Former broker Renato De Maria today pleaded not guilty to charges he issued inflated insurance premium invoices to corporate customers and misused millions of dollars held in trust accounts. 

Mr De Maria, from Melbourne, will next appear at a directions hearing at Victoria’s County Court on May 21. 

The Australian Securities and Investments Commission (ASIC) has made 18 charges against the former sole director of Alliance Insurance Broking Services (AIBS), related to the alleged misuse of about $35 million of client money between July 2016 and April 2021.   

It is alleged withdrawals were authorised that were ultimately transferred back to Mr De Maria, and that over three years to February 2019, he used his position dishonestly to “gain advantage for himself, namely $14.71 million”. 

The offences can incur large fines and a jail term of up to 15 years.  

In November, ASIC permanently banned Mr De Maria from providing any financial service. The regulator has previously said AIBS, which was sold to PSC for $24.5 million in September 2021, invested $7.9 million of client money into an account held by Clients Link Investments, which shares the same director as Fair Link Investments – the lender of at least $7.9 million to Mr De Maria.   

ASIC investigated whether this was “an arm’s length investment arrangement” and said it appeared to have been arranged by Mr De Maria to enable him to borrow funds from those entities for personal use by him and his wife, and to be “misused by Mr De Maria for his personal benefit”. 

It lists payments from Fair Link to Mr De Maria in February 2018 ($2.5 million), March 2019 ($2.4 million) and May 2019 ($3 million). 

ASIC Senior Investigator Andrea Perrywood told a Melbourne Magistrates’ Court committal hearing attended by insuranceNEWS.com.au the broker had “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.” 

The charge sheet alleges payments for inflated insurance invoices were obtained in June 2017 from the Bradica Group for $130,810, then in June 2018 for $163,940, in June 2019 for $177,365, and mid-2020 for $164,858.  

Inflated insurance premium invoices of $347,203, $294,079 and $343,164 were also paid by CVA Property Consultants, while Liuzzi Property Group paid $529,770, $497,913, $468,241 and $475,428 over four years, it is alleged. Another AIBS client, the Mantzis Family Group, paid $213,847 in 2019 and $253,527 in 2020. 

ASIC earlier obtained urgent interim orders in the Federal Court restraining Mr De Maria from transferring funds from five business accounts, including those called Cash Maximiser and Porsche Trust, or disposal of property “to preserve assets for the benefit and protection of AIBS’ insured clients and insurance providers”.  

Magistrate Brett Sonnet said today the matter is “obviously a very difficult case” and praised the experience of counsel on both sides. “I’m grateful for the assistance provided by both parties and the way you have conducted yourselves.”