Australian Insurance Broker Found Guilty of Dishonest Conduct

The Australian Securities and Investments Commission said Brendan Maxwell Manion, former director of a domestic insurance broker, was found guilty on six counts of dishonest conduct related to financial products and services, as well as two counts of failure to provide written particulars of fees and charges.

ASIC said that Manion was the sole director and principal of Brendan Manion Specialist Insurance Intermediary Pty. Ltd. (BMSII), while the commission conducted an investigation into Manion's conduct as an insurance broker between July 2, 2001 and Sept. 30, 2004.

According to the regulator, the court found that the 60-year-old Manion had "dishonestly failed" to disclose broker fees on invoices issued for insurance cover by BMSII. He also pleaded guilty to one count of "altering books" in his possession that were required to be produced to ASIC.

Both matters have been held to Sept. 25 for sentencing, said ASIC.

The charges, which were based on the Australian Corporations Act 2001 and Insurance (Agents and Brokers) Act 1984, are being prosecuted by the Commonwealth Director of Public Prosecutions.