KHTS Radio Santa Clarita Radio – Santa Clarita News
A Santa Clarita title insurance agent has been accused of multiple violations of the California Insurance Code, officials said.
Eugene “Gene” Bleecker, a title insurance agent with First American Title Insurance Company, has been accused of multiple violations of the California Insurance Code, according to a Dec. 30, 2019 complaint by the California Department of Insurance (CDI).
Bleecker is a well-known figure amongst Santa Clarita business circles and real estate networking groups in northern Los Angeles County, as evidenced by his countless roles as a guest on local media.
Title insurance protects owners and mortgage lenders against losses that occur when title to a property is not clear of defects, according to the CDI website.
“It would be against public interest to permit Respondent Bleecker to continue to act as a title marketing representative, and constitute grounds for the insurance commissioner to suspend or revoke his certificate of registration,” CDI Attorney Eugene Kalinsky said in a statement.
The attorney for Bleecker, Lucas Rowe, denies any allegations of “kickbacks” and further intends to proceed against all of the allegations by the CDI in court.
“As for the accusations, we deny them in total. Interestingly, Gene is not accused of offering or accepting kickbacks or improperly discounting rates,” Rowe said. “In fact, the Dept. of Insurance, through its counsel, has informed us that this is the first time these regulations are being interpreted and applied in this manner. At the end of the day, we hope to fully vindicate Gene’s reputation.”
In the early 1990s, Bleecker and several others founded a real estate networking group called the Advisory Group Real Estate Network, which today encompasses approximately 500 realtors and their associated properties between chapters in the Santa Clarita Valley, Antelope Valley and San Fernando Valley.
Specific services that the advisory group offers to its members include “custom video marketing and drone footage of listings with placement on social media sites, a tour bus caravan to bring up to 50 agents to view and promote listings, and sales coaching,” according to the accusation.
Membership in the advisory group is by invitation only. Bleecker claims the “advisors” approve membership in the group. Ordona stated that only “trustworthy” real estate agents can become members. Bleecker reportedly does not pay a membership fee to be part of the advisory group. He is the only title marketing representative in the group, and has reportedly never invited any other title marketing representative to join.
“In fact, title marketing representatives from companies besides First American are not permitted to attend meetings,” wrote Kalinsky.
In a February 2019 statement to the CDI, Bleecker reportedly claimed that he never “had any knowledge of money coming in or out” of the advisory group. He again repeated this claim in an October 2019 interview, when Bleecker stated that he had never used his personal credit card to pay for the advisory group’s expenses.
However, the CDI discovered that on Jan. 29, 2018, the Embassy Suites hotel in Palmdale, where the Antelope Valley chapter of the advisory group met, issued an invoice for $245.28 for the use of a projector at that day’s meeting. Bleecker allegedly paid the invoice with his personal American Express credit card.
This is an issue, as insurance agents are not allowed to pay for food, beverages, or entertainment for a person, as it can be seen as a “commission, compensation or other consideration to any person as an inducement for the placement or referral of title business,” according to the California Insurance Code.
However, this is not the only issue that CDI officials discovered during the course of their investigation.
In 2005, Bleecker and his wife, Kelli, founded Gene-Jel Productions, which was later changed to Innovative Imagery, a multimedia marketing company.
The address tied to the aforementioned Advisory Group checking account is that of a home belonging to Bleecker in Stevenson Ranch. Through a review of Innovative Imagery’s bank records, officials revealed that, as of 2017, the company paid Kelli Bleecker $2,600 per month in rent, presumably for use of the townhome.
Membership in an organization like the Advisory Group has significant benefits for both Bleecker and the other real estate agents. Approximately half of the Advisory Group’s members use Bleecker for their title needs in the course of their real estate transactions, CDI officials said
One of the specific multimedia marketing options that Innovative Imagery offers to real estate agents in general and Advisory Group members specifically is called “List to Sold.” For $100, Innovative Imagery markets an Advisory Group member’s listings on the group’s Facebook page and other social media platforms. Another Innovative Imagery service is called “On Me.” For $60, Advisory Group members could purchase coupons from local businesses that they could offer to potential clients for a three-month period.
In Bleecker’s May 2018 interview with the CDI’s investigator, he reportedly stated that he does not market Innovative Imagery to his clients because “it doesn’t pertain to his business and that it would be a huge conflict.”
However, on Feb. 20, 2017, Bleecker reportedly sent an email to Advisory Group members that encouraged them to take advantage of “The Signature Listing Program,” a service offered by Innovative Imagery.
The forms to sign up for the “List to Sold” and “On Me” services are available at Advisory Group meetings. At an Advisory Group meeting on Sept. 10, 2019, a department investigator saw Bleecker allegedly promote the two Innovative Imagery services and answer questions members had about them.
Click to enlarge. Graph courtesy of the California Department of Insurance.
Review of Innovative Imagery’s “On Me” program users showed a relationship between Advisory Group members and others who use Bleecker for their title needs in the course of their real estate transactions as well as those who offered “On Me” coupons: approximately 36 percent of Innovative Imagery clients were also AG Members and Bleeckers First American Title Clients, approximately another 44 percent of Innovative Imagery clients were Bleecker’s First American Title clients, and approximately 19 percent of Innovative Imagery clients were neither.
First American provides its title representatives with “Guidelines for Marketing & Communications.” One of the guidelines for complying with state and federal anti-inducement laws is to “[a]void any offer to assist others in ‘growing your business,’ ‘marketing successfully,’ ‘generating leads’ or any other offer of business expertise. These intangible benefits are considered by regulators as ‘things of value’ under [state and federal anti-inducement laws],” according to CDI officials.
As seen in Bleecker’s various communications to current and prospective Advisory Group members, he has allegedly frequently used the type of language that this guideline states should be avoided. Nonetheless, as of October 2019, Bleecker reportedly informed the CDI that First American had never counseled him regarding his sales practices, according to CDI officials.
When First American received anonymous complaint letters in 2018 regarding Bleecker’s involvement with the Advisory Group, his manager reportedly did not investigate in any way other than informing First American’s legal staff, as “she felt it was not her responsibility to do so.”
She stated that Bleecker had “a good deal of independence at First American because he meets his sales goals and is a top producer,” according to the documents.
Officials noted a string of monthly payments of $1,250 between First American and Innovative Imagery between November 2017 and March 2019, including twice in March of 2018. First American paid a total of $22,500 to Innovative Imagery during this time period.
Bleecker reportedly could not definitively explain to the CDI why First American was making these payments, according to officials.
Bleecker also paid Innovative Imagery $1,250 per month during the same time period. Besides the double payment in March 2018, the payments from First American to Innovative Imagery and from Bleecker to Innovative Imagery were made on the same day each month.
Several of the violations of the California Insurance Code Section 12404 noted as being allegedly enacted by Bleecker include:
- Paying or offering to pay, furnishing or offering to furnish, or providing or offering to provide assistance with the business expenses of any person.
- Furnishing or offering to furnish all or any part of his time or productive effort to any person for any service unrelated to the title business.
- Advertising or paying for the advertising in any newspaper, newsletter, magazine or publication that is produced by, or on behalf of, a person.
- Making expenditures for food, beverages and entertainment for a person.
- Furnishing education or educational materials not exclusively related to the business of title insurance.
Combined together, CDI officials alleged that these facts constitute grounds for the insurance commissioner to require either the surrender, suspension or revocation of Bleecker’s certificate of registration along with a fine to be paid by his personal funds.
“The facts alleged above … show that it would be against public interest to permit Respondent Bleecker to continue to act as a title marketing representative, and constitute grounds for the insurance commissioner to suspend or revoke his certificate of registration,” read the accusation.
As Bleecker was a representative fo First American while he was allegedly committing these violations, First American’s license is also at risk of being restricted or suspended either statewide or in specified counties, as well as paying a fine of no less than $5,000, but which would measure five times the amount of whatever unlawful rebates had been paid out.
A request for comment from First American were not returned as of Wednesday afternoon.
The accusation has not yet been judged by California Insurance Commissioner Ricardo Lara.
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My wife and I have known and worked with Gene Bleecker since 1996. Gene has been a friend to the real estate community and supporter of our Santa Clarita residents for decades. Mr. Bleecker has had a target on his back due to his winning personality and ability to bring people together. We need more people like Gene in real estate and public service in Santa Clarita and Southern California. Let’s support our local hero from negativity.
Hi Tony, you’re missing the point. It’s bribery, extortion . From what I understand Gene would offer services other than what’s permitted by the department of insurance and then return he would hold all the real state agent (in his domain) accountable to give him the business.
You are correct. He only offered those services if you gave him the business. He also use to give property flyers to HIS agents for free.
There are still lenders in this valley who do the same thing. In fact they are paying for Real Estate Agents Zillow or Trulia leads
Tony, You know that everything that is said in this article is true and you have seen it. Every Realtor in this Valley knows its true. Even when he used to give FREE Flyers for properties based on agents giving him business. His groups of the AG and CMA are all based on only his agents and his invites.
Fact is, It is against the law. Period.
No we don’t more people like Gene! … his antics are one of the many reasons why the RE field is so corrupt. Early on my RE career I worked with Bleecker. I was “invited” to the advisory group. I used his other services because I was urged to do so to become successful in SCV/AV RE. I was told Gene was the man with all the connections and to use him for title. I quickly learned that Mr. Bleecker’s services were a “boys club” which I quickly retracted from. He was always very “handsy” with the ladies… it felt like a used car salesman trying to close a deal. A lot on money spent with minimal results. Gene-Kel productions was run by his son. That was not disclosed to me when I sat down to initiate a marketing plan. I found out by happenstance. I stopped going to his Advisory Meetings and paying the entrance fee… “no money coming in or out” BS!!! I’ve struggled with RE for over a decade. I wanted to work in an ethical manner but it’s nearly impossible with all the back-door deals and the scratch-my-back-I’ll-scratch-yours shenanigans. I wish the RE industry in CA was as closely monitored as other industries. I hope Bleecker and the likes of him get what they deserve. But in the end it’s up to the State of CA to monitor/investigate and prosecute wrong doers. I won’t hold my breath.
Gene is the hardest working person I have ever met. Unlike most men, he rides in the car and works while his wife is driving, do he can work! He has a drive for success that is unmatched in his field and he works tirelessly. He may do a few things in the gray area, but I have seen much worse in my 35+ years in this industry. I think what this comes down to is many people stay under the radar, and those that do well, or really well will be scrutinized and bashed.
This is a good man who does great things for this community and now has to figure out a different way to do things. I am sure whoever turned him in will still do a modest amount of business long after Gene is gone, but they will have a different excuse why their mortgage is late, or why their car was repossessed. It takes hard work to be successful, and Gene is really good to people who work with him. You are either with him or against him. Title is a tough business and there are a lot of good people in that industry that work hard, but none of them work like Gene and he has really raised the bar for hard work. I don’t much about the legal aspects, the AG, or anything else, but I am sure he will have his day in court. From what I can see, he is still out there hustling, working and trying to help people make much needed connections.
While he certainly looks like a hard worker given all of his side-hustles, that still doesn’t change the fact that apparently the state’s department of insurance attorney in this case seems to think there is cause for these accusations. Being a hard worker doesn’t mean that you can’t violate the law.
It’s great that we don’t judge based on accusations.
“accusations”? Anyone in the RE business KNOWS these are FACTS and not accusations.
FACT: He has known that he has been violating the law for years. He just keeps moving companies when he gets caught. This is the first time that the Insurance Commissioner has said enough.
I know many title reps that work very hard and do not break the law. Bleeker has a long time reputation among title reps as being someone who breaks the law and bends the rules all to his advantage as outlined in this article. His clients love him I’m sure but a level playing field is what laws, rules, and regulations aim to uphold. All the title reps that play fair and work hard can call this a “win”. If you are an outstanding title rep with innovative ideas and exceptional service you don’t have to buy business!! By the way I have 22 years in the title industry.
I have known Gene and been in this business for years. I have also known the competition that does not want to work as hard as he does or can form relationships the way he does. Could be the sour grapes want to take out the hustler? This headline has the word accused in it, not found guilty. Let’s keep that in mind.
this rep has a terrible reputation. As a 21 year hard working title rep who has worked hard on relationship building and building business without “buying” the business !! I am and most title reps are thrilled with this news. No sour grapes just hard working reps obeying the rules and laws
Gene Bleeker is a very hard working, creative genius! I also know that his competitors will go to any means to try to stop him. He carries the weight of the Title Business in Santa Clarita and for good cause. He works hard. I am blessed to work with him – although I do work with other Title Representatives on occasion. I have known him and worked with him for 20 years. As long as I have known him, it has been his goal to stay within all legal limitations of the Title business.
I wonder if some individuals calling him “very hard working, creative genius”, found themselves held accountable as recipients from these illegal acts would still defend him. For the uneducated, I suggest you read CDI code 12404 and a Bill passed by Senate “SB133”. I am certain everyone has heard of SB133 from their title reps but chose to ignore and still ask.
I apologize for putting in this term but prostitution is illegal in California. John’s accepting and or soliciting are guilty as well.
I commend and respect all Real Estate Professionals and Title Representatives that work hard without breaking the law.
Gene was known far and wide for his questionable practices. He just made so much money for whatever title company he was working for that everyone looked the other way. I was a customer service rep working on the inside, as well as a Title Rep. I left the business because I refused to bend/break the rules the way he advised.
Let’s not pretend he didn’t do anything wrong.