FSA bans director for swindling clients out of £400k. The FSA has banned an insurance company director for deceiving customers out of almost £400,000. The Hertfordshire-based director was banned for lying to his customers, lying to the FSA and failing to pass on insurance premiums.
Mark Hazelwood operated Synergys Ethical Limited from Whitwell in Hertfordshire but his customers were located across the UK due to the specialised nature of his business, which focused on arranging locum insurance for doctors.
Synergys was referred to enforcement when the FSA became aware that one of Mr. Hazelwood’s customers had attempted to make a claim on their policy, but received no payment.
Mr. Hazelwood ignored any attempt at contact by his clients, a fact borne out by computer email evidence later seized.
Further investigation showed Mr. Hazelwood had failed to pass to insurers almost £360,000 in customers’ premiums.
In October 2008 the FSA took action to stop Synergys’ regulated business and issued a consumer alert warning the firm was no longer permitted to conduct any regulated activities.
In addition, a search of Mr. Hazelwood’s residential and business addresses uncovered documents regarding a new unauthorised business called Aquote.
Evidence showed Mr. Hazelwood had failed to pass on a further £25,000 of customers’ premiums to insurers.
Mr. Hazelwood has now been banned from performing any regulated activity in the financial services industry as he was deemed to be lacking the honesty and integrity required to hold this type of position.
Meanwhile, the Hertfordshire Police Fraud Squad are currently conducting their own investigation into Mr. Hazelwood and his business activities.
Margaret Cole, director of the enforcement and financial crime division at the FSA, said: “Mr. Hazelwood deliberately and dishonestly deceived his customers into believing they had purchased insurance policies when in fact he kept their premium payments himself.
“It is clear from Mr. Hazelwood’s behaviour that he never intended to pass on the premiums, but sought to obtain money from his customers under false pretences and for his own personal gain.
“The FSA will not tolerate people like Hazelwood. He has neither the integrity nor honesty to operate in this industry.”
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