Texas Department of Insurance
www.tdi.state.tx.us - Consumer Helpline 1-800-252-3439
No. _02-1295___ OFFICIAL ORDER OF THE COMMISSIONER OF INSURANCE OF THE STATE OF TEXAS AUSTIN¸ TEXAS Date: ____DEC 13 2002_____
Subjects Considered: PRIVILEGE CARE¸ INC. 1000 West Wilshire¸ Suite 315¸ Oklahoma City¸ OK 73116 PRIVILEGE CARE¸ INC. 110 Marter Avenue¸ Suite 209¸ Moorestown¸ New Jersey 08057 DAVID WEINSTEIN 1000 West Wilshire¸ Suite 315¸ Oklahoma City¸ OK 73116 DAVID WEINSTEIN 110 Marter Avenue¸ Suite 209¸ Moorestown¸ New Jersey 08057 DAVID WEINSTEIN 2 Fieldstone Way¸ Moorestown¸ NJ 08057 MICHAEL GARNETT 1211 Sandpiper Lane¸ Cantana¸ FL 33462 MARK A. MACCARIELLA 110 Marter Avenue¸ Suite 209¸ Moorestown¸ NJ 08057 PRIVILEGE CARE HEALTH & WELFARE FUND also known as PRIVILEGE CARE EMPLOYEE HEALTH & WELFARE FUND 1000 West Wilshire¸ Suite 315¸ Oklahoma City¸ OK 73116 PRIVILEGE CARE HEALTH & WELFARE FUND also known as PRIVILEGE CARE EMPLOYEE HEALTH & WELFARE FUND 110 Marter Avenue¸ Suite 209¸ Moorestown¸ New Jersey 08057 PRIVILEGE CARE MARKETING GROUP¸ INC. 141 Ganttown Road¸ Suite E¸ Turnersville¸ NJ 08012 PRIVILEGE CARE MARKETING GROUP¸ INC. 141 Ganttown Road¸ Suite F¸ Turnersville¸ NJ 08012 PRIVILEGE CARE MARKETING GROUP¸ INC. P.O. Box 177¸ Moorestown¸ NJ 08057 JAMES M. DOYLE 141 Ganttown Road¸ Suite E¸ Turnersville¸ NJ 08012 SUSAN MESSNER 141 Ganttown Road¸ Suite E¸ Turnersville¸ NJ 08012 CHRISTOPHER S. ASHIOTES 141 Ganttown Road¸ Suite E¸ Turnersville¸ NJ 08012 MICHAEL DIVECE 141 Ganttown Road¸ Suite E¸ Turnersville¸ NJ 08012 SCOTT RUTHERFORD 14923 Elmont¸ Houston¸ TX 77095 DONALD R. SMITH 1113 Edgefield Drive¸ Plano¸ TX 75075 FIVE STAR MARKETING 1113 Edgefield Drive¸ Plano¸ TX 75075 PROFESSIONAL AND INDUSTRIAL TRADE WORKERS UNION also known as PROFESSIONAL INDUSTRIAL AND TRADE WORKERS UNION 2370 Route 70 West¸ Suite 307¸ Cherry Hill¸ NJ 08002 PITWU HEALTH AND WELFARE FUND also known as PRIVILEGE CARE PITWU HEALTH and WELFARE FUND 110 Marter Avenue¸ Suite 209¸ Moorestown¸ NJ 08057 PITWU HEALTH AND WELFARE FUND also known as PRIVILEGE CARE PITWU HEALTH and WELFARE FUND P.O. Box 650¸ Moorestown¸ NJ 08057 JAMES CAMPBELL 2370 Route 70 West¸ Suite 307¸ Cherry Hill¸ NJ 08002 FRANKLIN J. MILITELLO 2370 Route 70 West¸ Suite 307¸ Cherry Hill¸ NJ 08002 DANTE A. GEORENO 2370 Route 70 West¸ Suite 307¸ Cherry Hill¸ NJ 08002 CYNTHIA HOLLOWAY RNLI¸ 1500 Eastman Avenue¸ Ventura¸ CA 93003 SHEILA BUSHONG Employer´s Consortium¸ Inc.¸ One Lincoln Centre¸ Suite 700 Oakbrook Terrace¸ IL 60181 LORETTA SMITH 1000 West Wilshire¸ Suite 315¸ Oklahoma City¸ OK 73116 TIM FOSTER 2370 Route 70 West¸ Suite 307¸ Cherry Hill¸ NJ 08002 UNION PRIVILEGE CARE¸ INC. 110 Marter Avenue¸ Suite 209¸ Moorestown¸ NJ 08057 UNION PRIVILEGE CARE¸ INC. P.O. Box 650¸ Moorestown¸ NJ 08057 OAK TREE ADMINISTRATORS¸ INC. 8131 East Rosecrans¸ Suite 202¸ Paramount CA 90723 OAK TREE ADMINISTRATORS¸ INC. 8131 East Rosecrans¸ Suite 200¸ Paramount CA 90723 OAK TREE ADMINISTRATORS¸ INC. P.O. Box 1447¸ Paramount¸ CA 90723 OAK TREE ADMINISTRATORS¸ INC. P.O. Box 1433¸ Paramount¸ CA 90723 CHERILLE G. SHELP 8131 East Rosecrans¸ Suite 202¸ Paramount CA 90723 CHERILLE G. SHELP 8131 East Rosecrans¸ Suite 200¸ Paramount CA 90723 CHERILLE G. SHELP P.O. Box 1447¸ Paramount¸ CA 90723 CHERILLE G. SHELP P.O. Box 1433¸ Paramount¸ CA 90723 ALDROSTAR¸ S.A. One Devonshire Place¸ Suite 4012¸ Boston¸ MA 02109 ALDROSTAR¸ S.A. Grupo Assesor¸ c/o Esc. Rita Daimeo 16 de Julio 1377/401¸ Montevideo¸ Uraguay BROKERAGE CONCEPTS¸ INC. P.O. Box 61553¸ King of Prussia¸ PA 19406-0953 SPECTRUM REVIEW SERVICES¸ INC. 14405 Walters Road¸ Suite 900¸ Houston¸ TX 77014 SOUTHERN PLAN ADMINISTRATORS¸ INC. P.O. Box 218180¸ Houston¸ TX 77218-8180 SOUTHERN PLAN ADMINISTRATORS¸ INC. 15915 Katy Freeway¸ Suite 501¸ Houston¸ TX 77094 AMERICAN HEARTLAND HEALTH ADMINISTRATORS¸ INC. 15915 Katy Freeway¸ Suite 555¸ Houston¸ TX 77094 AMERICAN HEARTLAND HEALTH ADMINISTRATORS¸ INC. P.O. Box 218967¸ Houston¸ TX 77218-8967 JACK H.M. FERGUSON 2518 Crystal Lake Ct.¸ Richmond¸ TX 77469 EDWIN W. EHLER also known as EDWARD EHLER P.O. Box 339¸ Columbus¸ TX 78934 JAMES A. GLIDEWELL 5604 Bayshore Dr., Memphis, TN 38115
EMERGENCY CEASE AND DESIST ORDER DISCIPLINARY ACTION General remarks and official action taken: On this day the Texas Department of Insurance ("TDI"), through staff counsel for TDI, Rachel A. Longenecker and Doug Danzeiser, presented to the Commissioner of Insurance a verified application for an ex parte Emergency Cease and Desist Order. TDI alleges that the above Respondents have engaged in the unauthorized business of insurance and/or have been committing unfair or deceptive acts or practices by selling, issuing, or administering fraudulent, false, or misleading health insurance in violation of TEX. INS. CODE ANN. arts. 1.14, 3.95-2, 21.07-6 §3¸ 21.21 and 21.58A¸ and TEX. INS. CODE ANN. §§ 101.051 and 101.102¸ and 28 TEX. ADMIN. CODE §§ 21.3 and 21.112. The Respondents are: Privilege Care¸ Inc.; David Weinstein; Michael Garnett; Mark A. Maccariella¸ Privilege Care Health & Welfare Fund¸ also known as Privilege Care Employee Health & Welfare Fund; Privilege Care Marketing Group¸ Inc.; James M. Doyle; Susan Messner; Christopher S. Ashiotes; Michael DiVece; Scott Rutherford; Donald R. Smith; Five Star Marketing; Professional and Industrial Trade Workers Union¸ also known as Professional Industrial and Trade Workers Union; James Campbell; Franklin J. Militello; Dante A. Georeno; Cynthia Holloway; Sheila Bushong; Loretta Smith; Tim Foster; PITWU Health & Welfare Fund¸ also known as Privilege Care PITWU Health & Welfare Fund; Union Privilege Care¸ Inc.; Oak Tree Administrators¸ Inc.; Cherille G. Shelp; Aldrostar¸ S.A.; Brokerage Concepts¸ Inc.; Spectrum Review Services¸ Inc.; Southern Plan Administrators; American Heartland Health Administrators¸ Inc.; Jack H.M. Ferguson; Edwin W. Ehler also known as Edward Ehler; and James A. Glidewell. Under TEX. INS. CODE ANN. ' 83.051¸ the Commissioner of Insurance may issue an emergency cease and desist order if an authorized person engaging in the business of insurance is committing an unfair act or is in a hazardous condition. The Commissioner may also issue an emergency cease and desist order if an unauthorized person: is engaging in the business of insurance in violation of Chapter 101¸ or is engaging in the business of insurance in violation of Chapter 101 ¸and is committing an unfair act¸; and the conduct is fraudulent¸ hazardous¸ creates an immediate danger to public safety¸ or is causing or can be reasonably expected to cause public injury that is likely to occur at any moment¸ is incapable of being repaired or rectified¸ and has or is likely to have influence or effect. The Commissioner believes that Staff's Application meets the requirements of TEX. INS. CODE ANN. ' 83.051 for the issuance of an emergency cease and desist order. Accordingly¸ the Commissioner finds as follows:
IT IS THEREFORE ORDERED that Respondents¸ their agents¸ employees¸ and/or other representatives¸ shall immediately cease and desist from doing the following:
IT IS FURTHER ORDERED that this Order is effective immediately and shall continue in force and effect until further order of the Commissioner of Insurance. This Order is binding on Respondents¸ their agents¸ employees¸ and/or other representatives. Pursuant to TEX. INS. CODE ANN. § 83.053¸ any person affected by this Order and who seeks to contest it has the right to request a hearing before the Commissioner¸ or his duly appointed representative¸ to show cause why this Order should not be affirmed. The person affected must make the request not later than the 30th day after the date on which the person receives this Order. The request must be in writing directed to the Commissioner and must state the grounds for the request to set aside or modify the Order. Pending hearing¸ this Order shall continue in full force and effect unless stayed by the Commissioner. Any such hearing shall be conducted according to the procedures for contested cases under TEX. GOV'T CODE ANN. §§ 2001.051- 2001.062. IN THE EVENT THIS ORDER IS VIOLATED¸ THE COMMISSIONER MAY IMPOSE A CIVIL PENALTY OF $25¸000 FOR EACH ACT OF VIOLATION¸ OR DIRECT THE PERSON AGAINST WHOM THE ORDER IS ISSUED TO MAKE COMPLETE RESTITUTION¸ IN THE FORM AND AMOUNT AND WITHIN THE PERIOD DETERMINED BY THE COMMISSIONER¸ TO ALL TEXAS RESIDENTS¸ TEXAS INSUREDS¸ AND ENTITIES OPERATING IN TEXAS HARMED BY THE VIOLATION OR FAILURE TO COMPLY¸ OR THE COMMISSIONER MAY IMPOSE BOTH THE PENALTY AND ORDER RESTITUTION.
_______________________________ JOSÉ MONTEMAYOR COMMISSIONER OF INSURANCE |
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