A broker from Camden, NSW, has been given a suspended sentence after ASIC brought 10 charges against him under the Agents & Brokers Act. Graham Apolony, a former director of East Coast Insurance Brokers (NSW), pleaded guilty to the charges and was sentenced to 12 months jail on each charge, to be served concurrently. The sentence was suspended upon him entering a good behaviour bond for five years.

East Coast is understood to have no association with companies operating under the same name in Brisbane and Noosa.

The charges came about after an ASIC investigation revealed that East Coast’s insurance broking account was in deficit, and its liabilities to insurance companies and underwriters were greater than the assets held in the IBA.

ASIC said that between September 1999 and March 2000 East Coast received $11,905 in insurance premiums from various clients and failed to remit the premiums to the relevant insurance company. Between January 31 and March 2, 2000, East Coast also failed to ensure that at all times the balance of funds in the IBA was greater or equal to the amount owed to the relevant insurance company.

ASIC has previously obtained orders in the NSW Supreme Court to wind up East Coast and ban its directors, Graham and Pamela Apolony, from managing a corporation for five years without leave of the court.