The Australian Securities and Investments Commission has permanently banned the former director of All Class Insurance Brokers, Leroy Bowmaker, from engaging in credit activity.

It says in 2011/12 he misused more than $640,000 of clients’ insurance premium money and made dishonest representations to underwriters to explain why All Class had not remitted the money.

He failed to pass on more than $330,000 in premiums, meaning clients had no insurance in place and could have suffered loss when attempting to make a claim.

Mr Bowmaker submitted 12 false applications for loans to pay premiums. The insurance policies did not exist or were cancelled soon after the loan applications were approved.

No loan funds received were used to pay for insurance.

The regulator says Mr Bowmaker “lacked the competence to engage in credit activities”.

In July 2013 it permanently banned him from proving financial advice, and he became bankrupt in February last year.

Castle Hill-based All Class, a Steadfast member, went into liquidation in May 2013. The regulator cancelled its Australian financial services licence at the same time.