DOI Revokes Mass. Agent’s Producer License for Premium Theft
The Massachusetts Division of Insurance has revoked the producer license of David G. Pietro, a Sandwich resident and former president of DGP-Miles Insurance Agency, Inc. in Taunton. The action stems from Pietro’s failure to report criminal proceedings against him and his conviction for embezzling $295,278 in insurance premiums from five small businesses.
The decision, issued on August 7, 2024, but only recently appearing on the Division of Insurance’s website, comes two years after Pietro’s guilty plea to five felony counts of larceny, for which he was ordered to serve two years of probation and make restitution.
Producer License History
David G. Pietro obtained his first insurance license from the Division of Insurance on November 8, 1995. The Division converted his resident agent license to a resident individual insurance producer license on June 17, 2002. Pietro’s license present license did not expire until May 31, 2025.
Criminal Charges Filed But Not Reported
On May 15, 2019, the Massachusetts Attorney General’s Office filed criminal charges against Pietro in Bristol County Superior Court. The “Commonwealth’s Statement of Case” alleged that Pietro, as president of DGP-Miles Insurance Agency, Inc., failed to remit insurance premium payments to insurers and made false statements to consumers about his actions.
A pre-trial hearing occurred on February 24, 2020. Pietro did not report this proceeding to the Division within 30 days, as required by Massachusetts law.
Guilty Plea, Probation and Restitution
On July 13, 2022, Pietro entered a guilty plea to five felony counts of Larceny Over Two Hundred and Fifty Dollars. The court sentenced him to two years of probation and ordered restitution.
On July 26, 2024, the Superior Court found Pietro had paid restitution as ordered and had acted in compliance with the court’s sentence and ordered him discharged from probation.
Division of Insurance Action
The Division of Insurance filed its Order to Show Cause on December 16, 2022, alleging violations of M.G.L. c.175, §162R clauses two, four, six, and eight. These clauses address violations of insurance laws, improperly withholding money received in the course of doing insurance business, having been convicted of a felony, and using fraudulent or dishonest practices in the conduct of insurance business.
Pietro filed an Answer on January 6, 2023. The Division held a hearing on April 3, 2024, where Pietro represented himself. Both parties submitted legal briefs by the May 1, 2024 deadline.
The hearing officer, Matthew A. Taylor, Esq., found that Pietro’s conduct violated the cited clauses of §162R. Taylor determined that revocation of Pietro’s license was appropriate, given the seriousness of the conduct, which included theft of premiums, five felony convictions, misrepresentations to consumers, and failure to report the charges to the Division.
In addition to license revocation, the hearing officer imposed a civil penalty. While the Division requested the maximum fine for each violation, Taylor concluded that a total fine of $6,000 was appropriate, avoiding duplicative penalties for the same conduct under multiple sections.
The decision, issued on August 7, 2024, revoked Pietro’s producer license and ordered him to pay the $6,000 fine within 30 days.
Federal Prohibition and Pietro’s Request for leniency
Pietro opposed the revocation of his producer license, requesting leniency based on his circumstances and arguing a low likelihood of repeat offenses. However, his request to retain his license ran up against a significant legal barrier.
The federal Violent Crime Control and Law Enforcement Act of 1994 (18 U.S.C. §1033) prohibits individuals convicted of felonies involving dishonesty or breach of trust from engaging in the insurance business.
The Division’s decision noted that the hearing was not the proper venue for determining Pietro’s eligibility for future license applications or industry employment. Any such determination would require a separate proceeding under 18 U.S.C. §1033(e)(2).
This federal prohibition extends beyond licensed activities, barring participation in the insurance business in any capacity unless a waiver is obtained from the Massachusetts Commissioner of Insurance. The law also prohibits insurers and agencies from knowingly employing individuals with such convictions.
For more information on this federal law and its implications for insurance hiring practices, see Agency Checklists’ article of September 9, 2017, “Insurers And Agents Cannot Be Good Samaritans In Hiring Under Federal Law.”
The Division of Insurance’s Final Orders
Based on the hearing officer’s findings, the Division of Insurance issued the following orders against David G. Pietro:
Revocation of any and all insurance producer licenses issued to Pietro by the Division.
Pietro must return to the Division any licenses in his possession, custody, or control.
Pietro is ordered to cease and desist from the conduct that gave rise to the Order to Show Cause.
Pietro is prohibited from directly or indirectly transacting any insurance business or acquiring, in any capacity whatsoever, any insurance business in the Commonwealth of Massachusetts.
Pietro must comply with the provisions of M.G.L. c.175, §166B and dispose of any and all interests in Massachusetts as a proprietor, partner, stockholder, officer, or employee of any licensed insurance producer.
Pietro is ordered to pay a fine of six thousand dollars ($6,000.00) to the Division within 30 days of the order’s entry.
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