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Frack Burger owner in trouble again

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Canby businessman is fined, has license revoked, faces losing his license to sell insurance in Oregon

James Frackowiak, the owner of Frack Burger and Plan-It Financial, had his insurance producer license revoked after he was found to be collecting premiums from customers without providing them with insurance.DANIEL PEARSON - The breakdown of the penalties show that Frackowiak is charged $2,000 for two violations of not providing insurance after collecting premiums and $12,000 for 12 violations of depositing premiums into business accounts and not a trust.

The Oregon Department of Consumer and Business Services' (DCBS) Division of Financial Regulations also fined Frackowiak $14,000 and ordered him to return $4,275 in premium payments to customers he defrauded within 30 days of the March 7 order, according to DCBS documents obtained by the Canby Herald.

The division found that on 12 occasions, Frackowiak and Plan-It Financial deposited premium funds into business accounts, instead of in a trust account, as required by state law. Also, after not providing insurance, he did not refund customers' premium payments within 30 days, another violation of state law, the documents say.

The breakdown of the penalties show that Frackowiak is charged $2,000 for two violations of not providing insurance after collecting premiums and $12,000 for 12 violations of depositing premiums into business accounts and not a trust, the documents say.

"This is an exceptionally important issue because insurance agents have a responsibility to serve their customers' needs and act ethically," Insurance Commissioner Laura Cali Robison said. "When consumers pay their premiums, they need to trust that they will actually be insured."

Frackowiak had been licensed as an Oregon resident insurance producer since October 31, 1997, and Plan-It Financial, of which he is the sole owner, has been registered to conduct business in the state since 2005, the documents say.

Frackowiak made news across the Portland Metro region last year when his restaurant chain, Frack Burger, which had a Canby location — the restaurant's sign and much of the furniture and equipment used by the business remains visible inside the former Canby location next to Safeway — closed six of seven locations for reasons that included not paying rent for several months at several locations, not paying suppliers and not paying wages to his employees, as was reported at the time by several Pamplin Media Group newspapers, including the Herald.

Frack Burger's Canby location was closed by the building's owner, Argo Canby, LLC, the commercial real estate investment group based in Corte Madera, Calif. that owns the Canby Square shopping center, for failure to pay $4,736 in back rent, the property manager, Errin Mickle, told the Herald in July 2016.

Frackowiak also faced numerous Bureau of Industry and Labor claims for unpaid wages and lawsuits, including one from a former employee alleging sexual harassment, as well as a $59,846 federal tax lien.