Annapolis, MD – Everest Wealth Management Inc. and its owner, Philippe Rousseaux, are already in a legal battle with Maryland Attorney General Brian E. Frosh, and now the Towson-based wealth management and investment firm is facing a $62,400 fine. The Maryland Insurance Administration came down with the order last week after their own investigation, according to The Baltimore Sun.
The state’s insurance regulator’s latest actions come after Frosh tried to shut down the financial services business this past June for what he saw as fraudulent misrepresentation. Frosh believes that Rousseaux and his company didn’t properly inform clients about the risks of their investment strategies. Naturally, Rousseaux believes he’s been unfairly targeted and filed a lawsuit in August against the A.G. for violating his rights.
Alex J. Brown, an attorney with Shapiro Sher Guinot and Sandler that represents Everest, saw the latest ploy by the Maryland Insurance Administration as an attempt to “weaken” the financial company ahead of the trial that started this week.
“By the time we get to litigate this, Everest will be severely harmed,” Brown said. “I think the timing is suspect.”
Suspect or not, the state officials believe Everest used misleading language in their ads and infomercials that, “blurred lines between Everest Wealth Management, an insurance agency, and Everest Investment Advisors, manipulating prospects with ‘mind games’ in order to obtain business.”
Insurance can be a difficult process for people to decide on to begin with. In fact, 85% of consumers agree that most people need life insurance, yet just 62% say they have it. Even among Americans who have insurance coverage, 40% don’t think they have enough.
Everest is entitled to and plans on having an appeal hearing for the Insurance Administration fine. The company remains in business and is continuing to operate while the legal process runs its course.
