State fines ex-Bankoh
employees

The 11 workers had not taken
continuing education classes
like they said they had

State Insurance Commissioner J.P. Schmidt has fined the 11 Bank of Hawaii insurance employees who were fired last month for faking attendance in mandatory continuing-education courses.

Schmidt levied a $2,000 fine and six-month license suspension against Wes Imamura, former president of the Bank of Hawaii Insurance Services subsidiary. The other individuals were issued fines ranging from $250 to $750 but did not lose their licenses. However, Schmidt said they were issued letters of caution and that prior penalties will be taken into account if there are any future violations.

Insurance producers are required by law to take continuing-education classes to renew their license every two years.

The bank, which fired the employees after learning of their actions, was not punished.

"Bank of Hawaii itself was not penalized or sanctioned because under all of the circumstances, Bank of Hawaii did the correct thing when it came to their attention that a violation of the insurance code or other improprieties had occurred," Schmidt said. "They expeditiously investigated the matter, took steps to correct the situation and voluntarily reported the violations to me."

Schmidt said Imamura was assessed the greatest sanctions because he was in charge of the department and had arranged for his subordinates to sign the false documents.

"Why the fine on the other 10 individuals was the level it was at was that there were a number of mitigating circumstances," Schmidt said. "In normal circumstances, I would have assessed a higher fine for providing false information to the Insurance Division. But I always look at the particular circumstances and take into account mitigating factors, factors which perhaps make the offense less serious."

Schmidt said some of the individuals already have been hired by other companies but their licenses are still subject to regulation by the insurance division.