Russian insurer ordered out of California; Garamendi issues Cease & Desist against First Ossetian.LOS ANGELES--(BUSINESS WIRE)--Dec. 29, 1994--Insurance Commissioner John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. Thursday issued a Cease and Desist Order An order issued by an Administrative Agency or a court proscribing a person or a business entity from continuing a particular course of conduct. The force and effect of a cease and desist order are similar to those of an Injunction issued by a court. against the Russian licensed insurer, First Ossetian International Insurance Co. and its holding company, Omstrak, barring their further transaction of insurance in California. "This order is a victory for consumers everywhere, who fall victim to insurers who escape regulation by obtaining a license in one jurisdiction and transacting insurance in another," Garamendi said. The order also bars all agents and employees of the companies from aiding and abetting a·bet tr.v. a·bet·ted, a·bet·ting, a·bets 1. To approve, encourage, and support (an action or a plan of action); urge and help on. 2. in the illegal transaction of insurance, and specifically finds that the insurer was illegally transacting business out of its Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. offices. The company had planned to issue $20 million in public stock to finance its insurance operation. Principals of the company subject to the order include John Terrance Lepire, Roman Gorodnitsky and Illya Bond. Thursday's order was issued following an administrative hearing administrative hearing n. a hearing before any governmental agency or before an administrative law judge. Such hearings can range from simple arguments to what amounts to a trial. There is no jury, but the agency or the administrative law judge will make a ruling. , and confirms the findings and action taken earlier this year after department investigators first discovered the illegal insurance operation. The company had earlier voluntarily agreed to refrain from conducting insurance business in California during proceedings in San Francisco Superior Court. CONTACT: Candysse Miller, 213/346-6367 |
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