ALJDEC - Licensing
23A-037-INS · Department of Insurance and Financial Institutions - Insurance · 2023-11-08
IN THE OFFICE OF ADMINISTRATIVE HEARINGS
In the Matter of:
Jeffrey Allen Skidmore
(National Producer No. 2727072)
and
Money Never Sleeps, LLC dba Union Estate Planning and Union Retirement Solutions
(National Producer No. 16133884)
Respondents
No. 23A-037-INS
ADMINISTRATIVE LAW JUDGE DECISION
HEARING: October 19, 2023
APPEARANCES: Jeffrey Allen Skidmore represented himself. Jennifer Skidmore represented Respondent Money Never Sleeps, LLC dba Union Estate Planning and Union Retirement Solutions. Assistant Attorney General James Rolstead represented the Department of Insurance and Financial Institutions - Insurance.
ADMINISTRATIVE LAW JUDGE: Velva Moses-Thompson
_____________________________________________________________________
FINDINGS OF FACT
Respondent Jeffrey Allen Skidmore (Respondent of Mr. Skidmore) is licensed
in Arizona as a non-resident insurance producer, National Producer Number 272702.
Respondent Money Never Sleeps LLC dba Union Estate Planning and Union
Retirement Solutions (Respondent or Money Never Sleeps) is licensed in Arizona as a
resident business entity insurance producer, National Producer Number 16144884.
On September 30, 2004, the Department of Insurance and Financial
Institutions – Insurance (Department) issued to Mr. Skidmore an Arizona non-resident insurance producer likens with lines of authority in life and accident and health or sickness insurance, National Producer Number 272072.
Skidmore’s addresses of record in the Department are as follows: 4650
Wedekind Road, Ste. 2, Sparks, Nevada 89431-7722 (business); 9220 W. Union Hills Drive, Ste. 102, Peoria, Arizona 85382-8212 (mailing); and [email redacted].
On January 11, 2011, the Department issued to the Company an Arizona
resident insurance producer license with the same lines of authority as Mr. Skidmore.
The addresses of record with the Department for Money Never Sleeps are as
follows:
9220 W. Union Hills Drive, Ste. 102, Peoria, Arizona 85382-8212 (business and mailing); and [email redacted].
Prior to November 30, 2022, Skidmore’s spouse, Jennifer Skidmore (Mrs.
Skidmore) was the Designated Responsible Licensed Producer (DRLP) for Money Never Sleeps. Mrs. Skidmroe failed to renew her insurance producer lichen and the license expired on December 31, 2021.
Money Never Sleeps operated without a licensed DRLP from December 31,
2021 until November 30, 2022, when Mr. Skidmore became the DRLP for Money Never Sleeps.
On November 9, 2022, the Department received a copy of the Order to Cease
and Desist, Order for Restitution, Order for Administrative Penalties and Consent to Same (Administrative Order) issued on August 22, 2022 against Respondents by the Arizona Corporation Commission (ACC).
On November 28, 2022, the Department sent email correspondence to Mr.
Skidmore notifying him that the Department had become aware of the Administrative Order and requested that he (1) Appoint a new DRLP for the Company, (2) Explain his failure to report the Administrative Order to the Department within the statutorily mandated 30 days; and (3) Provide a statement addressing the circumstances that led to the Administrative Order being issued.
Later than same day, November 28, 2022, Mr. Skidmore responded to the
email stating that he failed to report the Administrative Order “due to overwhelming stress and financial hardship this situation has caused” and that he was in the middle of a divorce.
In addressing the circumstances that led to the Administrative Order being
issued, MR. Skidmore sate, in part, “[f]rom 2014 to 2018, fifteen of our clients invested with Future Income Payments and invested in total approximately $1,024,500. Four of the involved clients were in Arizona and most were in California. When Future Income Payment stopped making payments to our clients in 2018, Further Income Payments owed our clients a total of approximately $624,000.”
Mr. Skidmore further states he and Money Never Sleeps agreed to pay the
Securities Division of the ACC $624,135.53 in restitution and $31,750.00 in administrative penalties.
On November 30, 2023, Mr. Skidmore submitted paperwork to the
Department to remove Mrs. Skidmore as the DRLP and appointment himself.
In the Administrative Order, Respondents admitted to the following only for
purpose of the ACC proceeding and any other non-criminal proceeding in which the ACC or any other state agency is a party:
Between March 2014 and December 2017, Respondents sold income streams investments, which were supposed to provide “consistent and predictable” monthly income to fund investor’ retirements.
The income stream investment was offered by non-parties Future Income Payments, LLC, a Delaware entity, and FIP, LLC, a Nevada entity (collectively and hereinafter “FIP”). In these investments FIP solicited military veterans and other retirees entitled to monthly pension payments, to accept a discounted up-front lump sum in exchange for several years’ worth of their pension payments. FIP then sold these income streams as investments through salesman and insurance agents such as Mr. Skidmore.
These income stream investments were securities under the Securities Act.
Respondents engaged in offering or selling securities that were neither registered nor exempt from registration.
Respondents sold the unregistered investment streams offered by a non-party while licensed as insurance producers.
Respondents employed a device, scheme, or artifice to defraud.
Respondents made untrue statements or misleading omissions of the material facts.
Respondents engaged in transactions, practices, or courses of business that operated or would operate as fraud or deceit.
Respondents made, participated in, or induced the unlawful sales of securities.
Respondents agreed that they would not deny or context the Findings of Fact and Conclusions of Law contained in the ACC Administrative Order in any present or future non-criminal proceedings in which any state agency is a party.
On September 7, 2023, the Department issued a Notice of Hearing setting the above-entitled matter for hearing on October 19, 2023. The Notice of Hearing provided that the issue set for determination was whiter grounds exist to revoke Respondents’ insurance producer licenses.
A hearing was held on October 19, 2023.
At hearing, the Department presented the testimony of Wendy Greenwood,
Investigations Supervisor for the Department. Mr. and Mrs. Skidmore testified on behalf of themselves.
Mr. and Mrs. Skidmore testified to the effect that they were unaware that FIP
was operating a fraudulent scheme.
CONCLUSIONS OF LAW
The Department bears the burden of persuasion. Ariz. Rev. Stat. § 41-
1092.07(G)(2).
The standard of proof on all issues is that of a preponderance of the
evidence. Ariz. Admin. Code § R2-19-119.
A preponderance of the evidence is:
The greater weight of the evidence, not necessarily established by the greater
number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.
Black’s Law Dictionary 1373 (10th ed. 2014).
The preponderance of the evidence shows that Respondents violated Ariz.
Rev. Stat. § 20-295(A)(8) and Ariz. Rev. Stat. § 20-285(C)(3) as alleged.
Respondents’ conduct constitutes a violation of Ariz. Rev. Stat., Title 20,
which provides grounds for the Director of the Department to revoke Respondents’ license. See Ariz. Rev. Stat. § 20-295(A) and Ariz. Rev. Stat. § 20-285(C)(3).
RECOMMENDED ORDER
IT IS ORDERED that Respondent Jeffrey Allen Skidmore’s License No. 2727072 is revoked.
IT IS FURTHER ORDERED that Respondent Money Never Sleeps, LLC dba Union Estate Planning and Union Retirement Solution’s License No. 16133884 is revoked.
Pursuant to A.R.S. § 41-1092.08(I), the licensee may accept the Administrative Law Judge Decision by advising the Office of Administrative Hearings in writing not more than ten (10) days after receiving the decision. If the licensee accepts the Administrative Law Judge Decision, the decision shall be certified as the final decision by the Office of Administrative Hearings.
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 forty (40) days from the date of that certification.
Done this day, November 8, 2023.
/s/ Velva Moses-Thompson
Administrative Law Judge
Transmitted by either mail, e-mail, or facsimile to:
Barbara D. Richardson,
Department of Insurance and Financial Institutions - Insurance
Jeffrey Allen Skidmore
Money Never Sleeps LLC
[email redacted]
James Rolstead
Attorney General's Office
[email redacted]
Barbara D. Richardson
Department of Insurance and Financial Institutions - Insurance
Arizona Department of Insurance and Financial Institutions
[email redacted]
[email redacted]
By: OAH Staff