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2016 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.
 
November


Final Order


Abraham Lastra, Elizabeth, NJ
Hotline Bail Bonds, Elizabeth, NJ
Order #E16-112, November 22, 2016
Respondents failed to respond to an order to show cause charging them with failing to return collateral following discharge of a bail bond.
Sanction: Revocation, Fine - $5,000, Costs - $2,275 and Restitution - $20,000

Order to Show Cause

Angela Baldwin, West Orange, NJ
The Baldwin Agency, West Orange, NJ
Marc Berg, Wantagh, NY
Pinkham Agency, Hicksville, NY
BFA of New York, Inc., Hicksville, NY
Order #E16-105, November 1, 2016
Respondents are charged with conducting insurance business prior to being licensed, with charging service fees without obtaining a written and signed fee agreement, with failing to maintain a trust account, with failure to issue compliant premium receipts and with failing to use fee agreements with required terms and conditions.

Sarah Somsky, Lodi, NJ
SKAL & Comp, LLC, Lodi, NJ
Order #E16-111, November 22, 2016
Respondents are charged with failing to timely remit a premium refund to an insured and with failing to timely pay off a premium loan after cancellation of the policy and receipt of the return premium.

Consent Orders

Angel Acevedocarrero, South Plainfield, NJ
Order #E16-110, November 22, 2016
Respondent signed and submitted enrollment applications that were solicited by a producer who was not appointed by the insurance company.
Sanction – Fine $7,500

Ryan Cataldo, Tinton Falls, NJ and Jupiter, FL
Order #E16-106, November 2, 2016
Respondent provided false income and net worth information on insurance applications and failed to disclose on an application that the applicant had an existing insurance policy.
Sanction: Revocation, Fine - $2,750

Lily Lam, Glen Rock, NJ
Order #E16-108, November 15, 2016
Respondent submitted a product comparison form signed by an applicant in connection with a previous insurance application as a properly executed product comparison form with a subsequent and additional insurance application.
Sanction: Fine - $2,500

Transamerica Premier Life Insurance Company, Cedar Rapids, IA
Order #E16-109, November 22, 2016
Respondent issued hospital confinement indemnity coverage that did not comply with New Jersey law in that the hospital confinement benefits were not provided on a stand-alone basis. 
Sanction: Fine - $75,000, Restitution – premium refunds sufficient to satisfy an 80% minimum loss ratio
 

James Wagner, Doylestown, PA
Alliance Adjustment Group, Inc., Doylestown, PA
Order #E16-107, November 15, 2016
Respondents failed to comply with a Department subpoena and failed to disclose an action taken against them by another state on the license renewal application.
Sanction: Fine - $5,000

 
October

Order to Show Cause


Joseph Logue, Bernardsville, NJ
Castle Title Agency, LLC, Bernardsville, NJ
Order #E16-96, October 7, 2016
Respondents are charged with theft of funds that were to be held in escrow and failing to respond to Department inquiries.

Consent Orders

Ryan Fabian, Pennsauken, NJ
Order #E16-98, October 7, 2016
Respondent failed to timely remit premium.
Sanction: Fine - $2,500


Robert Goldstein, Cherry Hill, NJ
Insurance Adjustment Agency, Inc., Cherry Hill, NJ
Order #E16-103, September 21, 2016
Respondents did not timely remit settlement funds to an insured, did not hold settlement finds in an interest bearing escrow or trust account and used a public adjuster contract that was not in compliance with applicable statutes and regulations.
Sanction: Fine - $5,000

Integrated Medical Billing Solutions, LLC, Pennsauken, NJ
Order #E16-102, October 26, 2016
Respondent failed to disclose civil litigation on its application for certification as a third party billing service.
Sanction: Fine - $2,500

Jonathan Guzman, Reading, OA
Order #E16-100, October 16, 2016
Respondent distributed mortgage insurance solicitations to New Jersey that did not identify the insurance producer, the insurer and the relationship between the insurance producer and the insurer. 
Sanction: Fine - $2,500

Jaime Holder, Brooklyn, NY
Order #E16-104, October 26, 2016
Respondent failed to report criminal charges and conviction to the Department and failed to disclose the conviction on his license renewal application.
Sanction: Revocation

Premier Medical Billing & Management Consultants Corporation, East Stroudsburg, PA
Order #E16-99, October 16, 2016
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000

Precision Revenue Management, LLC, Green Village, NY
Order #E16-97, October 7, 2016
Respondent acted as a third party billing service when it was not certified as a third party billing service.
Sanction: Fine - $1,000

James Van Valen, Covington, LA
Order #E16-101, October 24, 2016
Respondent altered the payee field on a check issued by an insurer to add his name as the first payee and attempted to deposit the check into his bank account.
Sanction: Revocation

 
September

Final Order


Joseph Bigica, Franklin Lakes, NJ
Joseph Bigica, LLC, Franklin Lakes, NJ
Order #E16-92, September 22, 2016
Respondent Bigica was convicted of the federal charges of corrupt interference with the administration of the Internal Revenue laws by failing to pay federal income tax and conspiracy to violate the Federal Election Campaign Act by using straw donors.  Respondent Bigica also failed to pay state income taxes.
Sanction: Revocation - Joseph Bigica and Joseph Bigica, LLC
  Fines – $15,000 against Joseph Bigica and Joseph Bigica, LLC, jointly and severally
    $10,000 against Joseph Bigica, individually

Order to Show Cause

Abraham Basher, Jr, South Plainfield, NJ
AJS Bail Bonds, LLC, South Plainfield, NJ
Order #E16-84, September 9, 2016
Respondents are charged with misappropriating bail bond premium, failing to remit premium to the insurer or return it to the applicant, and failing to respond to Department inquiries and a Department subpoena.

Matthew Cocco,
Jackson, NJ
Order #E16-82, September 6, 2016
Respondent is charged with forging a manager’s signature on a request to submit new business form, altering the commission listed on the form and failing to respond to Department inquiries.

Weiran Dobrek,
Newtown, PA
Atlantic Bail Bonds, Inc., Mount Holly, NJ
Order #E16-88, September 16, 2016
Respondents issued bail bonds when Respondent Dobrek’s license was revoked and respondent Atlantic Bail Bonds, Inc. license was inactive.

Greg Garbuz, Edgewater, NJ and Cliffside Park, NJ
Elite Insurance & Financial Services, Inc., Fort Lee, NJ
Order #E16-93, September 27, 2016
Respondents are charged with untimely payment of a premium refund to an insured, misappropriation of premium, untimely payment of premium to an insurer, failing to keep accurate books and records and failing to respond to Department inquiries and a Department subpoena.

Joel Kopke
, Northfield, NJ and Galloway, NJ
Kathy Marino, Egg Harbor Twp., NJ
Order #E16-89, September 21, 2016
Respondents are charged with misrepresenting the medical conditions of applicants on applications for Medicare Supplement, Long Term Care and Life insurance, with witnessing signatures they knew to be false, and with failing to respond to Department inquiries.

Remberto Perez,
Tenafly, NJ
Marta Perez, Tenafly, NJ
Freeway Insurance Services of NJ, Guttenberg, NJ
Order #E16-86, September 16, 2016
Respondents are charged with charging auto insurance applicants fees in excess of the $20 maximum permitted by regulation, charging credit card or processing fees without providing the applicants with a separate written fee agreement, charging fees for motor vehicle fee reports that were in excess of their out of pocket costs and utilizing improper motor club agreements. 

Robert Sebia,
Bridgeton, NJ
Crystal Title Agency, LLC, Woodbridge, NJ
Order #E16-87, September 16, 2016
Respondents are charged with failing to notify the Department of Respondent Sebia’s license suspension by another state, misappropriation of proceeds from real estate transactions, failure to maintain a trust account, Respondent Sebia’s conviction of theft by failure to make required disposition of property received and misconduct by a corporate official, and failing to notify the Commissioner of Respondent Sebia’s indictment and conviction.

Consent Orders

CareCentrix of New Jersey, Inc., Hartford, CT
CareCentrix, Inc., Hartford, CT
Order #E16-95, September 27, 2016
Respondents made multiple errors in the processing of provider claims from July 1, 2015 to March 28, 2016.
Sanction: Fine - $400,000
  Submission of monthly claims reports for 12 months

Horizon Healthcare Services, Inc., Newark, NJ
Horizon Healthcare of New Jersey, Inc., Newark, NJ
Order #E16-91, September 21, 2016
Respondents made multiple errors in the processing of provider claims from July 1, 2015 to March 28, 2016.
Sanction: Fine - $400,000


Lisa Mohen, Spring Lake, NJ
Brian Mohen, Spring Lake, NJ
Arden Financial Services, Inc., Spring Lake, NJ
Order #E16-85, September 16, 2016
Respondents engaged in multiple instances of misappropriation of premium and commingling of premium funds, Respondent Brian Mohen acted as a producer without being licensed as a producer and Respondent Lisa Mohen was convicted of misapplication of entrusted property and failure to file tax returns.
Sanction: Revocation, Fine - $76,000

Oxford Health Insurance, Inc., Shelton, CT
Oxford Health Plans (NJ), Inc., Shelton, CT
UnitedHealthcare Insurance Company, Hartford, CT
Order #E16-90, September 21, 2016
Respondents’ members were subject to collection activities for services for which their responsibility was limited to network cost sharing and Respondents issued Summary of Benefit and Coverage forms with inaccurate cost sharing information. 
Sanction: Fine - $300,000

John Tyrol, Newtown, PA
Tyrol Insurance Agency, Inc., Newtown, PA
Order #E16-94, September 27, 2016
Respondents misrepresented the name of the submitting party on a cancellation request.
Sanction: Fine - $3,000

German Toro, Jersey City, NJ
Order #E16-83, September 6, 2016
Respondent submitted applications for insurance with fraudulent proofs of prior insurance and failed to report a criminal charge against him to the Department.
Sanction: Fine - $30,000

 
August

Order to Show Cause


Rafael Agliata, Trenton, NJ
First Choice Bail Bonds, LLC, Trenton, NJ
Order #E16-69, August 1, 2016
Respondents are charged with misappropriating bail bond premium, failing to pay forfeited bonds to the surety company, failing to respond to Department inquiries, failing to pay state income tax and failing to satisfy numerous civil judgments for forfeited bail bonds.

Shahee Sharief Parker,
Tinton Falls, NJ
Order #E16-74, August 22, 2016
Respondent is charging with failing to remit bail bond premium, failing to maintain accurate books and records and failing to respond to Department inquiries.

David G. Pierce,
Branchburg, NJ and Atlanta, GA
Land One Settlement Services, LLC, Bridgewater, NJ
Links Abstract Group, LLC, Branchburg, NJ
Order #E16-16-81, August 31, 2016
Respondents are charged with failing to notify the Department of an administrative action against them by another state, of providing inaccurate information on the license renewal application, misappropriating title insurance premium, failing to issue title insurance policies and failing to respond to Department inquiries.

Order to Show Cause Seeking Immediate Suspension Pending Completion of Administrative Proceedings

Wayne M. Citron, Marlboro, NJ
Order #E16-68, August 1, 2016
Respondent is charged with conviction of a felony involving dishonesty or breach of trust and failing to obtain the written consent of the Commissioner to engage in the business of insurance. 

Consent Orders

Brightstone Insurance Services, LLC, Middleburg Heights, OH
Order #E16-75, August 22, 2016
Respondent allowed an unlicensed employee to sell, solicit or negotiate insurance policies in New Jersey.
Sanction: Fine - $5,000


James M. Cowgill,
Wilmington, NC
Order #E16-79, August 31, 2016
Respondent failed to disclose a criminal conviction on his license applications.  
Sanction: Fine - $1,000


F&G Ins Agency, LLC, Easton, PA
James Richard Fisher Sr., Clarksburg, NJ
Order #E16-72, August 8, 2016
Respondent failed to register branch offices in New Jersey.
Sanction: Fine - $1,000


Jennifer Hendrickson, Keyport, NJ
Order #E16-73, August 22, 2016
Respondent submitted an insurance application without the consent of the applicant by forging the applicant’s signature and paying the full premium herself.
Sanction: Revocation

Brian Jungeberg, Strongsville, OH
Order #E16-76, August 22, 2016
Respondent sold, solicited and/or negotiated insurance policies in New Jersey prior to being licensed as an insurance producer.
Sanction: Fine - $5,000


Provider Services Management, LLC, Saddle Brook, NJ
Order #E16-71, August 8, 2016
Respondent operated as a third party billing service prior to being certified as a third party billing service.
Sanction: Fine - $1,000


Secure Retirement Strategies, LLC, Doylestown, PA
Order #E16-80, August 30, 2016
Respondent offered an inducement in excess of $25, sent solicitations to New Jersey residents prior to being licensed in New Jersey, sent solicitations that did not identify the insurer or the plan and failed to register branch offices.
Sanction: Fine - $5,000

YourPeople Inc., dba Zenefits FTW Insurance Services, San Francisco, CA
Order #E16-77, August 31, 2016
Respondent’s employees sold, solicited or negotiated insurance to New Jersey residents without being licensed as producers in New Jersey.
Sanction: Fine - $100,000

 
July


Final Order

Justin Reynolds, Hackettstown, NJ
Order #E16-62, July 1, 2016
Respondent failed to answer an Order to Show Cause charging him with misleading a client into replacing an annuity and causing the client to pay surrender charges and penalties, with forging an applicant’s signature on an annuity application and related documents, with forging an annuity owner’s name on a letter to an insurance company directing the insurer to transfer funds, with forging an annuity owner’s name and a witness’ name on an annuity withdrawal request, with converting annuity withdrawal proceeds to his personal use on multiple occasions and with failing to respond to Department inquiries.  
Sanction: Revocation
  Fines – $55,000 for Producer Act violations, $5,000 for Fraud Act violations
  Costs - $2,987.50
  Attorneys' Fees - $5,527.50
  Fraud Act Surcharge - $1,000

Order Suspending License Pending Completion of Administrative Proceedings

Alicia Jones, Newark, NJ
Order #E16-64, July 20, 2016
Respondent’s producer license is suspended pending completion of administrative proceedings on charges that she was convicted of fraud and false statements, a felony involving dishonesty or breach of trust.


Order to Show Cause

Ryan Cataldo,
Tinton Falls, NJ
Order #E16-63, July 5, 2016
Respondent is charged with providing false income and wealth information on insurance applications and with failing to disclose on an application that the applicant had existing coverage.


Consent Orders


Fidelity Security Life Insurance Company, Kansas City, MO
Order #E16-59, July 1, 2016
Respondent utilized a brochure that inaccurately compared the costs and benefits of a low deductible health benefits plan with the costs and benefits of a high deductible health benefits plan when purchased with a Fidelity product.
Sanction: Fine - $95,000


Khris Hill, LLC, Union, NJ
Order #E16-61, July 1, 2016
Respondent failed to remit a premium to an insurance company, resulting in a failure to secure coverage and non-coverage of a claim.  
Sanction: Fine - $10,000


Amy Jankowski, South Amboy, NJ
Order #E16-66, July 20, 2016
Respondent failed to accurately respond to the question on the license application asking about conviction of a felony.
Sanction: Fine - $1,000


Robert Meyer, Colts Neck, NJ
Order #E16-67, July 20, 2016
Respondent failed to notify the Department of an administrative action taken against him by the New Jersey Bureau of Securities and failed to disclose said action on his license renewal application.
Sanction: Fine - $2,000


Patrick Montgomery,
Sicklerville, NJ
Order #E16-60, July 1, 2016
Respondent allowed an employee to submit an application knowing that the employee had not met with the applicant in a face to face meeting and that the applicant had not signed the application.
Sanction: Fine - $1,000


Karla Rojas-Illescas,
Union City, NJ
Order #E16-64, July 15, 2016
Respondent signed and submitted enrollment applications that were solicited by a producer who was not appointed by the insurance company.
Sanction: Fine - $7,500
 
June


Final Orders

Christopher Ritchie, Conshohocken, PA
Eagle School Abstract Company, Phoenixville, PA
Order #E16-58, June 21, 2016
Respondents failed to respond to an Order to Show Cause charging them with misappropriation and failure to remit premiums for title insurance policies, with failing to abide by the terms of their agency agreements, with failing to hold premium funds in a fiduciary capacity, with failing to notify the Commissioner of the revocation of Ritchie’s license by Virginia and Maryland and with failing to respond to a Department subpoena.
Sanction: Revocation
  Fines – Christopher Ritchie and Eagle School Abstract Company, jointly and severally, $145,000
     Christopher Ritchie, individually, $15,000
  Costs - $2,100
  Restitution - $3,945.96

Zia Hassan Shaikh, Buffalo, NY
Order #E16-56, June 21, 2016
Respondent failed to respond to an Order to Show Cause charging him with issuing postcards to New Jersey residents that inaccurately indicated that the recipient owned an orphaned annuity.
Sanction: Revocation
  Fine - $71,000
Costs - $1,388.30

Andrea Tuite, Freehold and Toms River, NJ
Rapid Release Bail Bonds, Inc., Freehold, NJ
Order #E16-54, June 16, 2016
Respondents forged a certificate of surrender or body receipt and submitted same to a municipal court and failed to respond to the Department’s inquiry.  Tuite was indicted and convicted of a fourth degree felony and failed to notify the Department of her indictment and conviction.  Tuite provided incorrect information on her license renewal application and failed to notify the Department of a change in address.
Sanction: Revocation
  Fines – Andrea Tuite and Rapid Release Bail Bonds, Inc., jointly and severally, $10,000           
     Andrea Tuite, individually, $16,000
  Costs - $400
        

Orders to Show Cause

Parnel Dupoux, Elmhurst, NY
Gametight Bail Bonds, Elmhurst, NY
Order #E16-47, June 2, 2016
Respondents are charged with misappropriation of premium paid for an immigration bond, with negotiating, soliciting and selling a line of insurance for which they did not have authority, and with failing to respond to a Department subpoena.


James Wagner,
Doylestown, PA
Alliance Adjustment Group, Inc., Doylestown, PA
Order #E16-57, June 2, 2016
Respondents are charged with depositing insurance proceeds checks that were not endorsed by the mortgagee into their trust account, with failing to comply with a Department subpoena and with failing to disclose a fine levied by another state on their renewal applications.

Consent Orders

Comprehensive Physician Consulting, LLC, Cherry Hill, NJ
Order #E16-50, June 8, 2016
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $1,000


Kirk Hewitt, Southampton, PA
A Plus Adjustment, Inc., Feasterville, PA
Order #E16-53, June 9, 2016
Respondents issued a written public adjuster contract that did not contain required terms and failed to properly supervise the activities of employees, including an unlicensed marketer.
Sanction: Fine - $5,000


Donald Hoffrichter, Delray Beach, FL
Order #E16-48, June 2, 2016
Respondent solicited and sold an annuity that was not approved for sale in New Jersey.
Sanction: Fine - $5,000

Phyllis Hoffrichter, Delray Beach, FL
Order #E16-49, June 1, 2016
Respondent solicited and sold an annuity that was not approved for sale in New Jersey.
Sanction: Fine - $5,000


Javon Jones, Galloway, NJ
Order #E16-44, June 1, 2016
Respondent misrepresented himself as an employee of the Fugitive Recovery Task Force in the New Jersey Department of Banking and Insurance.
Sanction: Revocation


Paula Orozco, Hoboken, NJ
Order #E16-51, June 8, 2016
Respondent accepted a premium and failed to supervise its remittance to the insurer, resulting in a failure to secure coverage and non-coverage of a claim.
Sanction: Fine - $5,000


Victor Silva, Elizabeth, NJ
PBM Financial Group, Inc., Elizabeth, NJ
PBM Insurance and Financial Group LLC, Springfield, NJ
Order #E16-46, June 1, 2016
Respondents allowed an unlicensed employee to submit application forms to an insurer which did not contain the genuine signature of the applicant, failed to disclose a fine levied by another state on license renewal applications and failed to report the fine to the Department within thirty days.
Sanction: Fine - $3,500


Joel Tirado, Iselin, NJ
Order #E16-52, June 9, 2016
Respondent was convicted of conspiracy to commit wire fraud and failed to notify the Department of the criminal charges against him.
Sanction: Revocation


Diane Wisniewski,
Kings Park, NY
Order #E16-45, June 1, 2016
Respondent was convicted of conspiracy to commit wire fraud, failed to notify the Department of the criminal charges against her, failed to disclose the conviction on her license renewal application and engaged in the business of insurance after being convicted of a crime involving breach of trust without obtaining a waiver.
Sanction: Revocation

 
May


Orders to Show Cause

William Kwasnik, Miami, FL
Order #E16-39, May 17, 2016
Respondent is charged with misappropriation of investor funds, with failure to notify the Commissioner of an order entered against him by the New Jersey Bureau of Securities and with failing to disclose the Bureau of Securities matter on his license renewal application.


Alicia Jones, Newark, NJ
Order #E16-41, May 27, 2016
Respondent is charged with being convicted of aiding and assisting in the preparation of false tax returns, with failing to notify the Commissioner of her indictment and conviction, with failing to disclose the indictment on her license renewal application and with engaging in the business of insurance after being convicted of a felony involving breach of trust without obtaining a waiver from the Commissioner as required by 18 U.S.C. 1033.

Orders to Show Cause Seeking Immediate Suspension

Alicia Jones, Newark, NJ
Order #E16-40, May 27, 2016
Respondent is charged with engaging in the business of insurance after conviction of a felony involving dishonesty or breach of trust without seeking or obtaining a waiver from the Commissioner as required by 18 U.S.C. 1033.

Amended Order to Show Cause

John Spinazzola, Boonton, NJ
Frontline Title, LLC, Morristown, NJ
Order #E16-38, May 16, 2016
Respondents failed to properly disburse and misappropriated title settlement funds, falsely indicated on an insurance application that they had no knowledge of any act that might give rise to a claim under an errors and omissions policy and failed to respond to Department inquiries.

Consent Orders

Parag Patel, Parsippany, NJ
Conventus Inter-Insurance Exchange, Woodbridge, NJ
Order #E16-37, May 10, 2016
Respondent Patel, an employee of the attorney-in-fact of respondent Conventus, sent an email solicitation that was deceptive and/or misleading.
Sanction: Fine - $2,000

Amy Shue, Pennsauken, NJ
Order #E16-42, May 26, 2016
Respondent submitted applications with misleading information, without signatures or deposits and then cancelled said policies prior to their effective date to meet quarterly production requirements, submitted applications that utilized her own bank account for payment of premium and failed to respond timely to a Department inquiry.
Sanction: Revocation

Tihn Vo, Lewisburg, PA
Order #E16-43, May 26, 2016
Respondent was convicted of adding and assisting in the preparation of false tax returns and failed to notify the Commissioner of his indictment and conviction.
Sanction: Revocation

 
April


Final Orders

Jeffrey Clendenny, Randolph, NJ
Order #E16-28, April 1, 2016
Respondent failed to reveal prior losses on applications for business insurance and submitted a falsified loss run to an insurance company.
Sanction:  Revocation
               Fine - $20,000 ($10,000 for Producer Act violations and $10,000 for Fraud Act violations)
               Costs - $225
               Attorneys’ Fees - $7,743
               Fraud Act Surcharge - $1,000


Bradford M. Scaccetti, Fort Lauderdale, FL and Newtown, PA
All Claims Adjuster, LLC, Fort Lauderdale, FL and Newtown, PA
Order #E16-29, April 7, 2016
Respondents sent solicitations to 1,886 persons that failed to identify respondents as public adjusters and that misrepresented that the recipients of the solicitations were insured by respondents and needed to contact respondents regarding flood claims resulting from Superstorm Sandy, sent 500 solicitations that improperly indicated that respondents had confidential information regarding the recipients’ Hurricane Sandy claims, failed to respond to the Department’s inquiries and failed to reveal on their New Jersey public adjuster license applications that Florida had suspended Mr. Scaccetti’s public adjuster license and fined him $1,500.
Sanction:  Revocation
               Fine – Scaccetti -$100,000 ($97,500 jointly and severally and $2,500 individually), All Claims - $97,500 (jointly and severally)
               Costs - $425

Orders to Show Cause

Abraham Lastra, Union City, NJ
Hotline Bail Bonds, Union City, NJ
Katherine Protogiannis, Elizabeth, NJ
Bails, Bails, Bails, Jersey City, NJ
Order #E16-32, April 8, 2016
Respondents are charged with failing to return collateral following discharge of a bail bond.

Consent Orders

Blue Point Solutions, LLC, Fair Lawn, NJ
Order #E16-31, April 7, 2016
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $1,000

Joseph Chappan, Brooklyn, NY
Chappan Insurance Brokerage, Inc.
Order #E16-34, April 13 1, 2016
Respondents employed an individual to solicit insurance business who was not licensed as a producer.
Sanction: Fine - $5,000

Ronald J. Miller, Spring Lake, NJ
Order #E16-35, April 18, 2016
Respondent forged an insured’s signature on a fictitious public adjuster contract and misrepresented to another public adjuster than an active claim was in effect.
Sanction: Fine - $1,000

 
March


Final Order

Robert Hagaman, Toms River, NJ
Hagaman Financial Group, Toms River, NJ
Hagaman Insurance Group, Toms River, NJ
The Medicare Insurance Store, LLC, Toms River, NJ
Order #E16-18, March 17, 2016
Respondents misled customers into transferring premium funds to accounts controlled by Mr. Hagaman, failed to remit and misappropriated client funds that were supposed to be used to purchase annuities on several occasions and for multiple clients, sent said clients forged documents on insurance company letterhead allegedly confirming the purchase of or additions to the nonexistent annuities, sent clients who were the victims of the misappropriation forged certificates and certificate specifications, failed to timely remit premium, deposited premium into accounts that were not premium trust accounts, failed to supervise an employer who was not licensed but who solicited insurance business and who gave misinformation to customers about benefits, and failed to appear in response to the Department’s request.
Sanction:  Revocation as to Robert Hagaman, Hagaman Insurance Group and The Medicare Store, LLC
Fines:  Robert Hagaman individually - $62,500
          Robert Hagaman and Hagaman Insurance Group, joint and several - $80,000

          Robert Hagaman and The Medicare Insurance Store, LLC, joint and several - $10,000
Costs - $1,400

Orders to Show Cause

Carmine Fusco, Lewisburg, PA and Pompton Lakes, NJ
Order #E16-22, March 22, 2016
Respondent is charged with conviction of the felony of mortgage fraud in violation of 18 U.S.C. 1349 arising from actions as a title settlement agent.

Zia Hassan Shaikh, Buffalo, NY
Order #E16-23, March 30, 2016
Respondent is charged with issuing postcards to New Jersey residents that inaccurately indicated that the recipient owned an orphaned annuity.


Kiran Sondhi, Wall Township, NJ
KK Insurance Agency, LLC, Long Branch, NJ
Order #E16-25, March 30, 2016
Respondents submitted an application for insurance that falsely indicated that there were no claims within the last five years.


John Spinazzola, Boonton, NJ
Frontline Title, LLC, Morristown, NJ
Order #E16-24, March 30, 2016
Respondents failed to properly disburse and misappropriated title settlement funds, failed to deposit funds in a trust account, falsely indicated on an insurance application that they had no knowledge of any act that might give rise to a claim under an errors and omissions policy and failed to respond to Department inquiries.

Consent Orders

Advanced Billing Concepts, LLC, Verona, NJ
Order #E16-16, March 10, 2016
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $1,000


Dominick Costa, Summit, NJ
Order #E16-13, March 1, 2016
Respondent collected unauthorized and fraudulent policy initiation fees, charged fees without a written agreement, issued fictitious and inaccurate certificates of insurance and automobile identification cards, created unauthorized cancellation requests, forged the policyholder’s signature on such requests and misappropriated premium.
Sanction: Revocation, Fine - $25,000


Richard Forte, Medford, NJ
Bee Gee Financial LLC, Medford, NJ
Order #E16-19, March 22, 2016
Respondent failed to supervise an unlicensed employee who completed applications, accepted premium and failed to timely remit premium.
Sanction: Fine - $3,000


Fidelity Security Life Insurance Company, Kansas City, MO
Order #E16-15, March 10, 2016
Respondent issued individual health benefits plans that did not comply with the Individual Health Coverage Act.
Sanction: Fine - $200,000, Restitution – Premium refunds sufficient to satisfy IHC minimum loss ratio, estimated to be at least $580,000


Healthcare Providers Insurance Exchange, Philadelphia, PA
Order #E16-17, March 10, 2016
Respondent sent notice of a withdrawal via assumption to its New Jersey policyholders prior to the Department’s approval of the assuming carrier, its determination that the withdrawal filing was compliant and its completion of the review.
Sanction: Fine - $25,000

David Marano, Eastchester, NY
Unlimited 1 Adjustments, LLC, Eastchester, NY
Order #E16-27, March 30, 2016
Respondents entered into public adjuster contracts in the name of Unlimited 1 Adjustments, LLC when its licensed was expired, entered into public adjuster contracts that did not specify the time of execution, failed to deposit insurance proceeds in a trust account, used a public adjuster contract that did not contain required terms and deposited insurance checks made to multiple payees without obtaining endorsement of all payees.
Sanction: Fine - $5,000


OrthoNet of the Mid-Atlantic, Inc., White Plains, NY
Order #E16-26, March 30, 2016
Respondent failed to provide prior notice to the Commissioner of the tax allocation agreement with its ultimate parent company.
Sanction: Fine - $35,000

Jonathan Porcena, Elizabeth, NJ
Order #E16-21, March 22, 2016
Respondent completed 16 applications for Pennsylvania residents that misrepresented that the applications were signed in New Jersey.
Sanction:  Producer Act violations, Fine - $15,000
               Fraud Act violations, Fine - $1,500 and Fraud Act Surcharge - $75

 
February


Order to Show Cause

Randolph A. Fisher, Jr., Flemington, NJ
Kevin G. Madden, Annandale, NJ
Regal Financial Group, LLC, Flemington, NJ
Order #E16-12, February 18, 2016
Respondent Fisher is charged with soliciting and selling four fraudulent annuity plans to New Jersey residents through respondent Regal Financial Group.  Respondent Fisher also is charged with failing to report a FINRA disciplinary proceeding and subsequent FINRA Consent Order.  Respondent Madden is charged with failing to supervise their conduct of the insurance business conducted by respondents Fisher and Regal Financial Group.

Consent Orders

Whole Life Capital, Lakewood, NJ
Order #E16-09, February 10, 2016
Respondent conducted business as an insurance producer prior to being licensed by the Department.
Sanction: Fine - $1,000

Brian T. Powell, Moorestown, NJ
Wealthguard Annuity Group LLC, Moorestown, NJ
Order #E16-08, February 9, 2016
Respondents offered an inducement to insurance with value in excess of $25 and issued misleading solicitations that did not identify the insurer and plan.
Sanction: Fine - $2,000

 
January


Final Order

Frank Cotroneo, Bernardsville, NJ and Allenwood, PA
Order #E16-07, January 25, 2016
Respondent failed to respond to an order to show cause charging him with misappropriation of funds from the Perth Amboy Board of Education, with making fraudulent misrepresentations to an insurance carrier, and with failing to notify the Commissioner of criminal prosecutions.
Sanction: Revocation and Fine - $25,000

Consent Orders

Joseph P. Canciglia, Fort Lee, NJ
Order #E16-02, January 6, 2016
Respondent failed to timely notify the Department of a 45 day suspension by FINRA.  
Sanction: Fine - $1,000

Brian P. Carr, Naples, FL
Order #E16-04, January 14, 2016
Respondent failed to timely notify the Department that his registration with the New Jersey Bureau of Securities was revoked for fraudulent acts and that a final judgment was entered against him.
Sanction: Fine - $2,500


CBS Medical Billing Solutions, LLC, Bloomfield, NJ
Order #E16-06, January 25, 2016
Respondent acted as a third party billing service in New Jersey when it was not certified as a third party billing service.
Sanction: Fine - $1,000


Lender’s Edge Settlement Services, LLC, Feasterville, PA, Charles Morrone, Churchville, PA and Andrew C. Salvucci, Newtown, PA
Order #E16-03, January 8, 2016
Respondents were terminated by title insurance companies for misconduct in performing real estate closings, including failing to pay off prior mortgages, failing to disburse amounts due as property taxes and overcharging of title insurance premiums.
Sanction: Revocation

Fred Shatzoff, New Milford, NJ
Order #E16-01, January 4, 2015
Respondent misrepresented himself as a proposed insured when completing a telephone application without authorization of the proposed insured.
Sanction: Producer Act Fine - $5,000, Fraud Act Fine - $2,500 and Fraud Act Surcharge - $125

 
 
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