A Sydney-based company director who sold insurance has been banned from managing corporations for eight years under action brought to the Federal Court by the Australian Securities and Investments Commission (ASIC).

Gaby Haddad will not be entitled to hold such a position until 2014, and he has been permanently restrained from selling or offering insurance products to consumers.

The Federal Court declared Mr Haddad and his company Liban Net had deliberately misled consumers about the nature and extent of the insurance he sold and had breached provisions of the Corporations and ASIC Acts.

ASIC determined the company issued about $350,000 of car insurance cover notes from January 2004 until July last year and operated without a licence or registration. Liban Net also made false statements to clients that well-known insurers were underwriting its business.