with improperly withholding, misappropriating and converting escrow funds belonging to insureds, failing to abide by the terms of their agency agreement with an insurer, and failing to respond to a Department inquiry.


Miriam Charles,
West Orange, NJ
Order #E14-44, April 10, 2014
Respondent is charged with improperly withholding, misappropriating and converting monies received as premium, failing to notify the Department of formal criminal charges filed against her, and failing to respond to a Department inquiry.


Stephen E. Hill,
Upper Saddle River, NJ
Order #E14-36, April 7, 2014
Respondent is charged with misrepresenting his education background to investors, defrauding investors by paying less than the guaranteed return on an investment, by procuring a promissory note that provided no benefit to investors and by making an unauthorized transfer from an investor’s account, and with failing to report to the Department action taken against him by the New Jersey Bureau of Securities and by FINRA.

Meredith A. Miller, Brick, NJ, RMJ Title Agency, Freehold, NJ and Spectrum Title Agency, LLC, Brick, NJ
Order #E14-51, April 23, 2014
Respondents are charged with improperly withholding, misappropriating and converting escrow funds belonging to insureds or property owners and with knowingly facilitating or assisting another person in misappropriating escrow funds.

Lisa A. Mohen, Spring Lake, NJ, Brian Mohen, Spring Lake, NJ and Arden Financial Services, Inc., Spring Lake, NJ
Order #E14-47, April 16, 2014
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, 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.

John Savadjian, Old Tappan, NJ
Order #14-46, April 10, 2014
Respondent is charged with improperly transferring orphaned accounts to his book of business by fraudulently reusing a fax cover letter, without the knowledge or consent of the policyholders or the insurer, and with forging policyholder signatures on forms.

James V. Struss, Melville, NY, Philip Eneo Teseo, Melville, NY and PJP Health Agency Inc., Melville, NY
Order #14-38, April 7, 2014
Respondents are charged with violating an Order of the Commissioner by failing to provide restitution to New Jersey residents who were charged improper fees.


Amended Order to Show Cause

Karl V. Brown, Elizabeth, NJ and Guaranteed Bail Bonds, Elizabeth, NJ
Order #E14-48, April 16, 2014
Respondents are charged with failing to return collateral on a bail bond, with forging an insured’s name on a check from the surety company for the return of collateral, with improperly cashing said check and retaining the proceeds, with failure to respond to a Department inquiry, with improperly withholding, misappropriating and converting bond premiums, with failing to abide by the terms of an agency agreement, and respondent Karl Brown is charged with failing to notify the Department of an indictment and criminal conviction.

Conditional Order Revoking License

Prism Health Networks New Jersey, LLC, West Seneca, NY
Order #E14-45, April 10, 2104
Respondent’s license as an organized delivery system is revoked subject to retroactive reinstatement provided it files its 2013 annual report and pays a fine of $4,000 within 30 days.


Consent Orders

Benistar Admin Services Inc., Norwalk, CT
Order #E14-42, April 10, 2014
Respondent sold, solicited or negotiated insurance when not licensed as an insurance producer.
Sanction: Fine - $40,000


CIGNA Health and Life Insurance Company, Bloomfield, CT and Connecticut General Life Insurance Company, Bloomfield, CT
Order #E14-52, April 23, 2014
Respondents incorrectly processed claims for emergency services rendered by out-of-network providers and claims for services rendered by out-of-network providers during hospitalization at network hospitals.
Sanction: Fine - $500,000

Lisa Ann Costello, Franklin Lakes, NJ, Anthony Costello, Franklin Lakes, NJ and Costello & Associates Insurance Group, Inc., Lodi, NJ
Order #E14-40, April 10, 2014
Respondents permitted Costello & Associates Insurance Group, Inc. to employ Anthony Costello even though his producer’s license was revoked since January 20, 2005 and utilized the name Anthony M. Costello, Sr. in advertising and display.  Respondent Costello & Associates failed to fully respond to Department inquiries.
Sanction: Fine - $150,000

Main Street Power Mail, Sheridan, IN
Order #E14-37, April 7, 2014
Respondent solicited for insurance while unlicensed and sent misleading and deceptive solicitations.
Sanction: Fine - $10,000

Waldemar Skowronski, Upper Saddle River, NJ and AW Warta Insurance Agency Inc., Clifton, NJ
Order #E14-39, April 7, 2014
Respondents failed to respond to Department inquiries.
Sanction: Fine - $1,000


Dennis P. Sweenor, Queensboro, NY
Order #E14-50, April 23, 2014
Respondent failed to report an administrative action taken against him by the New York Insurance Department and improperly indicated on his license renewal application that he not been involved in an administrative proceeding in another state.
Sanctions: Fine - $1,000

Jose Taveras, Perth Amboy, NJ and Speedy Bail Bonds, LLC, Hopelawn, NJ
Order #E14-49, April 23, 2014
Respondents issued six checks to municipal courts to satisfy bail judgments that were returned for insufficient funds and failed to establish a trust account for insurance premiums.
Sanction: Fine - $10,000

Simone L. Ur, Old Bridge, NJ
Order #E14-43, April 10, 2014
Respondent improperly enrolled herself and her family members in health and prescription plans for which they were not eligible and without paying any premium or cost for the coverage and failed to notify the Department of her indictment and conviction.
Sanction – Fine - $2,500

 
March

Final Orders

Louis A. Capazzi, Jr., Harrington Park, NJ and East Coast Title Services, Inc., Oradell, NJ
Order #E14-35, March 31, 2014
Respondents failed to respond to an Order to Show Cause charging them with failing to abide by the terms of their agency agreement with NJ Title, commingling premium funds and failing to hold premium funds in a fiduciary capacity, failing to abide by a repayment agreement with NJ Title, misappropriation of premium on120 title insurance policies, failing to timely issue and deliver title insurance policies to 65 insureds, and with failing to respond to a Department subpoena.
Sanctions: Revocation, Fine - $1,885,000 and Restitution - $50,547.50

Alvaro S. Kerr
and ALCO Financial Group LLC, Glen Ridge, NJ
Order #E14-32, March 14, 2014
Respondents failed to respond to an Order to Show Cause charging them with failing to pay a fine levied pursuant to a 2012 consent  order and failing to respond to Department inquiries.
Sanctions: Revocation, Fine - $10,000 and Costs - $150

Amended Order to Show Cause

Asma Norris, Chester, NJ
Order #E14-33, March 19, 2014
Respondent is charged with multiple instances of misrepresenting the nature and scope of policies and annuities sold to clients by, inter alia, stating that an annuity was like a certificate of deposit and funds could be accessed without penalty, of failing to conduct a comprehensive policy review on delivery of the policy, of misrepresenting to a client that purchase of an annuity would assist in qualifying for a government program, of forging client signatures, and of misrepresenting and/or falsifying information on application forms and annuity suitability questionnaire.

Consent Orders

America’s Recommended Mailers, Inc., Lewisville, TX
Order #E14-31, March 14, 2014
Respondent mailed deceptive insurance solicitations to New Jersey residents that referred to “New 2013 Benefit Update For New Jersey Citizens only” and a “New state regulated life insurance program” when there was no such program and no 2013 Benefit Update.
Sanction: Fine - $2,000

Juan E. Cabrera, Yorktown Heights, NY
Order #E14-30, March 16, 2014
Respondent Failed to disclose on his license application that his license had been revoked in Connecticut, conducted business in New Jersey under names that were not licensed or registered, deposited a premium payment in an account that was not a trust account and failed to remit a premium payment.
Sanction: Revocation

Karl M. Friedman and Friedman Benefits Group, Inc., Cherry Hill, NJ
Order #E14-27, March 4, 2014
Respondents submitted two applications for Medicare Advantage when not appointed by the carrier to sell that product and, when the applications were rejected by the carrier, altered the applications by whiting out his name and having another producer sign as the writing agent.
Sanction: Fine - $1,500

Horizon Healthcare Services, Inc. and Horizon Healthcare of New Jersey, Inc., Newark, NJ
Order #E14-34, March 31, 2014
Respondents experienced difficulties in access to the utilization management telephone line and delays in processing prior authorization requests.
Sanction: Fine - $750,000

Anne Miller Wolf and Miller Wolf Financial, LLC, Mt. Laurel, NJ
Order #E14-28, March 4, 2014
Respondents submitted two applications to a carrier that falsely represented that they were the writing agent when another agent had completed and singed the applications.
Sanctions: Fine - $1,500

 
February

Final Orders

Jennifer L. Battiloro, Westfield, NJ
Order #E14-23, February 20, 2014
Respondent submitted an agent/broker of record change form with a forged signature of the insured without the insured’s knowledge or consent and failed to respond to a Department inquiry.
Sanctions: Revocation, Fine - $7,500 and Costs - $250


Michael P. Ippolito,
South Hadley, MA and The Benefit Partnership, Inc., Springfield, MA
Order #E14-19, February 11, 2014
Respondents submitted four applications for voluntary life insurance which falsely represented that the applicants were employees and were eligible for voluntary benefits.  Ippolito failed to notify the Commissioner that his producer license was revoked in fourteen states.
Sanctions: Revocation, Fine Payable by both Respondents- $35,000, Fine Payable by Ippolito - $10,000 and Costs - $400

Order to Show Cause

Ralph A. Saviano, Fort Dix, NJ
Order #E14-14, February 6, 2014
Respondent is charged with conviction of wire fraud, failing to notify the Commissioner of his indictment, the filing of criminal charges against him, his conviction and the disposition of FINRA proceedings against him.

Shawn Wilson, Bridgeton and Galloway, NJ, Ernest Williams, Perth Amboy, NJ and 4 Brothers Bail Bondsman, Perth Amboy, NJ
Order #E14-24, February 20, 2014
Respondents are charged with failing to return a bail bond premium when bail was not posted and with issuing a check for the return of the bail bond premium which was returned for insufficient funds.

Orders Suspending License Pending Administrative Proceedings

Ralph A. Saviano, Fort Dix, NJ
Order #E14-15, February 6, 2014
Respondent’s license is suspended pending completion of administrative proceedings to revoke his license based on, among other things, conviction of wire fraud.

Consent Orders

Frederick P. Grippo, Old Bridge, NJ
Order #E14-21, February 11, 2014
Respondent was convicted of theft by deception due to his involvement in a scheme to defraud mortgage lenders by creating mortgage loan applications and financial statements that contained false and misleading information about the purported borrowers and failed to notify the Commissioner of his conviction.
Sanction: Revocation

James T. Leonard, Garwood, NJ
Order #E14-22, February 11, 2014
Respondent created and presented a fraudulent automobile insurance identification card to a law enforcement officer, failed to notify the Department of his arrest for simulation of a motor vehicle insurance identity card and exhibiting a falsely made and simulated motor vehicle insurance identity care to a law enforcement officer, submitted a back dated application for automobile insurance, and failed to make child support payments.
Sanction: Suspension – Three years, Fine: $5,000, Insurance Fraud Surcharge - $75 and Costs - $450.

John Mesko, Avon by the Sea, NJ
Order #E14-25, February 24, 2014
Respondent circulated misleading public adjuster solicitations that contained inaccurate information relating to victims of Superstorm Sandy and other losses.
Sanction: Fine - $2,000

Allen H. Smith, Jr., West Orange, NJ
Order #E14-20, February 11, 2014
Respondent presented an incomplete and misleading comparison between a client’s current insured health benefits plan and a self-insured health benefits plan.
Sanction: Fine - $500

Beverly Stewart, New York, NY
Order #E14-18, February 6, 2014
Respondent created a false document indicating that a fictitious applicant for an insurance policy had $10 million in assets, which document was used in support of his application for life insurance.  Respondent signed the document using a false name and improperly indicated that she was a financial planner and accountant.
Sanctions: Revocation, Fine - $5,000, Insurance Fraud Surcharge - $125, Attorneys’ Fees - $400.

John Stramiello, Fairlawn, NJ
Order #E14-16, February 6, 2014
Respondent presented an incomplete and misleading comparison between a client’s current insured health benefits plan and a self-insured health benefits plan.
Sanction: Fine - $500

Mark N. Trudel, GMI NA Inc., and Norman Insurance Agency LLC, Phoenixville, PA
Order #E14-17, February 6, 2014
Respondents failed to procure the commercial automobile insurance coverage requested by an applicant, failed to witness the signature of the applicant on the application, made misleading statements in their advertisements, respondents GMI and Trudel failed to accurately respond to a Department inquiry and respondent Norman transacted the business of insurance without a producer license.
Sanction: Fine - $10,000

 
January


Final Orders

Daniel McCorry, Brick, NJ, Marlboro, NJ and Toms River, NJ
Order #E14-10, January 28, 2014
Respondent induced at least 30 individuals to surrender annuity contracts and purchase promissory notes without the requisite due diligence or knowledge, misrepresented said notes as “secured” investments when they were not, failed to notify the Department of a judgment against him obtained by the NJ Bureau of Securities and failed to respond to a Department subpoena.
Sanctions: Revocation, Fine - $335,000 and Costs - $212.50

Orders Suspending License Pending Administrative Proceedings

Andrea L. Tuite, Freehold, NJ
Order #E13-135, December 20, 2013
Respondent’s license is suspended pending completion of administrative proceedings to revoke her license based on, among other things, conviction of fourth degree forgery.

Consent Orders

ACSIA Long Term Care, Inc., Medford, OR
Order #E14-08, January 10, 2014
Respondent disseminated a solicitation for long term care insurance that suggested that the information originated for a state government agency.
Sanction: Fine - $2,000

Angelo Agresti, Newton NJ
Order #E14-12, January 28, 2014
Respondent prepared and submitted inaccurate loss run reports to commercial automobile insurance carriers.
Sanction: Fine - $5,000, Fraud surcharge: $125

Robert S. Bland, Darien, IL and Life Quotes, Inc., Darien, IL
Order #E14-09, January 10, 2014
Respondents disseminated advertisements that failed to clearly identify the name of the insurer and offered an improper inducement to purchase insurance.
Sanction: Fine - $10,000

Harmony Anne Centrello, Saddle Brook, NJ and James R. Centrello, Saddle Brook, NJ
Order #E14-11, January 28, 2014
Respondent James Centrello solicited and completed 15 applications for an insurance company with whom he was not appointed and respondent Harmony Anne Centrello signed the applications even though she did not witness the applicant’s signature or participate in the solicitation of the applications.
Sanction: Fine - $3,750

Michael W. Keleher, Warren, NJ
Order #E14-01, January 6, 2014
Respondent fraudulently induced individuals to surrender and replace existing annuities, executed unauthorized securities transactions in clients’ accounts, opened brokerage accounts for clients without the clients’ consent, withdrew funds from an annuity without the client’s consent, and surrendered and replaced an annuity without client consent.
Sanctions: Revocation, Fine - $10,000 and Costs - $525

League Nation LLC d/b/s/ Lead Nation Media, San Marino, CA
Order #E14-05, January 8, 2014
Respondent disseminated deceptive and/or misleading advertisements for insurance.
Sanction: Fine - $500

Juan V. Papadopulos, Paterson, NJ and Exclusive Financial Services, Inc., Paterson, NJ
Order #E14-06, January 8, 2014
Respondents issued an invalid insurance binder representing coverage for an additional vehicle without having collected the required premium deposit or the required proofs of the vehicle’s purchase.
Sanction: Fine - $1,000

National Western Life Insurance Co., Austin, TX
Order #E14-03, January 6, 2014
Respondent’s agent made misrepresentations in the sale of respondent’s annuity products to New Jersey residents.
Sanctions: Fine - $250,000 and Restitution – Up to $2,723,656

 

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