HRH President Resigns Following Disclosure to SEC
The Insurance Journal
May 27, 2005
National insurance broker Hilb Rogal & Hobbs Co. has disclosed that its president and chief operating officer has resigned and another employee fired after evidence of apparent improper payments for steering accounts to insurers was uncovered.
The Glen Allen, Va.-based broker said its Hartford office may have illegally given or received money in exchange for placing clients with insurance companies.
In a filing with the Securities and Exchange Commission, HRH reported that Robert B. Lockhart, president and COO, resigned and another employee was fired. A third worker was reportedly placed on leave.
The company said it has turned over documents related to the payments to federal and state prosecutors and intended to cooperate with the investigation.
Connecticut Attorney General Richard Blumenthal confirmed that HRH brought the matter that resulted in the management changes to his attention.
"This company is cooperating with my continuing broad investigation of anticompetitive practices in the insurance industry, which has been ongoing for nearly a year. We are continuing to investigate matters involving Hilb Rogal & Hobbs - and will pursue our inquiry vigorously," Blumenthal added.