The president of Hilb, Rogal & Hobbs Company has resigned after the company discovered that one of its employees arranged for improper payments in exchange for insurance placements.
The Richmond, Va.-based insurance broker, in a letter to employees on Wednesday, said that Robert B. Lockhart, president and chief operating officer of the firm, resigned. A second employee was terminated and a third suspended pending the outcome of a company investigation into improper contingent fee arrangements.
The letter was from Martin L. Vaughan III, chairman and chief executive officer, and was part of an 8-K filing on the matter. It said an internal investigation found that in the beginning of 1998 an HRH employee in the Hartford, Conn., office "arranged or attempted to arrange for payments" to the firm for the placement of professional liability insurance policies for "three different organizations."
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