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Fraud case study

27 April 2006 Angelo Coppola

Some replies on the case study on forged signatures...

*  I am confused - was this a replacement of a policy with a non cover policy?  If it was a proposal with life cover then surely complainant would have beren asked the normal questions re his health  and normally, even if a non cover policy there would be questions re incomes and whether a replacement policy etc - Is it suggested the proposal for the replacing policy was also forged. If it isnt how could everbody,including the complainant,involved
believe that signatures were only on an authorisation for information form.The mind boggles - unless there were other facts not shown in your article-or have I missed something ?

*  Hi, pity you don't say what happened to the bank broker. Was he "S" rated or was it conveniently covered up.

You do not say which bank, however it would come as no surprise if it were the same one that was involved in both the Durr and Poultney cases.

*  I read with interest your lead article in the latest FANews entitled Forged Signature on Surrender Documents, especially the ultimate paragraph wherein it is mentioned what matters were taken to rectify the situation, but no mention was made whatsoever as to what action was taken against the broker.

Surely a fraudulent action such as this one merits severe censure such as instant dismissal and S referencing, or is it a case that the financial institution concerned, aware that such action will result in them losing a possible top income-earner / producer, are down-playing the incident so as to protect the individual?  This just reinforces the perception independent brokers have of bank brokers, and their protected environment.

The forging of an individuals signature, regardless of the industry one works in, is a criminal act and this so-called broker, regardless of his standing and experience in the financial services sector, should be dismissed immediately, and criminal charges should be preferred.  By the mere fact that the broker is attached to a financial institution makes the act even more despicable.

If the broker can do this (obviously in the interests of his own commission pocket - and also that of the financial institution), what other fraudulent actions are being undertaken by other members of staff of the institution concerned to defraud clients?  This action has a tarnishing effect on all the staff of the banking institution concerned.  It just shows that this broker certainly hasnt complied with the provisions of the FAIS Act (i.e. FNA undertaken, etc) and I wonder how the compliance officer of the institution concerned is doing his job.

It is noted that the compensatory award was paid by the broking house.  Surely the broker should have been responsible to pay this fine, and not the broker house.  Again, this smacks of someone being protected by the big institutions.

Why was this broker and the institution concerned not named as is usually the case with any other fraudulent criminal act? Surely the public should be protected against individuals of this persuasion?

The introduction of the FAIS and associated acts are there to weed out the rubbish, and I sincerely hope that the gardener has done his job this time around.

Thank you for an excellent publication.

 

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