Peabody Insurance Firm Hit With $5.2 Million Judgement

PEABODY, MA -- A Suffolk Superior Court judge ordered Peabody-based Kilgore Insurance Agency, its owners and a broker to pay $5.2 million in restitution and interest to business owners that were overcharged for policies to hide exorbitant commissions. The firm specialized in insurance policies for businesses with unique liabilities, including detective agencies and private security companies.

"Kilgore Insurance and its owners orchestrated a scheme to charge consumers millions in undisclosed, excessive, and illegal agency fees," Massachusetts Attorney General Maura Healey said in a statement Thursday. "We are pleased that with this action, overcharged consumers will receive restitution."

Owners Cyrus Kilgore of Beverly and Jeffrey Kilgore of Marblehead and broker Andrew Crowther Jr. were also named in the decision. In litigation that had lasted for more than a decade, the Attorney General contended that Crowther collected commissions as high as 47 percent.

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Dave Copeland can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).