Insurance firms struck off roll; to be imposed penalties of $100,000

On December 20, 2012, the Bureau de décision et de révision (the Bureau) approved an agreement to deregister Sherpa Holding and Déry Capital inc., as well as impose an administrative penalty of $50,000 against each firm.

These insurance firms and their officers set up a scam, which enabled them to sell to targeted clients a life insurance product in which part of the premium paid by the client was reimbursed after the payment had been made to the insurer.

The scam enabled the firms and their officers to sell a life insurance product, preferably universal, for a face amount of more than one million dollars, thus earning a commission greater than the amount of the annual premium reimbursed to the client.

As a result of this scam, the firms earned significant commissions.