Texas Sept. Enforcements Result in Nearly $376K in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during September 2007 include 12 license revocations, three license denials and fines and restitution totaling $375,983, the Texas Department of Insurance announced.

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 Sept. 2007:

Allstate Fire and Casualty Insurance Company of Northbrook, Ill
Order Number: 070726
Date of Order: 8/23/2007
Order Final In: September
Action Taken: $7,500 fine
Violation: Improper surcharges for violations of the Uniform Act Regulating Traffic on Highways; Charged rates that were not appropriately filed with TDI

Azle Real Estate Services; Doby, Robert Merlee; Reed, Donna Jane; Taylor, Misty Erin of Azle
Order Number: 070867
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $12,000 fine; Cease and desist from closing real estate transactions
Violation: Made a material misrepresentation on a license application; Engaged in the business of title insurance without a license

Bates, Tahisha Simone of Richmond
Order Number: 070766
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $8,000 fine
Violation: Allegedly closed transactions prior to receiving an escrow officer’s license

Cantu, Margaret Lucio of Houston
Order Number: 070868
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $750 fine
Violation: Failed to comply with continuing education requirements

Capelo-Saenz, Linda of Corpus Christi
Order Number: 070768
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $11,948 restitution; 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

Card, Randall James of Plano
Order Number: 070834
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $3,000 fine
Violation: Failed to comply with continuing education requirements

Dabney, Paul Ray of Rowlett
Order Number: 070773
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $3,000 fine; Must complete 15 hours of continuing education; One year license suspension
Violation: Failed to comply with continuing education requirements

DeLeon, Steve L. of Pasadena
Order Number: 070848
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $3,000 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Dominguez, Josefina of Stafford
Order Number: 070810
Date of Order: 9/18/2007
Order Final In: September
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Felony offense

Duran, Martha of El Paso
Order Number: 070850
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $3,256 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

Estrada, Michael Aaron of Austin
Order Number: 070839
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Fly, Kimberly Kay of Duncanville
Order Number: 070870
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $1,000 fine
Violation: Allegedly made a material misrepresentation on a license application; Allegedly failed to use bona fide employees of a fee attorney or title agent in closing transactions

Galko, Steven Paul of Dallas
Order Number: 070775
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $3,000 fine; One year license suspension
Violation: Failed to comply with continuing education requirements

Gary, Mary Lesley of Seabrook
Order Number: 070749
Date of Order: 8/29/2007
Order Final In: September
Action Taken: General Property and Casualty Insurance License denied
Violation: Engaged in fraudulent or dishonest acts or practices; Engaged in criminal conduct

Gattas, Juan Jorge of San Antonio
Order Number: 070767
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $3,000 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Hale, Brenda Harvey of Dallas
Order Number: 070777
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $1,500 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Hernandez, Tracy Denell of Quinlan
Order Number: 070776
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $7,045 restitution; General Life, Accident and Health License and Insurance Service Representative License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Hester, William Reffry of Houston
Order Number: 070840
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $2,000 fine; Cease and Desist from closing real estate transactions without a proper license
Violation: Acted as an escrow officer without a proper license

Humana Insurance Company of Louisville, KY
Order Number: 070846
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $15,000 fine
Violation: Alleged silent PPO agreements–unfair claim settlement process

Irwin, Rikki Lynn of Kennedale
Order Number: 070835
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $1,100 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Kreiling, Paul of Mineral Wells
Order Number: 070851
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $95,854 restitution; 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

Lawson, Kenneth A. of Spring
Order Number: 070849
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $1,625 fine; Must complete 16 hours of continuing education
Violation: Failed to comply with continuing education requirements

Lender’s First Choice Agency, Inc of Frisco
Order Number: 070808
Date of Order: 9/18/2007
Order Final In: September
Action Taken: $5,400 fine
Violation: Failed to timely provide an annual trust fund account audit report

Martinez, Catherine Marie of Plano
Order Number: 070772
Date of Order: 8/31/2007
Order Final In: September
Action Taken: General Property and Casualty License application denied
Violation: Criminal conduct

Mighell, Shelby J. of Austin
Order Number: 070811
Date of Order: 9/18/2007
Order Final In: September
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Miller, Deirdre Elaine of Carrollton
Order Number: 070770
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Moore, Frank; Vrana, Susan of Dallas
Order Number: 070769
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $15,000 fine
Violation: Allegedly making or accepting improper payments

Nationwide Lloyds of San Antonio
Order Number: 070778
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $15,000 fine
Violation: Allegedly denied, cancelled or non-renewed a policy based solely on credit information

New Frontier Title Agency, LLC of Plano
Order Number: 070876
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $41,550 fine; $4,000 restitution; Title Insurance Agent’s license revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Nichols, Reggie Scott of Fort Worth
Order Number: 070874
Date of Order: 9/27/2007
Order Final In: September
Action Taken: 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

OppenheimerFunds Distributor, Inc. of New York, New York
Order Number: 070774
Date of Order: 8/31/2007
Order Final In: September
Action Taken: $23,200 fine
Violation: Taught continuing education courses without valid course certifications

Parcel Pro, Inc. of Torrance, California
Order Number: 070802
Date of Order: 9/12/2007
Order Final In: September
Action Taken: $10,000 fine
Violation: Alleged unauthorized insurance

Peterson, Michael Wayne of Plano
Order Number: 070844
Date of Order: 9/21/2007
Order Final In: September
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

Power, Karen L. of Spring
Order Number: 070869
Date of Order: 9/27/2007
Order Final In: September
Action Taken: General Life, Accident, and Health Insurance License denied
Violation: Felony conviction directly related to the business of insurance

Rodriguez, Marco Antonio of Corpus Christi
Order Number: 070847
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $2,000 fine; Must complete 6 extra hours of continuing education in ethics
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Ross, Chanda Celeste of Forney
Order Number: 070771
Date of Order: 8/31/2007
Order Final In: September
Action Taken: Insurance Adjuster License revoked
Violation: Failed to comply with Commissioner’s Order

Ruark, Bruce Frank of Austin
Order Number: 070873
Date of Order: 9/27/2007
Order Final In: September
Action Taken: General Life, Accident and Health License and Limited Lines License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

Sawyer, Cheryl Ann of Midlothian
Order Number: 070871
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $1,000 fine
Violation: Allegedly failed to use bona fide employees as escrow officers; Allegedly made a material misrepresentation on a license application

Shearburn, Robert Neal of Phoenix, AZ
Order Number: 070875
Date of Order: 9/27/2007
Order Final In: September
Action Taken: Non-Resident General Life, Accident and Health License revoked
Violation: Felony conviction involving moral turpitude

Suarez, Tricia of Dallas
Order Number: 070791
Date of Order: 9/6/2007
Order Final In: September
Action Taken: Escrow Officer License revoked; Cease and desist
Violation: Acted as an escrow officer without a proper license, willfully violated the insurance code

Transcontinental Title Company of Plano
Order Number: 070842
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $10,400 fine
Violation: Failed to timely provide an annual trust fund account audit report

Turner, Byron Jarrell of Gilmer
Order Number: 070841
Date of Order: 9/21/2007
Order Final In: September
Action Taken: $525 fine
Violation: Failed to comply with continuing education requirements

Wolfe, Richard Gary, Equita Financial and Insurance Services of TX, Senior Advisor Services and Insurance Services, Inc., Educator Group Plans Insurance Services, Inc. of Austin and Dallas
Order Number: 070809
Date of Order: 9/18/2007
Order Final In: September
Action Taken: $34,830 fine
Violation: Allegedly engaged in unfair and deceptive acts or practices; Alleged advertising violation

Wright, John Robert of Grand Prairie
Order Number: 070872
Date of Order: 9/27/2007
Order Final In: September
Action Taken: $5,000 fine
Violation: Acted as a fee attorney and failed to use bona fide employees as escrow officers

Source: Texas Department of Insurance, www.tdi.state.tx.us/