Former insurance broker receives second ban
A former insurance broker banned from providing financial services in 2013 has also been banned from engaging in credit activity after action by the Australian Securities and Investments Commission (ASIC).
Leroy Bowmaker, the former director of All Class Insurance Brokers Pty Ltd based in Castle Hill, NSW was banned by ASIC from engaging in credit activity after it found he was not a fit and proper person to engage in credit activities.
ASIC found that between 2011 and 2012, Bowmaker misused more than $640,000 of client insurance premium funds and made dishonest representations to underwriters to explain All Class' non-payment of client insurance premiums.
ASIC also found he failed to pass on over $330,000 in insurance premiums, meaning a client had no insurance in place and suffered loss when attempting to claim on the policy and that he submitted 12 false applications for loans to pay insurance policy premiums, where the insurance policies did not exist or were cancelled soon after the loan application was approved, and none of the loan funds received were actually used to pay for the insurance policies specified.
ASIC stated he lacked the competence to engage in credit activities and became bankrupt, in part, as a consequence of his involvement with All Class.
All Class had both its Australian financial services (AFS) licence and Australian credit licence (ACL) cancelled in May 2013 after the business went into liquidation with Bowmaker the sole responsible officer of All Class' AFS licence and the sole key person identified in All Class' ACL. ASIC then permanently banned Bowmaker from providing financial services on 2 July 2013.
Bowmaker has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision in regards to his banning from engaging in credit activity.
AUTHOR
Jason Spits
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