Victorian insurance broker Kalman Gradman, trading under the name Gradman Insurance, and later Icon Insurance Agencies, has been sentenced to 21 months’ jail, fully suspended, and fined $10,000.

He pleaded guilty in the County Court to two charges brought by the Australian Securities and Investments Commission (ASIC), which said he obtained premiums from clients or premium funders but failed to pass on the money to the relevant insurer. Between April 2002 and August 2004, he dishonestly used $130,769 of insurance premiums for his own purposes.

A further charge involved Mr Gradman dishonestly obtaining $3933 in premium funding by claiming Gradman Insurance had taken out insurance when this was not the case.

ASIC has permanently barred Mr Gradman from providing financial services.