A bizarre fundraising stunt with a global television audience was being planned by the US-based couple who emptied the broker trust account of Perth authorised representative (AR) company Winley Insurance.

Sources in California have told insuranceNEWS.com.au Steve and Chandanie Godwin employed up to 70 people in the US until earlier this year to set up a website promoting a stunt involving an unnamed “challenger” who would jump from an aircraft in the stratosphere without oxygen or a parachute.

Viewers around the world would pay to vote for various “lifelines” as he fell towards “shark-infested” waters.

The stunt was planned for March, to coincide with World Water Day on March 22, which supports a UN program to promote clean water and water conservation. Money collected from the stunt was to be used to assist in clean water projects.

But the project was shelved in late December, with the website closed down in early January.

The US source was unable to confirm if funds from the trust account had been used to help pay for the elaborate stunt, but commented: “A lot of money was getting thrown around.”

Details on the Godwins’ plans for the “Death Challenge” project can be found in today’s Analysis.

Meanwhile, sources in Perth have told insuranceNEWS.com.au the Godwins, who had invested in Winley, were known to be withdrawing money from the trust fund late last year.

A former Winley AR, who provided information on condition he could remain anonymous, said the company’s sole director, MD Jeff Bailey, told him he had spoken to the Godwins about the withdrawal of funds.

“He [Mr Bailey] advised he had confronted [the Godwins] and they had advised that new investors were coming in and monies would be replaced,” the AR told insuranceNEWS.com.au.

“When I found out about the need to find a new AR [organisation], I was not told the reason why. This only became evident after hearing from other parties… on April 4.”

April 4 was the date on which insuranceNEWS.com.au revealed Winley had collapsed – eight days after we became aware the company was in trouble.

The source says the loss of the money “caused an issue for non-payment of insurers in early 2016 [but] the group continued to pay their ARs, therefore avoiding suspicion from the majority of us”.

The Australian Securities and Investments Commission (ASIC) has declined to confirm to insuranceNEWS.com.au whether it is investigating the matter. But senior insurance managers say their companies have not yet been contacted by ASIC.

It is difficult to ascertain how much has been taken from the Winley trust account by the Godwins, but informal information provided by some insurers supports rumours circulating in Perth that the amount exceeds $7 million.

One senior manager told insuranceNEWS.com.au: “If ASIC is investigating, they haven’t spoken to us. And come to that, we’ve never heard from anyone at Winley that the company is being wound up.”

Mr Bailey’s brokerage and most other Winley ARs have now moved to other AR companies.

Attempts to contact Mr Bailey for comment have been unsuccessful.

Also see ANALYSIS