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2011 Insurance Enforcement Activity

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December


Final Orders

Julio C. Fonseca, Clearwater, FL
Order #E11-112, December 28, 2011
Respondent submitted several checks to NJ PAIP that were dishonored for insufficient funds, some of which were not replaced.  He failed to remit applications and premiums for automobile insurance, NJ PAIP coverage, and flood insurance and issued temporary automobile insurance identification cards when no coverage was in effect. 
Sanctions: Revocation, Restitution - $2,069, Fine - $100,500, Costs - $875.

Wycliff S. Sebina and Trans Atlantic Brokerage, Inc., Newark, DE
Order #E11-102, December 9, 2011
Respondents failed to answer charges that they committed various NJ PAIP violations, that they used an insurance agency premium trust account to pay personal expenses, that they commingled and misappropriated insurance premium funds, that they issued premium checks that were dishonored for insufficient funds, that they failed to remit premiums, that they failed to secure insurance coverage, and that they failed to respond to inquiries of the Department. 
Sanctions: Revocation, Fine - $61,000, Restitution - $4,600, Costs – $562.50.

Lakesia S. Wright (nee Lakesia S. Durant) d/b/a The Durant Insurance & Financial Services Group, d/b/a Atlantic Star Express Financial Services Corp., North Plainfield, NJ
Order # E11-107, December 15, 2011
Respondent failed to answer charges that she conducted business under an unregistered trade name, that she acted for an insurance company without authorization from said company, that she charged and accepted improper and excessive fees, that she issued improper premium receipts, that she failed to remit and misappropriated premium, that she failed to obtain secure insurance coverage, that she failed to refund premium and that she failed to report criminal charges to the Department.
Sanctions: Revocation, Fine - $100,000, Restitution - $16,683.50, Costs - $1,162.50.

Orders to Show Cause

William P. Leonard and Capital Conservation Associates, Inc., Cherry Hill, NJ
Order to Show Cause #E11-108, December 15, 2011
Respondents are charged with advising clients to surrender annuities to purchase promissory notes without proper due diligence or necessary disclosures and without proper securities licensure and registration, and with making improper representations that the promissory notes were guaranteed, safe and no risk.

Joseph Schifano, Brick, NJ and Daniel McCorry, Toms River, Marlboro and Brick, NJ
Order to Show Cause #E11-103-A, December 12, 2011
Respondents charged with advising clients to surrender annuities to purchase promissory notes without proper due diligence or necessary disclosures and without proper securities licensure and registration, with making improper representations that the promissory notes were guaranteed, safe and no risk, with failing to notify the Department of a judgment against them and in favor of the New Jersey Bureau of Securities for selling unregistered securities, and with failing to maintain required records and cooperate with a Department investigation. 

Consent Orders

Paul S. Baron, Manalapan, NJ
Order #E11-106, December 15, 2011
Respondent forged a person’s name to an insurance application without her knowledge or consent.
Sanction: Fine - $1,000.

Miriam E. Clark, Newark, NJ
Order #E11-101, December 6, 2011
Respondent improperly indicated in her producer application that she had not been convicted of a crime when she had been convicted of making a false statement in an application for a passport.
Sanction: Fine - $500.

Veronica DeAngelis, Blackwood, NJ
Order #E11-110, December 21, 2011
Respondent failed to timely return bail bond collateral, charged an improper fee and used a business name when she did not have a business entity producer license for said entity.
Sanction: Fine - $500.

Gatta, Carney Gavin Jr., Wayside, NJ
Order #E11-109, December 21, 2011
Respondent created fraudulent insurance premium financing applications for customers who did not need or request premium financing, which scheme resulted in his theft of in excess of $20 million from three premium finance companies and his conviction of wire fraud.
Sanctions: Revocation, Fine-$1,031,500.

Pacific Insurance Company, LTD., Hartford, CT
Order #E11-111, December 21, 2011
Respondent accepted a surplus lines placement from an insurance producer who did not have surplus lines authority and issued the insurance policy without the required transaction number.
Sanction: Fine - $1,000.

Sandra J. Saldana and Any Hour Bail Bonds, Inc., North Plainfield, NJ
Order #E11-104, December 9, 2011
Respondents charged improper fees in connection with the apprehension of a fugitive for whom they had procured a bail bond.
Sanction: Fine - $1,000.

Glen G. Wiggers, Norwood, NJ
Order #E11-105, December 15, 2011
Respondent was responsible for allowing an employee to solicit, sell and conduct insurance business without an insurance producer license.
Sanction: Fine - $2,500.

 
November

 

Final Orders

Louise Polite, Jr. t/a Polite Insurance Agency, Mount Laurel, NJ
Final Order #11-98, November 15, 2011
Respondent did not respond to order charging him with failing to remit over $60,000 premium collected from various individuals to the insurance companies and failing to report an arrest and conviction for theft resulting from said misappropriation of premium.
Sanctions: Revocation of License; Restitution - $57,622.87; Fine - $264,000; Costs - $837.50.

Consent Orders

Healthcare Insurance Professionals, Inc., Houston, TX
Consent Order #E11-94, November 14, 2011
Respondent placed surplus lines coverage for a New Jersey policyholder with an eligible, unauthorized surplus lines insurer without possessing the requisite surplus lines authority.
Sanction: Fine- $1,000.

Benny Machado and 24 Seven Bail Bonds, New Brunswick, NJ
Consent Order #E11-95, November 14, 2011
Respondent engaged an inmate, who was not licensed as an insurance producer, to solicit bail bonds while incarcerated in a correctional facility.
Sanction: Fine $5,000.

Lorena Mierau, Philadelphia, PA
Consent Order #E11-96, November 14, 2011
Respondent misrepresented on four annuity applications that they were completed and signed in Wilmington, Delaware when they were completed and signed in New Jersey.
Sanction: Fine- $2,000.

Orders to Show Cause

Michael Troise, Marlton, NJ
Order to Show Cause #E11-97, November 14, 2011
Respondent charged with completing an application for insurance without the applicant’s knowledge or consent and forging the applicant’s name on the application for three individuals.

 
October

Consent Orders

Americas Insurance Center and Arthur Kravetz, Springfield, NJ
Order #E11-79, October 12, 2011; Respondents failed to maintain a trust account and commingled premium and other funds.
Sanction: Fine - $5,000.

Paul L. Dalessandro, Coatesville, PA
Order #E11-84, October 21, 2011; Respondent forged a client signature on a life insurance illustration.
Sanction: Revocation.

William H. Frasse, Park Ridge, NJ
Order #E11-86, October 21, 2011; Respondent delayed in the transmission of premium to an insurance company and failed to advise the Commissioner of the filing of criminal charges and a criminal conviction.
Sanction: Fine - $5,000.

HSBC Securities (USA) Inc., New York, NY
Order #E11-87, October 21, 2011; Respondent failed to timely report to the Commissioner five disciplinary actions taken against it by FINRA.
Sanction: Fine - $500.

Dylan Monteforte, Hazlet, NJ
Order #E11-82, October 21, 2011; Respondent completed and signed four applications without the consent of the insured and misrepresented the state in which said applications were signed.
Sanction: Fine - $1,000.

Speedy Bail Bonds, LLC and Jose Taveras, Hopelawn and Perth Amboy, NJ
Order #E11-85, October 21, 2011; Respondents failed to timely return collateral on a bail bond following disposition of defendant’s case.
Sanction: Fine - $2,000.

Paul J. Tully, Wenonah, New Jersey
Order #E11-81, October 21, 2011; Respondent conducted insurance business under a name that was not filed with and approved by the Department.
Sanction: Fine - $1,000. 

ABC Bail Bonds, Inc., Morrisville, PA; Jonathan Yellin, Holland, PA; and Lexington National Insurance Corporation, Lutherville, MD
Order #E11-88, October 25, 2011; Respondents were not licensed as a premium financing company but used a promissory note form that referred to the charging of interest on premium installments and recorded a deed without the consent of the indemnitor’s joint tenant.
Sanction: Fine - $10,000.

CCO Investment Services Corp., Norwood, MA
Order #11-90, October 25, 2011; Respondent failed to report four consent orders involving fines of $3 million, $800,000, $1,500 and $1,000 to the Department and did not disclose one consent order on its renewal application. 
Sanction: $2,500 fine.

Leland Grossman, Medford, NJ
Order #11-89, October 25, 2011; Respondent placed surplus lines insurance on 36 New Jersey risks without the required surplus lines authority and filed inaccurate Premium Receipt Tax Returns with the Department’s Surplus Lines Examining Office. 
Sanction: $2,500 fine.

Kenneth J. Tuite and Rapid Release Bail Bonds, Inc., Toms River and Freehold, NJ
Order #E11-78, October 6, 2011; Respondents improperly charged a fee without first securing a signed written service fee agreement. 
Sanction: $500 fine.

Conditional Orders

Olympic Health Management Systems, Inc., Bellingham, WA
Order #E11-91, October 25, 2011; Respondent failed to submit its 2010 audited financial report to the Department.
Sanction: Revocation, subject to retroactive reinstatement upon filing the 2010 audited financial statement within 30 days and payment of $5,000 fine.

 
September


Final Order

Jose D. Uribe and Inter-America Insurance Agency, LLC,
Order #E11-77,  September 28, 2011;  Respondents sold, solicited and negotiated insurance policies to various New Jersey companies through entities that were not authorized to transact the business of insurance in New Jersey, issued insurance identification cards and certificates of insurance when no insurance was in effect, and failed to provide complete and timely responses to Department inquiries.
Sanctions: Revocation, Fine - $92,500, Costs - $2,125.

Consent Orders

Barry John Barbier, Plano, TX
Order #E11-73, September 13, 2011; Respondent failed to honor requests of insured to cancel policies and instead indicated to the company that they wished to retain coverage.
Sanction: Surrender of Non-Resident License.

Sally L. Evans, Little Silver, NJ
Order #E11-74, September 13, 2011; Respondent sold, solicited and negotiated insurance when her insurance producer license was expired.
Sanction: Fine - $500.

Frank Froio, Marlton, NJ
Order #E11-71, September 9, 2011; Respondent deposited insurance premium payments in his personal checking and business checking accounts but did not misappropriate said funds, and delayed in remitting insurance premiums to carriers.
Sanction: Fine - $5,000.

Elizabeth Gaillard, Union Beach, NJ
Order #E11-72, September 13, 2011; Respondent misappropriated $221,214 in premium relating to 167 surety bonds.
Sanction: Revocation.

National Indemnity Insurance Company, Omaha, NE
Order #E11-75, September 27, 2011; Respondent accepted a surplus lines placement without the involvement of a New Jersey surplus lines producer and accepted a surplus lines placement without a surplus lines transaction number.
Sanction: Fine - $1,000.

Greta Gallagher and Donald P. Sweeney, Waldwick and Whiting, NJ
Order #E11-70; September 7, 2011; Respondents placed surplus lines insurance for four risks without the required surplus lines authority with a insurer that was never an eligible surplus lines carrier and that had been ordered to cease and desist from transacting the business of insurance in New Jersey.   
Sanction: $4,000 fine.

 
August


Final Order

Aconorate Insurance Agency, Inc. and John J. Petillo, Philadelphia, PA
Order #E11-64, August 10, 2011;  Respondents failed to respond to charges that they sold coverage with unlicensed and unauthorized insurers, misappropriated premium, created false and fraudulent insurance binders and certificates of insurance, engaged in premium financing without a license, failed to notify the Commissioner of a criminal conviction for conspiracy to commit mail fraud and conspiracy to obstruct justice, sold insurance through ineligible surplus lines carriers and failed to respond to an information request from the Department.
Sanctions: Revocation, Fine - $74,500, Costs -$1300.

Orders to Show Cause

Wycliff S. Sebina and Trans Atlantic Brokerage, Lindenwood and Audubon, NJ
Order #E11-59, August 8, 2011; Respondents charged with numerous PAIP violations, use of premium trust account funds for personal expenses, bouncing premium trust account checks, misappropriation of premium, failure to remit premium, commingling of premium trust account funds, and failure to respond to a request of the Department.

Janet R. Hohn and Kevin Kalin, East Brunswick and Plainfield, NJ
Order #E11-67, August 29, 2011; Respondents charged with including false and misleading statements and a forged signature on an insurance application.

Lakesia S. Wright, Branchburg, NJ
Order #E11-60, August 9, 2011; Respondent charged with conducting business under an unapproved business name, charging excessive fees and charging fees without a written fee agreement, acting as an insurance agent without authority from the insurance company, misappropriating premium, failing to obtain insurance coverage, failing to remit premium to an insurer, and failing to report the filing of criminal charges against her to the Commissioner.

Consent Orders

Richard W. Anselmo, Belmar, NJ
Order #E11-66, August 15, 2011; Respondent failed to disclose on annuity applications that the proposed insured had existing coverage and the applications were intended to replace existing annuities.
Sanction: $1,500 fine.

Gremesco of New Jersey, LLC., Freehold, NJ
Order #E11-65, August 15, 2011; Respondent placed surplus lines coverages on behalf of another producer who lacked surplus lines authority.
Sanction: $2,500 fine.

Stephen Immordino, Howard Beach, NY;
Order #E11-62, August 10, 2011; Respondent sold an insurance annuity to a New Jersey resident prior to being a licensed as a producer in New Jersey and failed to disclose to the application that the annuity contract was issued on a group basis.
Sanctions: Surrender of Non-Resident License.

Joseph C. Maniaci, Jr., Mount Laurel, NJ
Order #E11-61, August 10, 2011; Respondent failed to notify Department of conviction for possession of a controlled dangerous substance with intent to distribute.
Sanction: $500 fine.

Gregory Settineri, Sparta, NJ
Order #E11-57, August 3, 2011; Respondent altered an applicant’s authorization to transfer funds.
Sanctions: $500 fine.

 
July


Final Order

Ronald Vaughn, Voorhees, NJ
Order #E11-54, July 22, 2011; Respondent failed to respond to an Order to Show Cause charging him  with understating the premium for a life policy to an applicant, forging the applicant’s name to several documents related to the life insurance policy, failing to deliver the life insurance policy to the applicant thereby depriving him of his ability to cancel within the free look period, violating the illustrations regulation, misidentifying the state in which the application was taken and the policy was delivered, violating the Insurance Fraud Prevention Act, and falsely stating to an insurer that his client had not received the proceeds of the surrender of an annuity so that a second payment would be made which he then misappropriated. 
Sanction: Revocation.  

Consent Orders

Richard P. Dale, Jr., Dallas, TX
Order #E11-52, July 18, 2011; Respondent failed to disclose within 30 days of actions taken against him by the Texas and Kentucky Departments of Insurance and incorrectly indicating on his license renewal application that he had not been involved in any administrative proceeding regarding a professional or occupational license.
Sanction: $250 fine.

Parag Patel, Parsippany, NJ
Order #E11-55, July 22, 2011; Respondent failed to submit insurance license application after completing pre-licensing education and passing the licensing examination and negotiated, solicited and/or effectuated insurance while not licensed. 
Sanction: $1,000 fine.

Maritza L. Roman and Secured Insurance Agency, Inc., Kearny, NJ
Order #E11-69, July 27, 2011; Respondents conducted insurance business without establishing a trust account and failed to respond to Department inquiries.
Sanction: $1,000 fine.

Orders to Show Cause

Cynthia Escobar, Charlotte, NC and Concord, NC
Order #E11-53, July 18, 2011; Respondent is charged with failing to remit automobile insurance premium, misappropriation and conversion, failing to secure coverage or timely return premium, and issuance of an invalid temporary insurance identification card.

Louis Polite, Jr., Philadelphia, PA, Mt. Laurel, NJ and Burlington, NJ
Order #E11-56, July 22, 2011; Respondent is charged with failing to remit automobile insurance premium to insurance companies and the New Jersey Personal Automobile Plan for several applicants, conviction of theft by failure to make required disposition of property received in the 3rd degree, and failure to notice the Department of his indictment and conviction.  

 
June


Consent Orders

Certified Auto Exchange Inc. and Maurice G. Montemurro, Keyport, NJ
Order #E11-48, June 20, 2011; Respondents sold spot automobile insurance coverage from 2003 to 2008 without being licensed as insurance producers. 
Sanction: $14,400 fine.

Family Focus Retirement Group LLC and Kathleen Nolan, Jackson, NJ
Order #E11-43, June 3, 2011; Respondents conducted seminars involving senior citizens in which they offered consideration with a monetary value in excess of $25. 
Sanction: $500 fine.

North Star Insurance Services, LLC and Nicholas Pineda, Mahwah and Montvale, NJ
Order #E11-46, June 6, 2011; Respondents failed to timely return unearned premium on four commercial general liability insurance policies.
Sanction: $4,000 fine.

Susan J. Ottinger, Livingston, NJ
Order #E11-42, June 3, 2011; Respondent failed to advise the Department of an indictment for possession of a controlled dangerous substance with intent to distribute, maintaining a controlled dangerous substance production facility and possession of a controlled dangerous substance, a guilty plea to conspiracy to violate narcotics laws, and an administrative action taken against her by the State of New York.  Respondent also incorrectly indicated on her license renewal application that she did not have any criminal convictions or administrative actions taken against her. 
Sanction: $500 fine.

John E. Santoro, Sewell, NJ   
Order #E11-45, June 17, 2011; Respondent failed to notify the Department of a consent order with the New Jersey Bureau of Securities relating to the sale of promissory notes that were not registered and that did not qualify for an exemption from registration.  
Sanction: $500 fine.

Order to Show Cause

Harry A. Little, Levittown, PA
Order #E11-44, June 20, 2011; Respondent is charged with replacing four life insurance policies without providing the required “Notice Regarding Replacement of Life Insurance” and a completed “Comparative Information Form” and with failing to indicate on the four life insurance applications that replacement of existing life insurance would occur and failing to list the current existing life insurance policies.  

 
May

Final Orders

Agape Boxman and My Closing Space, LLC, Freehold, NJ
Order #E11-39, May 31, 2011; Respondents failed to respond to an Order to Show Cause charging them with failing to remit premium to a title insurer, failing to obtain a title insurance policy, misappropriation and conversion, and failing to respond to a Department subpoena.
Sanction: Revocation, $11,000 fine, $14,639 in restitution and $2,925 in costs.

Gilbert Scott Morgan and C & S Insurance Agency, Inc., Houston, TX
Order #E11-40, May 31, 2011; Respondents failed to respond to an Order to Show Cause charging them with selling false and fraudulent insurance polices to six nightclubs in New Jersey, failing to remit premium, creating false insurance documents, failing to respond to a Department subpoena and failing to advise of criminal and regulatory actions taken against them in other jurisdictions.
Sanction: Revocation, $47,500 fine, $26,881 in restitution and $1,300 in costs.

Consent Orders

Raymond A. Grodnicki, Burlington, NJ
Order #E11-37, May 17, 2011; Respondent sold five life insurance polices while not licensed, forged the names of five proposed insured’s on documents relating to applications for life insurance and attempted to renew his producer’s license without complying with the continuing education requirements. 
Sanctions: Revocation and $500 fine.

Robert W. Hagaman, Toms River, NJ
Order #E11-34, May 13, 2011; Respondent conducted business under a name other than his legal name, which name was not filed with and approved by the Department. 
Sanction: $1,000 fine.

John Kelly and Christopher L. Curran, Clark, NJ
Order #E11-38, May 22, 2011; Respondents distributed an advertisement for health insurance that provided sample rates for a small employer plan without identifying the insurance company offering such rates, the small employer plan associated with such rates, or explaining that actual rates will vary based on the age and gender of the employees and the employer’s location.
Sanction: $2,500 fine.

John Gregory Lynch, New York, NY
Order #E11-33, May 5, 2011; Respondent was convicted of conspiracy to employ a prohibited person and sentenced to two years in federal prison and ordered to pay restitution of $70,260 to the Professional Employees Guild Welfare Fund and failed to notify the Department of his indictment and conviction.
Sanction: Revocation.

John A. Rocco Company, Inc., Florham Park, NJ   
Order #E11-30, May 3, 2011; Respondent agency engaged in multiple instances of obtaining premium financing that was not authorized by the applicant and was not forwarded to either the insurer or the applicant, issuing premium checks to insurers that were not honored, obtaining duplicate premium financing on the same policy, failing to remit premium to insurers, obtaining premium financing in excess of the premium amount and forgery. 
Sanction: Revocation effective September 1, 2011 and $115,000 fine.
 
Edward J. Russo, Ledgewood, NJ
Order #E11-35, May 13, 2011; Respondent failed to maintain records relating to an application for small employer health benefits plan. 
Sanction: $500 fine.

Order to Show Cause

Ronald Vaughn, Voorhees, NJ
Order #E11-31, May 4, 2011; Respondent is charged with understating the premium for a life insurance policy to an applicant, forging the applicant’s name to several documents related to the life insurance policy, failing to deliver the life insurance policy to the applicant thereby depriving him of his ability to cancel within the free look period, violating the illustrations regulation, misidentifying the state in which the application was taken and the policy was delivered, violating the Insurance Fraud Prevention Act, and falsely stating to an insurer that his client had not received the proceeds of the surrender of an annuity so that a second payment would be made which he then misappropriated.  

 
April

Consent Orders

Oxford Health Plans (NJ), Inc, and United Healthcare of New Jersey, Inc., Trumbull, CT
Order #E11-27, April 8, 2011; Market conduct examinations reveal instances of noncompliance with applicable statutes and regulations.  
Sanction: $375,000 fine, $600,000 costs and reprocessing of certain claims.

Michael S. Pett, Montville, NJ
Order #E11-24, April 1, 2011; Respondent failed to advise applicant for an annuity that 6.5% interest rate was only guaranteed for 12 months, that guarantee rate was 2% following the first anniversary and that there was a five year penalty for early withdrawals. 
Sanction: $2,500 fine.

Rosa M. Tavares, Newark, NJ
Order #E11-25, April 4, 2011; Respondent made false and/or misleading statements in a claim submission to her health insurer. 
Sanction: one year suspension of producer license and $1,000 fine.

Marilyn A. Weshnak, Somerset, NJ
Order #E11-28, April 12, 2011; Respondent contacted an insurer falsely claiming to be the caretaker of an annuity owner and failed to respond timely to an inquiry from the Department. 
Sanction: $2,500 fine.


Order to Show Cause

Guy Gundy, Ewing, NJ
Order #E11-26, April 5, 2011; Respondent is charged with failing to return and misappropriation of collateral paid for bail bonds, failure to procure bail bonds and misappropriation of premium paid for said bonds, failure to notify the Department of criminal charges filed against him and his guilty pleas to said charges, forgery and failure to respond to a Department inquiry.

March


Final Orders

John A. Rocco and Kelly L. Roetto, Bedminster, NJ Order #E11-23, March 28, 2011; Respondents failed to respond to an Order to Show Cause charging them with multiple counts of obtaining premium financing that was not authorized by the applicant and was not forwarded to either the insurer or the applicant, issuing premium checks to insurers that were not honored, obtaining duplicate premium financing on the same policy, failing to remit premium to insurers, obtaining premium financing in excess of the premium amount and forgery. 
Sanction: Revocation, $225,000 fine and $9,387.50 in costs.

Consent Orders

Brian J. Piccolo, Fredon, NJ
Insurance Coverage Specialist, LLC, Hackettstown, NJ
Order #E11-22, March 23, 2011; Respondent failed to timely remit a premium payment to an insurer resulting in a lack of coverage for sixteen months. 
Sanction: $2,750 fine.

Redland Insurance Company, New York, NY
Order #E11-21, March 23, 2011; Respondent failed to timely notify the Department of a modification of a reinsurance agreement with an affiliate company. 
Sanction: $1,000 fine.

Orders to Show Cause

Agape Boxman, Freehold, NJ
My Closing Space, Hillside, NJ
Order #E11-20, March 21, 2011; Respondents are charged with failing to remit premium to a title insurer, misappropriation of funds that were to be disbursed in a real estate closing, and failing to respond to a Department subpoena.

Maurice G. Montemurro and Certified Auto Exchange Inc., Keyport, NJ
Order #E11-19, March 21, 2011; Respondents are charged with selling, soliciting and negotiating spot automobile insurance coverage without being licensed as insurance producers.

Gilbert Scott Morgan and C & S Insurance Agency, Inc., Houston, TX
Order #E11-17, March 8, 2011; Respondents are charged with selling commercial general liability and liquor liability coverage to various New Jersey businesses through a unlicensed and unauthorized insurer, misappropriation and failure to remit premium, creation and distribution of bogus binders and certificates of insurance, failing to advise the Department of license revocation in other states and failing to advise the Department of a criminal conviction for conspiracy to commit mail and wire fraud. 

John J. Petrillo, Brooklyn, NY
Aconorate Ins. Agency, Inc., Hammonton, NJ
Order #E11-16, March 8, 2011; Respondents are charged with selling commercial general liability and liquor liability coverage to various New Jersey businesses through a unlicensed and unauthorized insurer, misappropriation and failure to remit premium, creation and distribution of bogus binders and certificates of insurance, operating as a premium finance company without a license, failing to advise the Department of a criminal conviction for conspiracy to commit mail fraud and conspiracy to obstruct justice and failing to provide information requested by the Department. 

February


Final Order

Olivia Howard, East Orange, NJ
Order # E11-12, February 9, 2011; Respondent’s application for a resident insurance producer was denied based on her disbarment from the practice of law for disbursing client funds without instructions from the client and for failing to disclose in her application for a producer license that a complaint had been filed against her by the New Jersey Lawyers Fund for Client Protection.

Consent Orders

Yehuda Dachs, Lakewood, NJ
Order #E11-14, February 23, 2011; Respondent submitted a claim for damage to an automobile without disclosing that the damage occurred prior to the effective date of the insurance coverage and admitted to a violation of the New Jersey Insurance Fraud Prevention Act based on said conduct. 
Sanction:  Revocation and $2,500 fine.

Andrew DeGroat, Ambler, PA
Order #E11-10, February 1, 2011; Respondent signed a life insurance asserting that he witnessed the signature of the prospective insured when he was not present when the application was signed and caused, permitted or was responsible for allowing an unlicensed person to solicit, sell and conduct insurance in New Jersey.
Sanction: Fine - $4,000.

Order to Show Cause

John Gregory Lynch, New York, NY
Order #E11-11, February 1, 2011; Respondent is charged with conviction of a felony, use of fraudulent, coercive or dishonest practices, incompetence, untrustworthiness or financial irresponsibility in the conduct of insurance business and commission of a fraudulent act based on his conviction of conspiracy to employ a prohibited person and with failure to notify the Commissioner of his indictment and conviction within thirty days.     

January


Final Orders

Jungun Kim, Fairview, NJ
Order # E11-08, January 24, 2011; Respondent failed to respond to an order to show cause charging him with failure to remit premium to an insurer, failure to inform the Department of an indictment and final disposition of criminal charges, and failure to respond to a Department inquiry.
Sanctions: Revocation, fine - $8,500, restitution - $11,200 and costs - $312.50.

Pepe M. Seck, Newark, NJ
Order #E11-03, January 7, 2011; Respondent failed to respond to an order to show cause charging him with submitting two applications for life insurance without the knowledge or consent of the person to be insured, submitting fraudulent documentation in support of said applications including a false social security number and fraudulent financial and medical documentation, forgery and conviction of insurance fraud and forgery.
Sanctions: Revocation, fine - $17,000 and costs - $650.

Consent Orders

Citizens United Reciprocal Exchange, Princeton, NJ
Order #E11-2, January 5, 2011; Market conduct examination reveal certain instances of noncompliance.
Sanction:  Fine - $26,000.

Edwin Moleros, Queens Village, NY
Order #E11-07, January 24, 2011; Respondent failed to respond to Department inquiry and failed to notify Department of change of business address.
Sanction: Surrender of license.

 

Previous Years
 
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