Banned insurance broker gets jail sentence

A former South Australian insurance broker has been sentenced in the Adelaide District Court after pleading guilty to three charges.

Craig John Horsell was fined $75,000 and sentenced to three years in jail, to be released immediately upon entering into a three-year good behaviour bond.

He pleaded guilty in November to three charges of dishonestly using his position to authorise payments totalling $414,299.87 into his personal bank account

The charges arose from the Australian Securities and Investments Commission’s investigation of his conduct as an employee and/or director of Horsell International Pty Ltd (HIPL) and PSC Horsell Insurance Brokers Pty Ltd (PHIB) between January 2007 and July 2010.

ASIC’s investigation found that Horsell acted dishonestly when he authorised the transfers of 89 insurance premium payments from clients into his personal bank account during this time.

He did not purchase the insurance products requested by the clients.

Deterrent to dishonesty

ASIC deputy chairman Peter Kell said participants in the financial services industry must act honestly and in the best interests of their clients.

‘The sentencing of Mr Horsell, and his previous banning from providing financial services, should serve as a deterrent to any financial adviser tempted to deceive their clients or otherwise act dishonestly,” Kell said.

In January 2012, ASIC permanently banned Horsell from providing financial services, finding that his actions could have had a detrimental impact on a client if a loss had occurred while they were uninsured.

Horsell’s conduct was brought to ASIC’s attention by HIPL, which cooperated fully with the investigation.

HIPL and PHIB have recovered all outstanding funds and all insurance covers that were suspected of either being fabricated or compromised by Horsell’s conduct have been placed or reinstated.