A former Victorian insurance agent and broker has pleaded guilty to two counts of dishonesty following an investigation by the Australian Securities and Investments Commission (ASIC).
ASIC alleged that between 2002 and 2004, Kalman Gradman engaged in dishonest conduct in relation to a financial product while operating a financial services business.
Specifically, that he received insurance premiums from clients and insurance premium funders but failed to pass these onto the insurer within the prescribed time limit, that he claimed insurance contracts were in force when they were not, and that he misappropriated insurance premiums held in trust.
ASIC also contended that Gradman used his position as the director of Gradman Insurance to obtain almost $4,000 in insurance premium funding for fake policies.
Gradman will appear in Melbourne County Court for a plea hearing on March 1, 2007.
In May, 2005, ASIC permanently banned Gradman from providing financial services.
