New York State
Insurance Department
 

DISCIPLINARY ACTIONS


July 7, 1999

The following tables show the Licensee in Column One,  Address in Column Two, and the Penalty in Column Three.  The bottom row of each table describes the circumstances.  

NEW YORK STATE INSURANCE DEPARTMENT TAKES DISCIPLINARY ACTIONS
AGAINST AGENTS, BROKERS & ADJUSTERS

The New York State Insurance Department has taken disciplinary action against the following licensees. The ones categorized as a stipulation have been agreed to by the licensee. Department hearings are subject to judicial review and possible stay of enforcement.


CAPITAL REGION

STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Richards, Mark E.
(agent)

67-D Woods Hollow
Clifton Park, NY

$4,202 fine

Violated Department Regulation 60* when he placed a life insurance policy with Metropolitan Life Insurance Company.



CENTRAL REGION

STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Lupo, Timothy M.
(agent)

7 Locust St.
Auburn, NY

$2,286 fine

Violated Department Regulation 60* when he placed two life insurance policies with the Prudential Insurance Company of America.


LICENSEE

ADDRESS

PENALTY

Milliman, Andrew W.
(agent)

959 Lawrence Rd.
Macedon, NY

$6,710 fine

Signed an insured’s name to a fund withdrawal form and subsequently issued a check without permission or knowledge of the insured to purchase a life insurance policy. Milliman also violated Regulation 60* when he placed life insurance policies with The Prudential Insurance Company of America.


LICENSEE

ADDRESS

PENALTY

Niland, John M.
(agent)

207 Cashin Dr.
Fayetteville, NY

License revoked

In July 1998, plead guilty to conspiracy to launder a monetary instrument. The conviction was for actions committed prior to being licensed by the Department.



HUDSON REGION

HEARINGS

LICENSEE

ADDRESS

PENALTY

Frome, Elias M.
(broker)
t/b/a Frome Insurance Service

39 S. Main St.
Spring Valley, NY

License revoked

Collected premium funds but failed to forward them in a timely manner to the appropriate insurers and issued a premium check that was dishonored by the bank.


LICENSEE

ADDRESS

PENALTY

O’Connor, Daniel A.
(broker & sublicensee)

12 Gerlach Pl.
Larchmont, NY

License revoked

Issued premium checks that were dishonored by the bank. O’Connor also commingled premiums with other funds and allowed an unlicensed individual to accept premium payments when he was away from the office.


LICENSEE

ADDRESS

PENALTY

Preville, Barry G.
(agent)

692 Panorama Dr.
Mohegan Lake, NY

License revoked

Failed to respond to the Department’s request for information after indicating on his license renewal application that he had been declared bankrupt.


LICENSEE

ADDRESS

PENALTY

Schwartz, Seymour R.
(broker)

4 Glen Haven Dr.
New City, NY

$6,000 fine

Submitted applications to the New York Automobile Insurance Plan with low premium deposits and underestimated premium amounts. This practice, known as low-balling, occurs when an agent or broker intentionally misquotes premium information in order to undercut the competition. Although the insured’s deposit reflects the quoted lower premium, the policyholder is eventually billed by the insurer for the difference.



STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Tomshaw, Tiber
(agent)

187 Henry St.
Kingston, NY

$1,500 fine

Completed applications in New York State for annuity contracts on behalf of an insurance company not licensed to operate in the State of New York.



NORTHERN REGION

HEARINGS

LICENSEE

ADDRESS

PENALTY

DeMaro, Richard J.
(agent)

41 Broad St.
Plattsburgh, NY

$600 fine

Issued premium checks that were dishonored by the bank. All but one of the checks were subsequently replaced.



STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Fire Service Agency, Inc.
(broker)

MacPhee, Robert A.
(agent, broker & sublicensee)

6322 Milleville Center
Sanborn, NY

Same as above

$750 fine

Signed someone’s name to an insurance form without his knowledge or permission. Also, conducted insurance business using an unlicensed name.


LICENSEE

ADDRESS

PENALTY

Lawley Service, Inc.
(agent & broker)

Lawley, William J. Jr.
(sublicensee)

120 Delaware Ave.
Buffalo, NY

$500 fine

An employee signed an insurance form as a witness without actually witnessing the signature.


LICENSEE

ADDRESS

PENALTY

O’Connor, Timothy M.
(agent & broker)

86 Long Ave.
Hamburg, NY

$500 fine

Signed an insurance form as a witness without actually witnessing the signature.



NEW YORK CITY REGION

HEARINGS

LICENSEE

ADDRESS

PENALTY

Borukhov, Tamara B.
(broker)

63-67 108 St.
Forest Hills, NY

License revoked

Issued premium checks that were dishonored by the bank.


LICENSEE

ADDRESS

PENALTY

Cabrera, Daisy
(broker)

2550 Briggs Ave.
Bronx, NY

License revoked

Collected premium funds but failed to forward them to the appropriate insurers.


LICENSEE

ADDRESS

PENALTY

Caceres, Cristina
(broker)

36 West 183rd St.
New York, NY

License revoked

Issued premium checks that were dishonored by the bank. In addition, she was decertified from the New York Automobile Insurance Plan based for various violations of Plan rules.


LICENSEE

ADDRESS

PENALTY

Caiazzo, Louis
(broker)

540 Pt. Richmond Ave.
Staten Island, NY

License revoked

Caiazzo failed to pay a fine of $100 for not responding to a Department inquiry.


LICENSEE

ADDRESS

PENALTY

Drazil, Frank
(broker)
t/b/a All Seasons Agency

39-01 Main St.
Flushing, NY

License revoked

Permitted unlicensed employees to conduct insurance business in his absence. In addition, Drazil was decertified by the New York Automobile Insurance Plan for various violations of Plan rules.


LICENSEE

ADDRESS

PENALTY

Giovannone, John J.
(agent)

215 Regis Dr.
Staten Island, NY

License revoked

Giovannone failed to pay a fine of $500 for not responding to a Department inquiry.


LICENSEE

ADDRESS

PENALTY

Niedle, Adam M.
(agent)

135 Kelly Blvd.
Staten Island, NY

$1,000 fine

Failed to disclose on his licensing application, that he been convicted of a criminal action.


LICENSEE

ADDRESS

PENALTY

Perez, Margarita
(broker)

50 Vermont St.
Brooklyn, NY

License revoked

Decertified by the New York Automobile Insurance Plan for various violations of Plan Rules.


LICENSEE

ADDRESS

PENALTY

Pimental, Igor
(broker)
t/b/a Wharie Brokerage

315 Ridgewood Ave.
Brooklyn, NY

License revoked

Issued premium checks that were dishonored by the bank. In addition, Pimental failed to prepare driver verification forms for several auto insurance policies and falsely stated to the Department of Motor Vehicles that a client had continuous auto insurance coverage when, in fact, it had lapsed.


LICENSEE

ADDRESS

PENALTY

Plummer, Speedie R.
(agent & broker)

2531 Bronxwood Ave.
Bronx, NY

$2,500 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition Plummer’s premium account was overdrawn on 40 occasions.


LICENSEE

ADDRESS

PENALTY

Rauf, Mirza A.
(broker)
t/b/a AB Insurance Brokerage

139-43 Hillside Ave.
Jamaica, NY

License revoked

Collected premium payments and failed to forward them to the appropriate insurer. that were In addition, Rauf was decertified from the New York Automobile Insurance Plan for various violations f Plan Rules.


LICENSEE

ADDRESS

PENALTY

Rosen, David
(agent,broker & excess line broker)

2609 Hubbard St.
Brooklyn, NY

$7,500 fine

Rosen filed an Article 78 proceeding after he was fined $7,500 by the Department. The Article 78 proceeding has now ended and Rosen must now pay the fine.


LICENSEE

ADDRESS

PENALTY

Victor, Joseph M.
(broker)
t/b/a J.P. Brokerage Company

3115 Quentin Rd.
Brooklyn, NY

Licensed revoked

Issued premium checks that were dishonored by the bank and allowed an unlicensed individual to issue premium checks using a personal checking account. Victor also collected premium funds but failed to forward them to the appropriate insurers.



STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Bailey, Morris
(broker)
t/b/a MB Multi Service

476 Greene Ave.
Brooklyn, NY

$500 fine

Decertified from the New York Automobile Insurance Plan Rules for a period of six months for various violations of Plan.


LICENSEE

ADDRESS

PENALTY

Bencosme, Angela
(broker)

500 East 117 St.
New York, NY

$500 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced.


LICENSEE

ADDRESS

PENALTY

Campo, Frank A.
(agent, broker)

838 Wilcox Ave.
Bronx, NY

$500 fine

Misrepresented that there was coverage by an automobile insurance policy in communication with the Department of Motor Vehicles, by claiming that a cancelled policy had been reinstated with no lapse in coverage, when in fact there was a lapse.


LICENSEE

ADDRESS

PENALTY

Creese, Elton N.
(agent)

127-08 143rd St.
Jamaica, NY

License revoked

Failed to forward premiums to the appropriate insurer.


LICENSEE

ADDRESS

PENALTY

Desperot, Max J.
(broker)

9048 171th St.
Jamaica, New York

$2,500 fine

Issued a premium check that was dishonored by the bank, but subsequently was replaced. In addition, Desperot commingled premiums with other funds and operated under an expired license.


LICENSEE

ADDRESS

PENALTY

First United Services, Inc.
(broker)

Karamchand, Harichand
(agent & sublicensee)

106-13 Jamaica Ave.
Richmond Hill, NY

49 Shepard Ave
Brooklyn, NY

$1,000 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced, and commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

Great Northern Reiff & Associates
(broker)

Reiff, Dennis R.
(sublicensee)

320 West 57 St.
New York, NY

$6,750 fine

Consents to payment of interest and penalties on late paid premium taxes for years 1995 and 1996 in the amount of $2,616

Made excess line placements without the required excess line broker’s license. In addition, Great Northern Reiff & Associates, failed to file premium tax returns in 1995 and 1996.


LICENSEE

ADDRESS

PENALTY

Garvin, Joseph P.
(public adjuster)

3233 Ampere Ave.
Bronx, NY

License revoked

Pled guilty to grand larceny in the second degree for submitting false and inflated property repair estimates to an insurer.


LICENSEE

ADDRESS

PENALTY

Guzman, Rainelda
(broker)

678 Allerton Ave.
Bronx, NY

$1,000 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced, and commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

Hirank International, Inc.
(broker)

Ighodaro, Joseph I.
(broker & sublicensee)

629 Lenox Ave.
New York, NY

Same as above

$2,500 fine

Decertified by the New York Automobile Insurance Plan for six-months for various violations of Plan rules.


LICENSEE

ADDRESS

PENALTY

International Jewelers Underwriters Agency, Ltd
(agent, broker & excess line broker)

Acosta, Antonio J.
(sublicensee)

25 West 45 St.
New York, NY

$52,877 premium, taxes and interest

The agency filed an Article 78 after the Department imposed a penalty for not paying premium taxes on inland marine policies. The Article 78 has ended and the Department’s decision was upheld.


LICENSEE

ADDRESS

PENALTY

Khan, Aslim I.
(agent & broker)

439 Drew St.
Ozone Park, NY

$1,000 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced. Khan also commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

Mendoza, Gina M.
(agent)

60-11 Broadway
Woodside, NY

$3,000 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced. Mendoza also submitted Driver Verification Forms that contained incorrect or fraudulent information.


LICENSEE

ADDRESS

PENALTY

Rivieccio, Anthony C.
(agent)

3015 Perry Ave.
Bronx, NY

$1,000 fine

Submitted an annuity application with an altered date of birth so that his commission would be increased.


LICENSEE

ADDRESS

PENALTY

Sapperstein, Hachberg & Haberman, Inc.
(public adjuster)

Sapperstein, Kenneth
(Public Adjuster & sublicensee)

18 John St.
New York, NY


Same as above

License revoked



License revoked

Convicted of two counts of mail fraud and one count of income tax evasion.



LONG ISLAND REGION

HEARINGS

LICENSEE

ADDRESS

PENALTY

Apelis, George
(agent, broker)

479 South Broadway
Hicksville, NY

Licenses revoked

Apelis filed an Article 78 after the Department’s decision to revoke his licenses for allowing unlicensed individuals to conduct insurance business. In addition he allowed an individual whose license had been revoked to conduct business from his office. The Department's decision to revoke his licenses remains in effect.


LICENSEE

ADDRESS

PENALTY

Ciccosanti, John
(broker)

160 Calebs Path
Brentwood, NY

License Revoked

Failed to pay the Department a fine of $1,000 for failing to properly supervise an employee.


LICENSEE

ADDRESS

PENALTY

Crown Agency of New York, Inc.
(broker)

Ludden, Antoinette
(sublicensee)

212 South St.
Oyster Bay, NY

$9,750 fine

Published misleading advertisements concerning insurance services and contracts. In addition, insureds were provided memberships, services, and financing without their request or knowledge.


LICENSEE

ADDRESS

PENALTY

Duquesnay, Neville
(agent & broker)

40 Crossway Park Dr.
Woodbury, NY

$10,000 fine

Issued premium checks that were dishonored by the bank. Duquesnay also commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

Grzedzica-Kawalek, Hanna
(agent)

126 Highland Rd.
Glen Cove, NY

License revoked

Failed to remit refund checks to five clients and deposited them into her personal bank account.


LICENSEE

ADDRESS

PENALTY

Infante, Francisca J.
(broker)

1644 Madison St.
Ridgewood, NY

$3,000 fine

Issued premium checks that were dishonored by the bank and failed to maintain a premium account. Infante was decertified from the New York Automobile Insurance Plan for various violations of Plan Rules.


LICENSEE

ADDRESS

PENALTY

Ray, Richard K.
(broker)
t/b/a Richard K. Ray Insurance Agency

125 Carlton Ave
Central Islip, NY

License revoked

Decertified from the New York Automobile Insurance Plan for various violations of Plan Rules. Ray also issued premium checks that were dishonored by the bank, only some were subsequently replaced, and commingled premiums with other funds.



STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Garcia, Angela
(broker)
t/b/a Caonabo General Insurance Brokerage and
t/b/a Angela Garcia Brokerage

456 Beach 63rd St.
Arverne, NY

$3,500 fine

Decertified from the New York Automobile Insurance Plan for a period of six months for various violations of Plan Rules. In addition, Garcia commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

Jorge-Breton, Luisa A.C.
(agent & broker)

272 Old Mill Rd.
Nisequoque, NY

$2,500 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced. Jorge-Breton also commingled premiums with other funds.


LICENSEE

ADDRESS

PENALTY

LaSpina, Joan G.
(independent adjuster)

34 Alpine Way
Huntington Station, NY

$500 fine

Conducted business under an unlicensed name.


LICENSEE

ADDRESS

PENALTY

Mazzella, Jerry
(broker)

14 Comet Ct.
Massepequa, NY

$1,000 fine

Decertified from the New York Automobile Insurance Plan for a period of six months for various violations of Plan Rules.


LICENSEE

ADDRESS

PENALTY

O’Dowd, Jr., Charles T.
(broker)

64 W. Park Ave.
Long Beach, NY

$500 fine

Issued premium checks that were dishonored by the bank, but subsequently replaced.


LICENSEE

ADDRESS

PENALTY

Stewart, Jaddie R.
(broker & bail bond agent)

715 Islip Ave.
Central Islip, NY

$1,000 fine

Allowed unlicensed employees to execute bail bonds on his behalf.



OUT-OF-STATE

HEARINGS

LICENSEE

ADDRESS

PENALTY

Harrod, Robert
(non-resident agent)

5601 N. 103 St.
Omaha, NE

License revoked

Failed to fully cooperate with the Department’s investigation.


LICENSEE

ADDRESS

PENALTY

Svetgoff, Ronald Gene
(non-resident agent)

2401 Cedar Springs
Dallas, TX

License revoked

Falsely answered no on his licensing application when asked if he had ever been disciplined or refused a license by a state or governmental authority.



STIPULATIONS

LICENSEE

ADDRESS

PENALTY

Gitlin, Alan I.
(agent)

1070 Morris Ave.
Union, NJ

License revoked

Plead guilty to one count of conspiracy and two counts of bribery in the United State District Court for the District of New Jersey.


LICENSEE

ADDRESS

PENALTY

Property Damage Appraisers, Inc.
(adjuster)

Ashton, Ernest
(sublicensee)

6100 Southwest Blvd.
Fort Worth, TX

$250 fine

Operated under an expired license.


LICENSEE

ADDRESS

PENALTY

Reardon, Daniel J.
(broker)

201 W. Wyomissing Blvd.
Wyomissing, PA

License revoked

On his broker’s application, failed to disclose actions taken against him by other state insurance departments.


* Regulation 60 requires agents to provide prospective life insurance purchasers with pertinent facts when the purchase will cause the buyer to surrender, lapse, or in any way change the status of an existing life insurance policy. The agent must obtain a signed statement from the insured if the purchase will replace an existing policy. The agent must provide the purchaser with a disclosure statement and a notice regarding replacement of life insurance.