Attorney General Coakley's Insurance & Financial Services Division aggressively represents consumers, cities, towns and the state in civil matters involving the insurance, securities and lending industries. The Division performs key consumer protection functions, including securities enforcement, insurance and lending enforcement, insurance rate cases and advocacy, and consumer mediation and advocacy.
The Division is tasked with investigating unfair or deceptive practices relating to investments and securities. The Attorney General also has specific powers under the Massachusetts False Claims Act to bring actions against securities professionals who mislead or defraud municipalities or state government entities. Case highlights include:
- Subprime Mortgage Securitization: The Division conducted groundbreaking investigations into Goldman Sachs’, Morgan Stanley’s, and RBS’s roles in facilitating and securitizing unfair mortgage loans. IFSD’s settlements forced Goldman Sachs, Morgan Stanley, and RBS to pay a total of over $210 million to homeowners, investors and the state.
- Auction Rate Securities: In 2008, the Division brought the nation’s first enforcement actions regarding auction rate securities and recovered $76.8 million from Merrill Lynch, UBS, Morgan Stanley and Citibank for selling inappropriate auction rate securities to cities, towns and state agencies.
- Deceptive Bond Fund Sales: In 2010, IFSD conducted an investigation of State Street Bank with the SEC regarding State Street’s role in misleading bond fund investors. IFSD and the SEC obtained $300 million in restitution from State Street for investors nationwide, and a $10 million penalty for the Commonwealth.
The Division brings consumer protection actions relating to unfair and deceptive practices in the insurance and lending industries. Case highlights include an industry-wide investigation into motorcycle insurance rating practices which forced fifteen auto insurance companies to refund nearly $40 million to tens of thousands of motorcycle owners, as well as actions against payday lenders, student lending and financial aid advisory services, credit unemployment insurance providers, and double-dipping insurance agencies.
IFSD is also the public’s advocate in insurance rate proceedings held before the Commissioner of Insurance. Over the past four years, IFSD’s work on rate cases has saved consumers approximately $400 million.
IFSD offers a hotline and a mediation program to assist consumers in disputes relating to insurance and investment products. IFSD’s mediation program handles nearly 3000 consumer calls and completes more than 600 mediations each year.
Consumer can contact IFSD’s hotline by calling 1-888-830-6277 and can file a complaint online using IFSD's Insurance and Investment e-Complaint Form.
Complementary Content
Contact Us:
Phone: (888) 830-6277
Fax: (617) 722-0184
Mail: Insurance & Financial Services Division, Office of Attorney General Martha Coakley, One Ashburton Place, Boston, MA 01208