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Income-protection broker is jailed for £200k fraud

A broker specialising in income protection was sentenced to six months in

jaillast week after admitting fraudulent trading.

Andrew William Hill, sole director of broker Denis Hilton appeared at the

Old Bailey after magistrates at the City of London magistrates courts

decided last month that their powers of sentencing were insufficient.

Hill had admitted the misuse of monies intended for the insurance broking

account paid as premiums to insurance companies. The prosecution said the

shortfall amounted to just over £200,000.

The court heard how Hill, 30, ignored his legal obligation to insurers and

invested the cash in various ventures, including an investment firm and a

car leasing scheme, all of which failed.

In mitigation, Hill&#39s solicitor said it was the defendant&#39s insistence on

entering his staff into a PAYE scheme rather than insisting they go

self-employed which put the company in financial difficulties from the

start.

Detective Constable Tony Freeman of Wood Street station in London worked

on the case for two years. He was disappointed with the outcome. “It is not

a lot for the amount of money that was involved,” he said.

Denis Hilton collapsed in 1998. It was then that the liquidator discovered

financial irregularities. Hill has since been declared bankrupt.

Canada Life is gearing up to launch what it claims will be its most

innovative financial product on the market.

The life office has spent over a year developing what it refers to as a

“revolutionary pension annuity solution”. The consultation process has

included spending two months of intense negotiations with the FSA and the

Inland Revenue.

It says the feedback has influenced its solution to turn a pension into an

attractive income scheme but is keeping the details under wraps.

It recently revealed the product will not be a unit-linked annuity, a with-profits annuity or a drawdown plan.

Head of IFA division Neil Stevens says: “This is the most exciting and

important launch Canada Life has ever planned. Our roadtest with select

IFAs has revealed total disbelief that no one has thought of this idea

earlier. Our new product will have no rivals.”

The product is due to be launched on May 31.

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