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1 N.J.A.R. 388

Paladino, Jr., Floyd M. v. Insurance, Department of
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Citation: 1 N.J.A.R. 388
Decision Date: 1980
Agency: DEPARTMENT OF INSURANCE
Synopsis: Paladino appealed the decision of the Licensing Division of the Department of Insurance denying his application for reinstatement of his property/casualty agent's license. Paladino's license had been revoked in 1975 after he pied guilty to Federal and State charges arising out of a scheme to defraud a company which made loans for the payment of insurance premiums. The Department of Insurance moved for summary decision on the ground that the Rehabilitation Convicted Offenders Act, N.J.S.A. 168A-1 et seq. was inapplicable to Paladino, that any rehabilitation was thus irrelevant to Paladino's license denial and on the basis of res judicata and collateral estoppel, the administrative law judge was bound by the findings made by a hearing examiner in 1975 upon which Paladino's original license revocation was based. The administrative law judge determined that the act was not applicable in a situation where the crime for which an individual was convicted relates adversely to the profession for which a license was sought, but that Paladino was entitled to a hearing on the very question of whether the crime of which he was convicted did, in fact, relate adversely to his profession. The judge also ruled that Paladino would be entitled to present evidence showing any meaningful developments since his conviction which would allow for reinstatement of his license. Since the issue of 'meaningful developments' could not have been decided before and was thus new to this proceeding, the administrative law judge ruled that the doctrines of res judicata and collateral estoppel would not apply. The administrative law judge found that the underlying circumstances of the crime of which Paladino was convicted involved fraudulent loan applications which could only be made by someone with a knowledge of the insurance business and thus Paladino's actions relate adversely to the insurance prolssion. While finding that Paladino had significantly State of New Jersey 389 rehabilitated himself, the judge concluded that any such rehabilitation did not outweigh the gravity of his crime, its intimate relationship to the insurance profession or Paladino's unsuitability for licensure. Accordingly, the judge ordered that Paladino's application for licensure be denied. Anthony Mautone, Esq., for Petitioner (Minichino & Mautone, attorneys) Mark I. Sirnan, Deputy Attorney General, for Respondent (John J. Degnan, Attorney General, attorney)