The Australian Securities and Investments Commission (ASIC) has outlined 18 charges against a Melbourne insurance broker, alleging misuse of millions of dollars of client money at a committal hearing today.

Renato De Maria, the sole director of Alliance Insurance Broking Services (AIBS), is charged with the misuse of about $35 million of client money held in trust accounts between July 2016 and April 2021. The offences can incur large fines and a jail term of up to 15 years.   

He was represented at Melbourne Magistrates’ Court by barrister Neil Clelland, KC, while Nicholas Robinson, KC, and Peter Botros appeared for ASIC.  

The charges allege withdrawals were authorised that were ultimately transferred back to Mr De Maria via a third party, by issuing inflated invoices and moving funds between an AIBS trust account and other accounts controlled by Mr De Maria.  

Mr Clelland quizzed ASIC Senior Investigator Andrea Perrywood about a probe she and ASIC Senior Lawyer Hayley Jackson undertook into use of funds at AIBS, and search warrants issued by federal police.   

Twelve of the charges related to clients being charged inflated premiums, Mr Clelland said, while charges one to three related to $7.9 million of misused funds.  

Ms Perrywood told the committal hearing, attended by insuranceNEWS.com.au: “He dishonestly used his position to make this investment with the aim of accessing the funds on the other side and was not disclosing that those funds were directly passed through to himself. If you take away the two intervening entities, you’re looking at a loan to a director, which would not be allowable.”  

PSC Branch Manager Tony Schifitto also appeared as a witness. He said he had worked with Mr De Maria for 17 years and the brokerage had been professionally run. AIBS was acquired by PSC in September 2021. 

Mr Schifitto explained the role of an insurance broker for the court, and gave details of industrial special risks policies, how sums insured apply and how a schedule of assets is compiled.  

In November, ASIC permanently banned Mr De Maria from providing any financial service, controlling an entity that carries a financial services business and performing any function involved in the carrying on of a financial services business.  

The committal hearing continues tomorrow.