Former insurance agent banned for life

A former travelling insurance agent has been banned for life from providing financial services and sentenced to seven months in jail after defrauding several of his clients, following action initiated by the Australian Securities and Investments Commission (ASIC).

ASIC alleged that the man, John Ovens, who had also operated his own financial services business called Southern Cross Associates, worked as a travelling insurance agent and offered insurance premiums for homes, contents, commercial buildings and public liability insurance to licensed premises and individuals in country New South Wales and Victoria.

Ovens issued false tax invoices to clients, which most of the clients regarded as a confirmation that an insurance policy was in place, ASIC said. These false tax invoices outlined the total cost of the insurance premiums and listed the insurer that had underwritten the insurance policy.

Ovens failed to pass on the insurance monies and purchase insurance premiums for his clients. Instead, he transferred the payments to his own bank accounts for his personal use.

NSW Police had laid a number of charges in May 2010 and Ovens pleaded to 47 fraud charges. ASIC confirmed he was currently serving his seven-month jail sentence.

Neither Ovens nor his company held an Australian Financial Services Licence (AFSL), nor were they authorised representatives of AFSL holders.