REGARDING the Insurance Act, R.S.O. 1990, c.1.8, as amended
(the “Act), in particular, sections 393(9) – 393(11)
AND REGARDING Luigi Francesco Ciardullo, life insurance agent
DECISION and ORDER
A Notice of Opportunity for Hearing dated November 23, 2012 (the Notice) informed Luigi Ciardullo of allegations against him and the opportunity for a hearing before an Advisory Board to consider whether to issue him another licence as a life insurance agent. The Notice advised Mr Ciardullo if a hearing was not requested the Superintendent would make a decision based on information in possession of the Financial Services Commission of Ontario (the Commission). Mr Ciardullo was also advised that such decision could include refusal of his application for a licence as a life insurance agent.
I have received an affidavit from Shaifa Chandani, Licensing and Registration Specialist at the Commission that the Notice was sent by registered mail and regular mail to the address on file at the Commission. The affidavit further states that no request for a hearing was received. I am satisfied that the Notice was properly served in accordance with the provisions of the Insurance Act and that Mr Ciardullo did not request a hearing.
A copy of the allegations is attached to this Decision.
Since Mr Ciardullo has not requested a hearing, the evidence of Commission staff in the particulars attached to the Notice is uncontroverted.
The evidence can be summarized as follows. Mr Ciardullo held a licence as a life insurance agent which expired on August 17, 2012. Mr Ciardullo applied for another licence. His application did not disclose two charges for fraud under the Criminal Code.
Mr Ciardullo received $ 250,000 from two clients and misrepresented to his clients how those funds would be invested; the funds were in fact invested in a company owned by Mr Ciardullo.
Mr Ciardullo was disciplined by the Mutual Fund Dealers Association for several matters including accepting funds from a client and then using them for a purpose without the knowledge or consent of his client.
Mr Ciardullo’s errors and omissions insurance was not renewed and Mr Ciardullo did not respond to questions from the Commission about his insurance coverage.
Mr Ciardullo did not provide the information requested by the Commission in its audit of compliance with continuing education requirements.
Mr Ciardullo had been subject to previous allegations by the Commission and while he requested a hearing, he did not participate in the pre-hearing conferences. Ultimately a hearing did not proceed since Mr Ciardullo’s licence had by then expired.
Findings of Fact
I find that Mr Ciardullo has demonstrated untrustworthiness as a result of his misrepresentations to the Commission and misrepresentations to his clients.
I find that Mr Ciardullo failed to facilitate an examination by the Commission as a result of his failing to provide the requested information about compliance with continuing education requirements and errors and omissions insurance requirements.
I find that that Mr Ciardullo failed to maintain errors and omissions insurance as a result of the notice from his insurance company and his failure to respond to the Commission’s audit of errors and omissions insurance.
Accordingly, I find that Mr Ciardullo is not suitable to be licensed as an insurance agent.
In the absence of testimony by Mr Ciardullo, I am unable to consider any explanations for his behaviour or mitigating circumstances.
I have found that Mr Ciardullo is unsuitable to be licensed as a life insurance agent.
As a result, I must deny his application for a licence as a life insurance agent.
Accordingly, the application for a life insurance agent licence by Luigi Francesco Ciardullo is hereby denied by this order.
Dated at Toronto, this twenty-sixth day of June 2013
Original Signed By
Executive Director, Licensing and Market Conduct
by delegated Authority from
Superintendent of Financial Services
The following allegations were set out in the Notice:
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