William Gallagher Associates (WGA) has settled a suit with the Massachusetts attorney general over a scheme to mask brokerage fee charges as premium payments.

The Boston-based company, which is not affiliated with Itasca, Ill.-based Arthur J. Gallagher, agreed to return more than $3 million to 11 clients and pay $925,000 in sanctions and attorneys fees to the state.

The brokerage firm also agreed to a binding audit of its Energy and Environmental Practice group, where the overcharges allegedly originated.

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