ALJDEC decisions subject to certification as final

20A-048-INS · Department of Insurance and Financial Institutions - Insurance · 2021-03-03

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of:

SALVATORE LOIACONO

(National Producer No. 19272861)

Respondent

No. 20A-048-INS

ADMINISTRATIVE LAW JUDGE

DECISION

HEARING: February 22, 2021

APPEARANCES: Respondent Salvatore Loiacono appeared on his own behalf. Assistant Attorney General Holly Wan represented the Arizona Department of Insurance and Financial Institutions. Wendy Greenwood, Investigations Supervisor for the Arizona Department of Insurance and Financial Institutions, was present, as well as Assistant Attorney General James Rolstead.

ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella

FINDINGS OF FACT

Salvatore Loiacono (“Respondent”) is licensed by the Arizona Department of Insurance and Financial Institutions (“Department”) as an Arizona resident insurance producer, National Producer Number 19272861, with lines of authority in: i) life; ii) accident and health or sickness; and iii) variable life and variable annuity insurance. Respondent’s license was issued on September 19, 2019, and is scheduled to expire on September 30, 2023.

The Department discovered that on June 11, 2020, Respondent was convicted of Theft-Control Property, a class 6 undesignated felony, in Maricopa County Superior Court case number CR2019-153039-001. The Court suspended imposition of sentence and placed Respondent on supervised probation for a period of one year commencing June 11, 2020.

Upon investigation, the Department discovered the following information relating to the conviction:

On or about November 18, 2020, a Direct Complaint was filed in Maricopa County Superior Court charging Respondent with Theft, a class 3 felony.

The Release Questionnaire contains an attached Probable Cause Statement delineating the circumstances underlying the filing of the Direct Complaint against Respondent. Those circumstances include that between September 2018 and April 2019, Respondent submitted inaccurate timesheets to his employer for hours which he did not work and for which he was compensated.

Respondent remains on supervised probation.

Respondent did not report the above conviction to the Department within 30 days as required.

It was only after the Department contacted Respondent on July 30, 2020, that Respondent contacted the Department on August 5, 2020, which was beyond the 30 day reporting requirement.

Wendy Greenwood, the Department’s Investigations Supervisor, testified that the Department is concerned with the “type of conviction” because it related to theft of money and falsification of timesheets. Ms. Greenwood explained that as a national producer, Respondent is often handling money for policy holders and insurance companies. Ms. Greenwood testified that she believes revocation is warranted in order to protect Arizona consumers from potential theft or fraudulent conduct.

Respondent testified that he suffers from “ongoing mental issues due to what he saw as an officer.” Respondent asserted that “nothing was ever done with the intent to defraud” and that because he was working in excess of ninety hours per week, he made some errors on his timesheets. Respondent testified that he elected to resign as an officer because he suffers from Post-Traumatic Stress Disorder and obtained his insurance license in order to provide for his family. Respondent further testified that he was unaware that he was required to inform the Department of his conviction within 30 days and had he been aware of such, he would have done so.

CONCLUSIONS OF LAW

This matter is a disciplinary proceeding wherein the Department must prove by a preponderance of the evidence that Respondent violated the State’s Insurance Laws. See A.A.C. R2-19-119.

Respondent’s conduct, as described above, constituted having been convicted of a felony, within the meaning of A.R.S. § 20-295(A)(6).

Respondent’s conduct, as described above, constituted failing to report to the Department, within 30 days after the filing date of a criminal conviction in any jurisdiction, within the meaning of A.R.S. § 20-301(B).

Respondent’s conduct, as described above, constituted a violation of any provision of Title 20, within the meaning of A.R.S. § 20-295(A)(2).

Grounds exist for the Director of the Department to suspend, revoke, or refuse to renew the License pursuant to A.R.S. § 20-295(A).

ORDER

Based upon the above, Respondent’s National Producer License Number 19272861 shall be revoked on the effective date of the Order entered in this matter.

In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be five (5) days from the date of that certification.

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-137160-45720000Done this day, March 3, 2021.

/s/ Sondra J. Vanella

Administrative Law Judge

Transmitted electronically to:

Christina Corieri, Interim Director

Arizona Department of Insurance

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-137160-45720000