Las Vegas firm fined $60,000

Alana Roberts

Monday, March 15, 2004 | 11:09 a.m.

The Nevada Division of Insurance has fined a Las Vegas company and its principal, Robert Joe Hanson, $60,000 each for acting as an unauthorized insurer in Nevada.

The fine follows a public hearing held on Feb. 26 at the division's offices.

In December the division sent a cease-and-desist letter to Las Vegas-based Global Bonding Co., which also has offices in New Mexico. The company also goes under the name Millennium Bonding Enterprises in Fort Worth, Texas, and Albany, Ga. The letter was also sent to Hanson, the company's president, and to company official Reve Pete.

The letter ordered the company's leaders to stop selling allegedly unlicensed surety bonds in and from Nevada. The company, with offices on McLeod Drive, was allegedly targeting low-income, minority and women-owned businesses, Nevada insurance officials said.

Neither Hanson or any other Global Bonding representatives attended the hearing. The hearing was held after Hanson requested a hearing regarding the cease and desist order, Nevada insurance officials said.

Hanson could not be reached for comment. Previously Hanson denied his company operated as an insurance provider.

Nevada regulators said insurance regulators in Georgia and Florida issued cease-and-desist orders to the company that were similar to Nevada's. Officials in Texas and New Mexico confirmed they are investigating the company.

Nevada insurance officials say state and other public agencies require construction contractors to buy surety bonds in order to guarantee the quality of the work performed. If the contractor defaults, the surety company is responsible for the work. If a company issues unauthorized surety bonds, Nevada insurance officials say there is no way to guarantee the company has the assets to back the bonds.

Global Bonding Company is no longer registered as a business in Nevada, according to the Nevada Secretary of State's office.

Betty Baker, a spokeswoman at the Nevada Division of Insurance, said the company's leaders now have a chance to appeal the decision, which is administrative in nature.