Appeal from the Order of the Insurance Commissioner of the Commonwealth of Pennsylvania in the case of In Re: Albert C. Friedman, Docket No. P80-6-11.
Wilbur Greenberg, with him Jonathan T. Warren, of counsel: Sidkoff, Pincus, Greenberg & Green, P.C., for petitioner.
Hannah Leavitt, Assistant Counsel, with her Anthony A. Geyelin, Chief Counsel, for respondent, Insurance Department of the Commonwealth of Pennsylvania.
Judges Rogers, Williams, Jr. and Craig, sitting as a panel of three. Opinion by Judge Craig.
[ 72 Pa. Commw. Page 275]
Albert C. Friedman appeals from an order of the Commissioner of the Pennsylvania Department of Insurance revoking his agent's license and ordering him to pay a $1,000 penalty to the Commonwealth. We affirm.
[ 72 Pa. Commw. Page 276]
The facts are not in dispute. On May 15, 1980, the United States District Court for the Eastern District of Pennsylvania found Mr. Friedman guilty of conspiracy and interstate transportation of stolen property under Title 18 of the United States Code; the grand jury indictment of record indicates that Mr. Friedman and his co-conspirator transferred the life insurance policies of their clients from one company to another and, in the process, generated refund checks which Mr. Friedman converted to his own use. The court sentenced him to three years in jail, suspended all but ten days of that sentence, and fined him $10,000.
On September 19, 1980, the department issued an order to show cause, alleging violations of sections 603*fn1 and 639*fn2 of the Insurance Department Act of 1921, Act of May 17, 1921, P.L. 789, as amended, 40 P.S.
[ 72 Pa. Commw. Page 277]
§§ 233 and 279 (the Act) and sections 33.7,*fn3 33.18,*fn4 and 33.21*fn5 of Title 31 of the Pennsylvania Code (the regulations). These provisions give the commissioner discretion to impose various sanctions upon an agent who engages in conduct that would disqualify him from the initial issuance of a license.
[ 72 Pa. Commw. Page 278]
With the fact of his conviction established by pre-hearing agreement between counsel, neither Mr. Friedman nor his attorney chose to attend the license-revocation proceeding. The only defense which he raised before the department appeared in his brief; there, he argued for a stay of the commissioner's hand until the United States Court of Appeals for the Third Circuit decided his appeal.
The commissioner rejected that argument and, on August 18, 1981, issued his revocation order.
On appeal, Mr. Friedman contends that the department (1) violated his constitutional guarantee against double jeopardy by fining him under the Act after the federal court had already imposed a $10,000 criminal penalty; (2) denied him a right to trial by jury under article I, section 6 of the Pennsylvania ...