GARDINER, Maine — The Maine Bureau of Insurance has fined and permanently revoked the license of a Maine insurance broker after a lengthy investigation revealed he improperly and, in some cases, fraudulently sold annuities to a client to pocket $180,000 in commissions.
Keith Page, who ran insurance and financial planning businesses in Fairfield, has signed a consent agreement with the bureau and the Maine attorney general’s office admitting to allegations he facilitated a series of improper and fraudulent annuity transactions over the course of four years.
The bureau has permanently revoked Page’s license to sell insurance in the state, which he’s had since 1996, and fined him $1,500, according to the consent agreement. Attempts to contact Page were not successful.
Page’s victim was a woman identified only as “C.M.” in the consent agreement. C.M. met Page when he was an Allstate agent and she was the owner of an Allstate agency.
After C.M.’s husband died, she sold the business and real estate and ended up with a net worth of more than $2 million, according to the consent agreement. Page, who had opened his own insurance agency by this point, helped C.M. with the sale of her agency and her future financial planning.
Over the course of four years, from August 2006 to February 2010, Page arranged 17 annuity sales or replacements with ten insurance companies that allowed him to collect more than $180,000 in commissions.
The bureau’s investigation revealed that several of those annuity sales or replacements were fraudulent or displayed Page’s lack of trustworthiness and financial irresponsibility by omitting necessary information in some cases, and using false information in others. He also made recommendations to C.M. that were not in her best interest, according to the agreement.
As a result of the bureau’s investigation, insurance companies have returned more than $1.3 million to C.M. without interest and penalties, according to a media release from the bureau.
As for Page’s fine, the insurance bureau is limited by statute in the amount of civil penalties it can impose, in this case $500 per violation, according to Doug Dunbar, a spokesperson for the bureau.
“In these cases, the agreement’s larger penalty is the permanent loss of the producer’s Maine insurance license and thereby the ability to pursue a living in the insurance field in Maine,” Dunbar said. “Additionally, it should also be noted that the agreement does not preclude the victim or perhaps the involved insurance companies from pursuing legal action.”
Page was CEO of Maine Street Advisors, an insurance agency he founded in 2007, and Maine Street Wealth Management, a financial planning firm he founded in 2010, according to the Maine Bureau of Corporations, Elections and Commissions. The address of both firms was in Fairfield.
Both businesses were “administratively dissolved” in August 2011, according to state records.