The Australian Securities and Investments Commission (ASIC) has laid insurance fraud charges relating to more than $5 million against former EBS Holdings Director Timothy John McKenzie.

Mr McKenzie, of Ringwood in Victoria, is facing seven charges of dishonestly obtaining a financial advantage, three counts of theft and three counts of dishonestly using his position with the intention of gaining an advantage.

Melbourne Magistrates Court was told last week that Mr McKenzie arranged insurance cover for an IT company with a $3.5 million premium owing to Lloyd’s, when the cover was not underwritten or was significantly different to what the company thought it was purchasing.

He is also alleged to have raised about $1.1 million through a website he created for businesses seeking computer insurance. ASIC claims he told clients insurance policies were underwritten by Hollard Insurance or Lloyd’s, when there were not.

He is due to reappear in court on May 15.