Adviser pleads guilty over life insurance scam

A former financial adviser has pleaded guilty to a scam where he wrote life insurance policies for fictitious people.

Pavan Vyas, of West Pennant Hills in Sydney, has already been banned for life from the financial services industry over the charges, known as tombstoning.

When the offences occurred, Vyas was an authorised representative of financial advisory companies Lionsgate Financial Group Pty Ltd and HNW Planning Pty Ltd and in that capacity arranged insurance cover for clients.

Downing Centre Local Court heard Vyas submitted 15 false life insurance applications between June 2012 and March 2013, earning himself more than $240,000 in commissions.

Along with the false applications, he falsified other documents such as emails from the fictitious clients.

He pleaded guilty to two charges of dishonest conduct and faces up to 10 years jail or a $450,000 in fines for each offence.

He has been released on bail.

NIBATV spoke to ASIC recently about the recent spate of broker prosecutions. View the video here.