Former insurance agent who engaged in "unlicensed activity" fined $30,000

Former insurance agent who engaged in “unlicensed activity” fined $30,000 | Insurance Business Canada

Insurance News

Former insurance agent who engaged in “unlicensed activity” fined $30,000

He continued involvement following revocation of his licence, FSRA said

Insurance News

By
Jen Frost

A former insurance agent, accused of continuing to be involved in transactions and communications with clients following the revocation of his licence and the transfer of his book of business to a woman he had a “personal relationship” with, has been fined by the Ontario insurance regulator.

Three administrative penalties totalling $30,000 have been imposed on Michael Stoddart, according to a news release by the Financial Services Regulatory Authority of Ontario (FSRA).

Prior to entering into a settlement with the FSRA, as of May 2022 Stoddart had sought to dispute allegations levelled against him, according to a minutes of settlement undertaking.

Stoddart had been licenced as a life insurance and accident and sickness insurance agent until August 11, 2008 when his licence was revoked, according to the minutes, dated January 31, 2023.

Following the revocation of his licence, Stoddart’s book of business was transferred to an individual named as Susan Keshen, with whom Stoddart was in a “personal relationship” with, according to the minutes.

Keshen did not pay for the book of business, nor were clients advised of the change, the minutes said.

According to the FSRA minutes, following the revocation of his licence, Stoddart continued to:

Be involved in transactions on client accounts
Communicate with “certain” clients, including through email and correspondence
Meet directly with some clients
Sign certain documents in Keshen’s name and complete certain insurance documents

At times, Stoddart was referred to as managing partner of an incorporated entity created by Keshen, named as Standard Wealth Partners. This is according to the FSRA settlement minutes. Further, the FSRA minutes said that several clients were “unaware that Stoddart’s licence had been revoked or that Keshan had replaced Stoddart as their life insurance agent”.

Stoddart “admits the facts” set out in the minutes as detailed above and has consented to the imposition of administrative penalties, the document said.

Enforcement action proceedings against Keshen, who last year requested a hearing before the Financial Services Tribunal, according to a June 2022 news release, remain ongoing, as per the FSRA’s website. In April 2022, the FSRA proposed levelling two administrative penalties totalling $30,000 against Keshen, in addition to the revocation of her licence.

Neither Stoddart nor Keshen were immediately available for comment.