Lawyers representing the village of Rosemont, Ill., are seeking restitution and punitive damages in a civil lawsuit against an insurance broker that village officials say allegedly defrauded them out of around $1 million. The civil lawsuit was filed in Cook County Circuit Court.
The Chicago Daily Herald reported that the suit claims the insurance brokerage, Acordia of Illinois Inc., and broker Ralph E. Aulenta, allegedly used hidden fees to wrangle over $1 million in overcharges for insurance coverage for the village during the period from 1991 through 1996. The lawsuit also alleges that on one occasion the cost of annual premiums was inflated by as much as $200,000.
No criminal charges have been filed but the lawsuit arose out of an investigation of Acordia by the Federal Bureau of Investigation.
According to the Chicago Tribune, FBI agents subpoenaed Rosemont village records and questioned Mayor Donald Stephens twice in the last four months about both Acordia and a former business partner of Stephens. Rosemont officials suggested that the former business partner may have profited from the scheme, however he has not been charged nor was he named in the lawsuit.
Acordia was known as American Business Insurance Agency Inc. in 1990 when it responded to a request for bids on insurance needs for the village. Under the terms of the contract, Acordia was hired to place insurance for the village, including coverage for property, automobiles, police and public officials.
The community claims the overcharges were undiscovered because of the difficulty in comparing prices with other brokers for the large number of policies involved.
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