Man admits $4 million insurance scam
Victorian businessman Timothy John McKenzie has pleaded guilty to five charges of deceptive conduct and theft relating to insurance premium payments of over $4 million.
He pleaded guilty in the Melbourne County Court last week to two charges of theft and three charges of obtaining a financial advantage by deception.
The Australian Securities and Investments Commission (ASIC) brought the charges after an investigation uncovered a series of offences between December 2003 and June 2004.
The regulator says Mr McKenzie used “company bank accounts to receive premiums for insurance coverage arranged by him and misappropriated company funds”.
Mr McKenzie was a director of EBS Consulting and EBS Holdings at the time. ASIC says he obtained a financial advantage for EBS Consulting of about $3.6 million in insurance premiums “by falsely representing that these premiums were due to be paid to Lloyd’s of London by a company involved in the leasing of computer and electronic equipment”.
The regulator also alleged Mr McKenzie collected premiums worth $990,000 from customers intending to insure financed computer equipment by “falsely representing that the insurance policies were covered by an insurance underwriter”.
ASIC valued the misappropriation of company funds at $440,000.
Boronia-based Mr McKenzie was bailed to appear in the Melbourne County Court for a plea hearing on March 31 next year.
He pleaded guilty in the Melbourne County Court last week to two charges of theft and three charges of obtaining a financial advantage by deception.
The Australian Securities and Investments Commission (ASIC) brought the charges after an investigation uncovered a series of offences between December 2003 and June 2004.
The regulator says Mr McKenzie used “company bank accounts to receive premiums for insurance coverage arranged by him and misappropriated company funds”.
Mr McKenzie was a director of EBS Consulting and EBS Holdings at the time. ASIC says he obtained a financial advantage for EBS Consulting of about $3.6 million in insurance premiums “by falsely representing that these premiums were due to be paid to Lloyd’s of London by a company involved in the leasing of computer and electronic equipment”.
The regulator also alleged Mr McKenzie collected premiums worth $990,000 from customers intending to insure financed computer equipment by “falsely representing that the insurance policies were covered by an insurance underwriter”.
ASIC valued the misappropriation of company funds at $440,000.
Boronia-based Mr McKenzie was bailed to appear in the Melbourne County Court for a plea hearing on March 31 next year.