A former Sydney insurance broker has been permanently banned from providing financial services after an ASIC investigation found he had engaged in dishonest conduct.
According to the financial regulator, James Sheehan – the sole director, shareholder and employee of Allcover Insurance – had been instructing his clients to pay premiums into accounts controlled by him.
Sheehan then used the premiums, worth a combined total of around $300,000 for his own benefit.
ASIC also found that Sheehan had cancelled client invoices after receiving insurance premiums so the licensee could not uncover his dishonesty. The clients were then left uninsured, with their businesses and third parties at significant risk.
On one occasion, he provided a false certificate of currency to a client in an attempt to conceal his dishonest conduct.
ASIC also permanently banned Sheehan from engaging in credit activities after the investigation found he is not a fit and proper person and is not of good fame or character.
While Sheehan has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision, his banning will be reflected on ASIC’s Banned and Disqualified Persons Register.
The matter was referred by United Insurance Group to police for investigation.
