1. Adigun S. Bakare ( Bakare ) was issued a license to act as a resident producer individual,

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1 MARYLAND INSURANCE THE STATE OF MARYLAND ADMINISTRATION MARYLAND INSURANCE v. ADMINISTRATION ADIGUN BAKARE CASE NO.: MIA INDIAN SPRINGS ROAD LAUREL, MD RPI NO Enf. File No.: PC ORDER WHEREAS, this Order ( the Order ) is entered by the Maryland Insurance Commissioner ( the Commissioner ) against Adigun S. Bakare ( Bakare ) pursuant to 1-101, et seq. of the Insurance Article, Annotated Code of Maryland (Repl. Vol. 2003), (the Insurance Article ), upon due investigation undertaken pursuant to and all other pertinent sections of the Insurance Article per the following reasons: I. Facts 1. Adigun S. Bakare ( Bakare ) was issued a license to act as a resident producer individual, in the State of Maryland, by the Commissioner, on October 25, 2001 until his license expires on October 24, Bakare was an owner of the Law Offices of Bakare & Associates, 7211 Hanover Parkway, Suite C, Greenbelt, Maryland On March 29, 2006, in accordance with the Maryland Code Annotated, Insurance Article , the Commissioner was notified by Lawyers Title Insurance Corporation ( Lawyers ) of the termination of Bakare for cause on March 22, 2006, due to a shortage in Bakare s escrow account.

2 4. On January 25, 2006, Bakare conducted a closing on a property located at 1102 Mandarin Drive, Upper Marlboro, Maryland This property is Bakare s Case Number A with an outstanding mortgage, loan number held by Chase Home Financial, LLC in the amount of $334, This amount was deducted from the seller s proceeds and these funds were to be sent by Bakare to Chase Home Financial, LLC ( Chase ) to satisfy the loan and obtain a release of the seller s mortgage. 5. On April 28, 2006, Lawyers sent a letter informing the Commissioner that Bakare admitted to outside counsel, Robert Rosenbaum, that he did not send the payoff to Chase. In this same case number, on March 21, 2006, check number was issued to Modupe Ayanda in the amount of $109, and cleared the escrow account. There was no such person listed on the Closing Statement. On March 23, 2006 Bakare wrote and deposited check number from his BB&T, payable to Bakare & Associates in the amount of $109, and deposited the money back into the escrow account. Bakare admitted in his interview with Bob Rosenbaum, counsel for Lawyers, that he took this money and returned it to the escrow account. Bakare also admitted that he used approximately $225,000 of the $334, payoff money (claim C ), to purchase a condominium located at 1280 W. Peachtree Street, Unit 1403, Atlanta, Georgia in his own name. 6. Also according to Lawyers letter of April 28, 2006, on Bakare s Case Number BAA, closing of October 26, 2005, Bakare was required to pay off the seller s credit line mortgage and cancel the line of credit. Bakare did not do as instructed. The seller borrowed $17, against the credit line after closing. Lawyers had to obtain a release of the deed of trust to avoid foreclosure of its insured s property resulting in a claim by Lawyers in the 2

3 amount of $16,750 (claim C114323). Bakare has failed to respond to repeated demands for reimbursement by Lawyers. 7. According to Lawyers letter dated January 30, 2007, Bakare misappropriated an additional $70,000 from his escrow account for his personal use by virtue of three withdrawals. Lawyers Title provided a print out from Bakare s Title Express Escrow System showing an unknown debit of $10,000 on October 31, The bank statement of January 31, 2006 shows a $10,000 In-Branch Transfer to checking on January 7th, and a $50,000 In-Branch Transfer to checking on January 27 th. This checking account is Bakare s. 8. On June 15, 2006, the Commissioner sent Bakare a copy of Lawyers Title letter of April 28, 2006 asking Bakare to review the letter and respond to the allegations. Having not received a response from Bakare, on September 28, 2006, Bakare was sent an Order to Respond from the Commissioner. 9. On October 10, 2006, Bakare sent a letter to the Commissioner admitting that the funds used to purchase the condominium in Atlanta were taken from the escrow account under Case Number A. Bakare also admitted in this letter to the allegation concerning the conversion of funds in the escrow. 10. On January 30, 2007, a letter was received from Lawyers indicating they have paid $471, to date in claims, recovered $170, in the resale of the condominium, and are due premium for title policies in the amount of $49, resulting in $349, owed by Bakare to Lawyers. 11. In addition to the amounts indicated in Lawyer s January 30, 2007 letter, according to additional correspondence from Lawyers in April 2007, on Bakare s Case Number

4 BAI, Bakare missed an outstanding half interest in the property. As a result, Lawyer s had to defend their insured in a partition suit and paid the plaintiff $16,750 to dismiss his suit and release his interest in the property (claim C ). This amount in addition to the $349, shown above, results in a total of $366, owed by Bakare to Lawyers. 12. On March 27, 2007, The Attorney Grievance Commission of Maryland has advised the Administration that on August 22, 2006, Adigun S. Bakare was disbarred by consent from the further practice of law in the State of Maryland for misappropriation of trust funds. II. Violations 13. By the facts stated above, the Administration has determined that Adigun S. Bakare has violated Maryland Code Annotated, Insurance Article (a)(1), (4), (6), (12) and (13) which provide in pertinent part: Denials, suspensions, revocations, and refusals to renew or reinstate penalties. (a) Grounds. - The Commissioner may deny a license to an applicant under through of the article, or suspend, revoke, or refuse to renew or reinstate a license after notice and opportunity for hearing under through of this article if the applicant or holder of the license: (1) has willfully violated this article or another law of the State that relates to insurance; (4) has misappropriated, converted, or unlawfully withheld money belonging to an insurer, insurance producer, beneficiary, or insured; (6) has committed fraudulent or dishonest practices in the insurance business; (12) has failed or refused to pay over on demand money that belongs to an insurer, insurance producer, or other person entitled to the money; and 4

5 (13) has otherwise shown a lack of trustworthiness or competence to act as an insurance producer. III. Sanctions 14. By the facts and violations stated above, Bakare s license to act as a producer in the State of Maryland is subject to suspension or revocation as stated in (a) of the Insurance Article. 15. In view of the gravity of the violations and considering that insurance producers are in a position of trust and responsibility, revocation is the appropriate penalty in this case. The public justifiably expects this Administration to ensure that only trustworthy producers are permitted to conduct insurance business. By Bakare misappropriating from his escrow account $334, that should have been paid to Chase, an additional $70,000 from his escrow account and failing to reimburse Lawyers for costs associated with his neglect, Bakare has demonstrated that he does not meet this standard. Therefore, Bakare s authority to act as a producer shall be revoked. WHEREFORE, for the reasons set forth above and effective this 6 th day of June, 2007, it is HEREBY ORDERED: (1) Adigun S. Bakare s license is Revoked; (2) Bakare is ordered to pay restitution in the amount of $366, to Lawyers Title Insurance Company. PEGGY J. WATSON INTERIM COMMISSIONER By: Signature on file with original P. TODD CIONI Associate Commissioner Compliance and Enforcement 5

6 RIGHT TO REQUEST A HEARING Pursuant to COMAR and COMAR , you may request a hearing on this Order. This request must be in writing and be received by the Commissioner within thirty (30) days of the date of the letter accompanying this Order. Pursuant to of the Insurance Article, however, the Order shall be stayed pending a hearing only if a demand for hearing is received by the Commissioner within ten (10) days after the Order is served. The request for hearing must be made in writing. The request must be addressed to the Maryland Insurance Administration, 525 St. Paul Place, Baltimore, MD 21202, ATTN: Megan Hayes, Appeals Clerk. Failure to request a hearing timely or to appear at a scheduled hearing will result in a waiver of your right to contest this Order and the Order shall be final on its effective date. 6