Co-directors siphoned off clients’ cash in £1m fraud

An insurance broker faces jail after being found guilty of conspiracy to defraud customers in a £1m insurance scam.

Faron Wilson, a directors of Ideal Insurance, could be jailed for five years when he is sentenced at Southwark Crown Court on 14 April.

He will be joined by Neil McKay, another director, for sentencing. McKay’s charges were not revealed to the court, but Goldring said he had “accepted responsibility for his fraudulent actions whilst at Ideal Insurance”.

Southwark Crown Court heard that the two brokers “milked the bank account” containing clients’ money, and pocketed around £1m from the fraud.

Wilson, a fan of classic cars, owned a string of luxury motors while he worked at Chorley-based Ideal Insurance, including a £27,000 Audi and a pick-up truck.

McKay and Wilson set up a bank account with policyholders’ cash but never passed on the money to insurers. They also cancelled policies without telling customers and created bogus certificates.

Willis, RJ Kiln and Lloyd’s of London were all named as underwriters on bogus insurance policies, and all three denied having any involvement with the duo.

Prosecuting Jenny Goldring said: “You may think these are not random payments, as both gentlemen milked the bank account of the proceeds of the fraud. These weren’t bonuses or commission, they were profits of a fraud that both men were milking.”

The two got together to start Ideal when McKay approached Faron in 1997 and asked him to partner a new business.

Faron told the court he sold his Ford Escort for £3,000 and with the cash, entered into a 50/50 partnership with McKay.

Only a year earlier, McKay had received an eight-month prison sentence after admitting eight counts of obtaining property by deception.

Faron told the court he never knew McKay held served time in jail.

Wilson was found guilty on one count of conspiracy to defraud. Two alternative counts of fraudulent trading were disregarded. He was released on bail but told to hand over his passport and not contact any policyholders.