A claims manager who stole almost $1.3 million and a broker whose firm went bust have both been banned from the industry for life, in a busy week for ASIC.
The corporate regulator permanently banned Travers David Loy from providing financial services after an investigation found he fraudulently received $1.225 million over a two year period, while working as the national claims manager of Melbourne’s ATC Insurance Solutions.
ATC submitted a breach report to ASIC in May 2012 upon discovering the fraud and assisted ASIC in an investigation that found Loy fabricated and submitted 38 false claims, mainly for income protection claims.
The funds were directed to his own bank accounts, including those associated with Loy’s own business, Callejon Café in Collingwood.
ASIC Deputy Chairman Peter Kell says: “This matter shows a blatant disregard to the basic principles associated with being a trusted financial services provider.
“ASIC will remove individuals from the industry if they fail to comply with financial services laws and breach their employer’s trust.”
ASIC has also permanently banned Leroy Bowmaker, formerly Managing Director of All Class Insurance Brokers, from providing financial services.
The NSW brokerage went into liquidation in April with debts of around $2 million.
In a statement, ASIC said it had concerns about Bowmaker’s conduct during his role as Managing Director of All Class, and ultimately found that he was not competent to provide financial services.
All Class, which offered a range of personal and business insurance services as well as marine and auto insurance and claims management, was previously a member of Steadfast.
Meanwhile, a Sydney financial adviser has been permanently banned from the industry after an elaborate fraud involving life insurance policies for fictitious clients.
An ASIC investigation found Pavan Vyas, who worked as an authorised representative for Lionsgate and HNW Planning, had submitted 12 applications for life insurance policies in the names of non-existent people, along with three in names of friends without their consent.
Known as tombstoning, the practice exploits the large advance commissions life insurance agents can receive for signing up new policies.
As well as false applications, Vyas falsified other documents to support the applications, including emails from the fictitious clients.
Kell says: “ASIC is about ensuring gatekeepers like financial advisers do the right thing and are held to account.
“When they fall short, ASIC will take direct enforcement action.”
Each of the three men can appeal their bans at the Administrative Appeals Tribunal.
In May, an SA broker was sentenced to three years jail after dishonestly authorising payments of almost $415,000.