NSW broker ‘lucky’ over fake policies
A NSW insurance broker who sold fraudulent policies to sporting organisations is a lucky man, according to a leading consumer protection advocate.
Scot Weston circulated fake Lloyd’s policies to sporting organisations purporting to carry coverage of $30 million. Last week he was sentenced in the Downing Centre District Court in Sydney to 300 hours community service and placed on a $500 two-year good behaviour bond.
The Australian Securities and Investments Commission (ASIC) provided evidence that six years ago Mr Weston distributed the false policies to a number of go-kart operators and the NSW Department of Tourism, Sport and Recreation. At the time he was working as an independent contractor for Hirtes Insurance Brokers.
NSW Consumer Action Law Centre Director of Policy and Campaigns Nicole Rich told insuranceNEWS.com.au she isn’t aware of any mitigating circumstances, but says Mr Weston is lucky no claim arose.
“The potential risk was massive,” she said. “What if a consumer had gone to one of those go-kart tracks and was maimed or killed? If a go-kart operator wasn’t able to pay compensation then someone would probably have been in a pretty desperate situation.”
Ms Rich says it’s crucial that consumer protection laws are strictly upheld and those in breach are penalised accordingly.
“ASIC did the right thing spending taxpayer money on the prosecution, and their reward was a light sentence,” she said. “It’s not encouraging for future prosecution considering we want regulators to take these matters to court.”
ASIC brought four charges against Mr Weston after an investigation prompted by several Australian insurers and Lloyd’s. In April he pleaded guilty to four charges of dishonest conduct.
Scot Weston circulated fake Lloyd’s policies to sporting organisations purporting to carry coverage of $30 million. Last week he was sentenced in the Downing Centre District Court in Sydney to 300 hours community service and placed on a $500 two-year good behaviour bond.
The Australian Securities and Investments Commission (ASIC) provided evidence that six years ago Mr Weston distributed the false policies to a number of go-kart operators and the NSW Department of Tourism, Sport and Recreation. At the time he was working as an independent contractor for Hirtes Insurance Brokers.
NSW Consumer Action Law Centre Director of Policy and Campaigns Nicole Rich told insuranceNEWS.com.au she isn’t aware of any mitigating circumstances, but says Mr Weston is lucky no claim arose.
“The potential risk was massive,” she said. “What if a consumer had gone to one of those go-kart tracks and was maimed or killed? If a go-kart operator wasn’t able to pay compensation then someone would probably have been in a pretty desperate situation.”
Ms Rich says it’s crucial that consumer protection laws are strictly upheld and those in breach are penalised accordingly.
“ASIC did the right thing spending taxpayer money on the prosecution, and their reward was a light sentence,” she said. “It’s not encouraging for future prosecution considering we want regulators to take these matters to court.”
ASIC brought four charges against Mr Weston after an investigation prompted by several Australian insurers and Lloyd’s. In April he pleaded guilty to four charges of dishonest conduct.