Sharechat Logo

SFO lays 28 charges against former Herbert Insurance boss

Thursday 31st May 2012

Text too small?

The Serious Fraud Office has laid 28 charges against former Herbert Insurance Group boss Grant Herbert, alleging he used client funds to finance his lifestyle.

The failed insurance broker's former owner and director, Herbert, appeared in the Auckland District Court facing charges under the Crimes Act and Secret Commissions Act, the SFO said in a statement.

The white-collar crime investigator alleges Herbert committed theft by a person in a special relationship, used a forged document in relation to obtaining credit, a number of offences in relation to corruptly giving an employee of a customer secret commissions for referring insurance business to the Herbert Insurance.

"In the current economic conditions, confidence in the insurance industry and good insurance cover in particular, is more important than ever," chief executive Adam Feeley said. "It has been reassuring that the insurance companies for whom HIG acted as a broker, and who in many instances knew nothing about the insurance cover placed with them, have supported customers, accepted the risk and taken any financial loss themselves."

Last month, the liquidator for Herbert Insurance said the firm may have breached legislation, but it was waiting for the SFO to act before taking any action on behalf of the company's creditors.

Herbert Insurance was put in receivership last year, leaving a $3.1 million shortfall owed to insurers.

Last year, receivers for Herbert Insurance and its companion entity Herbert Securities sold its customer base of some 4,500 people to Aon New Zealand, though there will likely be a shortfall to secured creditor ASB Bank, which is owed $780,000.

BusinessDesk.co.nz

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rises after Orr talks up the economy
Comvita posts $27.7m net loss on goodwill write-downs
Buyers emerge for Denton Morrell client book
WEL reviewing capital structure of fibre business
Cavalier announces strategic collaboration with NZ Merino Company
Delegat continues to invest after record year
Kiwibank's annual profit eases as fee income drops
TIL lifts operating earnings, watching for slowdown
Vector profit slides 44% on struggling HRV writedown
Steel & Tube returns to the black but says margins are squeezed

IRG See IRG research reports