Since Insurance SUPPOSEDLY operates on the principle of \”Uberima Fides,\” it is a pity that \”Cliams Guides\” didn\’t bother to check THE FACTS/TRUTH, Oxendine CERTAINLY didn\’t. Below are 2 articles which DO contain the truth, which is totally contrary to the rubbish put out by Oxendine and the \”establishment media.\”
Oxendine Accused of Cab Scam
By Betty Clermont, Staff Writer, Atlanta Progressive News (April 24, 2006)
(APN) ATLANTA â€â€Ŕ Georgia Insurance Commissioner John Oxendine is being accused of taking improper actions which benefitted his cab industry campaign contributors, Atlanta Progressive News has learned.
Godfrey Waterhouse claims his son, Robert Waterhouse, was falsely arrested on account of Oxendine for allegedly running a bogus cab insurance agency. The charges were later dropped, and Waterhouse’s insurance agency appears to have been completely legitimate the whole time.
An international news agency and big-city TV reporters had been waiting at the county jail, cameras rolling, as a high-ranking government official, Mr. Oxendine, led him inside, back in March 2005.
The charges against Waterhouse were quietly later dropped after three weeks. His assets were seized and still have not been returned, he says.
Meanwhile, Oxendine had demanded that several cab companies obtain new insurance, which they did, and this benefitted Republican Oxendine’s big campaign contributors.
A story by Kafka? No, Oxendine!
And there’s more. Now, the State Attorney General’s Office appears to be investigating the matter, Atlanta Progressive News has learned from various sources, and Waterhouse is not a subject of the investigation; however, his assistance and cooperation is wanted.
Further, numerous cab companies are suing the State of Georgia because of Oxendine, and Waterhouse is trying to figure out what happened to his frozen assets.
Oxendine’s office declined to comment on the matter via his spokesperson, Wayne Whitaker, because the matter has been referred to the Attorney General’s Office.
\”The State of Georgia did a terrible thing,” Hyatt Choudhari, owner of Atlanta Airport Superior Shuttle and Limo, told Atlanta Progressive News. \”We were 156 companies doing business with Waterhouse. Probably four- to five-hundred drivers across the state lost a lot of money.”
What you have to understand is, many big cab companies also run their own in-house cab insurance companies, while smaller companies had been contracting with firms like Waterhouse’s.
An APN analysis found that numerous cab and cab insurance company executives have donated to Mr. Oxendine almost every year since 1998:
Solomon Bekele, Insurance Executive. Yellow Cab of Georgia, Inc.; Rapid Taxi Company, Inc.; and VFH Captive Insurance Company.
Cheru Terefe, Insurance Executive. American Cab Company, Inc.; American Association of Cab Companies, Inc.; American Captive Insurance Co.; and Ethio-American Insurance Co.
Konjit Bekele, Insurance Executive. VFH Insurance, American Cab and American Assoc. of Cab companies.
Tafesse Belachew, Businessman. United Taxicab Company, United Empress Cab Company; and United Group Captive Insurance Company.
Mekeren Tassew, Insurance Executive. United Taxi and United Group Captive Insurance companies.
Jifar Jebel, Administrator. United Taxicab.
\”We have calculated that Oxendine has taken $1.7 million from the insurance industry over the last decade,\” Guy Drexinger, the Democrat running against Oxendine in November, told Atlanta Progressive News.
In February 2005, Oxendine notified the media he would be making a high-profile bust in the little town of Barnesville, about 50 miles south of Atlanta.
The Associated Press and Atlanta\’s 11 Alive News showed up on March 1, 2005, to photograph Oxendine and the Lamar County sheriff taking Robert Waterhouse, 36, to the county detention center while the GBI raided his home and office.
A local Newspaper Editor in Barnesville’s comments make it appear Oxendine’s “bust” was crafted with an eye for big media dramaturgy.
\”They all met in nearby Forsyth before coming here together. We were not informed of the raid at all and I learned of it only when I went downtown for coffee that morning and saw all the cameras. It is my understanding that the local police chief and sheriff were notified only 15 minutes before the raids,\” Walter Geiger, Editor of the local newspaper, The Herald-Gazette, told Atlanta Progressive News.
Oxendine told the Associated Press at the time, \”even though the vehicle owners thought they were obeying the law, the taxis and limos must be pulled off the road because they are not legally insured….There will probably be some businesses that go under because of this.\’\’
Any disruption in taxicab service could have a major impact on metro Atlanta\’s $3.5 billion convention and tourism industry. It also could affect operations at Hartsfield-Jackson International Airport, one of the nation\’s busiest airports, The Atlanta Journal Constitution said.
Not only would the big cab companies which funded Oxendine benefit from Oxendine’s actions by their competitors being pulled off the road; also their insurance companies lost a major competitor when Waterhouse was shut down.
A hearing was scheduled for Robert Waterhouse on March 18, 2005. He was released on $25,000 bond.
In September, all charges were dismissed.
On the same day, March 18, 2005, Oxendine withdrew his candidacy for Lieutenant Governor.
The thing is, Waterhouse’s cab insurance agency appears completely legitimate.
Waterhouse’s cab insurance agency was co-owned by his father, Godfrey Waterhouse, 63, who lives in New Zealand. Godfrey Waterhouse told APN he had been placing customers\’ insurance with Contractors Bonding Limited (CBL), located in Auckland, for several years.
When the Georgia Insurance Code was changed, only companies domiciled in the US became permitted to issue certain types of policies.
CBL executives then assured Waterhouse they were taking over Mark Solofa Insurance, located in American Somoa. CBL faxed Waterhouse a copy of Solofa\’s Certificate of Authority from the American Somoan Insurance Department. Being located in a US territory, Solofa would qualify under the Georgia law.
The National Association of Insurance Commissioners (NAIC) approved Solofa as having the necessary monetary reserves and issued them a code number which would permit them to write business in this state. CBL would continue to broker the policies.
As far as Waterhouses\’ customers were concerned, everything remained the same except the name on the insurance policy and their state-mandated proof of insurance read Mark Solofa Insurance instead of Contractors Bonding Limited. The Waterhouses continued to have all claims adjusted by Nolan & Co. as they had for many years.
For the next two years, the Waterhouses continued submitting their quarterly surplus lines tax returns to the Georgia Insurance Department showing the name of the company as Mark Solofa.
Oxendine informed the media his investigators uncovered the alleged scam in January 2005 when a Columbus cab company filed a complaint about a claim with Oxendine\’s office. He said that\’s when \”we found out that [the Waterhouses] had not written any insurance policies.\”
Up until Robert\’s arrest, Geoff Waterhouse said they were never contacted by Oxendine, nor anyone from his office, nor anyone from any law enforcement agency, nor DA Milam, nor anyone from Milam\’s office. \”We have ALWAYS dealt directly with CBL and it would be very easy to confirm this from our phone bills, our bank records and with Nolan & Co who did all the claims adjusting,\” Waterhouse wrote. He told APN that they would have been happy to turn their records over to any authority who had asked.
When Atlanta Progressive News was first informed of the story from a phonecall from New Zealand, we were able, within minutes, to check the Contractors Bonding Limited website, http://www.contractorsbonding.com ( As of 31st December 2003, CBL\’s Shareholders Funds stood at $20m ), the Nolan & Co. website, http://www.nolanandcompany.com ( Thomas S. Nolan, President and General Adjuster, has 28 years of claim adjusting experience etc.) and the National Association of Insurance Commissioners website, http://www.naic.org/cis/index.do (MARK SOLOFA INS CO, NAIC#: 11554 Home Office: American Samoa, Business Type: Property/Casualty ) to establish they all appeared to be legitimate businesses as Waterhouse claimed.
Guy Drexinger, Oxendine\’s opponent, said, \”I have pledged not to accept any contributions from the insurance industry and publicly supported legislation this session that would ban contributions to candidates for Insurance Commissioner from out of state insurance companies.\”
CORRECTIONS: An earlier version of this story stated Robert Waterhouse claimed he was falsely arrested. That communication came from Godfrey \”Geoff\” Waterhouse, not Robert. The Waterhouses ran an insurance agency, not an insurance company. Also, Atlanta Progressive News does not know yet whether the assets which were frozen are missing. The story was been changed to reflect these items.
Update on an Oxendine Cab Scam Accusations
By Betty Clermont, Staff Writer, Atlanta Progressive News (July 03, 2006)
On March 1, 2005, after declaring his candidacy for Lieutenant Governor, Georgia Insurance Commissioner John Oxendine staged a media event – with himself in the starring role – to record the arrest of Barnesville insurance agent, Robert Waterhouse, as previously reported by Atlanta Progressive News.
Oxendine withdrew his candidacy for higher office the same day Waterhouse was granted a hearing and later, all 41 counts of theft, fraud and racketeering were dismissed.
Oxendine charged Waterhouse with selling “bogus” insurance and all 155 of his taxi-company customers, and hundreds of drivers, were told to stop serving their riders until other coverage was purchased. Finding affordable insurance coverage is a difficult and time-consuming chore for livery companies because they have a high exposure to claims.
The Atlanta Journal-Constitution reported Atlanta’s tourism and convention industries were threatened by the commissioner’s action.
According to The Insurance Journal, Oxendine admitted “numerous businessmen [are] in financial peril across the state.”
Oxendine told the Associated Press, \”even though the vehicle owners thought they were obeying the law, the taxis and limos must be pulled off the road because they are not legally insured….There will probably be some businesses that go under because of this.\’\’
Back in February 1997, more than a year after the Georgia Court of Appeals declared taxi insurance companies owned by Solomon Bekele and his brother-in-law, Cheru Terefe, to be illegal, Georgia Insurance Commissioner John Oxendine explained his third postponement of a hearing to revoke their license to The Atlanta Journal Constitution: \”Oxendine says closing all the self-insurers could force hundreds of cabbies to park their vehicles or to begin driving with no insurance. \’Regulation is a balancing act,\’ Oxendine said. \’If you take away the cabs, what does that do to the citizens?\'”
APN noted in our previous story that Bekele and Terefe are major contributors to the Commissioner’s political war-chest. As owners of the largest taxi fleets and taxi insurance companies in Georgia, they would naturally stand to benefit when Oxendine put their competitors out of business.
Another person who may have come out ahead when Waterhouse lost his business is Macon attorney, John Kennedy. When Towiliga-circuit District Attorney, John Milam, seized the Waterhouse bank accounts â€â€Ŕ reportedly between $200,000 and $293,000 â€â€Ŕ the funds were put under receivership to be administered by the court-appointed Kennedy. The money was supposed to be used to pay accident claims and reimburse customers’ premiums.
On April 27, 2006, during a hearing held at the Monroe County Courthouse, Assistant Attorney General David McLaughlin alluded to “administrative fees eating up the money,” although not a single penny had yet been disbursed for either purpose.
In the investigation conducted after Waterhouse was imprisoned and his family business destroyed, the company they represented, Contractors Bonding Limited (CBL), was criminally charged with selling “fake” insurance. McLaughlin said he was planning a trial to take place this summer.
A source close to the proceedings said CBL had been anxious to pay all outstanding claims right from the start of the state’s prosecution, just as claims had been promptly paid all along since the Waterhouses first contracted with CBL. However, CBL was stonewalled by Georgia officials until the government named a claims-adjusting company of their own choosing. The new company was named at the hearing and authorized to begin settlements using additional monies provided by CBL.
On June 7, 2006, Godfrey (Geoff) Waterhouse, Robert’s father and business partner, arrived in Atlanta from New Zealand. The same charges had been filed against him preventing his return until they were dismissed.
At the time of Robert’s arrest, it was reported the senior Waterhouse was “on the lam.” “That’s patently absurd,” Waterhouse said. “We obviously had no inkling that the authorities would swoop down and take Robert off to jail.” In March 2005, Waterhouse was in his own home in New Zealand.
Geoff Waterhouse said his dream of a financially secure retirement has disappeared with the loss of his business and expenses incurred this past year in restoring his family’s good name.
Oxendine told the press the Waterhouses netted $3 million in premiums from their “scam.” According to Waterhouse, the Commissioner was looking at gross receipts without deducting for claims, adjusting fees and his business expenses which included paying premium taxes to the Georgia Insurance Department on a quarterly basis.
Oxendine also said the largest claim the Waterhouses had to pay was $25,000 and their “bogus” operation was exposed when larger claims were made which they couldn’t pay, seemingly contradicting his own assertion that the Waterhouses were rolling in dough. “We paid several claims well in excess of that figure,” Waterhouse said.
Even though they did all their business in the open from a Main-Street storefront and had faithfully submitted fully-completed reports to Oxendine’s office, Waterhouse reiterated his claim that no one in authority had approached him or his son for information or for their records before the highly-publicized events of last March put them out of business.
ARTICLE APPEARING IN JUNE 2006 EDITION OF AILA/NZILA NEWS-OFFICIAL PUBLICATION OF AUSTRALIA INSURANCE LAW ASSOCIATION/NEW ZEALAND INSURANCE LAW ASSOCIATION.
Broker battles to clear his name
Former insurance broker Geoff. Waterhouse is compiling a list of he plans to sue following a year long battle to clear his name over allegations he sold “bogus insurance policies” in Georgia, USA.
Mr. Waterhouse, who now lives in New Zealand, and his son, Robert, ran Phoenix Brokerage inc and Main Street Brokerage Inc., in Barnesville, GA.
In March 2005, Georgia Insurance commissioner, John Oxendine, accused the pair of selling bogus commercial auto insurance for taxis and limousines.
Robert Waterhouse was arrested and a warrant was issued for Geoff. Waterhouse
Their accounts were frozen and they were deregistered, but neither were ever charged with offences.
Mr. Oxendine alleged that the Waterhouses sold policies from Mark Solofa Insurance Company, an insurer in American Samoa, but did not pass on more than $3 million in premium income to the insurer. Mr. Waterhouse said that was correct, but denied any wrongdoing.
He said he had always paid premiums to New Zealand company Contractors’ Bonding Ltd (CBL), which claimed it owned Mark Solofa Insurance.
Mr. Waterhouse began dealing with CBL in 2000. “CBL was interested in writing our livery program in Georgia and provided a business proposal in November 2000. CBL, at that time, met the Georgia Insurance code criteria for a (foreign insurer) and we started placing business with them in December 2000.
He said the Georgia code was changed in 2003 so only foreign insurers approved by the National Association of Insurance Commissioners could write business in Georgia. “I contacted CBL and (they) told me they were in the process of taking over Mark Solofa Insurance.” CBL sent documentation confirming the legitimacy of the business and its connection with CBL.
Mr. Waterhouse then sent the paperwork to the National Association of Insurance Commissioners to obtain a registration number. I also spoke to Mark Solofa’s son and he (confirmed) what CBL said.”
Mr. Waterhouse said he was assured all necessary requirements were satisfied and transferred business into Mark Solofa Insurance. “Everything, except the insurance company details on the policies, stayed the same. We continued to submit our quarterly surplus lines tax returns to the Insurance Department and genuinely believed everything was fine.”
And it seems the Georgia authorities are now convinced that the Waterhouses were not actively involved with the alleged fraud.
In e mailed correspondence, sighted by AILA-NZILA News, David McLaughlin, Georgia assistant attorney-general , said warrants and a civil lawsuit against Geoff. and Robert Waterhouse had been dismissed and he confirmed that they were no longer under investigation.
He sought Geoff. Waterhouse’s assistance in pursuing a criminal case against CBL and its executives Peter Harris, Anthony Thomas and Nicolaas Francken.
Mr. Waterhouse said his first priority was to assist the Georgia attorney-general’s office in any way he could, then he would seek compensation over Mr. Oxendine’s “false allegations” and handling of the affair.
He said he had joined NZILA hoping to find someone to help him pursue a case against CBL, had to wait until the New Zealand Serious Fraud Office’s (SFO) investigation was complete.
ASFO spokesperson would not comment while the investigation was ongoing.
A CBL spokesperson said she was aware of the investigations by Georgia authorities and the SFO but would not comment.
Ledger-Enquirer
Columbus Ledger-Enquirer (GA)
March 2, 2005
CAB OWNER AVOIDS INSURANCE SCAM
COMPANY ALLEGEDLY COLLECTED $3 MILLION IN FRAUDULENT PREMIUMS
Author: BRYAN BRASHER, Staff Writer
Edition: LEDGER-ENQUIRER
Section: LOCAL
Page: L1
Estimated printed pages: 3
Article Text:
A short time ago, Joe Bowman switched his insurance coverage for Yellow Cab and Checker Cab of Columbus from Main Street Brokerage Inc. to another insurance company in hopes of saving a few dollars.
Turns out, the move may have helped him save far more than that.
State Insurance Commissioner John W. Oxendine announced Tuesday that a cease-and-desist order has been issued against Main Street Brokerage Inc. and Phoenix Brokers Inc. for allegedly selling bogus insurance policies to taxi and limousine companies across the state. Soon after the order was issued, authorities arrested co-owner Robert Waterhouse at his home in Thomaston, Ga. An arrest warrant was issued for his father and co-owner, Godfrey Waterhouse. Both father and son are natives of New Zealand, Oxendine said.
Oxendine said the two companies, which are located in Barnesville, Ga., allegedly collected nearly $3 million in fraudulent insurance premiums during the past 2 1/2 years. He said bogus policies were purchased by taxi and limo companies in most of the state\’s major cities, including as many as nine companies in Columbus. The list of victims included Yellow Cab and Checker Cab of Columbus, which are both co-owned by Bowman.
Bowman said he\’s fortunate to have gotten away from the Waterhouse firms when he did.
\”I shop around for the best rates on a pretty regular basis,\” Bowman said. \”I got away from them a couple of months ago by pure happenstance — just by default.\”
The policies sold by their brokerages were allegedly from Mark Solofa Insurance Company — a legitimate insurer located in American Samoa. But the premiums were never passed on to the insurer, and neither agent had a contract to represent Mark Solofa Insurance.
Bowman said his companies escaped the situation with only one unpaid insurance claim — but others weren\’t so fortunate. According to Oxendine, the fraudulent activities placed numerous businesses in financial peril across the state. He said the illegal acts also put many Georgians at risk whenever they rode in a vehicle that was supposedly covered by the firms.
Oxendine said the full list of Columbus businesses affected by the scam won\’t be known until later this week. He believes at least one of those businesses has filed a major claim that will never be paid by the brokerage firm.
The money may, however, be recouped through the judicial system.
\”We\’ve already begun seizing bank accounts and assets from the owners of the firms,\” Oxendine saidHopefully, those who got taken by these people will get some restitution.\”
Bowman offered condolences to those who were harshly affected by the scam. At the same time, he hoped his companies would not be cast in a bad light by the news.
He insisted that people are insured when they ride in his cabs.
\”I don\’t want my customers to think that they\’re riding around in cabs without any insurance,\” Bowman said. \”That is absolutely not the case. We\’re with a totally different insurance company now — and the people who ride with us have nothing to worry about.\”
The Associated Press contributed to this report.
AVOIDING INSURANCE FRAUD
Georgia Insurance Commissioner John W. Oxendine offers these tips for avoiding insurance scams:
> Make sure you are dealing with a licensed company and agent. Every insurance company and every insurance agent licensed to operate in Georgia is listed at http://www.gainsurance.org. If yours aren\’t listed, find out why.
> Remember, an agent can use the name of a legitimate company and still not be selling a legitimate policy. Always check your policy for a contact number. Then contact the company directly to verify that your insurance is in good standing.
> Contact your insurance company on occasion to make sure your bills are being paid.
> If you have questions, concerns or suspicions about your insurance, contact the Commissioner\’s Consumer Services Division at (800) 656-2298. Phone lines are open 8 a.m. to 7 p.m. Monday-Friday.
Copyright (c) 2005 Columbus Ledger-Enquirer
Record Number: 0503020111
——————————————————————————–
Posted on Thu, Jun. 22, 2006
Father and son cleared of insurance fraud charges
Pair now assisting attorney general with probe of bogus policies
BY ALAN RIQUELMY
Staff Writer
Two men initially charged with insurance fraud have been cleared of any criminal charges and are assisting the Georgia Attorney General\’s Office, a spokesman for the office said.
Godfrey Waterhouse and his son, Robert Waterhouse, co-owners of Mainstreet Brokerage Inc. and Phoenix Brokers Inc., were charged with insurance fraud and theft, said Russ Willard, director of communications with the Attorney General\’s Office, on Wednesday. The charges stemmed from the alleged sale of bogus insurance policies to taxi and limousine companies across Georgia.
Arrest warrants for both father and son were issued March 1, 2005. Robert Waterhouse was arrested that day in Thomaston, Ga., shortly after State Insurance Commissioner John W. Oxendine announced a cease-and-desist order had been issued against both companies. Robert Waterhouse was released from jail two weeks later and the charges were dropped shortly afterward, Willard said.
Godfrey Waterhouse was never arrested because he was living in New Zealand, Willard said. The charges against him were dropped a month ago.
\”(The Attorney General\’s Office) could not prove they knew they were bogus policies, and this is why they dropped the charges against Robert,\” said Glenn Allen, spokesman for Oxendine\’s office.
\”That\’s a decision they had to make,\” Oxendine said of the attorney general\’s office. \”They have a very high standard.\”
The legitimacy of the policies is still a point of contention. Contacted Tuesday, Godfrey Waterhouse said the policies were legitimate. \”We paid almost $1.5 million in claims,\” he said.
Godfrey Waterhouse said the investigation targeted a New Zealand-based company, Contractors Bonding Limited, through which the Waterhouses\’ agencies issued their policies.
Godfrey Waterhouse claims Contractors Bonding Limited assured him it had bought Mark Solofa Insurance Co. — a company based in American Samoa — which would have made the Waterhouses\’ policies compliant with a law requiring they be backed by a U.S. company.
Contractors Bonding Limited never purchased Mark Solofa, Godfrey Waterhouse said.
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Since Insurance SUPPOSEDLY operates on the principle of \”Uberima Fides,\” it is a pity that \”Cliams Guides\” didn\’t bother to check THE FACTS/TRUTH, Oxendine CERTAINLY didn\’t. Below are 2 articles which DO contain the truth, which is totally contrary to the rubbish put out by Oxendine and the \”establishment media.\”
Oxendine Accused of Cab Scam
By Betty Clermont, Staff Writer, Atlanta Progressive News (April 24, 2006)
(APN) ATLANTA â€â€Ŕ Georgia Insurance Commissioner John Oxendine is being accused of taking improper actions which benefitted his cab industry campaign contributors, Atlanta Progressive News has learned.
Godfrey Waterhouse claims his son, Robert Waterhouse, was falsely arrested on account of Oxendine for allegedly running a bogus cab insurance agency. The charges were later dropped, and Waterhouse’s insurance agency appears to have been completely legitimate the whole time.
An international news agency and big-city TV reporters had been waiting at the county jail, cameras rolling, as a high-ranking government official, Mr. Oxendine, led him inside, back in March 2005.
The charges against Waterhouse were quietly later dropped after three weeks. His assets were seized and still have not been returned, he says.
Meanwhile, Oxendine had demanded that several cab companies obtain new insurance, which they did, and this benefitted Republican Oxendine’s big campaign contributors.
A story by Kafka? No, Oxendine!
And there’s more. Now, the State Attorney General’s Office appears to be investigating the matter, Atlanta Progressive News has learned from various sources, and Waterhouse is not a subject of the investigation; however, his assistance and cooperation is wanted.
Further, numerous cab companies are suing the State of Georgia because of Oxendine, and Waterhouse is trying to figure out what happened to his frozen assets.
Oxendine’s office declined to comment on the matter via his spokesperson, Wayne Whitaker, because the matter has been referred to the Attorney General’s Office.
\”The State of Georgia did a terrible thing,” Hyatt Choudhari, owner of Atlanta Airport Superior Shuttle and Limo, told Atlanta Progressive News. \”We were 156 companies doing business with Waterhouse. Probably four- to five-hundred drivers across the state lost a lot of money.”
What you have to understand is, many big cab companies also run their own in-house cab insurance companies, while smaller companies had been contracting with firms like Waterhouse’s.
An APN analysis found that numerous cab and cab insurance company executives have donated to Mr. Oxendine almost every year since 1998:
Solomon Bekele, Insurance Executive. Yellow Cab of Georgia, Inc.; Rapid Taxi Company, Inc.; and VFH Captive Insurance Company.
Cheru Terefe, Insurance Executive. American Cab Company, Inc.; American Association of Cab Companies, Inc.; American Captive Insurance Co.; and Ethio-American Insurance Co.
Konjit Bekele, Insurance Executive. VFH Insurance, American Cab and American Assoc. of Cab companies.
Tafesse Belachew, Businessman. United Taxicab Company, United Empress Cab Company; and United Group Captive Insurance Company.
Mekeren Tassew, Insurance Executive. United Taxi and United Group Captive Insurance companies.
Jifar Jebel, Administrator. United Taxicab.
\”We have calculated that Oxendine has taken $1.7 million from the insurance industry over the last decade,\” Guy Drexinger, the Democrat running against Oxendine in November, told Atlanta Progressive News.
In February 2005, Oxendine notified the media he would be making a high-profile bust in the little town of Barnesville, about 50 miles south of Atlanta.
The Associated Press and Atlanta\’s 11 Alive News showed up on March 1, 2005, to photograph Oxendine and the Lamar County sheriff taking Robert Waterhouse, 36, to the county detention center while the GBI raided his home and office.
A local Newspaper Editor in Barnesville’s comments make it appear Oxendine’s “bust” was crafted with an eye for big media dramaturgy.
\”They all met in nearby Forsyth before coming here together. We were not informed of the raid at all and I learned of it only when I went downtown for coffee that morning and saw all the cameras. It is my understanding that the local police chief and sheriff were notified only 15 minutes before the raids,\” Walter Geiger, Editor of the local newspaper, The Herald-Gazette, told Atlanta Progressive News.
Oxendine told the Associated Press at the time, \”even though the vehicle owners thought they were obeying the law, the taxis and limos must be pulled off the road because they are not legally insured….There will probably be some businesses that go under because of this.\’\’
Any disruption in taxicab service could have a major impact on metro Atlanta\’s $3.5 billion convention and tourism industry. It also could affect operations at Hartsfield-Jackson International Airport, one of the nation\’s busiest airports, The Atlanta Journal Constitution said.
Not only would the big cab companies which funded Oxendine benefit from Oxendine’s actions by their competitors being pulled off the road; also their insurance companies lost a major competitor when Waterhouse was shut down.
A hearing was scheduled for Robert Waterhouse on March 18, 2005. He was released on $25,000 bond.
In September, all charges were dismissed.
On the same day, March 18, 2005, Oxendine withdrew his candidacy for Lieutenant Governor.
The thing is, Waterhouse’s cab insurance agency appears completely legitimate.
Waterhouse’s cab insurance agency was co-owned by his father, Godfrey Waterhouse, 63, who lives in New Zealand. Godfrey Waterhouse told APN he had been placing customers\’ insurance with Contractors Bonding Limited (CBL), located in Auckland, for several years.
When the Georgia Insurance Code was changed, only companies domiciled in the US became permitted to issue certain types of policies.
CBL executives then assured Waterhouse they were taking over Mark Solofa Insurance, located in American Somoa. CBL faxed Waterhouse a copy of Solofa\’s Certificate of Authority from the American Somoan Insurance Department. Being located in a US territory, Solofa would qualify under the Georgia law.
The National Association of Insurance Commissioners (NAIC) approved Solofa as having the necessary monetary reserves and issued them a code number which would permit them to write business in this state. CBL would continue to broker the policies.
As far as Waterhouses\’ customers were concerned, everything remained the same except the name on the insurance policy and their state-mandated proof of insurance read Mark Solofa Insurance instead of Contractors Bonding Limited. The Waterhouses continued to have all claims adjusted by Nolan & Co. as they had for many years.
For the next two years, the Waterhouses continued submitting their quarterly surplus lines tax returns to the Georgia Insurance Department showing the name of the company as Mark Solofa.
Oxendine informed the media his investigators uncovered the alleged scam in January 2005 when a Columbus cab company filed a complaint about a claim with Oxendine\’s office. He said that\’s when \”we found out that [the Waterhouses] had not written any insurance policies.\”
Up until Robert\’s arrest, Geoff Waterhouse said they were never contacted by Oxendine, nor anyone from his office, nor anyone from any law enforcement agency, nor DA Milam, nor anyone from Milam\’s office. \”We have ALWAYS dealt directly with CBL and it would be very easy to confirm this from our phone bills, our bank records and with Nolan & Co who did all the claims adjusting,\” Waterhouse wrote. He told APN that they would have been happy to turn their records over to any authority who had asked.
When Atlanta Progressive News was first informed of the story from a phonecall from New Zealand, we were able, within minutes, to check the Contractors Bonding Limited website, http://www.contractorsbonding.com ( As of 31st December 2003, CBL\’s Shareholders Funds stood at $20m ), the Nolan & Co. website, http://www.nolanandcompany.com ( Thomas S. Nolan, President and General Adjuster, has 28 years of claim adjusting experience etc.) and the National Association of Insurance Commissioners website, http://www.naic.org/cis/index.do (MARK SOLOFA INS CO, NAIC#: 11554 Home Office: American Samoa, Business Type: Property/Casualty ) to establish they all appeared to be legitimate businesses as Waterhouse claimed.
Guy Drexinger, Oxendine\’s opponent, said, \”I have pledged not to accept any contributions from the insurance industry and publicly supported legislation this session that would ban contributions to candidates for Insurance Commissioner from out of state insurance companies.\”
CORRECTIONS: An earlier version of this story stated Robert Waterhouse claimed he was falsely arrested. That communication came from Godfrey \”Geoff\” Waterhouse, not Robert. The Waterhouses ran an insurance agency, not an insurance company. Also, Atlanta Progressive News does not know yet whether the assets which were frozen are missing. The story was been changed to reflect these items.
About the author:
Betty Clermont is a Staff Writer for Atlanta Progressive News and may be reached at betty@atlantaprogressivenews.com
Update on an Oxendine Cab Scam Accusations
By Betty Clermont, Staff Writer, Atlanta Progressive News (July 03, 2006)
On March 1, 2005, after declaring his candidacy for Lieutenant Governor, Georgia Insurance Commissioner John Oxendine staged a media event – with himself in the starring role – to record the arrest of Barnesville insurance agent, Robert Waterhouse, as previously reported by Atlanta Progressive News.
Oxendine withdrew his candidacy for higher office the same day Waterhouse was granted a hearing and later, all 41 counts of theft, fraud and racketeering were dismissed.
Oxendine charged Waterhouse with selling “bogus” insurance and all 155 of his taxi-company customers, and hundreds of drivers, were told to stop serving their riders until other coverage was purchased. Finding affordable insurance coverage is a difficult and time-consuming chore for livery companies because they have a high exposure to claims.
The Atlanta Journal-Constitution reported Atlanta’s tourism and convention industries were threatened by the commissioner’s action.
According to The Insurance Journal, Oxendine admitted “numerous businessmen [are] in financial peril across the state.”
Oxendine told the Associated Press, \”even though the vehicle owners thought they were obeying the law, the taxis and limos must be pulled off the road because they are not legally insured….There will probably be some businesses that go under because of this.\’\’
Back in February 1997, more than a year after the Georgia Court of Appeals declared taxi insurance companies owned by Solomon Bekele and his brother-in-law, Cheru Terefe, to be illegal, Georgia Insurance Commissioner John Oxendine explained his third postponement of a hearing to revoke their license to The Atlanta Journal Constitution: \”Oxendine says closing all the self-insurers could force hundreds of cabbies to park their vehicles or to begin driving with no insurance. \’Regulation is a balancing act,\’ Oxendine said. \’If you take away the cabs, what does that do to the citizens?\'”
APN noted in our previous story that Bekele and Terefe are major contributors to the Commissioner’s political war-chest. As owners of the largest taxi fleets and taxi insurance companies in Georgia, they would naturally stand to benefit when Oxendine put their competitors out of business.
Another person who may have come out ahead when Waterhouse lost his business is Macon attorney, John Kennedy. When Towiliga-circuit District Attorney, John Milam, seized the Waterhouse bank accounts â€â€Ŕ reportedly between $200,000 and $293,000 â€â€Ŕ the funds were put under receivership to be administered by the court-appointed Kennedy. The money was supposed to be used to pay accident claims and reimburse customers’ premiums.
On April 27, 2006, during a hearing held at the Monroe County Courthouse, Assistant Attorney General David McLaughlin alluded to “administrative fees eating up the money,” although not a single penny had yet been disbursed for either purpose.
In the investigation conducted after Waterhouse was imprisoned and his family business destroyed, the company they represented, Contractors Bonding Limited (CBL), was criminally charged with selling “fake” insurance. McLaughlin said he was planning a trial to take place this summer.
A source close to the proceedings said CBL had been anxious to pay all outstanding claims right from the start of the state’s prosecution, just as claims had been promptly paid all along since the Waterhouses first contracted with CBL. However, CBL was stonewalled by Georgia officials until the government named a claims-adjusting company of their own choosing. The new company was named at the hearing and authorized to begin settlements using additional monies provided by CBL.
On June 7, 2006, Godfrey (Geoff) Waterhouse, Robert’s father and business partner, arrived in Atlanta from New Zealand. The same charges had been filed against him preventing his return until they were dismissed.
At the time of Robert’s arrest, it was reported the senior Waterhouse was “on the lam.” “That’s patently absurd,” Waterhouse said. “We obviously had no inkling that the authorities would swoop down and take Robert off to jail.” In March 2005, Waterhouse was in his own home in New Zealand.
Geoff Waterhouse said his dream of a financially secure retirement has disappeared with the loss of his business and expenses incurred this past year in restoring his family’s good name.
Oxendine told the press the Waterhouses netted $3 million in premiums from their “scam.” According to Waterhouse, the Commissioner was looking at gross receipts without deducting for claims, adjusting fees and his business expenses which included paying premium taxes to the Georgia Insurance Department on a quarterly basis.
Oxendine also said the largest claim the Waterhouses had to pay was $25,000 and their “bogus” operation was exposed when larger claims were made which they couldn’t pay, seemingly contradicting his own assertion that the Waterhouses were rolling in dough. “We paid several claims well in excess of that figure,” Waterhouse said.
Even though they did all their business in the open from a Main-Street storefront and had faithfully submitted fully-completed reports to Oxendine’s office, Waterhouse reiterated his claim that no one in authority had approached him or his son for information or for their records before the highly-publicized events of last March put them out of business.
About the author:
Betty Clermont is a Staff Writer for Atlanta Progressive News and may be reached at betty@atlantaprogressivenews.com
ARTICLE APPEARING IN JUNE 2006 EDITION OF AILA/NZILA NEWS-OFFICIAL PUBLICATION OF AUSTRALIA INSURANCE LAW ASSOCIATION/NEW ZEALAND INSURANCE LAW ASSOCIATION.
Broker battles to clear his name
Former insurance broker Geoff. Waterhouse is compiling a list of he plans to sue following a year long battle to clear his name over allegations he sold “bogus insurance policies” in Georgia, USA.
Mr. Waterhouse, who now lives in New Zealand, and his son, Robert, ran Phoenix Brokerage inc and Main Street Brokerage Inc., in Barnesville, GA.
In March 2005, Georgia Insurance commissioner, John Oxendine, accused the pair of selling bogus commercial auto insurance for taxis and limousines.
Robert Waterhouse was arrested and a warrant was issued for Geoff. Waterhouse
Their accounts were frozen and they were deregistered, but neither were ever charged with offences.
Mr. Oxendine alleged that the Waterhouses sold policies from Mark Solofa Insurance Company, an insurer in American Samoa, but did not pass on more than $3 million in premium income to the insurer. Mr. Waterhouse said that was correct, but denied any wrongdoing.
He said he had always paid premiums to New Zealand company Contractors’ Bonding Ltd (CBL), which claimed it owned Mark Solofa Insurance.
Mr. Waterhouse began dealing with CBL in 2000. “CBL was interested in writing our livery program in Georgia and provided a business proposal in November 2000. CBL, at that time, met the Georgia Insurance code criteria for a (foreign insurer) and we started placing business with them in December 2000.
He said the Georgia code was changed in 2003 so only foreign insurers approved by the National Association of Insurance Commissioners could write business in Georgia. “I contacted CBL and (they) told me they were in the process of taking over Mark Solofa Insurance.” CBL sent documentation confirming the legitimacy of the business and its connection with CBL.
Mr. Waterhouse then sent the paperwork to the National Association of Insurance Commissioners to obtain a registration number. I also spoke to Mark Solofa’s son and he (confirmed) what CBL said.”
Mr. Waterhouse said he was assured all necessary requirements were satisfied and transferred business into Mark Solofa Insurance. “Everything, except the insurance company details on the policies, stayed the same. We continued to submit our quarterly surplus lines tax returns to the Insurance Department and genuinely believed everything was fine.”
And it seems the Georgia authorities are now convinced that the Waterhouses were not actively involved with the alleged fraud.
In e mailed correspondence, sighted by AILA-NZILA News, David McLaughlin, Georgia assistant attorney-general , said warrants and a civil lawsuit against Geoff. and Robert Waterhouse had been dismissed and he confirmed that they were no longer under investigation.
He sought Geoff. Waterhouse’s assistance in pursuing a criminal case against CBL and its executives Peter Harris, Anthony Thomas and Nicolaas Francken.
Mr. Waterhouse said his first priority was to assist the Georgia attorney-general’s office in any way he could, then he would seek compensation over Mr. Oxendine’s “false allegations” and handling of the affair.
He said he had joined NZILA hoping to find someone to help him pursue a case against CBL, had to wait until the New Zealand Serious Fraud Office’s (SFO) investigation was complete.
ASFO spokesperson would not comment while the investigation was ongoing.
A CBL spokesperson said she was aware of the investigations by Georgia authorities and the SFO but would not comment.
Ledger-Enquirer
Columbus Ledger-Enquirer (GA)
March 2, 2005
CAB OWNER AVOIDS INSURANCE SCAM
COMPANY ALLEGEDLY COLLECTED $3 MILLION IN FRAUDULENT PREMIUMS
Author: BRYAN BRASHER, Staff Writer
Edition: LEDGER-ENQUIRER
Section: LOCAL
Page: L1
Estimated printed pages: 3
Article Text:
A short time ago, Joe Bowman switched his insurance coverage for Yellow Cab and Checker Cab of Columbus from Main Street Brokerage Inc. to another insurance company in hopes of saving a few dollars.
Turns out, the move may have helped him save far more than that.
State Insurance Commissioner John W. Oxendine announced Tuesday that a cease-and-desist order has been issued against Main Street Brokerage Inc. and Phoenix Brokers Inc. for allegedly selling bogus insurance policies to taxi and limousine companies across the state. Soon after the order was issued, authorities arrested co-owner Robert Waterhouse at his home in Thomaston, Ga. An arrest warrant was issued for his father and co-owner, Godfrey Waterhouse. Both father and son are natives of New Zealand, Oxendine said.
Oxendine said the two companies, which are located in Barnesville, Ga., allegedly collected nearly $3 million in fraudulent insurance premiums during the past 2 1/2 years. He said bogus policies were purchased by taxi and limo companies in most of the state\’s major cities, including as many as nine companies in Columbus. The list of victims included Yellow Cab and Checker Cab of Columbus, which are both co-owned by Bowman.
Bowman said he\’s fortunate to have gotten away from the Waterhouse firms when he did.
\”I shop around for the best rates on a pretty regular basis,\” Bowman said. \”I got away from them a couple of months ago by pure happenstance — just by default.\”
The policies sold by their brokerages were allegedly from Mark Solofa Insurance Company — a legitimate insurer located in American Samoa. But the premiums were never passed on to the insurer, and neither agent had a contract to represent Mark Solofa Insurance.
Bowman said his companies escaped the situation with only one unpaid insurance claim — but others weren\’t so fortunate. According to Oxendine, the fraudulent activities placed numerous businesses in financial peril across the state. He said the illegal acts also put many Georgians at risk whenever they rode in a vehicle that was supposedly covered by the firms.
Oxendine said the full list of Columbus businesses affected by the scam won\’t be known until later this week. He believes at least one of those businesses has filed a major claim that will never be paid by the brokerage firm.
The money may, however, be recouped through the judicial system.
\”We\’ve already begun seizing bank accounts and assets from the owners of the firms,\” Oxendine saidHopefully, those who got taken by these people will get some restitution.\”
Bowman offered condolences to those who were harshly affected by the scam. At the same time, he hoped his companies would not be cast in a bad light by the news.
He insisted that people are insured when they ride in his cabs.
\”I don\’t want my customers to think that they\’re riding around in cabs without any insurance,\” Bowman said. \”That is absolutely not the case. We\’re with a totally different insurance company now — and the people who ride with us have nothing to worry about.\”
The Associated Press contributed to this report.
AVOIDING INSURANCE FRAUD
Georgia Insurance Commissioner John W. Oxendine offers these tips for avoiding insurance scams:
> Make sure you are dealing with a licensed company and agent. Every insurance company and every insurance agent licensed to operate in Georgia is listed at http://www.gainsurance.org. If yours aren\’t listed, find out why.
> Remember, an agent can use the name of a legitimate company and still not be selling a legitimate policy. Always check your policy for a contact number. Then contact the company directly to verify that your insurance is in good standing.
> Contact your insurance company on occasion to make sure your bills are being paid.
> If you have questions, concerns or suspicions about your insurance, contact the Commissioner\’s Consumer Services Division at (800) 656-2298. Phone lines are open 8 a.m. to 7 p.m. Monday-Friday.
Copyright (c) 2005 Columbus Ledger-Enquirer
Record Number: 0503020111
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Posted on Thu, Jun. 22, 2006
Father and son cleared of insurance fraud charges
Pair now assisting attorney general with probe of bogus policies
BY ALAN RIQUELMY
Staff Writer
Two men initially charged with insurance fraud have been cleared of any criminal charges and are assisting the Georgia Attorney General\’s Office, a spokesman for the office said.
Godfrey Waterhouse and his son, Robert Waterhouse, co-owners of Mainstreet Brokerage Inc. and Phoenix Brokers Inc., were charged with insurance fraud and theft, said Russ Willard, director of communications with the Attorney General\’s Office, on Wednesday. The charges stemmed from the alleged sale of bogus insurance policies to taxi and limousine companies across Georgia.
Arrest warrants for both father and son were issued March 1, 2005. Robert Waterhouse was arrested that day in Thomaston, Ga., shortly after State Insurance Commissioner John W. Oxendine announced a cease-and-desist order had been issued against both companies. Robert Waterhouse was released from jail two weeks later and the charges were dropped shortly afterward, Willard said.
Godfrey Waterhouse was never arrested because he was living in New Zealand, Willard said. The charges against him were dropped a month ago.
\”(The Attorney General\’s Office) could not prove they knew they were bogus policies, and this is why they dropped the charges against Robert,\” said Glenn Allen, spokesman for Oxendine\’s office.
\”That\’s a decision they had to make,\” Oxendine said of the attorney general\’s office. \”They have a very high standard.\”
The legitimacy of the policies is still a point of contention. Contacted Tuesday, Godfrey Waterhouse said the policies were legitimate. \”We paid almost $1.5 million in claims,\” he said.
Godfrey Waterhouse said the investigation targeted a New Zealand-based company, Contractors Bonding Limited, through which the Waterhouses\’ agencies issued their policies.
Godfrey Waterhouse claims Contractors Bonding Limited assured him it had bought Mark Solofa Insurance Co. — a company based in American Samoa — which would have made the Waterhouses\’ policies compliant with a law requiring they be backed by a U.S. company.
Contractors Bonding Limited never purchased Mark Solofa, Godfrey Waterhouse said.