AssuredPartners Inc. has filed a lawsuit and received a preliminary injunction against former employees they accuse, set prisoners for customers and then skimmed off some of the premiums.
The brokerage firm said former employee Scott Reese and members of his team moved insurance for existing AP partners to an insurance company, and then diverted a large portion of the proceeds to Mr. Reese’s own pocket, according to the lawsuit filed in the U.S. District Court in the United States. Eugene, Oregon, May 10 in AssuredPartners of Oregon, LLC, d / b / a Alliance Insurance Group & Alliance Senior Living v. G. Scott Reese, Susan Reese, Carl Swan, Alex Whippel, & S&S Investments Management LLC.
The trial alleged that during their schedule, detained participants and the captive chief were informed that, as the AP was not properly licensed, all future correspondence would go to Mr Reese̵7;s personal e-mail address rather than his AP e-mail address.
He would then enter into an “independent consultancy agreement” between himself and the captive entity, or between his sole proprietorship with limited liability company, S&S, and the captive entity, in order to receive at least 10% of the premiums in question.
This generated hundreds of thousands of prizes for Mr. Reese, his wife, Ms. Reese, and “probably” to his fellow Mr. Swan and Mr. Whipple, it said in the lawsuit.
The trial said that once the captivity was established, Reese continued to use AP personnel, sources and confidential information to meet the prisoner’s needs “expects to collect 10% of the premium again at the time of the renewal to the detriment of the AP.”
The AP said the system was revealed after the broker questioned whether there was a way for it to be compensated for the services it performed on future captive deals.
It said Mr Reese and two minority business partners had sold his business, Alliance Insurance Partners Inc. and Quality Risk Management Services LLC, to it in an agreement to purchase assets in October 2015 for $ 21.5 million.
Mr Reese, Mr Swan and Mr Whipple had worked as producers for the AP, specializing in providing insurance products and services to senior housing, while Mrs Reese had worked as a senior account executive and performed key support functions for the three men. They are no longer employed by the brokerage house.
The charges against the defendants include civil conspiracy, breach of trust, breach of contract, breach of the Defend Trade Secrets Act, embezzlement of trade secrets, liability for damages in existing and future business relationships and unfair enrichment.
On May 18, the court granted AssuredPartners a preliminary injunction urging the defendants to hand over all documents, materials and data relating to the AP’s activities, and to refrain from using or disclosing confidential information to any third party, including orders.
The brokerage had no comments and the defendants’ lawyers did not respond to a request for comment.
In February, a federal district court judge on Wednesday agreed to permanently issue a temporary injunction issued in poaching litigation filed by AssuredPartners against a competitor and five deceased employees.