ASIC has permanently banned former national claims manager of ATC Insurance Solutions, Travers David Loy, from providing financial services after the regulator found he fraudulently pocketed more than $1m.
ASIC’s investigation found that Loy fabricated and submitted 38 false claims for predominantly income protection claims while at ATC. These claims enabled him to receive fraudulent payments totalling $1,224,936.15 between 17 June 2010 and 22 May 2012.
The misappropriated funds were sourced from trust accounts held by ATC on behalf of ATC’s underwriters. Around $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.
In permanently banning Loy, ASIC found reason to believe that he was not of good fame or character.
The matter was brought to ASIC’s attention in May 2012 ATC submitted a breach report to ASIC upon discovering the fraudulent practices that had been undertaken by Mr Loy.
Loy resigned from his position at ATC in June 2012. ATC assisted ASIC during its investigation.
Deputy chairman Peter Kell said individuals that 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 employer’s trust”, Kell said.
Loy has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
ATC was unavailable for comment as the story went to press.