A former director of Queensland-based insurance broker Allstate Insurance has been convicted on 14 counts of fraud and sentenced to 18 months’ jail, to be suspended for two years.

The Australian Securities and Investments Commission (ASIC) investigated Peter John Mason’s conduct when he was a director of Allstate Insurance during 2001. The investigation focused on premiums paid by 11 clients that should have been sent to insurance underwriters. However, he failed to do so.

As a result, some underwriters terminated some insurance policies unbeknown to the clients. The policies covered motor vehicles, dwellings and businesses.

In January 2002, ASIC alerted about 740 clients in writing. At this time, Allstate went into voluntary administration, and a month later it went into liquidation.