The FSA has banned and fined a former commercial insurance broker £472,000 for using client’s insurance premiums to fund his business.
Between 2008 and 2010, Stephen Goodwin, a partner at brokerage Goodwin Best in Bury took insurance premiums from clients but sometimes paid these into a business account rather than to the appropriate insurer or intermediary to arrange the policy.
The FSA says the fine is one of the largest ever levied on an individual for insurance fraud.
In total, Goodwin and his now deceased business partner took £303,846 from at least three clients. One client tried to make a claim and found they were uninsured while two others paid their premiums twice.
The clients in question are now in contact with the Financial Services Compensation Scheme.
FSA acting director of enforcement and financial crime Tracey McDermott says: “These are dishonest breaches; Goodwin posed a risk to consumers and the financial system more widely and now he is paying a very heavy price.”