STATE OF CONNECTICUT

INSURANCE DEPARTMENT

-----------------------------------------------------)(

IN THE MATTER OF:

JULIO IV AN CARBALLO Docket No. FC 18-77

Respondent -----------------------------------------------------)(.

ORDER FOR DEF AULT JUDGMENT AND ORDER FOR ADMINISTRATIVE PENALTIES

The Insurance Commissioner, hereinafter referred to as Commissioner, is charged with the administration and enforcement of the insurance laws and regulations that pertain to licensees of the Insurance Department pursuant to Connecticut General Statutes Section 38a-8.

Section 3 8a-774 of the Connecticut General Statutes provides in part that:

The commissioner, after reasonable notice to and hearing of any holder of a license issued by the commissioner, may suspend or revoke the license for cause shown. In addition to or in lieu of suspension or revocation, the commissioner may impose a fine not to exceed five thousand dollars.

Section 38a-702k(e) of the Connecticut General Statutes provides that:

The commissioner shall retain the authority to enforce the provisions of, and impose any penalty or remedy authorized by, this title against any person who is under investigation for or charged with a violation of this title even if the person's license or registration has been surrendered or has lapsed by operation of law.

The Commissioner has conducted an investigation of the activities of the above captioned Respondent and as a result of that investigation issued a Complaint dated September 20, 2018, a copy of which is attached hereto as Exhibit A, alleging cause to suspend or revoke licenses issued by the Commissioner, or in addition to or in lieu thereof impose

other penalties.

Section 3 8a-8-61 of the Regulations of Connecticut State Agencies provides that:

The respondent in any enforcement proceeding shall file an answer with the Commissioner within twenty (20) days of service of the notice of hearing

www .ct.gov/cid

P.O. Box 816 • Hartford, CT 06142-0816

An Equal Opportunity Employer

specifically admitting or denying the allegations or charges set out in the notice.Factual allegations not specifically denied shall be deemed to be admitted.

Section 38a-8-62 of the Regulations of Connecticut State Agencies provides that:

In any proceeding when the Respondent fails to file an answer as required bySection 38a-8-61 of these Regulations or fails to appear at a duly noticed hearing,the Commissioner may, in his discretion, note such failure upon the record andrender a decision by default.

IN ACCORDANCE W TH THE FOREGOING:

I FIND, ia light of the foregoing, that a Complaint and Notice of Hearing was sent on orabout September 25, 2018 to the Respondent, by regular first-class mail and by certifiedmail. Number 7016 0910 0000 4320 4937, with the proper postage at the followingaddress: |

I

jJulio Ivan Carballo

c/o Cruz Magana56 Bradley PlaceStamford, CT 06905

I

Evidence of mailing of Certified Mail, Article Number 7016 0910 0000 4320 4937, sentto Respondent at 56 Bradley Place, Stamford, CT 06905 on September 25, 2018 isattached as Exhibit B. Certified Mail, Article Numbers 7016 0910 0000 4320 4937 wasreturned to the Department as undeliverable, see Exhibit C. The Complaint and Notice ofHearing sent by first-class mail to the Respondent was not returned to the Department.

j

As of this date, the Dep^ment has not received any answer to the Complaint from theRespondent, nor has the Respondent appeared for the scheduled hearing.

The address stated aboA^e is the address filed with this Department by the Respondent,who is required by law to report any change of address within thirty days. From the dateof this order, the Complaint and Notice of Hearing was mailed to the Respondent 72 daysago. Accordingly, I find that the Respondent received service and reasonable notice ofthe Complaint in accordance with the Regulations of Connecticut State Agencies,Sections 38a-8-18 and 38a-8-59 et seq.

I FURTHER FIND that the Respondent did not file an answer within the time periodrequired in accordance with the Regulations of Connecticut State Agencies, Section38a-8-61, nor did the Respondent appear at the scheduled hearing. Accordingly, all ofthe allegations as set forth in the Complaint, attached hereto, are hereby deemedadmitted.

I FURTHER FIND that the Respondent's producer license expired on July 31,2018 andhas not been renewed. I

IT IS HEREBY ORDERED, in accordance with the above findings and pursuant toSection 38a-8-61 of the, Regulations of Connecticut State Agencies, that:

I

1. A decision by default enters against the Respondent, Julio Ivan Carballo,

!2. That all licenses issued to the Respondent pursuant to Sections 38a-702f and

38a-769 of the Connecticut General Statutes, are hereby ordered not to be reinstated orrenewed, nor any other insurance license be granted in the future to the Respondent,unless at time of application the Respondent has demonstrated that he is suitable to bereadmitted in the insurance business in accordance with the conditions listed in Section

46a-80(c) of the Connecticut General Statutes.

3. That the Hearing originally scheduled for October 24, 2018 is cancelled.

4. That pursuant to Section 38a-8-63 of the Regulations of Connecticut StateAgencies:

A respondent may move to reopen any decision rendered by default within sixty(60) days of the entry thereof. The motion shall be in writing and shall state thereasons for the jfailure of the respondent to answer or appear. If a default wasentered for failure of the respondent to file an answer, the respondent shall submitsaid answer with the motion to reopen. If good cause appears for the failure ofthe respondent to answer or appear, the Commissioner may grant said motion andshall schedule the hearing at the earliest date convenient to the Commissioner.

So ordered this is da!y 18

itharine L. Wade

Insurance Commissioner

■J

STATE OF CONNECTICUTINSURANCE DEPARTMENT

IN THE MATTER OF

JULIO IVAN CARBALLO

RespondentDOCKET NO.; PC 18-77

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COMPLAINT

The Insurance Commissioner of the State of Connecticut having reason to believe thatJulio Ivan Carballo ^gaged in acts of conduct as set forth herein and whi ch, if true, wouldviolate Sections 38a-702k, 38a-769, 38a-771, 38a-815 and 38a-816 of the ConnecticutGenemI Statutes and would constitute cause under Sections 38a-702k, 38a-774 and 38a-817 of the Connecticut General Statutes for the revocation or suspension of licenses issuedby the insurance Department and/or the imposition of fines and other penalties, and itappearing to the Insurance Commissioner that a proceeding in respect thereof would be inthe public interest, hereby issues this Complaint allegii^ the charges in that regard asfollows:

COUNTI

1. Julio Ivan Carballo ("Respondent") is licensed as a resident insurance producer,license number 002333646, by the State of Connecticut Insurance Department("Department"). The Respondent was the owner and license of WaterstoneInsurance Group Inc., license number 002592666, an entity no longer active.

2. Johl & Company, Inc. ("Johl Company") is a New Jersey non-resident1,2018.

3. N&CH Construction ("N&CH") is a business located in Clinton Connecticut.

4. N&CH paid to the Respondent two checks totaling $7,3 88 for commercialinsurance for their business and two additional checks totaling $5,000 madepayable to associates of Respondent for the same insurance.

5. On or about Januar}^ 8,2018, the Respondent issued two Certificates of LiabilityInsurance to a Connecticut business indicating that N&CH was insured by

www.ct.gov/cidP.O. Box 816 • Hartford, CT 06142-0816

An Equal Of^ortunity Employer

n/

Selective Insurance Company ("Selective") for commercial liability, umbrella

insurance and workers compensation insurance.

6. The certilicates referenced in paragraph 5 above list Johl & Company as theissuing producer when, in fact, Johl & Company never issued such certificates,which were issued by the Respondent.

7. Selective never issued any policies providing the coverages noted on the

Certificates.

8. Misrepresenting that he was acting on behalf of Johl & Company, the Respondentcollected $12,388 for insurance premium &om N&CH and failed to procureinsurance for N&CH or to remit such premium to Selective or any other insurer

and misappropriated such funds for his own purposes and benefit

9. The Respondent issued forget certificates of insurance to N&CH misrepresentingthe existence of insurance coverage for N&CH fiilly knowing that the informationon such certificates was false, inaccurate and untrue.

10. The conduct as described above, if true, is in violation of Sections 38a-702k, 38a-

712,38a-769 and 38a-816 of the Connecticut General Statutes and constitutescause pursuant to Sections 38a-702k, 38a-774 and 38a-817 of the ConnecticutGeneral Statutes for the suspension or revocation of insurance licenses and/or forthe imposition of fines.

COUNT II

1. Paragraph one of Count I is incorporated in and made paragraph one of thisCount

2. On or about September 7,2018, the Department sent a letter to the Respondentrequesting information concerning Respondent's handling of the matters set out inCount L Such letter was mailed by regular first-class mail and Certified Mail,

Number 70160910000043204845, to Respondent's addresses then on file with tlieDepartment, 56 Bradley Place, Stamford, CT 06095-1801.

3. The Respondent failed to comply with the Department's September 7,2018

correspondence.

4. The conduct of Respondent, as set forth in paragraphs 1 through 3 of this Count,is in violation of Sections 38a-16 and 38a-769 of the Connecticut General

Statutes, and constitutes cause for revocation or suspension of Respondent's

licenses and/or the imposition of fines pursuant to Section 38a-774.

.i

NOTICE

Notice is hereby given to you, Mio Ivan, Carballo, Respondent herein, that October 24,2018 at 10:00 am. is herelw fixed as the time where a public hearing will be held in the

offices of the Insurance Department 153 Market Street ("960 Main" Buiiding), 7th Floor,Hartford, Connecticut on the charges set forth in this Complaint, at which time and placeyou wail have" the right to appear before the imdersigned, or a duly designated hearingofficen to show cause why your iicense(s) should not be suspended or revoked and/orwhy flne(s) should not be imposed.

The legal authority and jurisdiction for the hearing in this matter are contained in Section38a"769,38a-774,38a-817,4-177,4-182 and 4-183 of the Connecticut General Statutes.

Pursuant to Section 38a-8-61 of the Regulations of Connecticut State Agencies, you arej-equired to file an answer within the Insurance Department wdthin twenty (20) days ofsendee of this Amended Compiaint specifically admitting or denying the allegations orcharges set out in the Amended Compiaint. Factual allegations not specifically deniedshall be deemed to be admitted.

Faiiure to file said answer as required by Section 38a-8-61, R.C.S.A,, or failure to appearat the time and place fixed for the hearing wall permit the Commissioner, at herdiscrerion, to note such failure upon the record and render a decision by default.

If you desire to waive hearing on the allegations of fact set forth in tlie Compiaint and notcontest the facts alleged- please file with the Insurance Department an answer to thiscomplaint on or before the twentieth. (^Oth) day after service of it upon you, consistuig ofa statement that you as Respondent in this matter adinit all of the material allegations offact charged in the Complaint to be true.

The Insurance Department does iK>l discriminate on ttie basis of disabilitj^ in admissionto, access to,, or operation of its progrants. sendees or acti vities- in accordance with TitleII of the Americans with Disabilities Act of 1990. Individuals who require auxiliary^ aids

for effecti ve communication or other accommodation are invited to make their needs and

preferences known to Patidcia Tiberio, ADA Coordinator, at the Insurance Department(Tel: 860.297.3800).

All con-espo.ndeoce conceniing this matter should be sent to the Insurance Etepaitnient,State of Connecticut. P.O. Box 816,, Hartford. CT 06142-0816.

Dated at Hartford. Connecticut day of

KathariBe L, Wade

lnsiiran.ee Commissioner

.Ai;

Counsel

4

Richard ReidFraud & Investigations

■' "' Wii OF CONNECTICUT|NSUto.NCE DEPARTMENT

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CONNECTICUT iNSURAmCEDEPARTMENT

EXHISiT

SENDER: QOUPIETB THIS SECTION

Complete items 1,2, and 3. Also completeitem 4 If Resected Delivery Is desired.Print your name and address on the reverseso that we can return the card to you.Attach this card to the back of the maifpiece,or on the front If space permits.

1. Artie!© Addre^d to:

Julio Ivan Carballoc/o Cruz iVIagana56 Bradley PlaceStamford, GT 06905-1801

Julio Ivan Carballoc/o Cruz IVIagana56 Bradley PlaceStamford, CT 06905-1801

• • '4«Li.» • t

COMPLETE THIS SECTION ON DELIVERY

A. Signature

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B, Recelimd by (Printed Name)

□ AgentD Addressee

C, Date of Dellveiy

D.vlsdeltveryaddressdEfferentfromfteml? D YesIf YK, enter dellveiy address belbw: EH No

3. Service TVp© j ;, ^iSertfflsdMall □ Express Mall |

□ Registered | □ Return Reoslpt for Merchandise ;□ InsuradMall: □ G.O.D,

4i. RestHcted Delivery? (Brfra Feej n Yes

2. Article Number(Transfer from service febep 7niL D11D DDDD 9350 9^37

PS Borm 3811, February 2004 Domestio Return Receipt 10259S4Q2-M-1540 f.

U.S. Postal Service™CERTIFIED MAIL® RECEIPTDomestic Mail Only

For delivery information, visit our website at wtvtv.usps.com®. .

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$Extra Services & Fees (chBckbox, edd fee as spproprfafo)

f~lRRhimRBnnlnr nifltTrr.np;^ ^riR(iliimRRrrf|TtfBtBrtmn!r) *nrMlflnrt MallRftsrrirrnH nHllitnnf S|-{AftilirSinnBlli«nor(lHmr» .«p[AfrMiVsinnaflimnB«Wo>oWriolUmr^, A

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