A Victorian insurance claims manager has been permanently banned from providing financial services after an investigation by the regulator found he fraudulently pocketed more than $1 million.
Travers David Loy of Heathmont, Victoria, was the national claims manager of ATC Insurance Solutions, a Melbourne-based insurance agent and holder of an Australian Financial Services Licence.
An Australian Securities and Investments Commission (ASIC) investigation found that Loy fabricated and submitted 38 false claims for predominantly income protection claims.
These claims enabled him to receive fraudulent payments totalling $1,224,936.15 between June 17, 2010 and May 22, 2012.
The misappropriated funds were sourced from trust accounts held by ATC on behalf of its underwriters. ASIC’s investigation established that $967,221.74 was directed to Loy’s bank accounts including his own business, Callejon Cafe in Collingwood, and to other people associated with him.
Deputy chairman of ASIC Peter Kell said individuals who worked for licensed insurance intermediaries hold a position of trust and are accountable for their actions.
“This matter shows a blatant disregard to the basic principles associated with being a trusted financial services provider. ASIC will remove individuals from the industry if they fail to comply with financial services laws and breach their employers’ trust,” he said.
In permanently banning Loy, ASIC found reason to believe that he was not of good fame or character.
He has the right to appeal to the Administrative Appeals Tribunal for a review of the decision.
