Zenefits
What Happened
Zenefits used unlicensed brokers to sell insurance. They created a Google Chrome add-on that allowed trainees to bypass the 52-hour requirement for licensing. Multiple investigations were opened across different states.
Signs Missed
Aaron Semaan came to the company already licensed to sell insurance, but was told to hand off leads to unlicensed brokers. He had multiple talks with his boss about it, but the issue went ignored. Multiple employees tried to report up the chain of command to no success.
Estimated Damages:
All information in this case study is based on data that was found on public domain and official public records.