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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.
 
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, MI
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

 
 
Previous Years
 
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