The FSA says Synergys Ethical Limited director Mark Hazelwood, based in Whitwell, failed to pass on premiums to insurers when policyholders made a claim.
Further investigation showed that Hazelwood had failed to pass almost £360,000 in customers’ premiums, and a further £25,000 of premiums while operating under a new unauthorised business called Aquote.
Synergys arranged locum insurance for doctors across the UK.
FSA director of enforcement and financial crime Margaret Cole, says: “Hazelwood deliberately and dishonestly deceived his customers into believing they had purchased insurance policies when in fact he kept their premium payments himself.
“It is clear from Hazelwood’s behaviour that he never intended to pass on the premiums, but sought to obtain money from his customers under false pretences and for his own personal gain.
“The FSA will not tolerate people like Hazelwood. He has neither the integrity nor honesty to operate in this industry.”
Hertfordshire Police Fraud Squad are currently conducting their own investigation into Hazelwood and his business activities.