STATE OF ARIZONA DEPARTMENT OF INSURANCE In the Matter of: 3 No. 3A-59-INS JACOBS, JAMES GREGORY, 4 NOTICE OF HEARING ST",j E OF A!,(IZONA FILED JAN 7 04 5 Petitioner. (ALJ Brain Tully) 7 8 9 0 3 4 5 7 8 9 0 3 4 5 PLEASE TAKE NOTICE that pursuant to the provisions of Arizona Revised Statutes ("AR.S.") 0- through and including 0-5 and 4-09 et seq., the abovecaptioned matter will be heard before the Director of Insurance of the State of Arizona (the "Director") or her duly designated representative, on February 7, 04 at :00 p.m. at the Office of Administrative Hearings, before Administrative Law Judge, Brian Tully, 400 West Washington Street, Suite 0, Phoenix, Arizona 85007, telephone number 0-54-98 (the "Hearing"). Motions to continue this matter shall be made in writing to the Administrative Law Judge not less than fifteen (5) days prior to the date set for the hearing. A copy of any motion to continue shall be mailed or hand-delivered to the opposing party on the same date of filing with the Office of Administrative Hearings. AR.S. 0-4(B) entitles any person affected by this Hearing to appear in person and by counsel, to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary evidence, to examine witnesses, to present supporting evidence in support of his interests, and to have subpoenas issued by the Administrative Law Judge to compel attendance of witnesses and production of evidence. If Petitioner is represented by counsel, the attorney shall be licensed to practice law in the State of Arizona or, if applicant is an insurer, it may be represented by a corporate officer, pursuant to AR.S. 0-(B). Pursuant to AR.S. 4-09.07(E), a clear and
accurate record of the proceedings will be made by a court reporter or by electronic means. Any party that requests a transcript of the proceeding shall pay the cost of the transcript to 3 the court reporter or other transcriber. 4 Questions concerning issues raised in this Notice of Hearing should be directed to 5 Assistant Attorney General Liane C. Kido, telephone number (0) 54-80, 75 West Washington Street, Phoenix, Arizona 85007-9, Liane.Kido@azag.gov. 7 NOTICE OF APPLICABLE RULES, 8 On January 3, 99, the Arizona Department of Insurance ("Department") adopted 9 A.A.C. R0--0 through R0--5, setting forth the rules of practice and procedure 0 applicable in contested cases before the Director of Insurance. The hearing will be conducted pursuant to these rules. Pursuant to AAC. R0--0, PETITIONER SHALL FILE A WRITTEN ANSWER 3 WITHIN 0 DAYS AFTER ISSUANCE OF THIS NOTICE OF HEARING AND SHALL MAIL 4 OR DELIVER A COPY OF THE ANSWER TO THE ASSISTANT ATTORNEY GENERAL 5 DESIGNATED ABOVE. The Answer shall state the Petitioner's position or defense and shall specifically admit or deny each assertion in the notice of hearing. Any assertion not 7 denied shall be deemed to be admitted. Any defense not raised in the Answer shall be 8 deemed waived. If an Answer is not timely filed, Petitioner shall be deemed in default and 9 the Director may deem the allegations are true, and take whatever action is appropriate, 0 including suspension, revocation, denial of a license, or renewal of a license, imposition of a civil penalty and/or order restitution to any party injured. Persons with disabilities may request reasonable accommodations such as 3 interpreters, alternative formats, or assistance with physical accessibility. Requests for 4 accommodations should be made as early as possible to allow time to arrange the 5 accommodations. If you require accommodations, please contact the Office of Administrative Hearings at (0) 54-98.
3 II The allegations supporting this Notice of Hearing are as follows: II. On or about August, 03, James Gregory Jacobs ("Mr. Jacobs" or 3 II "Petitioner") submitted to the Department an Insurance License Application for an Individual 4 II (Form L-9) ("application"). 5 II. Page two () of the application, Section V asks, "Have you EVER been found II guilty of, have you had a judgment made against you for, or have you admitted to, any of 7 II the following." Mr. Jacobs answered "Yes" to the following: 8 II a. A felony (of any kind)? 9 II b. Withholding, misappropriating, converting or stealing money or property? 0 II c. Using fraudulent, coercive or dishonest business practices including II forgery with intent to defraud? II 99 Class Felony Conviction 3 II 3. On or about January 9, 99, the Superior Court for the State of Arizona, 4 II Maricopa County (the "Court") indicted Mr. Jacobs for Conspiracy to Illegally Conduct an 5 II Enterprise, Leading Organized Crime, Illegal Control of an Enterprise, Theft, and Fraudulent Schemes and Artifices. 7 4. On or about December 5, 99, the Court convicted Mr. Jacobs of Conspiracy 8 lito Commit Fraudulent Schemes and Artifices, a Class felony in Case No. CR90087B. 9 II The Court placed him on probation for seven (7) years, and stated that he paid the court 0 II ordered restitution of $58,3.00. II 993 Class C Felony Conviction II 5. Pursuant to an Indictment in United States of America v. James G. Jacobs, 3 II Case No. CR-9-0093-00-PHX-SMM ("Case CR-9-0093"), on or about April, 99 4 II through April, 99, Mr. Jacobs and his co-defendant knowingly and with intent to 5 II defraud, possessed fifteen (5) or more unauthorized access devices, that being American II Express Company credit card numbers.
4. On or about January 7, 993, Mr. Jacobs pled guilty in Case CR-9-0093. The court convicted Mr. Jacobs of Unlawful Possession of Access Devices, a Class C 3 felony and sentenced him to seven (7) months of time served. 4 00 Class 4 Felony Conviction 5 7. On or about January 9, 00, the Superior Court of Arizona, County of Maricopa (the "County Court") charged Mr. Jacobs with Fraudulent Schemes and Artifices 7 and Theft for falsely obtaining cash assistance and property from the Arizona Department 8 of Economic Security. 9 8. On or about May, 00, the County Court convicted Mr. Jacobs of Theft, a 0 class 4 felony in Case No. CR000-09590. In or about January, 004, the County Court discharged him from probation. Mr. Jacobs states he also paid restitution in the amount of $8,50.00. 3 9. On or about November 7, 03, the Department denied Petitioner's 4 application. 5 0. Petitioner timely requested a hearing to appeal the denial. Conclusions of Law 7. Petitioner's conduct, as alleged above, constitutes having been convicted of a 8 felony, within the meaning of AR.S. 0-95(A)(). 9. Petitioner's conduct, as alleged above, constitutes using fraudulent, coercive or 0 dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere, within the meaning of AR.S. 0-95(A)(8). 3 3. Grounds exist to deny, suspend, revoke, or refuse to renew Petitioner's 4 insurance license, impose a civil penalty, and/or order restitution, pursuant to AR.S. 0-5 95(A) and (F).
5 WHEREFORE, if after hearing, the Director finds one or more of the abovedescribed grounds alleged above, the Director may deny, suspend, revoke or refuse to 3 renew Petitioner's insurance producer's license, and/or impose a civil penalty and/or order 4 restitution, pursuant to AR.S. 0-95(A) and (F). 5 Pursuant to A R.S. 0-50, the Director of Insurance delegates the authority vested in the Director of Insurance of the State of Arizona, to the Director of the Office of 7 Administrative Hearinqsor his designee to preside over the hearing of this matter as the 8 9 0 3 4 5 Administrative Law Judge, to make written recommendations to the Director of Insurance consisting of proposed findings of fact, proposed conclusions of law, and a proposed order. This delegation does not include delegation of the authority of the Director of Insurance to make the order on hearing or other final decision in this matter. Pursuant to AR.S. 4-09.0, your hearing will be conducted through the Office of Administrative Hearings, an independent agency. Further hearing information may be found at the Office of Administrative Hearings website: www.azoah.com. DATED this JlP ~ day of January, 04. 7 8 Darren Ellingson, De uty Director Arizona Department of Insurance 9 0 3 4 5 E-FILE of the foregoing delivered electronically this 7th day of January, 04, to: ALJ Brian Tully Office of Administrative ~7~, t:~v~_, Mary E~SinSki Hearings
3 4 5 COPY of the foregoing delivered this l7th day of January, 04 to: Darren Ellingson, Deputy Director Mary Kosinski, Executive Assistant for Regulatory Affairs Catherine O'Neil, Consumer Legal Affairs Officer Steven Fromholtz, Licensing Supervisor Arizona Department of Insurance 90 North 44th Street, Suite 0 Phoenix, Arizona 8508 7 COPY MAILED SAME DATE by Regular Mail and Certified Mail, Return Receipt Requested, to: 8 James Gregory Jacobs 9 38 N. Evergreen Street 0 Phoenix, Arizona 8500 Petitioner COPY sent same date via electronic mail to: Liane Kido 3 Assistant Attorney General 4 Liane.Kido@azag.gov and Teresa.Carranza@azag.gov Attorney for the Department of Insurance 5 7 8 9 0 ~~4fcii= Curvey WaTtBurtn 375 3 4 5.s ',PLACE STJCKER'AT'roP OFENVECOPE'l"OTHE RIGHT.,, DFTHE'RETURN AllDRESS, FOLl'ATDOTTEDCINE', :-.,.'~... -CERlitlioNillfi:: --- --- ~'~. 7008 330 0000 053 89