Aug. Enforcement Actions in Texas Result in $205K in Fines, Restitution

The Texas Department of Insurance enforcement actions that became final during August 2007 include five license revocations, a license denial, and fines and restitution totaling $205,428, the department reported.

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.

TDI’s final disciplinary orders for August 2007 are as follows:

Atkinson-Roach, Linda Kaye of Richmond
Order Number: 070667
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $1,500 fine; Refrain from conducting the business of title insurance
Violation: Failed to comply with Commissioner’s Order

Barney, Phillip Edward of New Braunfels
Order Number: 070670
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $3,000 fine; General Life, Accident and Health License revoked
Violation: Failed to comply with continuing education requirements

Bean, Stephen Pharris of Houston
Order Number: 070715
Date of Order: 8/17/2007
Order Final In: August
Action Taken: $2,000 fine; General Property and Casualty License and General Life, Accident, and Health License placed on probation for 2 years
Violation: Advertising violations

Chhipwadia, Poonam M. Patel of Seabrook
Order Number: 070662
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $625 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Colonial Life and Accident Insurance Company of Columbia, SC
Order Number: 070682
Date of Order: 8/9/2007
Order Final In: August
Action Taken: $4,200 fine
Violation: Taught continuing education courses without valid course certifications

Cruz, Humberto Santa of Dallas
Order Number: 070681
Date of Order: 8/9/2007
Order Final In: August
Action Taken: $1,500 fine; Must complete 15 hours of continuing education; General Life, Accident and Health License suspended for 1 Year
Violation: Failed to comply with continuing education requirements

Dunn, Venice Maree of Corinth
Order Number: 070671
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $1,500 fine; Insurance Adjuster License suspended for 1 year
Violation: Failed to comply with continuing education requirements

French, Kenneth Russell of Wichita Falls
Order Number: 070707
Date of Order: 8/16/2007
Order Final In: August
Action Taken: $5,000 fine; $8,254 restitution
Violation: Misappropriated or converted money belonging to an insurer or insured

Gaites, Trent Peter of Oakwood, CA
Order Number: 070710
Date of Order: 8/16/2007
Order Final In: August
Action Taken: General Property and Casualty License and Surplus Lines License revoked
Violation: Failed to comply with Commissioner’s Order

Garrett, Patricia of Tyler
Order Number: 070663
Date of Order: 8/6/2007
Order Final In: August
Action Taken: General Life, Accident and Health License, General Property and Casualty License, and Surplus Lines License revoked
Violation: Failed to comply with Commissioner’s Order

Guardian Fidelity Title Company, LTD. of Webster
Order Number: 070708
Date of Order: 8/16/2007
Order Final In: August
Action Taken: $50,000 fine
Violation: Failed to timely provide an annual trust fund account audit report; Failed to timely remit title insurance policy guaranty fees

Kimmel, Shannon Lee of Friendship
Order Number: 070693
Date of Order: 8/10/2007
Order Final In: August
Action Taken: $5,000 fine: Must complete 15 hours of continuing education; Insurance Adjuster License suspended for 1 year
Violation: Failed to comply with continuing education requirements

Krosecz, Dean Ronald of Houston
Order Number: 070668
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $1,500 fine; Must complete 30 hours of continuing education; General Life, Accident and Health License suspended for 1 year
Violation: Failed to comply with continuing education requirements

Latta, Mary Elene of Crosby
Order Number: 070669
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $1,500 fine; General Property and Casualty License suspended for 1 year
Violation: Failed to comply with continuing education requirements

Lopez, Maria Deguadalupe of Fort Worth
Order Number: 070712
Date of Order: 8/16/2007
Order Final In: August
Action Taken: $1,500 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Marshall, Susan Marie of Meadowlakes
Order Number: 070664
Date of Order: 8/6/2007
Order Final In: August
Action Taken: Prohibited from engaging in the business of insurance for 15 years
Violation: Engaged in dishonest acts or practices; Engaged in unfair and deceptive acts or practices

Mercier, Anthony George Sr. of Augusta, GA
Order Number: 070680
Date of Order: 8/9/2007
Order Final In: August
Action Taken: Surrender General Life, Accident and Health License and waive right to re-apply for 5 years
Violation: Made a material misrepresentation on a license application

Murray, Robert Nelson of Houston
Order Number: 070706
Date of Order: 8/16/2007
Order Final In: August
Action Taken: $1,150 fine
Violation: Failed to comply with Commissioner’s Order

Powers, Gregory M. of Harlingen
Order Number: 070665
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $1,500 fine
Violation: Alleged P-22 violation; Allegedly closed a transaction for which an insured closing and settlement letter was issued without a Title Insurance Agent License

Robinson, Alfred Tyrone of Burkburnett
Order Number: 070694
Date of Order: 8/10/2007
Order Final In: August
Action Taken: Insurance Adjuster License application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction

Ryland Insurance Services of Scottsdale, AZ
Order Number: 070713
Date of Order: 8/17/2007
Order Final In: August
Action Taken: $64,000 fine
Violation: Alleged rebating violations

Shearin, Steven Bradley of Princeton
Order Number: 070684
Date of Order: 8/10/2007
Order Final In: August
Action Taken: Insurance Adjuster License suspended until November 16, 2009; Must complete 30 hours of continuing education
Violation: Felony conviction; Failed to disclose conviction to TDI

Southern Texas Title Company of Brownsville
Order Number: 070666
Date of Order: 8/6/2007
Order Final In: August
Action Taken: $35,000 fine
Violation: Alleged P-22 violation; Allegedly allowed attorneys who were not licensed escrow officers to close transations for which an insured closing and settlement letter was issued

Tarco, Richard Virgilio of Houston
Order Number: 070711
Date of Order: 8/16/2007
Order Final In: August
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

Villarreal, Josue Amaro of Dallas
Order Number: 070685
Date of Order: 8/10/2007
Order Final In: August
Action Taken: $5,799 restitution; General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Wright, Diane; Heritage Square Investments, Inc. of Mesquite
Order Number: 070709
Date of Order: 8/16/2007
Order Final In: August
Action Taken: $10,900 fine
Violation: Alleged P-22 violation; Allegedly engaged in the business of Title Insurance without a license

Source: Texas Department of Insurance