The UK Financial Services Authority (FSA) has fined a broker £195,117 ($308,000) for insurance fraud and banned him from carrying on regulated financial services.

John Folan was a director and adviser at a small mortgage and insurance brokerage in Brentwood, Essex between January 2008 and September 2009 when he submitted at least 54 applications for life insurance policies in his name, his wife’s name and the names of family members. They were unaware of the applications.

He provided his own bank account details so premiums could be debited and when his money began to run out he took out further policies to secure more commission to cover the payments. The process of “churning” made the providers suspicious and they contacted the FSA.

The penalty comprises a £70,000 ($110,000) fine and the recovery of £125,117 ($197,000) which is effectively a fine estimated to be equal to the amount gained through misconduct – in this case commission payments.