Illinois Department of Insurance Disciplinary Report for July and August 2011

CHICAGO – The Illinois Department of Insurance announced today the following disciplinary orders:

• Gerald S. Adelman, Northbrook, IL - Stipulation and Consent Order, effective April 27, 2011.  Mr. Adelman is licensed to sell life, fire, health, casualty and variable insurance.  The Stipulation and Consent Order, which includes a $10,000 civil forfeiture and corrective orders, alleges that Mr. Adelman filed a complaint with the Department regarding 67 insurance policies that he falsely claimed to be the owner of at the time the complaint was filed.

• Hector J. Vasquez, Moline, IL – Insurance producer license revoked effective June 23, 2011.  Mr. Vasquez had been licensed since May 5, 1998, to sell fire, casualty, life and health insurance.  Mr. Vasquez’s license was revoked as a result of an investigation which revealed that he submitted over 700 fraudulent applications to an insurer that consisted of fraudulent business names and individuals improperly being put in to a group. The Order of Revocation contains a $100,000 civil penalty.

• WA George Insurance Agency, Inc, & Mercedes J. George, Chicago, IL –Stipulation and Consent Order, effective May 31, 2011.  WA George Insurance Agency, Inc. and Ms. George have been licensed to sell life, health, fire and casualty insurance since December 30, 2004, and November 23, 2004, respectively.  The Stipulation and Consent Order, which includes a $20,000 civil forfeiture and corrective orders, alleges that WA George Insurance Agency, Inc. and Ms. George: improperly withheld premiums from and insurer; entered a consumer in to a premium finance contract without the consumer’s knowledge or consent; misappropriated premiums; paid consumer premiums to an insurer out of the operating account; failed to maintain a sufficient surety bond; failed to maintain cash receipts and disbursements register for the Premium Fund Trust Account (PFTA); failed to reconcile PFTA bank records; failed to maintain positive running balances in the PFTA; and failed to properly label the PFTA.

• Robert A. Stern, Chicago, IL – Insurance producer license revoked effective May 16, 2011. Mr. Stern had been continuously licensed to sell life, health, fire, casualty, and variable insurance since March 5, 2002.  Mr. Stern’s license was revoked as a result of an investigation which revealed that he had improperly withheld premiums from a broker and failed to facilitate and aid the Director in an examination.

• Christopher F. Cerecedes, Aurora, IL – Insurance producer license application denied effective June 23, 2011.  Mr. Cerecedes was applying for a license to sell life, and health insurance.  Mr. Cerecedes’ application was denied as a result of an investigation which revealed that he was convicted of felony arson in 1995 and violated his probation in 1999 which led him to serve 58 days in the DuPage County jail.

• Julian Bishop, Champaign, IL – Insurance producer license application denied effective May 16, 2011.  Mr. Bishop’s application was denied as a result of an investigation which revealed that he was convicted of two counts of felony wire fraud in 2005.

• Herbert L. Tillman, Hazel Crest, IL – Insurance producer license revoked effective July 5, 2011. Mr. Tillman had been licensed to sell life, health, and variable insurance since August 11, 2003.  Mr. Tillman’s license was revoked as a result of an investigation which revealed that he had violated two Director’s Orders. The Revocation includes a $4,000 civil penalty.

• Danny Martin CLU & Associates & Daniel Martin Deitz, Schaumburg, IL – Insurance producer licenses revoked effective May 11, 2011. Danny Martin CLU & Associates and Mr. Deitz had been licensed to sell life, health, fire, and casualty insurance since 2002 and 1976, respectively.  The licenses of Danny Martin CLU & Associates and Mr. Deitz were revoked following a hearing on an Order issued as a result of an investigation revealing that Danny Martin CLU & Associates and Mr. Deitz had mailed fraudulent letters to Illinois consumers that appeared to come from then-Director Michael T. McRaith and provided the Department with materially untrue and incorrect information regarding the letters during the course of the investigation. The Order includes a $100,000 civil penalty and $1,112.50 in costs.

• William Garmon, Chicago – Insurance producer license application denied effective July 21, 2011.  Mr. Garmon was applying for a license to sell life and health insurance. Mr. Garmon’s application was denied following a hearing on the Department’s Letter of Denial dated March 3, 2011.  The Letter of Denial was issued as a result of an investigation revealing that Mr. Garmon had been convicted of felony theft in 2007.

• Kaiwan T. Woods, Chicago – Insurance producer license revoked effective July 5, 2011. Mr. Woods had been licensed to sell life, health, fire and casualty insurance since July 5, 2001.  Mr. Wood’s license was revoked as a result of an investigation which revealed that he failed to comply with a Director’s Order requiring him to pay a civil forfeiture in the amount of $3,000. The Order of Revocation includes a $5,000 civil penalty.

• Sonia M. Valdes, Chicago – Insurance producer license application denied effective July 5, 2011.  Ms. Valdes was applying for a license to sell life insurance.  Ms. Valdes’ application was denied as a result of an investigation which revealed that she was convicted of felony importation of more than 50 kilograms of marijuana in 2008.

• Northwood Associates, Inc., Palatine and James L. Gaertner, Mundelein – Insurance producer licenses revoked effective May 25, 2011.  Northwood Associates, Inc and Mr. Gaertner had been licensed to sell life, casualty, fire and casualty insurance since May 7, 2008, and June 24, 2002, respectively.  The licenses were revoked following an investigation which culminated in Mr. Gaertner entering in to a Voluntary Revocation of his business entity license and his insurance producer license.

• Rick C. Lidisky, St. Louis, MO - Insurance producer license application denied effective August 10, 2011.  Mr. Lidisky was applying for a license to sell life and health insurance.  His license application was denied as a result of an investigation which revealed that he violated two Director’s Orders; failed to maintain books and records for seven years; failed to maintain positive running balances in the Premium Fund Trust Account (PFTA); failed to label the PFTA correctly; and failed to facilitate and aid the Director in an examination.  The Order also includes a $10,000 civil penalty.

• Grant M. Barra, Elmhurst - Stipulation and Consent Order, effective August 8, 2011.  Mr. Barra has been licensed to sell life, health, fire, variable and casualty insurance since October 20, 2004.  The Stipulation and Consent Order, which includes a $5,000 civil forfeiture and corrective orders, alleges that Mr. Barra misrepresented risks on ten auto insurance applications; failed to witness a consumer’s signature; provided misleading information to the Department; and failed to notify the Department of his DBA.

• William F. Liptak and Wm F. Liptak Insurance Agency, Inc, Streator - Stipulation and Consent Order, effective July 28, 2011.  Mr. Liptak and Wm F. Liptak Insurance Agency, Inc. have been licensed to sell life, health, fire and casualty insurance since 1973 and 1998, respectively.  The Stipulation and Consent Order, which includes a $6,000 civil forfeiture and corrective orders, alleges that Mr. Liptak and Wm F. Liptak Insurance Agency, Inc. violated various advertising rules in several advertisements that solicited consumers to purchase insurance.

• Bruce A. Bergen, Marion, IA - Insurance producer license revoked effective August 8, 2011. Mr. Bergen had been continuously licensed to sell life, personal lines, and variable insurance since March 27, 2002.  Mr. Bergen’s license was revoked as a result of an investigation which revealed that he had his insurance license revoked in his home State of Iowa on November 10, 2010.