Getty Images
Zenefits, the startup whose CEO resigned this week, created a secret software tool to let California sales reps fake the completion of an online training course that health insurance brokers must take before getting a license, according to an email sent to staff on Thursday.
The program, known as a Macro, made it appear that aspiring health insurance brokers were logged into the mandatory online course, while in fact allowing them to spend less than the legally required 52 hours on the training, said the email sent by David Sacks, who took over as Zenefits CEO this week.
Once used by a sales rep to fake the training course, the program led the individual to sign a certification, under penalty of perjury, that they had spent the required 52 hours doing the work, a lawyer for Sacks told BuzzFeed News.
The revelation of the existence of the Macro program raises serious questions about the credentials of Zenefits brokers in California, the company's biggest market, and points to potential legal trouble. The discovery of the program led directly to the ouster this week of Parker Conrad, the Zenefits co-founder and CEO, the lawyer said.
The San Francisco-based Zenefits opened an internal investigation after a BuzzFeed News report last fall that it repeatedly failed to enforce legal requirements that anyone selling a health insurance policy have an appropriate state license. That was how executives discovered the Macro program, which Conrad had created based on a belief that 52 hours was too long to spend in training, the lawyer for Sacks said.
In late January, according to the lawyer, Sacks, who was then the chief operating officer, learned that the Macro program not only allowed brokers to fake the training but also directed them to make a certification under penalty or perjury that they had done so.
Zenefits voluntarily submitted its findings to regulators, Sacks told staff on Thursday. As BuzzFeed News reported, the California Department of Insurance is investigating whether Zenefits complied with laws and regulations in California.
Sacks added that use of the Macro software on the Zenefits network had been disabled.
"We are developing a comprehensive remediation and retraining program for all licensed employees who obtained and used the Macro in connection with their California resident broker license," Sacks said in the email. "We will work with the Department of Insurance on the development of those remedial measures."
"The company takes full responsibility for its actions regarding the Macro," he continued. "While we are taking the appropriate disciplinary action against the leaders in this Macro issue, the company is focused on remediation rather than discipline with all of the other employees who used the Macro at the direction of the company. As part of our commitment to our employees, we are hiring an attorney to provide counseling and advice to individual employees on these licensing issues."
Conrad could not immediately be reached for comment.
via IFTTT
No comments:
Post a Comment