William Gallagher to Pay $1.7M to Settle With Conn. Regulators

Insurance broker William Gallagher Associates Inc. will pay $1.7 million as a settlement with Connecticut regulators over allegations that it overcharged a client. The settlement was announced late last month.

State regulators accused the Massachusetts-based broker of overcharging a local business, Milford Power Company, millions of dollars over several years. Under the settlement agreement, the broker did not admit wrongdoing but will pay the state $100,000 in civil penalties and forfeit $1.6 million to be deposited in the state’s General Fund.

Connecticut officials said William Gallagher’s questionable bookkeeping and billing practices dated back to 2002, resulting in Milford Power allegedly being overcharged more than $2 million.