NASHVILLE, Tenn., June 7 -- The Tennessee Department of Commerce and Insurance issued the following news:
The Tennessee Department of Commerce & Insurance (TDCI) announces disciplinary actions against Tennessee licensees in Memphis and Covington for several violations including acts of fraud, forgery and misrepresentation of material facts and using incorrect, misleading, incomplete or materially untrue information on license applications. The combined civil penalties total $17,000.
The punishments were the result of work by TDCI's Financial Services Investigations Unit which ensures the protection of Tennesseans by holding accountable licensees who are engaged in unlawful activity.
"The Department's fraud investigators are out across the state on a daily basis pursuing leads and investigating complaints," said TDCI Assistant Commissioner for Insurance Michael Humphreys. "We take our responsibility to protect Tennessee's insurance consumers from fraud and abuse very seriously and are proud to announce these latest enforcement actions."
Details of the cases include:
William John Statile: (Memphis, Tenn.) On May 18, 2017, an Administrative Law Judge entered an Order finding that William John Statile had committed multiple acts of fraud, forgery and misrepresentation of material facts in an annuity related insurance transaction involving a Tennessee insurance consumer. The Administrative Law Judge found that Statile had misled the consumer as to his credentials by holding himself out as an attorney when he had in fact been disbarred, had misrepresented the terms of the annuity, and then forged the consumer's name and initials on transfer documents. Discipline imposed on Statile includes the permanent revocation of his insurance producer's license and the assessment of $11,000 in civil penalties.
Timothy Lane Pilkington: (Covington, Tenn.) After a March 9, 2017 hearing by an Administrative Law Judge, an Initial Order became Final on May 26, 2017 revoking the insurance producer license and securities registration of Timothy Lane Pilkington. Pilkington failed to disclose to the Insurance and Securities Divisions of the Tennessee Department of Commerce and Insurance that he was the subject of a 2004 Order of Prohibition issued by the Federal Deposit Insurance Corporation (FDIC) barring him from participation in the banking, real estate, securities and insurance industries. Pilkington was subsequently barred from association with any member authorized by the Financial Institution Regulatory Authority (FINRA) to conduct securities business. He then failed to report the FINRA action to Tennessee authorities. These failures were found to be material omissions resulting in the license and registration revocations and civil penalties in the amount of $6,000.