Insurance License Revoked After Conviction for Wire Fraud
Post number 5327
Insurance Agent Complains When He Loses License After Convicted of Wire Fraud
See the video at https://lnkd.in/gcp-3A56 and at https://lnkd.in/gsWW67S9, plus more than 5300 posts.
In Susan Ochs, Commissioner, New Jersey Department Of Banking And Insurance v. Robert W. Mania, and Heidi Ann Mania, and RHM Benefits, Inc., No. A-3346-23, Superior Court of New Jersey, Appellate Division (April 15, 2026) Robert W. Mania, along with Heidi Ann Mania and RHM Benefits, Inc., were subject to a final agency decision issued on May 22, 2024, by the Commissioner of the New Jersey Department of Banking and Insurance (DOBI). The Commissioner revoked Mania’s insurance license and imposed a $16,012.50 penalty for violations of the Insurance Producer Licensing Act (IPLA), specifically N.J.S.A. 17:22A-40(a).
FACTUAL BACKGROUND
Mania appealed the decision, challenging the validity and severity of the sanctions.
Robert was a licensed insurance producer in New Jersey operating through RHM Benefits, Inc. (“RHM”), an entity which he co-owned with his wife, Heidi Ann Mania.
Between 2007 and 2009, Robert and his former employer, Frank Cotroneo, participated in a scheme to increase the brokerage commission rate on the health insurance policy, specifically by surreptitiously diverting a portion of the commission rate to Robert to reimburse him for a debt Cotroneo owed Robert. The scheme involved diverting 1% in commissions through RHM’s bank account. Pursuant to this scheme, Robert received approximately twenty-one checks totaling $141,527 through RHM, which he concealed from the insurer by using his official position to avoid disclosure by directing the funds to his personal post office box.
The scheme eventually came to the attention of the United States Attorney (“U.S. Attorney”) for the District of New Jersey. On July 2, 2012, Robert entered into a plea and cooperation agreement with the U.S. Attorney, under which he agreed to plead guilty to one count of mail fraud in violation of 18 U.S.C. §§ 1341 and 1342.
An administrative law judge (“ALJ”) issued an initial decision granting summary decision in DOBI’s favor on all four counts of the Order To Show Cause why his license should be revoked.
The ALJ concluded that Robert’s reporting obligation was triggered upon his awareness of the impending charges, requiring notice within thirty days of executing the plea agreement, not the filing of formal charges, and determined that DOBI proved the violation by a preponderance of the credible evidence.
The ALJ also found that Robert’s undisputed mail fraud conviction established a crime involving dishonesty, supporting discipline under N.J.S.A. and determined that his failure to obtain a waiver and continued licensure warranted a finding that DOBI proved the violation by a preponderance of the credible evidence.
LAW
Mania contended that several counts in the administrative order to show cause should be dismissed due to the expiration of the statute of limitations, the doctrine of laches, and the entire controversy doctrine.
DISCUSSION AND ANALYSIS
Mania believed the Commissioner should have imposed lesser sanctions. The Commissioner, however, maintained that the violations were significant enough to warrant both license revocation and a substantial financial penalty, and that the doctrines cited did not preclude enforcement.
CONCLUSION
The Appellate Division reviewed the arguments regarding procedural bars and the appropriateness of the penalties. While Mania sought a reduction in sanctions and dismissal of some counts, the Commissioner’s decision to revoke the license and impose the penalty was upheld, reflecting a strict interpretation of the IPLA and the penalty framework. The court emphasized the importance of regulatory compliance and found no error in the application of legal doctrines or penalty factors.
ZALMA OPINION
When a licensed insurance broker pleaded guilty to wire fraud based on a scheme to defraud an insurer and its insureds lost his license by order of the New Jersey Department Of Banking And Insurance. Unhappy, Mania appealed the order only to have an appellate court refuse his appeal and keep a criminal from serving insurance buyers in the state.
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The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.
Law
The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...
150 Months in Prison for Tax Fraud
Post 4846
Posted on September 17, 2026 by Barry Zalma
See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.
The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...
Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution
Post 5489
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Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.
After Great American ...
Accused of 17 Counts Of Fraud Attempts to Keep Out Evidence of Crimes
Post 4853
Posted on September 29, 2026 by Barry Zalma
Court Refuses to Grant Most Motions in Limine
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The Government also sought to introduce evidence involving three uncharged persons. Robert Polonsky allegedly paid about $10,000 for web development, hosting, and advertising services but did not receive the promised core deliverables. Brandon Canwright allegedly paid approximately $1,877 for a website and related services that were not delivered and received no ...
Accused of 17 Counts Of Fraud Attempts to Keep Out Evidence of Crimes
Post 4853
Posted on September 29, 2026 by Barry Zalma
Court Refuses to Grant Most Motions in Limine
In United States Of America v. Seth Allen Aikens, II, Criminal No. 22-119, United States District Court, W.D. Pennsylvania (September 23, 2026) Defendant Seth Allen Aikens II faces thirty federal counts. The indictment alleges that, from about June 2016 through March 2020, Aikens solicited start-up businesses seeking websites, applications, hosting, payment processing, and related services. The Government estimated aggregate losses of approximately $1.3 million involving about eight charged customers.
The Government also sought to introduce evidence involving three uncharged persons. Robert Polonsky allegedly paid about $10,000 for web development, hosting, and advertising services but did not receive the promised core deliverables. Brandon Canwright allegedly paid approximately $1,877 for a website and related services that were not delivered and received no ...
Inadequately Briefed Issues Defeats Appeal
Post 4852
Issues on Appeal Must be Adequately Briefed
Posted on September 25, 2026 by Barry Zalma
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According to his complaint, the wheelchair ramp began to rise before he had fully exited, causing his wheelchair to fall backward and allegedly injuring several parts of his body and damaging the wheelchair. The defendant denied negligence and alleged comparative negligence. After a two-day jury trial in November 2023, the jury returned a defense verdict.
The trial court denied Ojekwe’s motion to set aside the verdict and for a new trial, and he appealed.
LAW
A trial court’s refusal to set aside a verdict because of counsel’s improper remarks is reviewed for abuse of ...
