The Financial Services Regulatory Authority of Ontario (FSRA) has imposed an administrative penalty in the amount of $100,000 on Kostyantyn Poshtarenko for selling and attempting to sell home and auto insurance policies without a license. Poshtarenko’s scheme included the use of intermediaries. The unlicensed agent also reportedly impersonated consumers on binding calls, charging for his services.

“Most of the consumers who acquired insurance through Poshtarenko were newcomers to Canada, had limited English communication skills and had little or no knowledge about obtaining insurance policies in Canada,” the regulator’s notice of proposal states.

The sanctions come after the Superintendent of Financial Services issued a permanent cease and desist order in March 2017 before receiving complaints from the Équité Association, Aviva Insurance Company of Canada and TD Insurance in March and April 2023. It was discovered that between 2021 and 2023 Poshtarenko, in addition to arranging the issuance and placement of auto and home insurance policies for a large number of consumers without being licensed, also applied for at least 20 auto insurance policies on behalf of consumers without their knowledge.

One such consumer, identified as VC in the notice of proposal, arranged home and auto insurance policies with the unlicensed agent in August 2019, paying $250 for the service. In June 2022 VC also contacted Postarenko to obtain an auto insurance policy. Poshtarenko asked the consumer to provide a photograph of their license and pay a $280 fee.

“Poshtarenko failed to arrange a policy,” the notice states. Instead, “VC was subsequently, without their knowledge or consent, added as the primary driver on 51 TD Insurance auto insurance policies.” The notice goes on to say that Poshtarenko impersonated consumers while applying for and arranging the VC insurance policies, falsely identifying VC as the primary driver and providing their licensing information, “even though VC had no connection to or knowledge of the VC insurance policies.” 

It was also noted that Poshtarenko failed to comply with a summons issued by the regulator, thereby obstructing its investigation.