Broker banned for insurance fraud
The Financial Services Authority (FSA) has fined John Folan £195,117 for insurance fraud and prohibited him from carrying on regulated financial services activities.
The penalty comprises a £70,000 fine and a disgorgement of £125,117 which Mr Folan obtained through commission when working as a director and adviser at Brentwood-based Key Mortgage Associates.
Between January 2008 and September 2009, he submitted at least 54 applications for life assurance and protection policies in his name, his wife’s name and in the name of family members, making the applications without their knowledge and sometimes forging signatures.
In each case Mr Folan provided his own bank account details for direct debit payments.
Ostensibly, Mr Folan aimed to keep up with the premiums, but when his money began to run out he took out further policies to secure more commission to make up the outstanding payments.
Providers eventually became suspicious and contacted the FSA.
The regulator’s head of retail enforcement, Tom Spender, comments: ”Folan took advantage of his position as an FSA approved individual for his own personal gain, and at the same time took advantage of his close family.”
He adds: “Anybody working in the industry who is tempted to commit any type of insurance fraud should note the consequences of their actions.”
Category: Financial Services Authority News
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