Insurance broker pleads guilty to theft
Former Armidale-based insurance broker, John Murray Murnane has pleaded guilty to charges of theft, being an unregistered insurance broker and operating a business while bankrupt.
The charges follow an investigation by the Australian Securities and Investments Commission (ASIC).
The Melbourne Magistrates' Court heard that in October 1998, Murnane was asked to arrange insurance on a client's behalf, and was paid a premium to place the cover. The Court was told that the insurance was never paid, and that Murnane failed to return the client's money despite many requests.
The Court also heard that Murnane had been operating as an insurance broker despite not being registered by ASIC since 1996, and that he has been bankrupt since April 1998.
John Murray Murnane also pleaded guilty to breaching the conditions of a two month suspended sentence he received in 1998 as a result of charges put in place by the Victorian Police over a similar incident.
The matter has been adjourned, pending sentence.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
