Boston-based insurance brokerage firm William Gallagher Associates Insurance Brokers must pay an additional $330,624 in restitution to 11 companies and make an additional $80,000 payment to the state as the result of a recently completed court-ordered audit, according to Attorney General Martha Coakley’s Office.
The audit was required under the terms of a settlement between the Attorney General’s Office and WGA reached in December 2007.
“Our investigation revealed unfair and deceptive business practices that inflated the cost of insurance for many companies. We are pleased that the court ordered audit has resulted in further refunds to WGA’s customers,” said Coakley.
According to the Attorney General’s complaint against WGA, which was also filed in December 2007 in Suffolk Superior Court, WGA defrauded its customers by charging undisclosed fees and double billing clients for insurance brokerage services. The complaint alleged that WGA maintained two sets of books, provided false invoices to clients, and altered documents it received from insurance companies before transmitting those documents to clients.
The lawsuit was resolved, and WGA was required to return more than $3 million to customers, pay $925,000 to the commonwealth and adopt transparent fee practices.
Pursuant to the audit, WGA was required to offer restitution to affected clients, including five Massachusetts-based companies, by Nov. 5. Five Massachusetts companies; US Genomics, Waterside Power LLC, Vista Print, Clean Harbors Environmental Services Inc., and the Multidisciplinary Association for Psychedelic Studies, will receive a total of $248,300 in restitution. Six other companies; Energia Global de Costa Rica, LSP Kendall Energy, Pittsfield Hydropower, Conceptis Technologies, TECO Energy and Concord Steam Corp. will receive a total of $82,321 in restitution.