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| Home > Insurance Division > NJ Insurance Enforcement Activity |
| 2008 Insurance Enforcement Activity |
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| January |
Final Orders
Cynthia R. Colon, Mays Landing, NJ
Final Order #E08-03, January 3, 2008; Order to Show Cause #E07-74, issued September 17, 2007, charged producer with misappropriating insurance premiums and failing to timely notify the Department of her indictment and subsequent criminal conviction for the crime of theft by unlawful taking. Although provided with notice and an opportunity to contest these charges, Colon failed to do so. Sanctions: Revocation of license; Restitution - $5,254.21; Fine - $22,500; Costs - $250.
Orders to Show Cause
Michael Gitzes, Marlton, NJ
Rammco Surety, Inc., Voorhees, NJ
Order to Show Cause #E08-02, January 2, 2008; Producers are charged with issuing and forging signatures on performance surety bonds without the knowledge or authorization of the surety insurer; being unworthy for licensure as a result of an order by the Pennsylvania Insurance Department resulting in the revocation of Rammco’s producer license and the surrender of Gitzes’ producer license for conduct related to the performance surety bonds; failing to notify the Department of the licensing actions taken in Pennsylvania; failing to forward insurance premiums to an insurer; and failing to respond to Department subpoenas.
Related Action: Order to Show Cause Seeking Immediate License Suspensions of Gitzes and Rammco, #E08-01, January 2, 2008.
Consent Orders
James S. Currier, Bloomfield Hills, MI
Leonard and Company, Troy, MI
Consent Order #E08-05, January 3, 2008; Producers failed to timely disclose to and notify the Department of violations of NASD rules and sanctions imposed by the NASD; and Leonard and Company renewed its business entity license without immediately renewing the license of its designated responsible producer. Sanction: Fine - $1,500 (allocated $1,000 to Leonard and Company and $500 to Currier).
Edward D. DiPietro, Gilbertsville, PA
Cumberland Brokerage Corporation, Vineland, NJ
Consent Order #E08-04, January 3, 2008; Cumberland continued to conduct insurance business after the expiration of its producer license: DiPietro was the designated responsible producer for the business entity. (DiPietro’s individual producer license did not and has not expired.) Sanction: Fine - $4,700. |
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| February |
Final Orders
Tri-Continental Insurance, Ltd.
t/a Combined Insurance Services, Ltd., Kingston, St. Vincent
Final Order #E08-06, February 1, 2008; OTSC #E04-112, issued September 27, 2004 charged various respondents with sales of insurance by an ineligible insurer; sales of insurance from an ineligible insurer; providing false information in connection with the placement of insurance; forgery; conspiracy; conducting the business of insurance without a license; allowing unlicensed persons to conduct the business of insurance; issuing false insurance identification cards and certificates of insurance; sale of insurance through unregistered purchasing groups; engaging in the business of insurance through unlicensed persons; sales of insurance by an unauthorized insurer; sales of insurance from an unauthorized insurer; failing to remit or return premium received from insureds; failing to secure coverage; making misrepresentations to the Department; failing to return premium to premium finance companies; financing insurance premiums without a license; failing to remit premium to insurer; charging improper policy fees; charging improper inspection fees; failing to notify the Department of a change in business address; making misrepresentations on an insurance application; unworthy activity (attempting to provide assistance in handling allegations of application fraud in exchange for money or sexual contact); failing to comply with a Department subpoena; submitting checks that were subsequently dishonored for insufficient funds; and failing to notify Department that producer licenses had been revoked in another state. Sanctions against above listed respondent (sanctions against other respondents were set forth in prior orders): Fine - $27,500; Costs - $250.
Orders to Show Cause
William C. Kloss, Montville, NJ
Pringle Kloss & Associates, Inc., Montville, NJ
Order to Show Cause #E08-12, February 25, 2008; Producers are charged with misappropriating premium; Kloss’ resulting criminal conviction and the underlying misconduct reflect adversely on fitness for licensure; and failing to timely notify the Department about Kloss’ criminal accusation.
Angela M. Long, Beach Haven, NJ
Order to Show Cause #E08-11, February 26, 2008; Producer is charged with failing to timely submit a life insurance application to the insurer, and in submitting a revised application, using documents that did not contain the genuine signature of the insureds, without the insureds’ knowledge or authorization (in addition, the untimely submission resulted in higher premiums because one of the insured’s age increased by a year); failing to cooperate with the Department’s investigation; and conducting business using a company name that was not licensed as a business entity.
Raymond J. Morrison, Springfield, NJ
Order to Show Cause #E08-08, February 13, 2008; Producer is charged with misappropriating premium; failing to establish and maintain a trust account; failing to maintain books of account; after a loss was reported, backdating a check to the NJIUA to attempt to cover his failure to remit premium; during investigations, making false statements to the Department and to an insurer; and failing to timely notify the Department of charges settled with the NASD.
Consent Orders
CK Bail Bonds, LLC, Asbury Park, NJ
Consent Order #E08-13, February 26, 2008; Producer charged premium that varied from filed rates and issued noncompliant receipts. Sanction: Fine - $1,000.
Robert Ellison, New Brunswick, NJ
Dependable Bail Bonds, LLC, New Brunswick, NJ
Consent Order #E08-10, February 15, 2008; Respondents failed to pay the full amount of a fine imposed pursuant to a 2006 Consent Order and failed to timely notify the Department of a change of business address. Sanction: Fine - $750 (in addition to satisfying the unpaid $600 balance of the prior fine).
Richard D. Gaynor, Newton, NJ
Suzanne L. Howell, Newton, NJ
Middleton & Company, Newton, NJ
Consent Order #E08-15, February 28, 2008; Gaynor is the designated responsible producer for Middleton. Howell erroneously prepared a certificate of insurance with incorrect coverage limits and the certificate was signed by Gaynor. After being notified by the carrier of the correct limits, Middleton issued a corrected certificate. Sanction: Fine - $4,000 (allocated $2,000 to Gaynor and Middleton, and $2,000 to Howell).
Vito B. Gruppuso, Cedar Knolls, NJ
National Program Services, Inc., Cedar Knolls, NJ
National Premium Financing Services, LLC, Cedar Knolls, NJ
Consent Order #E08-14, February 28, 2008; Respondents’ producer and insurance premium finance company licenses have been suspended since 2002/2003 pending State and federal criminal prosecutions and sentencing upon conviction. Gruppuso committed theft and bank fraud and is incarcerated as a result of State and federal court convictions for insurance related crimes. Sanctions: Revocation of licenses; Restitution - $78.75 million (Gruppuso & National Program Services, Inc.); Fine - $225,000 (Gruppuso & National Program Services, Inc.).
Phyllis Iskowitz, Lumberton, NJ
Consent Order #E08-16, February 28, 2008; Producer failed to disclose criminal convictions. Sanction: Fine - $1,000.
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| March |
Final Orders
Muhammed A.Nasir, New York, NY
Final Order #E08-19, March 26, 2008; Producer committed insurance fraud by attempting to obtain monies through a claim upon his disability policy based on false information; and he failed to satisfy Superior Court judgments. Pursuant to Final Decision and Order # E05-56, issued May 27, 2005, Nasir’s license was revoked; and he was fined $17,000 and assessed costs of $700. The matter was remanded for reconsideration of the monetary sanctions, which were determined to be appropriately calculated and assessed.
Consent Orders
Dennis J. Dale, Mahwah, NJ
Dale and Dale Associates, Mahwah, NJ
Consent Order #E08-17, March 24, 2008; Producers made an inappropriate and unprofessional comment in a letter response to a consumer inquiry. Sanctions: Fine - $1,000; Costs - $250.
Frank Donofrio, Bloomfield, NJ
Estate Title Management, Inc., Bloomfield, NJ
Consent Order #E08-18, March 24, 2008; Producers knowingly accepted insurance business derived from the insurance sales, solicitation and negotiation of an unlicensed person; made, published or disseminated an advertisement or representation that was untrue, deceptive or misleading, to wit, that the unlicensed person was an “issuing agent” of Chicago Title; employed the unlicensed person in the business of insurance without a criminal disqualification waiver as required by federal and state law; and they knowingly facilitated or assisted the unlicensed person to violate federal and state insurance laws. Sanctions: Revocation of licenses; Fine - $7,500
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| April |
Final Orders
Michael Gitzes, Huntington Valley, PA
Rammco Surety, Inc., Huntington Valley, PA
Final Order #E08-24, April 11, 2008; OTSC #E08-02, issued January 8, 2008 charged producers with issuing and forging signatures on performance surety bonds without the knowledge or authorization of the surety insurer; being unworthy for licensure as a result of an order by the Pennsylvania Insurance Department resulting in the revocation of Rammco’s producer license and the surrender of Gitzes’ producer license for conduct related to the performance surety bonds; failing to notify the Department of the licensing actions taken in Pennsylvania; failing to forward insurance premiums to an insurer; and failing to respond to Department subpoenas. Although provided with notice and an opportunity to contest these charges, the respondents failed to do so. Sanctions: Revocation of licenses; Restitution - $34,897.84; Fines - $65,000; Costs - $237.50.
Orders to Show Cause
Jesse D. McCaskill, Fair Lawn, NJ
Order to Show Cause #E08-21, April 11, 2008; Producer is charged with failing to satisfy the payment obligations set forth in a November 19, 1997 consent order.
Consent Orders
Chicago Title Insurance Company, New York, NY
Consent Order #E08-23, April 11, 2008; Insurer accepted business from Estate Title, its agent, which business was solicited by Estate Title’s unlicensed employee; Chicago Title issued business cards that may have unknowingly and unintentionally created the false impression that the unlicensed employee was a title insurance agent of the insurer. Sanction: Fine - $20,000.
Joshua Paul Novello, Woodbridge, NJ
Consent Order #E08-22, April 11, 2008; Producer issued a check to the Department for payment of a licensing fee which was dishonored for insufficient funds, and he failed to replace this check. Sanctions: Fine - $1,000; Costs - $125.
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| December |
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