Investment agency shut down
The Bureau of Insurance has yanked the license of a Portland insurance investment agent, citing deceptive, untrustworthy and incompetent conduct.
Nicholas E. Costa, owner of CostaConroy LLC, had his insurance producer license revoked by the state bureau in September, which also denied the license application of Joseph P. Conroy, CEO of the Delaware-based firm. The bureau assessed a civil penalty of $15,000 against CostaConroy, which has operated in Maine since February 2008, and a $1,000 fine against Costa individually, according to the decision.
The state charged that Costa unlawfully represented himself as a consultant, rather than insurance producer. Insurance producers sell insurance on a commission basis, while insurance consultants sell advice for a fee. Maine law states a consultant selling annuities is prohibited from being compensated for sales without a written agreement in which both the commissions and fees are disclosed and noted by the client. In the order, Costa and Conroy dispute intentionally misrepresenting themselves, saying they were seeking only to distinguish their investment services from other providers.
The state also took the pair to task for claiming in the CostaConroy investment guide that they "assisted hundreds of clients in achieving their retirement goals in a SAFE and Pre-Determined manner." At a bureau hearing Aug. 6, Costa said the number was actually between five and seven, according to the decision. The pair also admitted to using testimonials on the company's website from people who were not CostaConroy clients. Additional charges of using misleading advertising and product comparisons and descriptions and exaggerating the scope of the company and their experience underscored the order.
"CostaConroy's ongoing pattern of deceptive sales tactics put consumers at considerable financial risk," said Superintendent Mila Kofman in a release announcing the order.
The company moved to Alfred this summer, but the Bureau of Insurance began its investigation last spring.
The parties had until Nov. 9 to appeal the action.
Most Recent
Most Recent
Comments