Rogue insurance agent gets permanent ban
The Australian Securities and Investments Commission (ASIC) has permanently banned a South Australian insurance broker for a series of deceptions, which included collecting and keeping client premiums intended for insurance contracts.
The banning of Dominic (Don) Romeo follows an ASIC investigation into his conduct relating to dealings in insurance products, both as an agent in the Adelaide suburb of Fullerton and since he ceased to be an agent.
He received payments from clients as premiums for contracts of insurance but did not forward the premiums to his principal and in some instances did not arrange contracts of insurance.
ASIC found Romeo engaged in misleading and deceptive conduct as an agent of an insurance broker between June 24, 2002 and January 9, 2004.
ASIC also found that between January 10, 2004, and July 31, 2004, Romeo again engaged in misleading and deceptive conduct, after his role as an agent of Guardian Insurance Brokers was terminated.
He contravened the Corporations Act by arranging insurance contracts under the name Arkaba Insurances, while not holding an Australian Financial Services (AFS) Licence or being an authorised representative of an AFS licence holder.
During this period he solicited premiums from prospective clients while knowing the premiums would not be used to pay for their insurance.
Earlier this year ASIC obtained a Federal Court order against Romeo, requiring him to pay damages of $37,252 to former clients for payments received by him for insurance policies which were not effected.
The ban, which can be appealed to the Administrative Appeals Tribunal, prohibits Romeo from receiving money from clients for insurance premiums or arranging insurance for any persons until further direction from the Federal Court.
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