A Bury-based broker has been arrested for issuing fraudulent professional indemnity policies.
Clive Hesketh, 47, was arrested on suspicion of false representation and has been bailed pending further inquiries, Insurance Times understands.
Hesketh headed up Lakeland Technologies, trading as Pinnacle Insurance Services based in Market Street, Bury. The company is not related to Pinnacle Insurance plc.
A Greater Manchester police spokesman said they were tipped off about the alleged fraud on June 30 and a 47-year-old had been arrested.
Travelers was one of the insurers whose name was used on the fraudulent policies. Insurance Times understands that the money collected from the policies runs into the thousands of pounds.
A Travelers spokesman said: “Travelers has never had a business association with the broker in question. Travelers became aware of potential fraudulent activity by a broker following recent contact from the Solicitors Regulatory Authority and is cooperating with the SRA investigation.”
The law firms that bought the fake policies have been given temporary Assigned Risks Pool cover, according to an SRA spokesman. The trade body was helping the affected firms find permanent cover, he added.
An SRA spokesman said: “The SRA has co-operated fully with the FSA and Bury Police in this matter and it is understood that the FSA is dealing with any compensation claims arising.”
The FSA declined to comment.
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