News: 2008 Press Release

SACRAMENTO ― Today Insurance Commissioner Steve Poizner announced a settlement with Paramount Disaster Recovery, Inc. (Paramount), a California corporation based in Palos Verdes, its CEO Steve Slepcevic, 39, of Palos Verdes, Matthew Todd, 48, of Redondo Beach, and Charlie R. Rose (aka Reed Lostman), 43, also of Redondo Beach, in which the collective group will pay a $200,000 penalty, reimburse the State of California $75,000 for litigation costs, and refrain from operating as unlicensed insurance claims adjusters in California.

"I am pleased that we could take these unscrupulous characters out of the post-disaster marketplace," stated Commissioner Poizner. "Working as an unlicensed public insurance adjuster victimizes fire survivors twice and is, frankly, unfair to reputable public insurance adjusters."

On August 2, 2007, Paramount, Slepcevic, Todd and Rose were served with a cease-and-desist order (Order) for allegedly posing and operating as public insurance adjusters.  Todd and Rose, on behalf of Paramount, were purportedly securing insurance jobs from Angora (South Lake Tahoe) Fire survivors trying to rebuild in the wake of that disaster.  The investigation leading to the Order was conducted by the California Department of Insurance's (CDI's) Investigation Division.

Neither Paramount, Slepcevic, Rose nor Todd are licensed by CDI to act in the capacity of a public insurance adjuster.  The lack of such a license means they have not demonstrated the proper training, possession of surety bonds, or knowledge of rules of solicitation, such as waiting seven calendar days after access is granted to a disaster site before soliciting homeowners.  These requirements are designed to protect the public, particularly in times of crisis, from being exploited by unscrupulous actors.

The group did not admit or deny the facts contained in the Order, which was upheld by the settlement and specifically alleges that in at least two cases Rose, Todd and Slepcevic represented Paramount in the solicitation of South Lake Tahoe property owners within the seven calendar day waiting period to estimate the homeowners' loss from the Angora Fire, negotiated settlements with the homeowners' insurance company, and entered into contracts with the homeowners for public insurance adjusting services.

The contract entered into by the homeowners guaranteed Paramount 20 percent "of the total full amount of the loss settlement negotiated with and agreed to by the Client's Insurance Company" if Paramount did not perform the work they recommended.  This arrangement clearly places Paramount's financial interests ahead of the insureds' interests.  By comparison, licensed public insurance adjusters are not permitted to build or repair the properties, thus removing the inherent conflict of interest.

Cease and desist order.