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ASIC Bans Insurance Broker

ASIC has permanently banned a general insurance broker for dishonest conduct.

The regulator announced this week it had permanently banned James Sheehan from providing financial services after its investigation found he had engaged in dishonest conduct and is not of good fame or character.

ASIC reports it found that between 1 March 2016 and 17 November 2017, Sheehan engaged in dishonest conduct by instructing his clients to pay insurance premiums into accounts controlled by him and used premiums for his personal benefit. It is estimated that Mr Sheehan misappropriated over $300,000.

ASIC says it also found that Sheehan had further engaged in misconduct by cancelling client invoices after receiving insurance premiums so that the licensee could not uncover his dishonesty. The regulator said this left clients uninsured, with their businesses and third parties at significant risk. On one occasion, ASIC says Sheehan provided a false certificate of currency to a client in an attempt to conceal his dishonest conduct.

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