Swift action by Dual Australia has ensured the company will recover most of the $17 million allegedly misappropriated in a complex fraud carried out in the company’s Melbourne office.

The Herald Sun reported this morning that Dual’s Melbourne-based National Claims Manager, Josie Gonzalez, and her husband Alvaro engaged in a fraud that netted them $17 million in two years.

Dual International CEO Damien Coates told insuranceNEWS.com.au this morning that the misappropriation was discovered through the company’s internal procedures and was shut down immediately.

“Within 24 hours of hearing of the fraud I was in Melbourne to assemble a team of lawyers, barristers, forensic experts and fraud investigators,” he said. “We obtained civil orders from the Victorian Supreme Court which enabled us to quickly locate and secure assets in order to recover the funds.

“I am personally handling this issue, and it is my priority. It’s a horrible thing to have happened.”

Mr Coates says that once Dual’s internal procedures brought the fraud to light “we responded quickly to lock the situation down”.

“It was a well-hidden fraud which involved the establishment of complex processes to hide it.”

He says the fraud “was committed by one person in our Melbourne office who had worked with a third-party service provider for many years before joining our company”.

No policyholder money was involved “and with the swift action taken we are confident there will be no financial impact on Dual or our capacity providers”.

Ms Gonzalez joined Dual Australia in November 2010 and her employment was terminated last month. CEO Peter Bailey says in an affidavit presented to the court that she was “a hardworking and trusted employee”.

The civil action brought by Dual has resulted in the freezing of the Gonzalez’ assets, including $6 million in bank accounts, a $4.4 million house and a $600,000 townhouse.

insuranceNEWS.com.au understands more than $5 million tax was paid by JAAG Lawyers, a law firm allegedly set up by Mr and Ms Gonzalez to handle fake invoices for legal services.

Affidavits presented to the Victorian Supreme Court say the amounts on the 430 invoices presented by the law firm ranged from $5000 up to $100,000.

More details in our Monday bulletin.