Texas Regulators Announce July 2006 Enforcement Actions

The Texas Department of Insurance recently announced enforcement actions taken by Commissioner Mike Geeslin that became final during July.

The actions include 24 license revocations, one license denial and fines and restitution totaling $3,221,950. Copies of Geeslin’s orders may be obtained by contacting TDI’s Public Information Office.

Only final orders are listed. An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner of Insurance acts upon the motion or upon the operation of law.

Commissioner’s orders are subject to appeal to state district court.

Final disciplinary orders July 2006:

Addington, Jill Christine of Princeton
Order Number: 060709
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $750 fine
Violation: Acted as an escrow officer without being properly licensed

Barajas, Norma of Arlington
Order Number: 060796
Date of Order: 7/28/2006
Order Final In: July
Action Taken: $1,500 fine; Must complete 15 hours of continuing education; License suspended
Violation: Failed to comply with continuing education requirements

Barrios, John of Magnolia
Order Number: 060698
Date of Order: 7/5/2006
Order Final In: July
Action Taken: General Life, Accident, and Health License revoked
Violation: Failed to comply with Commissioner’s Order

Bean, Pamela of Spring
Order Number: 060797
Date of Order: 7/28/2006
Order Final In: July
Action Taken: $1,200 fine; Must complete 15 hours of continuing education; Insurance Adjuster License suspended
Violation: Failed to comply with continuing education requirements

Betts, Genevieve Serrette of Ada, OK
Order Number: 060763
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to comply with Commissioner’s Order

Brackens, Marc Gerard of Houston
Order Number: 060703
Date of Order: 7/7/2006
Order Final In: July
Action Taken: $1,500 fine; Probated suspension of General Life, Accident and Health License
Violation: Felony conviction

Callahan, Judith Christine of Garrison
Order Number: 060782
Date of Order: 7/25/2006
Order Final In: July
Action Taken: County Mutual Agent License revoked
Violation: Misappropriated or converted money belonging to an insurer; Engaged in fraudulent or dishonest acts or practices

Carter, Rosalyn Grace of Houston
Order Number: 060761
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Crider, Norman E. of Houston
Order Number: 060710
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Crider,Cherlyn Deffee of San Antonio
Order Number: 060731
Date of Order: 7/14/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Failed to timely respond to requests for information from TDI

Davenport, Deborah of San Antonio
Order Number: 060711
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Davila, Isidoro of Farmers Branch
Order Number: 060712
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Davis, Jack Martin of Dallas
Order Number: 060734
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $750 fine
Violation: Failed to comply with continuing education requirements

Deyo, Derek of Tomball
Order Number: 060759
Date of Order: 7/21/2006
Order Final In: July
Action Taken: $36,000 fine; Must complete 15 hours of continuing education
Violation: Unauthorized insurance; Materially misrepresented terms and conditions of an insurance policy

Faz, Joaquin Xavier of San Antonio
Order Number: 060732
Date of Order: 7/14/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to comply with Commissioner’s Order

Fox, Connie Robert of Montgomery
Order Number: 060721
Date of Order: 7/13/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Freeman, Jeffery Lee of Deer Park
Order Number: 060707
Date of Order: 7/10/2006
Order Final In: July
Action Taken: General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Garza, Armandina of San Antonio
Order Number: 060779
Date of Order: 7/25/2006
Order Final In: July
Action Taken: $750 fine
Violation: Failed to comply with continuing education requirements

Gerber, William Fredrick Jr. of Wall
Order Number: 060764
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured; Felony conviction

Gonzales, James of San Juan
Order Number: 060760
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License issued conditionally
Violation: Criminal offense

Great Midwest Insurance Company of Houston
Order Number: 060727
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $4,500 fine
Violation: Failed to timely make available to policyholders a standard health benefit plan

Gutierrez, Jesus of Edinburg
Order Number: 060695
Date of Order: 7/5/2006
Order Final In: July
Action Taken: General Life, Accident, and Health License and General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Hart, Christine of Princeton
Order Number: 060792
Date of Order: 7/28/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Acted as an escrow agent without being properly licensed

Horton, Kelly Kolleen of Humble
Order Number: 060780
Date of Order: 7/25/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked; Restitution
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Jones, William A. of Houston
Order Number: 060719
Date of Order: 7/12/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to return advance commissions for numerous canceled policies

Kimbrough, Roosevelt Jr. of Wylie
Order Number: 060694
Date of Order: 7/5/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Felony conviction; Engaged in fraudulent or dishonest acts or practices

Lafave, Terence of Houston
Order Number: 060775
Date of Order: 7/24/2006
Order Final In: July
Action Taken: $70,000 fine; Restitution; General Life, Accident, and Health License revoked; Cease and Desist Order
Violation: Acted as an agent for unauthorized entities; Engaged in fraudulent or dishonest acts or practices

Lone Star Title company of Cass County of Linden
Order Number: 060713
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $6,250 fine
Violation: Failed to timely remit title insurance policy guaranty fees; Failed to timely file an annual trust fund account audit report

Lone Star Title, Incorporated of Southlake
Order Number: 060757
Date of Order: 7/21/2006
Order Final In: July
Action Taken: $2,400 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Maddox, Cynda S. of Alice
Order Number: 060716
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Allegedly engaged in fraudulent or dishonest acts or practices; Allegedly misappropriated or converted money belonging to an insured

Marshall, Melvin Dean of Meadowlakes
Order Number: 060724
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $2,556,650 restitution; $300,000 fine; General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Materially misrepresented terms and conditions of an insurance policy

Martinez, David of Mission
Order Number: 060776
Date of Order: 7/24/2006
Order Final In: July
Action Taken: Insurance Adjuster License revoked
Violation: Misappropriated or converted money belonging to an insurer; Engaged in fraudulent or dishonest acts or practices

Morgan, Laura Ann of Pasadena
Order Number: 060717
Date of Order: 7/12/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer

North Carolina Mutual Life Insurance Company of Durham, NC
Order Number: 060728
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $5,000 fine
Violation: Failed to timely make available to policyholders a standard health benefit plan

Northwest Title Company, Inc.; Carla Moore of Houston
Order Number: 060725
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $100,000 fine; Restitution; Cease and Desist order
Violation: Unauthorized insurance; Engaged in fraudulent or dishonest acts or practices

Oxford Farms, Inc. d/b/a King Abstract Company of Stephenville
Order Number: 060793
Date of Order: 7/28/2006
Order Final In: July
Action Taken: $3,000 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Peoples Benefit Life Insurance Company of Cedar Rapids, IA
Order Number: 060714
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $10,000 fine; Restitution
Violation: Issuing forms not approved by the Department

Prueitt, Thell George of Spicewood
Order Number: 060545
Date of Order: 6/1/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Failed to notify TDI of an administrative action taken by another state regulator

Royal Indemnity Company of Charlotte, NC
Order Number: 060729
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $10,000 fine
Violation: Failed to timely file experience rating data

Rusling, Bruce Wayne of Porter
Order Number: 060798
Date of Order: 7/28/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked; $3,418 Restitution
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Saunders, Iketha Simon of Beaumont
Order Number: 060755
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License, General Life, Accident and Health License and Insurance Adjuster License revoked; $14,925 Restitution
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Saunders, Robert Phillip II of Beaumont
Order Number: 060762
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked; $11,694 Restitution
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Scott, Brady Don of New Braunfels
Order Number: 060794
Date of Order: 7/28/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Signature Title Company, Inc. of Plano
Order Number: 060736
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $3,000 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Smith, Jeffrey Lynn of Clint
Order Number: 060765
Date of Order: 7/21/2006
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Misappropriated or converted money belonging to an insurer; Engaged in fraudulent or dishonest acts or practices

Stewart Title of Corpus Christi, Inc. of Corpus Christi
Order Number: 060773
Date of Order: 7/24/2006
Order Final In: July
Action Taken: $30,000 fine
Violation: Failed to timely file required annual trust fund account audit reports

Stewart, Roy of Houston
Order Number: 060771
Date of Order: 7/24/2006
Order Final In: July
Action Taken: $2,000 fine
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

String, Tamara Rashawn of Katy
Order Number: 060758
Date of Order: 7/21/2006
Order Final In: July
Action Taken: $2,000 fine
Violation: Obtained a Title Insurance Escrow Officer License by misrepresentation

Strong, Mark James of Chicago, IL
Order Number: 060774
Date of Order: 7/24/2006
Order Final In: July
Action Taken: $3,000 fine
Violation: Failed to timely file required Annual Agent reports for Risk Retention and Purchasing Groups (PG3)

Takacs, Scott of Artesia, NM
Order Number: 060777
Date of Order: 7/24/2006
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

Taylor, John Michael of Denison
Order Number: 060795
Date of Order: 7/28/2006
Order Final In: July
Action Taken: Insurance Adjuster License cancelled
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices; Felony conviction

Taylor, Richard Park of Corpus Christi
Order Number: 060735
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

The Lincoln National Life Insurance Company of Hartford, CT
Order Number: 060726
Date of Order: 7/14/2006
Order Final In: July
Action Taken: $14,600 fine
Violation: Taught continuing education courses with an expired provider registration and expired course certifications

Thomas, Jami Lee of Weatherford
Order Number: 060693
Date of Order: 7/5/2006
Order Final In: July
Action Taken: $562 fine; General property and Casualty License suspended for 4 months
Violation: Failed to comply with Commissioner’s Order

Valley Land Title Company of Edinburg
Order Number: 060715
Date of Order: 7/12/2006
Order Final In: July
Action Taken: $14,500 fine
Violation: Failed to timely file required annual trust fund account audit report

Veliz, Ramiro of Laredo
Order Number: 060718
Date of Order: 7/12/2006
Order Final In: July
Action Taken: General Lines License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Wesson, Carl Brown III of Tyler
Order Number: 060733
Date of Order: 7/14/2006
Order Final In: July
Action Taken: General Property and Casualty License denied
Violation: Felony conviction involving fraud, dishonesty and/or deceit; Engaged in fraudulent or dishonest acts or practices

For more information contact: PIO@tdi.state.tx.us

Source: TDI