Texas’ June Enforcement Actions Result in $190K in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during June resulted in nearly $191,000 in fines and restitution, the Texas Department of Insurance announced.

The actions include seven license revocations, two license denials and fines and restitution totaling $190,850. Copies of Geeslin’s orders may be obtained by contacting TDI’s Public Information Office.

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.

The June 2007 enforcement actions include:

Allstate Insurance Company of Irving
Order Number: 070481
Date of Order: 6/15/2007
Order Final In: June
Action Taken: $3,200 fine
Violation: Taught continuing education courses without valid course certifications

Barnes, Jimmie K of Longview
Order Number: 070490
Date of Order: 6/19/2007
Order Final In: June
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Burchard Abstract Corporation of Gonzales
Order Number: 070459
Date of Order: 6/11/2007
Order Final In: June
Action Taken: $100,000 fine
Violation: Failed to timely file annual trust fund account audit reports; Failed to timely remit quarterly guaranty fees; Unauthorized insurance

Chicago Title Insurance Company – Dallas of Dallas
Order Number: 070460
Date of Order: 6/11/2007
Order Final In: June
Action Taken: $10,000 fine
Violation: Employed an individual to act as a title agent without an Escrow Officer’s License

Dahm, Tammy Lynn of Springtown
Order Number: 070464
Date of Order: 6/11/2007
Order Final In: June
Action Taken: $2,150 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Dioguardi, Randy James of Hurst
Order Number: 070432
Date of Order: 6/1/2007
Order Final In: June
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

Dulany, Larry Lee of Eagle Lake
Order Number: 070463
Date of Order: 6/11/2007
Order Final In: June
Action Taken: General Life, Accident and Health License and Life Insurance Not Exceeding $15,000 License revoked; Application for Life Insurance Not Exceeding $15,000 License denied
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction involving moral turpitude

Feriante, Chris of Houston
Order Number: 070465
Date of Order: 6/11/2007
Order Final In: June
Action Taken: General Life, Accident and Health License application denied
Violation: Engaged in fraudulent or dishonest acts or practices

Foster, James Kevin of Amarillo
Order Number: 070488
Date of Order: 6/19/2007
Order Final In: June
Action Taken: General Life, Accident, and Health License and General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction directly related to the business of insurance

Kudra, John of Whitewright
Order Number: 070507
Date of Order: 6/21/2007
Order Final In: June
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Acted as an agent for unauthorized entities

Malhotra, Rakesh; NS Auto Sales, Inc. of Houston
Order Number: 070461
Date of Order: 6/11/2007
Order Final In: June
Action Taken: $50,000 fine subject to a dollar-for-dollar reduction by restitution
Violation: Unauthorized insurance

Marrs, Anna Marie of New Ulm
Order Number: 070453
Date of Order: 6/6/2007
Order Final In: June
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction involving moral turpitude

Miller, Patrick of Rocklin, California
Order Number: 070487
Date of Order: 6/19/2007
Order Final In: June
Action Taken: General Property and Casualty License held by Patrick Miller, General Property and Casualty License held by Cen-Tex and the Premium Finance License formerly held by Transco Premium Finance are revoked
Violation: Allegedly failed to return unearned premiums and unearned commissions; Allegedly misappropriated or converted money belonging to an insurer or insured

PPG Industries, Inc. of Strongsville, OH
Order Number: 070480
Date of Order: 6/15/2007
Order Final In: June
Action Taken: $21,000 fine
Violation: Taught a continuing education course with an expired certificate

Rivera, Michael Dominic of Houston
Order Number: 070433
Date of Order: 6/1/2007
Order Final In: June
Action Taken: General Life, Accident and Health License granted with 2 year probation
Violation: Felony offense

Scroggins, Gene Cheston of Dallas
Order Number: 070486
Date of Order: 6/19/2007
Order Final In: June
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Torres, Pedro Jr. of San Juan
Order Number: 070462
Date of Order: 6/11/2007
Order Final In: June
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Weaver, Michael Kent of Plainview
Order Number: 070489
Date of Order: 6/19/2007
Order Final In: June
Action Taken: General Life, Accident and Health License revoked
Violation: Felony offense

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

Source: Texas Department of Insurance