Final and Miscellaneous Orders

Yvette C. Binn-Graham, Marlton, NJ
Amalgamated Title Abstract Company, Inc., Mt. Laurel, NJ
Order #E06-106, July 13, 2006; Producers failed to remit premium on 375 occasions; failed to disburse loan proceeds and failed to discharge a prior mortgage; failed to make disbursements toward outstanding liens in five real estate transactions; wrote two checks for reimbursement of premiums with checks that were dishonored for insufficient funds; and failed to keep real estate settlement proceeds and insurance premium payments segregated and in trust.  Sanctions:  Revocation of Licenses; Costs - $1,200.  The matter has been remanded to the OAL on the issue of the amount of fines to be imposed.

Leonard R. Rhett, Lawrenceville, NJ
Final Order #E06-107; July 21, 2006; Producer failed to remit numerous premium payments to insurers and converted premium payments to his own use (when Rhett’s conduct was discovered, his employer/agency effectuated coverage for the consumers and paid premium to the affected insurers, and Rhett made full restitution to his employer/agency in the full amount of the misappropriated funds); paid his license fee with a check that was returned for insufficient funds; stated to the Department that he would remit the license fee payment but failed to do so; failed to respond to a Department communication; and failed to timely advise the Department of changes of business address.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of License; Fine - $13,000; Costs - $1,150.

Consent Orders

James R. Philbin, Clementon, NJ
Consent Order #E06-109; July 21, 2006; Public Adjuster issued a check in payment of his license fee which was dishonored for insufficient funds.  Sanction:  Fine - $500.

QualCare, Inc., Piscataway, NJ
Consent Order #E06-113; July 21, 2006; Since surrendering its HMO authority, this producer improperly continued to identify itself as an HMO.  Sanction:  Fine - $5,000.

Chris Randall, Bellevue, WA
National Specialty Underwriters, Inc., Bellevue, WA
Consent Order #E06-110: July 21, 2006; Producers placed two NJ risks without first obtaining surplus lines authority.  Sanction:  Fine - $500 ($250 each – Randall and National Specialty Underwriters).

Jennise L. Sarmiento, Jersey City, NJ
Big Lou’s Bail Bond, LLC, Jersey City, NJ
Consent Order #E06-111; July 21, 2006; Producers issued noncompliant premium receipts.  Sanction:  Fine - $1,000 ($500 each – Sarmiento and Big Lou’s).

Christopher M. Vitale, Turnersville, NJ
Consent Order #E06-112; July 21, 2006; Producer failed to disclose on his license application an offense to which he pled guilty in municipal court; failed to timely notify the Department of a change of home or business address; and failed to respond to a Department inquiry.  Sanctions:  Revocation of License; Costs - $250.

Final and Miscellaneous Orders

Order to Show Cause

Denise Hill, Delran, NJ
Order to Show Cause #E06-99, June 19, 2006; Producer is charged with binding an application for PAIP coverage for her brother without receiving, accepting or documenting receipt of premium monies from her brother; issuing a check from her employer’s trust account to pay her brother’s premium; when terminated from employment, improperly removing and taking possession of proprietary items belonging to her former employer; and preparing and submitting a cancellation request/policy release form which contained a forged signature.

Robert J. Kirner, Cedar Grove, NJ
Kirner Insurance Agency, Bloomfield, NJ
Order to Show Cause #E06-96, June 16, 2006; in multiple incidents, producers are charged with failing to forward clients’ premium payments to a premium finance company, PAIP and an insurer; issuing checks to PAIP that were returned for insufficient funds; exhibiting conduct demonstrating dishonesty, incompetence, untrustworthiness and lack of fitness as reflected by the revocation of respondents’ PAIP and CAIP certifications; and failing to maintain a dedicated premium trust account.

          Related Action:  Order to Show Cause Seeking Immediate License. Suspension #E06-97, June 16, 2006.

Joan M. Merola, East Brunswick, NJ
John P. Merola, East Brunswick, NJ
Order to Show Cause #E06-92, June 7, 2006; despite having had his public adjuster license revoked, on multiple occasions John Merola held himself out as a public adjuster, aided and abetted by Joan Merola; and respondents forged an endorsement on a claim payment check and misappropriated, converted or improperly withheld payment to an insured in the amount of $85,095.59.

Consent Orders

Keith A. Alexander, Florham Park, NJ
Alexander Financial Group, LLC, Florham Park, NJ
Consent Order #E06-93, June 7, 2006; producers published an advertisement which contained untrue, deceptive or misleading statements.  Sanction:  Fine - $500.

Hilb Rogal & Hobbs of New York, LLC, New York, NY
Consent Order #E06-100, June 1, 2006;  producer placed coverage without first obtaining surplus lines authority; placed coverage with an ineligible unauthorized insurer; and failed to file with the Department its legal business name that it maintains in its resident state.  Sanction: Fine - $5,000.

John B. Iannetta, Hainesport, NJ
Weichert Title Insurance Agency, Morris Plains, NJ
Consent Order #E06-90, June 1, 2006; Iannetta transacted insurance business after his producer license expired and prior to its reinstatement, Weichert Title having responsibility for permitting such violations.  Sanctions: Fine - $3,000 (allocated $1,500 to Iannetta and $1,500 to Weichert Title).

Louis M. Maione, Parlin, NJ
Consent Order #E06-95, June 14, 2006; Producer failed to advise the Department of current home address.  Sanction:  Fine - $250.

Christopher Truscello, Newtown Square, PA
Consent Order #E06-105, June 27, 2006; Producer failed to advise the Department of current business address.  Sanction:  Fine - $250.

Zenia Twumasi, Maplewood, NJ
Consent Order #E06-91, June 1, 2006; producer was responsible for allowing an unlicensed entity, “All USA Bail Bonds,” and an unlicensed individual, Ian Burrowes, to conduct the business of insurance; and she failed to reply to a Department communication.  Sanction:  Fine - $1,500.

AAA Mid-Atlantic Insurance Company of New Jersey; Consent Order #E06-94, June 2, 2007; Issue: market conduct examination (auto).  Administrative sanction:  $50,000.

Cumberland Mutual Fire Insurance Company; Consent Order #E06-98, June 19, 2006; Issue: market conduct examination (homeowner and dwelling fire).  Administrative sanction - $50,000.

Princeton Insurance Company; Consent Order #E06-89, June 1, 2006; Issue: market conduct examination (resolution of policyholder credit balances).  Administrative sanction:  $20,000.

Final Order

Order to Show Cause

Robert J. Sutton, Plainfield, NJ
Order to Show Cause #E06-79, May 10, 2006; Producer is charged with, on numerous occasions, falsely certifying that he witnessed a named insured’s signature on an insurance application (and in three instances the named insured was not aware of the existence of the policies); he falsely stated that an applicant suffered from “no illnesses” and was in good health, when in truth the applicant was terminally ill in a hospital; and  Sutton signed Consent Order No. 2001-07562-39 with the Office of the Insurance Prosecutor in which he admitted falsely certifying the insured’s signature on three applications, such admitted misconduct demonstrating Sutton’s unfitness for licensure.

Consent Orders

Steven J. Bellon, Stony Point, NY
Consent Order #E06-81, May 10, 2006; Producer paid his license renewal fee with a check that did not clear for insufficient funds.  Sanction: Fine - $500.

Mitchell G. Berlin, Rockville,MD
Consent Order #E06-76, May 2, 2006;  Producer failed to timely advise the Department of his current home address.  Sanction: Fine - $250.

Peter L. Clark, Cherry Hill, NJ
Clark-Fish Associates, LLC, Cherry Hill, NJ
Consent Order #E05-80, May 10, 2006;  Producers admit the violations set forth in Order to Show Cause # E05-117, issued August 29, 2005, to wit: knowingly submitting annuity applications to insurers on Clark’s behalf and on behalf of members of Clark’s family together with worthless premium checks in the aggregate amount of over $3 million; instructing the insurers to electronically deposit the commission payments for these annuities into their checking accounts in the aggregate amount of over $300,000; failing to return these unearned commission payments; failing to cooperate with the Department’s investigation (Peter Clark); being unfit for continued licensure as a result of his indictment/charge and subsequent conviction on second degree crimes of theft by deception and theft by failure to make required disposition of property; and failing to timely notify the Department of Clark’s indictment/charge and conviction.  Sanctions:  Revocation of licenses; Fine - $20,000.

Final and Miscellaneous Orders

Perry A. Maciolek, Fort Dix, NJ
Pre-Need Network of New England, Inc., Fort Dix, NJ
Final Order #E06-58, April 3, 2006; Order to Show Cause # E05-41 issued April 21, 2005 charged producers with receiving but failing to disburse or return 41 commission checks, payable to others, in the aggregate amount of $104,284.92; endorsing the name of  other persons on 5 of the checks; failing to respond to a Department inquiry; failing to appear in response to a Department subpoena; and failing to notify the Department of Maciolek’s 2003 criminal indictment charging a theft of $104,284.92 and of his subsequent plea of guilty to charges in that indictment.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions:  Revocation of licenses; Restitution - $104,284.92; Fine - $246,000; Costs - $712.50

Cheryl Ann Monahan, Massapequa, NY
Order Suspending License Pending Completion of Administrative Proceedings #E06-61, April 4, 2006.  (Order to Show Cause #E06-52 was previously filed on March 14, 2006.)

Orders to Show Cause

Chasity Burns, Somerset, NJ
Order to Show Cause #E06-55, April 3, 2006; Producer is charged with falsely reporting a personal auto accident to the police and to her insurance company, claiming that her auto was damaged in front of her residence when in fact the damage was caused in an undisclosed hit-and-run accident; accepting payment from her insurance company for the fraudulently reported accident; failing to comply with her insurance company’s request for the return of the payment; and failing to respond to the Department’s request for information regarding the fraudulently reported accident.

Thomas Dobrek, Mt. Holly, NJ
Mr. Lucky Bail Bonds, Greta, LA
Amended Order to Show Cause E04-56, April 21, 2006; Order to Show Cause # E04-56, originally filed June 23, 2004, charged respondents with issuing a $35,000 check for payment of a court-ordered bail bond forfeiture judgment that was dishonored for lack of sufficient funds; accepting premium payments but failing to obtain or post bail bonds; collecting bail bond premiums that were excessive, inadequate or unfairly discriminatory; and misappropriating or converting for their own use a $10,000 collateral payment.  The pleading was amended to add the charge that in 2005 Dobrek made misrepresentations in a producer application submitted to an insurer.

Irvin Erwin, Newtonville, NJ
Order to Show Cause #E06-72, April 24, 2006;  Producer is charged with submitting premium payments to PAIP using checks that were dishonored by his bank for insufficient funds; numerous instances of failing to remit premiums; failing to maintain a premium trust account; failing to maintain and intentionally destroying records; issuing temporary insurance identification cards when no insurance was in effect because the applications and premium payments were never submitted by him to the insurer and to CAIP; submitting applications that failed to comply with PAIP standards; and failing to timely report an administrative disciplinary action taken by the NASD.

Donald R. Readlinger, Cranford, NJ
Hale Insurance Brokerage, LLC, Cranford, NJ
Order to Show Cause #E06-71, April 24, 2006;  Producers are charged with forging the signature of a municipal official on change of broker request letters with respect to the municipality’s employees’ health and dental benefits insurance; submitting the change of broker requests to the municipality’s insurer without the knowledge of or authority from the municipality; initially falsely denying committing the forgeries and submissions when Readlinger responded to an inquiry from a municipal official; misrepresenting to municipal officials that his firm had never committed similar types of actions, when in fact, similar types of conduct were admitted to in a prior consent order, Consent Order E04-88, entered on August 16, 2004, wherein Readlinger consented to the placement of his license on probationary status for 12 months and the payment of a $5,000 fine; and failing to timely notify the Department of a change of business address.

Leonard R. Rhett, Trenton, NJ
Order to Show Cause #E06-68, April 21, 2006;  Producer is charged with failing to remit numerous premium payments to insurers and converting premium payments to his own use (when Rhett’s conduct was discovered, his employer/agency effectuated coverage for the consumers and paid premium to the affected insurers, and Rhett made full restitution to his employer/agency in the full amount of the misappropriated funds); paying his license fee with a check that was returned for insufficient funds; stating to the Department that he would remit the license fee payment but failing to do so; failing to respond to a Department communication; and failing to timely advise the Department of changes of business address.

Thomas M. True, Westfield, NJ
True Group Benefits & Life, LLC, Westfield, NJ
Order to Show Cause #E06-56, April 3, 2006; Producers are charged with charging fees to a client without a written fee agreement; misrepresenting to the client that fees were necessary because the insurer did not pay commissions, when in fact the respondents were paid commissions by the insurer; failing to provide requested information to the Department; receiving funds in connection with the client’s cancellation of policies but failing to timely pay or credit the funds to the client; and using a trade name that had not been filed with the Department.

Consent Orders

David G. Frey, Howell, NJ
Consent Order #E06-67, April 21, 2006; Producer issued change of broker letters to an insurer that were not properly signed by the insureds.  Sanction:  Fine - $2,500.

Granite Financial, LLC, Cutchogue, NY
Consent Order #E06-59, April 4, 2006; Producer failed to advise the Department of its current business address.  Sanction:  Fine - $250.

Martin W. Melendez, Newark, NJ
d/b/a Around the Clock Bail Bonds, Newark, NJ
Consent Order #E06-57, April 3, 2006; Respondent failed to return collateral for a bail bond after the bail had been discharged (Melendez represented that he forwarded the collateral to the surety’s general agent) – collateral that was ultimately returned to the indemnitor by the surety; and using an unregistered trade name.  Sanctions:  Suspension of license for 60 days; Fine - $1,500.

Charles Newton, Jr., Midlothian, VA
Consent Order E06-70, April 5, 2006; Producer failed to advise the Department of his current home address.  Sanction: Fine - $250.

Hao D. Nguyen, Houston, TX
Consent Order E06-73, April 24, 2006; Producer submitted life insurance applications on behalf of residents on NY purporting to have been signed in NJ but which in fact were signed in NY.  Sanction: Fine - $10,000.

James L. Pray, East Orange, NJ
Consent Order #E06-66, April 21, 2006; Producer issued electronic binding numbers for which PAIP did not receive applications.  Sanction:  Fine - $1,000.

Lorraine Anne Wilson, San Francisco, CA
BISYS Commercial Insurance Services, Inc., San Francisco, CA
Consent Order #E06-75, April 24, 2006; Producers accepted two surplus lines placements from a producer unlicensed in NJ; failed to assign and provide required transaction numbers; and  failed to properly file the required tax returns on two surplus lines transactions.  Fine - $1,500 (allocated $750 to Wilson and $750 to BISYS).

Final and Miscellaneous Orders

Anthony Michael Feliz, Wall, NJ
AMF Insurance Services, Inc., Tinton Falls, NJ
Order #E06-50, March 13, 2006; Order to Show Cause #E02-207, issued August 7, 2002, charged that respondents accepted insurance premium yet failed to obtain requested coverage in a timely manner, remit the premium to an insurer or return the funds to the insureds; issued documents to clients purporting to provide insurance coverage, when no such coverage was in force; failed to cooperate with the Department’s investigation; and failed to timely remit return premium due the insured.  A hearing was conducted at the Office of Administrative Law and summary judgment was entered in favor of the Department.  On remand, the following sanctions have been imposed:  Revocation of licenses; Fines - $114,500; Restitution - $38,425.28, plus pre-judgment interest; Costs - $4,012.50.

Christopher J. Santarsiero, Freehold, NJ
You’re Out Bail Bonds, Freehold, NJ
Order Suspending License Pending Completion of Administrative Proceedings #E06-45, March 9, 2006.  (Order to Show Cause # E06-26 was previously filed on February 3, 2006.)
 
William C. Yarnall, Jr., Ridgewood, NJ
C.L. Hargert & Company, Inc., Ridgewood, NJ
Final Order #E06-47, March 8, 2006; Order to Show Cause # E05-151, December 8, 2005, charged respondents with failing to remit to insurers premiums received from clients and instead converting the funds to their own use; failing to timely respond to a Department inquiry; issuing nonconforming temporary auto insurance ID cards that also referred to nonexistent policy numbers and which were issued at a time when the respondents lacked authority to issue them; and failing to adhere to an agreement made with a client to pay restitution.  Although provided with notice and an opportunity to contest these charges, the respondents failed to do so.  Sanctions: Revocation of licenses; Restitution - $2,673; Fine - $72,500; Costs - $950.

Orders to Show Cause

Cheryl Ann Monahan, Massapequa, NY
Order to Show Cause #E06-53, March 14, 2006; Producer is charged with being unfit for licensure by reason of her federal conviction of the crimes of conspiracy to commit fraud by use of the mails and perjury before a grand jury; failing to disclose her federal conviction on her producer license application; failing to apply for an 1033 waiver prior to her employment with an insurer; failing to cooperate in the Department’s investigation; and failing to timely report the revocation of her New York producer license.

            Related Action:   Order to Show Cause Seeking Immediate License Suspension
                           #E06-52, March 14, 2006

Consent Orders

Final and Miscellaneous Orders

Zoila Del Sol, Elizabeth, NJ
Carlos Goncalves, Elizabeth, NJ
Carlos Goncalves & Associates, Inc., Elizabeth, NJ
Order # E06-31, February 15, 2006; Prior findings - Final Order # E04-38, May 24, 2004. Order to Show Cause No. E03-06, issued January 13, 2003, charged that Del Sol and the Goncalves Agency (vicariously) committed fraudulent acts based on the knowing submission by Del Sol of a backdated photo inspection report to an insurer in an attempt to obtain property damage benefits; Del Sol and the Goncalves Agency aided, abetted or assisted another person in violating the Insurance Fraud Prevention Act; Carlos Goncalves and Del Sol, as owners, directors or officers of the Goncalves Agency were responsible for the charged violations.  On August 18, 1999, a Superior Court jury found Del Sol guilty of violating the Insurance Fraud Prevention Act.  The Superior Court ordered Del Sol to pay a civil penalty of $1,000 and $3,225.16 in attorney’s fees.  The Superior Court also concluded that the Goncalves Agency was vicariously liable for the violations and penalties.  On appeal, the lower court ruling was affirmed.  Based on the Superior Court findings, an administrative decision was entered revoking Del Zol’s producer license.  That determination was upheld on appeal and the case was remanded for review of fines.  In Order #E06-31 it is determined that Goncalves is vicariously liable and the Goncalves Agency is directly liable for the actions of Del Sol; however, no bad faith is attributable to them.  Sanctions:  Revocation of License – Del Sol; Fines - $5,000 (Del Sol); $5,000 (total for Goncalves and Goncalves Agency); Costs - $312.50.

Joseph A. Landolfi, Springfield, NJ
Final Order # E06-29, February 9, 2006; Order to Show Cause E05-144 issued November 18, 2005 charged respondent with failing to notify the Department, insurers and clients of his intention to close his office and abandon his insurance business; failing to notify the Department of a change in his business address; multiple instances of failure to remit clients’ premiums to the insurer; presenting a premium trust account check to an insurer, which check was dishonored due to insufficient funds; receiving a premium refund check but failing to remit the funds to the insureds; and failing to comply with a Department subpoena..  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Restitution - $55,800.04; Fine - $177,500; Costs - $460.

DeWayne A. Ogletree a/k/a Alan Ogletree, Ocean, NJ
Final Order # E06-39, February 24, 2006; Order to Show Cause E05-110 issued August 18, 2005 charged respondent with providing a false Social Security Number on his license application; failing to disclose convictions for official misconduct and theft by deception on his license application; being convicted of crimes of moral turpitude that adversely reflect on his fitness for licensure; 69 instances of failing to remit premiums in a timely manner to an insurer in the aggregate amount of $5,611.49; failing to comply with a Department subpoena; and failing to advise the Department of his current home and business addresses.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Restitution - $4,730.99; Fine - $87,000; Costs - $562.50.

Patricia Bickford, Mahwah, NJ
Order # E06-37, Febuary 27, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with executing an application for auto insurance  in which she failed to disclose a prior conviction for a motor vehicle violation.  Respondent’s conduct constituted the commission of a fraudulent act and her misrepresentations were material and willful.  Furthermore, her conduct demonstrated a disregard for the standards of professional conduct expected of producers.  Sanctions: To be considered at a future hearing.

Orders to Show Cause

Christopher J. Santarsiero, Freehold, NJ
You’re Out Bail Bonds, Freehold, NJ
Order to Show Cause # E06-26, February 3, 2006; Respondents are charged with conducting business using the unregistered fictitious trade name “Dave’s Bail Bonds;” permitting unlicensed persons to engage in the business of insurance; failing to procure a bail bond while also failing to return the $33,000 premium and collateral until the Department intervened; failing to provide information in response to a Department subpoena; failing to timely notify the Department of federal criminal charges and a plea agreement charging Santarsiero with knowingly and willfully conspiring and agreeing with others to make materially false, fictitious and fraudulent statements and representations, to use false writing and documents knowing them to contain materially false, fictitious and fraudulent statements and entries, and to conceal and cover up by trick, scheme and device material facts, all in matters within the jurisdiction of the executive branch of the United States, namely HUD; and being unworthy for licensure by virtue of Santarsiero’s conviction on January 18, 2006 for his role in a class D federal felony offense.

Related Action:  Order to Show Cause Seeking Immediate License Suspension #E06-25, February 3, 2006

Consent Orders

Roger L. Burgdorf, Cedar Knolls, NJ
Burgdorf & Co., Inc., Cedar Knolls, NJ
Consent Order # E06-30, February 14, 2006; Producers offered to solicit offers to viaticate two life insurance policies without first obtaining a viatical settlement broker license from the Department; used unlicensed viatical brokers to assist in an attempted viatical transaction; unreasonably advised a client to accept viatical settlement offers that were more than $2 million below other offers presented, and advised a client that they would provide a service for a commission rate of $25,000 to $30,000, even though they would have split a $400,000 commission with the unlicensed viatical broker pursuant to a viatical settlement contract (that was ultimately rescinded by the client). Sanctions:  Probation of license for one year (Burgdorf); Fine - $10,000 ($5,000 each – Burgdorf and Burgdorf & Co.).

Lance C. Cansino, Lubbock, TX
Consent Order # E06-24, February 2, 2006; Producer failed to advise the Department of current business address. Sanction: Fine - $250.

James C. Falkenstine, Wyoming, OH
Consent Order # E06-32, February 15, 2006; Producer failed to advise the Department of current home address. Sanction: Fine - $250.

Michael C. Funk, Hazlet, NJ
Consent Order # E06-33, February 21, 2006; Producer failed to advise the Department of current home and addresses. Sanction: Fine - $500.

David Gorczyca, Cranford, NJ
Consent Order # E06-40, February 24, 2006; In order to seek future business, Gorczyca solicited and obtained personal information concerning a person scheduled for insurance-related medical testing when the person was not his client or a prospective client; when the person’s insurance agent questioned Gorczyca about how he obtained the personal information, Gorczyca misrepresented that he obtained the information from the examiner who performed the medical test; and as a result of Gorczyca’s misrepresentation, the medical testing facility terminated the innocent examiner’s employment.  Sanction: Fine - $10,000.

Kevin Minehan, Glenside, PA
Christi Insurance Group, Inc., Glenside, PA
Consent Order # E06-35, February 22, 2006; Respondents issued numerous certificates of liability coverage indicating the existence of a $10 million umbrella coverage when, in fact, the policy provided on $5 million in coverage; respondents bound a policy without having the required level of binding authority from the insurer and sold the policy at a time when Minehan did not have a NJ producer’s license.  Sanction: Fine - $4,000 ($2,000 each - Minehan and Christi).

Elliot J. Paul, Tulsa, OK
Consent Order # E06-38, February 24, 2006; Producer conducted financial planning seminars for senior citizens in which he discussed insurance products yet failed to identify himself as an insurance producer prior to commencing his solicitation; he conducted financial planning seminars using the unregistered names “Retire Wiser” and “Warton Archon Financial Advisor;” offered an improper inducement in the form of a $149 certificate to be used toward a reduced financial planning fee; and maintained a unregistered branch office.  Sanction: Fine - $8,500.

Carlos Ricra, Kearny, NJ
Consent Order # E06-28, February 10, 2006; Producer conducted insurance business during a period in which his license was inactive.  Sanctions: Fine - $1,500.

Marc D. Goldberg, Turnersville, NJ
Consent Order # E06-27, February 10, 2006; Producer mailed misleading insurance solicitations and used an unapproved trade name.  Sanctions: Fine - $2,500.

Alan Schulman, Springfield, NJ
TMR Risk Managers, Inc., Springfield, NJ
Consent Order # E06-41, February 24, 2006; Respondents improperly permitted a property manager to allocate and apportion insurance premium for rental locations in a manner such that certain property owners were  unfairly assigned a disproportionately large portion of the premium.  Restitution in the amount of $20,000 was agreed upon pursuant to the settlement of a civil lawsuit.  Sanction: Fine - $10,000 (allocated $7,500 to Schulman and $2,500 to TMR).

Syndicate #33 at Lloyd’s, London, England
Consent Order # E06-42, February 24, 2006; Insurer accepted a surplus lines placement without a transaction number. Sanction:  Fine - $500.

Syndicate #2488 at Lloyd’s, London, England
Consent Order # E06-42, February 24, 2006; Insurer accepted surplus lines placements without a transaction number. Sanction:  Fine - $1,500.

Melissa L. Trought, Cherry Hill, NJ
American Collectors Insurance, Inc., Cherry Hill, NJ
Consent Order # E06-34, February 22, 2006; Producers permitted unlicensed employees to transact insurance business.  Sanction: Fine - $7,000 (allocated $3,500 to Trought and $3,500 to American).

Final Orders

American Transportation Corporation, Vail, AZ
Final Order # E06-11, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent  with operating as an unauthorized insurer and failing to comply with a Department subpoena.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $27,500; Costs - $460.

Cheri Jolley, Santaquin, UT
Final Order # E06-10, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with conducting the business of insurance without a license.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $75,000.

Thomas W. Hurd, Bensalem, PA
Hurd Insurance Agency, Bensalem, PA
TIC Brokerage, Bayville, NJ
Final Order # E06-06, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondents with: sale of policies from an ineligible insurer (T. Hurd and Hurd Agency); creating letters with false information and forgery (T. Hurd and Hurd Agency); conspiracy (T. Hurd and Hurd Agency); issuing false insurance ID cards (T. Hurd, Hurd Agency and TIC); sale of insurance through unregistered purchasing groups (T. Hurd and Hurd Agency); engaging in the business of insurance through an unlicensed producer (T. Hurd and Hurd Agency); selling insurance from an unauthorized insurer (T. Hurd, Hurd Agency and TIC); failing to remit or return premium (T. Hurd and Hurd Agency); failing to secure coverage (T. Hurd and Hurd Agency); making misrepresentations to the Department (T. Hurd and Hurd Agency); financing insurance premium without a license (T. Hurd and Hurd Agency);  allowing unlicensed persons to conduct the business of insurance (T. Hurd and TIC); presenting checks that were subsequently dishonored (T. Hurd and TIC); and failing to notify the Department of PA license revocation (T. Hurd and Hurd Agency).  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of licenses (T. Hurd, Hurd Agency, and TIC); Fine - $309,200 (T. Hurd and Hurd Agency); Fine - $110,000 (T. Hurd and TIC); Costs - $5,978 (T. Hurd and Hurd Agency); Costs - $460 (T. Hurd and TIC); Restitution - $912,845.94 (T. Hurd and Hurd Agency); Restitution - $ 65,636 (T. Hurd and TIC).

Henry J. Krauze, Long Branch, NJ
Final Order # E06-07, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with: sale of policies from an ineligible insurer; advising others to create letters with false information; conspiracy; failing to remit premium; charging improper policy fees; charging improper inspection fees; placing insurance business on behalf of an unlicensed entity; failing to notify the Department of a change in business address; and attempting to provide assistance to a person in handling allegations of fraud against her in exchange for money or sexual contact.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license; Fine - $736,150; Costs - $5,978; Restitution - $512,583.91.

Christopher J. Melilli, Bensalem, PA
Final Order # E06-09, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondent with: sale of policies from an unauthorized insurer; and conducting the business of insurance without a license.  Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Ordered to Cease and Desist insurance activities in New Jersey; Fine - $5,000; Costs - $460.

David Pohida, Elizabeth, NJ
Gerald Pohida, Elizabeth, NJ
United Risk Management Services, Inc., Elizabeth, NJ
Final Order # E06-08, January 6, 2006; Order to Show Cause E04-112 issued September 27, 2005 charged respondents with: sale of policies from an ineligible insurer (D. Pohida, G. Pohida and URM); advising others to create letters with false information (D. Pohida, G. Pohida and URM); conspiracy (D. Pohida, G. Pohida and URM); failing to remit or return premium (D. Pohida, G. Pohida and URM); charging improper fees (D. Pohida, G. Pohida and URM); transacting the business of insurance without a license (D. Pohida, G. Pohida and URM); and allowing an unlicensed person to conduct the business of insurance (D. Pohida, G. Pohida and URM). Although provided with notice and an opportunity to contest these charges, the respondent failed to do so.  Sanctions: Revocation of license (URM); Fine - $793,000 (D. Pohida, G. Pohida and URM); Costs - $5,978 (D. Pohida, G. Pohida and URM); Restitution - $ 883,816.36 (D. Pohida, G. Pohida and URM).

Orders to Show Cause

Harry DelBosco, Fair Lawn, NJ
Garden State Brokers, Inc., Fair Lawn, NJ
Order to Show Cause # E06-14, January 18, 2006; Producers are charged with being unworthy of continued licensure by reason of DelBosco’s conviction of the crime of Theft by Failure to Make Required Disposition of Property; respondents failed to remit or return insurance premium payments in the aggregate amount of $887,000; accepting funds from clients but failing to secure insurance coverage; failing to timely notify the Department of the filing of criminal charges against DelBosco; and failing to timely notify the Department of DelBosco’s conviction.

Israel Grossman, New York, NY
Order to Show Cause # E06-03, January 6, 2006; Producer is charged with failing to disclose on his license application his conviction of 19 counts of utilizing a manipulative or deceptive device in the trading of a security and 19 counts of mail fraud; being unworthy of continued licensure by reason of his conviction; failing to disclose on his license application that he had been disbarred from the practice of law in NY; falsely denying on an agent appointment agreement that he had been convicted of a felony; submitting an application for an appointment in which he falsely denied that the had been convicted of a felony; failing to notify the Department of a change of business address and change of employer; failing to notify the Department of the institution of disciplinary proceedings by the NY Insurance Department; failing to notify the Department of the institution of criminal proceedings in the NY federal district court; and failing to respond to a Department communication.

Consent Orders

Frank P. Costa, Clifton, NJ
Consent Order # E06-02, January 6, 2006; Producer issued  certificates of insurance without authority to do so; charged fees to insureds without a written fee agreement; utilized an improper form of fee agreement; used a trade name without prior approval by the Department; and issued non-compliant auto insurance ID cards. Sanctions: Fine - $15,000; Costs - $2,500.

Edward Furfey, Hamilton, NJ
Clear Advantage Title, Inc., Hamilton, NJ
Consent Order # E06-19, January 23, 2006; Clear Advantage failed to issue an endorsement to a lender’s title policy in a timely manner (Furfey is the designated responsible producer for Clear Advantage) Sanctions: Fine - $2,000; Costs – $500.

General Security Indemnity Company of Arizona., New York, NY
Consent Order # E06-15, January 18, 2006; Insurer accepted a surplus lines placement without a transaction number. Sanction:  Fine - $500.

Abraham A. Goldenberg, Lakewood, NJ
Consent Order # E06-18, January 23, 2006; Producer failed to disclose a disorderly persons conviction on his license application. Sanction: Fine - $1,000.

Barry Mittman, Maple Glen, PA
Consent Order # E06-05, January 6, 2006; Producer used an unregistered trade name and conducted sales activity without identifying himself as an insurance producer. Sanction: Fine - $2,000.

Frederick J. Palmieri, Runnemede, NJ
Consent Order # E06-17, January 23, 2006; Producer knowingly submitted false insurance claim requesting payment for the theft of his Jaguar, when in fact he knew that the vehicle had not been stolen; he knowing misrepresented that a set of golf clubs and a suit of clothing were also stolen; and he knowingly submitted a false vehicle theft report to the Philadelphia Police Department.  Sanctions: Revocation of license; Fine - $5,000.

Jasper E. Parrella, Jr., Aberdeen, NJ
Dickstein Associates Agency, LLC, Aberdeen, NJ
Consent Order # E06-13, January 18, 2006; Dickstein and an individual producer demonstrated a lack of due diligence in compiling information and completing an insurance application (Parrella is the designated responsible producer for Dickstein).  Sanctions: Fine - $1,000; Costs - $500.

Frank A Reilly, Freehold, NJ
First Jersey Insurance Agency, Inc., Freehold, NJ
Consent Order # E06-20, January 23, 2006; Producers distributed deceptive and misleading insurance solicitations.  Sanctions: Fines - $3,750 (Reilly) and $3,750 (First Jersey).

Joseph Shammah, Elizabeth, NJ
Northeast Claims Group, LLC, Elizabeth, NJ
Consent Order # E06-16, January 18, 2006; Public Adjusters solicited business using improper advertisements that contained claims that customers would “receive more money for a claim” handled by respondents and also offering free gifts to people willing to hire respondents to adjust claims.  Sanction: Fine - $1,000.

Lydia Wan, New York, NY
Consent Order # E06-01, January 6, 2006; Producer knowingly submitted an auto insurance application in an attempt to obtain insurance using an incorrect home address.  Sanctions: Revocation of license; Fine - $2,500; Costs - $500.