The Upper Tribunal has upheld the decision of the Financial Conduct Authority (FCA) to ban Andrew Jeffery and fine him one of the largest ever fines imposed on a broker for insurance fraud.
The tribunal issued the judgement today following hearings last December and in January, however Jeffery may still appeal.
It upheld the FCA's decision to fine Jeffries, the director of Jeffery Flanders (Consulting) Limited, and fine him £150,000.
The tribunal accused Jeffery of showing "reckless disregard for the interests of his clients, which came a very poor second to his own".
It found that the broker had retained clients' premiums without passing the premiums on to the underwriter.
This had resulted in some clients not actually getting the household and motor insurances they had paid for.
Jeffery also arranged for letters to be sent to insurers, pretending they had come from his clients, meaning that underwriters were obliged to meet claims even though they had never received any premiums, the tribunal said.
It said: "In our view Mr Jeffery displayed a wholly unacceptable lack of integrity in his dealings with the clients whose cases we have considered, and with other professionals in the insurance market. Far from demonstrating a high standard of conduct, his conduct was of the basest standard."
Jeffery further sought to evade the FCA's requirements for information, the FCA claimed.
The broker had its permission cancelled on 20 January 2010.
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