FSA fines and bans Scottish broker
by Gill Montia
Story link: FSA fines and bans Scottish broker
The Financial Services Authority (FSA) has fined Donald McKee Morgan, a partner in the firm of Donald Morgan Insurance Services (DMIS), £335,204 for insurance fraud.
Mr Morgan, whose business was based in Ayrshire, Scotland, has also been banned from carrying out any regulated financial services activity in the future, as has his wife and sole partner at DMIS, Janet Morgan.
While Mrs Morgan took no active part in the affairs of the firm, she failed to notice her partner’s fraudulent activity.
An FSA investigation found that premium payments, which should have been paid to Network A, were kept by Mr Morgan who covered his tracks by falsifying monthly reports and manipulating computer systems.
Eventually, he informed the FSA of his misconduct in August 2010, after realising that he was not going to be able to repay the money he had misappropriated.
According to the FSA, clients were never left uninsured but Network A suffered significant financial loss as a result of Mr Mogan’s actions.