ALJDEC decisions subject to certification as final

07A-204-INS · Department of Insurance · 2008-05-14

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: May 1, 2008 APPEARANCES: No one appeared for Respondent; Assistant Attorney General Alyse Meislik represented the Department of Insurance. ADMINISTRATIVE LAW JUDGE: Thomas Shedden _____________________________________________________________________ The Arizona Department of Insurance asserted that grounds exist to revoke Respondent Cheryl Lynn Jorgensen’s license. FINDINGS OF FACT Respondent Cheryl Lynn Jorgensen d.b.a. Mike’s Bail Bonds (“Ms. Jorgensen”) is licensed as an Arizona bail bond agent, license number 105367 issued by the Arizona Department of Insurance (the “Department”). Ms. Jorgensen’s license will expire on July 31, 2008. See Exhibit 2. Ms. Jorgensen is a member of Mike’s Bail Bonds LLC (the “LLC”). The LLC is not licensed by the Department. Ms. Jorgensen entered a Consent Order that became effective May 9, 2007 in which Ms. Jorgensen agreed that: (1) she had violated A.R.S. Title 20, within the meaning of A.R.S. § 20-295(A)(2); (2) her conduct fell within the meaning of A.R.S. §§ 20-340.03(A)(6) and 20-340.03(D)(3) and A.A.C. R20- 6-601(E)(2)(c); (3) the LLC had engaged in conduct that constituted acting as a bail bond agent; and (4) grounds existed for the Department to revoke Ms. Jorgensen’s license pursuant to A.R.S. §§ 20-295(A) and (F). See Exhibit 7. Under the terms of the Consent Order, Ms. Jorgensen’s license was suspended for 90 days and she was required to pay to the Department a civil penalty of $20,000.00. Ms. Jorgensen was required to make monthly payments of $500.00 during the time her license was suspended and the remainder in monthly payments of $2,500.00. On March 25, 2008, the Department issued a Notice of Hearing in which it alleged that Ms. Jorgensen had not complied with the Consent Order and that her actions as set forth in that Consent Order provided grounds to revoke her license under A.R.S. §§ 20-295(A), (F), 20-340.06. The Notice of Hearing set the matter for 1:30 p.m. May 1, 2008. Ms. Jorgensen did not appear at the scheduled hearing time and after a 15 minute grace period the Administrative Law Judge convened the hearing in her absence. The Department presented the testimony of its Investigator Arnold Sniegowski and had 10 exhibits entered into evidence (1– 4 and 7 – 12). Mr. Sniegowski presented credible testimony. About 2 years ago, the Department received a consumer complaint about Ms. Jorgensen. That matter was resolved but during the investigation, the Department learned that Ms. Jorgensen had been charging fees in excess of that allowed by statute. Between January 18, 2004 and October 4, 2006 Ms. Jorgensen charged additional posting fees of $48,989.95 on 543 bonds. On or about October 4, 2006 the Department informed Ms. Jorgensen that her practice of charging additional posting fees was in violation of the applicable statutes and told her to stop. About 1 month later the Department learned the Ms. Jorgensen had continued to charge fees in excess of that allowed by statute and that between October 5, 2006 and December 24, 2006 she had charged additional posting fees of $575.00 on 7 bonds. The Consent Order was entered as a result of Ms. Jorgensen’s violations. Ms. Jorgensen made two payments of $500.00 each toward the $20,000.00 civil penalty, but has not made any of the required payments since June 2007. During the course of the Department’s investigation in this matter the Ms. Jorgensen has had several addresses. Ms. Jorgensen’s current business address of record is 123 South Stone, Suite 9, Tucson, Arizona. Ms. Jorgensen’s home address of record is 5844 East Farmridge Drive, Tucson Arizona. See Exhibit 4. The Department sent the Notice of Hearing to Ms. Jorgensen’s business address of record and her home address of record by certified mail. Both letters were returned as undeliverable. The Department also sent the Notice of Hearing to a third address for Ms. Jorgensen and that letter was returned. The Department sent the Notice of Hearing to the attorney that had represented Ms. Jorgensen when the consent agreement was entered, but that attorney advised the Department that she no longer represented Ms. Jorgensen and had no addresses other than the addresses of record. The Department requests that Ms. Jorgensen’s license be revoked. CONCLUSIONS OF LAW In this matter the Department bears the burden to prove by a preponderance of the evidence that Ms. Jorgensen’s license, number 105367, should be revoked. See A.R.S. § 41-1092.07(G)(2); A.A.C. R2-19-119. A preponderance of the evidence is “[e]vidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary 1182 (6th ed. 1990). The Department met its obligation to serve Ms. Jorgensen with the Notice of Hearing by its certified mailing to Ms. Jorgensen’s address of record and its other attempts to contact Ms. Jorgensen, which were reasonably calculated to effect actual notice to Ms. Jorgensen. See A.R.S. § 41- 1092.04. The undisputed evidence shows that Ms. Jorgensen has not complied with the Consent Order, which is a violation of A.R.S. § 20-295(A)(2). The Department has met its burden to show that Ms. Jorgensen’s license, number 105367, should be revoked.

RECOMMENDED ORDER IT IS ORDERED that Ms. Cheryl Lynn Jorgensen d.b.a. Mike’s Bail Bonds, license number 105367 is revoked. Done this day, May 14, 2008

______________________________________ Thomas Shedden Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2008, to:

Christina Urias, Director Department of Insurance 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

By ___________________________ -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826