A former Sydney insurance broker, Mr James Sheehan, has been permanently banned from providing financial services after an ASIC investigation found he had engaged in dishonest conduct and is not of good fame or character.

ASIC has also permanently banned Mr Sheehan from engaging in credit activities after the investigation found he is not a fit and proper person.

ASIC found between 1 March 2016 to 17 November 2017, Mr Sheehan engaged in dishonest conduct by instructing his clients to pay insurance premiums into accounts controlled by him and used premiums for his personal benefit. It is estimated that Mr Sheehan misappropriated over $300,000.

ASIC also found that Mr Sheehan had further engaged in misconduct by cancelling client invoices after receiving insurance premiums so that the licensee could not uncover his dishonesty. The clients were then left uninsured, with their businesses and third parties at significant risk. On one occasion he provided a false certificate of currency to a client in an attempt to conceal his dishonest conduct.

Mr Sheehan was the sole director, shareholder and only employee of Allcover Insurance Pty Ltd (Allcover). Allcover and Mr Sheehan were authorised representatives of an insurance broker from 7 October 2015 to 22 November 2017.

Mr Sheehan has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Mr Sheehan’s banning will be reflected on ASIC’s Banned and Disqualified Persons Register.

The matter was referred by United Insurance Group to police for investigation.

ASIC’s MoneySmart website has information for consumers about how to complain if they’re unhappy about the service they’re receiving or suspect dishonest conduct.