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In 2018, Phyllis Palazzola, 56, the previous proprietor of Palazzola Insurance coverage Company in Gloucester, Massachusetts, had her insurance coverage producer license revoked by the Massachusetts Division of Insurance coverage after an investigation discovered that she had stolen over $16,000 in insurance coverage premiums from shoppers. As a part of a settlement settlement, Palazzola surrendered her license and agreed to “instantly stop and desist” conducting any additional insurance coverage enterprise within the state. Her company, Palazzola Insurance coverage Company, additionally had its enterprise entity insurance coverage license completely revoked because of her actions.
For particulars on the license give up, See Company Checklists’ June 6, 2023, article, “Even After License Revocation, Massachusetts Insurance Agent Now Indicted for Continuing to Steal Insurance Premiums.”
The license give up doesn’t cease the thefts
Even after surrendering her license and agreeing to stop participation within the insurance coverage business, Palazzola continued soliciting small companies in Gloucester for his or her employees’ compensation insurance coverage wants. Over a 14-month interval, she collected premium funds from varied small companies after telling them she would bind and place their employees’ compensation insurance policies. Nonetheless, with out an lively insurance coverage license, Palazzola by no means secured the promised insurance coverage for these companies. To hide her deceit, she created and supplied 6 of the 8 firms with fraudulent certificates of insurance coverage bearing coverage numbers for non-existent employees’ compensation insurance policies. By this embezzlement scheme, she stole over $39,000 in coverage premiums.
Eleven indictments for larceny, forgery, and unlicensed insurance coverage recommendation
Upon discovery of those actions, the Lawyer Normal’s State-Vast Grand Jury indicted Palazzola on eight felony counts of larceny over $1200, two counts of forgery of premium finance notes, and one misdemeanor rely of appearing as a unlicensed insurance coverage advisor.
Responsible pleas to all eleven indictments
On February 21, 2024, Palazzola pleaded responsible to all expenses in opposition to her associated to the embezzlement scheme earlier than Decide Salim R. Tabit in Essex Superior Court docket below an agreed plea settlement with the Lawyer Normal.
The costs she pleaded responsible to included:
- Eight felony counts of larceny over $1200 via a single scheme for stealing insurance coverage premiums.
- Two felony counts for forgery of insureds’ names to premium finance agreements.
- One misdemeanor rely of appearing as an unlicensed insurance coverage adviser.
Her former company, Palazzola Insurance coverage, additionally pleaded responsible to indictments mirroring the costs in opposition to Palazolla based mostly on the corporate’s obligation for her prison actions in appearing as an company officer.
Suspended Home of Correction sentences, probation, and restitution
A. For the eight larceny felony counts, Palazzola obtained 3 years of supervised probation on every cost, with the sentences to run concurrently.
B. On the 2 counts of forgery, she was sentenced to 24 months within the Home of Correction, suspended for 3 years pending no violation of her probation. These sentences had been concurrent with the larceny expenses.
C. For the misdemeanor offense of unlicensed insurance coverage advising, Palazzola was handed six months within the Home of Correction, additionally suspended for 3 years to run concurrently with the forgery sentences.
D. Palazzola was additionally ordered to pay the stability of the restitution to her victims within the quantity of $19,870.70. This quantity was due instantly, to be paid via her lawyer’s belief account.
E. The responsible pleas of the company had been positioned on file aside from it having joint and a number of other legal responsibility with Palazolla for the order of restitution.
Company working below new possession
However its former proprietor’s authorized issues, the Palazzola Insurance coverage Company has been operated below the unbiased possession of Ms. Palazzola’ daughter for the final six years with none issues and with the help of its loyal clients.
The Prosecution crew concerned within the investigation and indictment of Ms. Palazzola
This case is being prosecuted by Assistant Lawyer Normal Christopher O’Brien and Investigator Lashauna Craig, each of Lawyer Normal Campbell’s Insurance coverage and Unemployment Fraud Division, with help from Sufferer Witness Advocate Megan Murphy. Investigators from the Massachusetts Insurance coverage Fraud Bureau additionally aided the investigation.
The Lawyer Normal’s insurance coverage fraud tip line
If any member of the general public believes they could have been victimized by this conduct or has any data regarding others who might have been victimized, they’re inspired to contact the Lawyer Normal’s Workplace Insurance coverage Fraud Tip Line at 617-573-5330.
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