BC insurance broker fined $25,000 after taking clients’ money and issuing fraudulent documents

A BC insurance broker who pocketed more than $45,000 from dozens of clients and handed out fraudulent paperwork has been fined $25,000 and banned from practicing for 10 years.

According to a Dec. 10 Insurance Council of BC decision, Shayne John Moore collected $46,065 from 43 clients in 2021 and 2022, and didn’t set up insurance policies.

“These clients were under the false impression that they were covered by an insurance policy after receiving fraudulent certificates of insurance created by Moore,” the decision reads.

The decision said Moore became licensed in 2009 and he worked for Maxxam Insurance in Langford.

He first got into trouble in 2021.

Moore asked clients to send money for their policy premiums to his personal and work emails, and in four instances, failed to pass on the money to the insurance agency and didn’t set up policies.

In October 2021, the unnamed company where he worked found that he hadn’t passed on $10,000 in premiums to them, but it genuinely believed he had trouble managing money after he covered the missing cash.

A year later, in November 2022, he admitted he’d again received clients’ money via e-transfer to his own bank account and paid the insurance agency.

He faced a short suspension and paid the money back.

However, the company soon discovered Moore was still getting clients to transfer money into his personal bank and fired him.

“A few weeks later, the Agency owner encountered (Moore) at a restaurant, where he was apologetic for his actions and requested a second chance. The Agency owner rehired (him) as a referral-based agent, who was paid for soliciting clients and was not allowed to handle payments,” the decision said.

However, days after he got his job back, the company discovered he hadn’t changed his ways.

“The Agency investigated (his) conduct further and discovered that he had kept the client’s payment, issued fraudulent certificates and did not bind an insurance policy for the client,” the decision reads.

The company looked at its books and found Moore had collected $46,065 from 43 clients in 2021 and 2022.

In one case, a roofing company had over two years given him $37,000 in cash for a general liability insurance policy.

Moore didn’t get the firm any insurance and instead issued fraudulent and invalid certificates.

“The insurer was unaware that (Moore) had created fraudulent certificates for clients’ policies,” the decision reads. “(He) created several fraudulent insurance certificates, and he perpetuated the fraud by causing reputational risk to the insurer.”

The decision said the company covered any losses that clients may have had.

The regulator also fined Maxxum Insurance $5,000, finding that it should have done more after it found out about Moore the first time and reported him to the regulator.

The company took him to court to recoup the money, but was unable to personally serve him the court documents. In January this year, the company won a default judgment against him.

“(Moore) knowingly created fraudulent certificates, left his clients with the impression that they were insured under a policy when they were not covered, and disregarded clients’ requests for copies of their policies,” the regulator said.

The Insurance Council of BC said he was evasive when it began its investigation, and he didn’t take part in the hearing.

“(The Insurance) Council believes (Moore) is likely to repeat similar misconduct in the future and that there is a risk of harm to the public, as he left clients at risk with no coverage, in addition to damaging the reputation of the Agency and causing it financial harm,” the decision reads. “His flagrant behaviour consisted of a recurring pattern.”

The regulator fined him $25,000 plus $3,262 in costs and barred him from reapplying for a license for 10 years.

Moore has 90 days to pay the fine.

The decision said his former employer hasn’t seen a penny of the $46,000 he owes them.

Moore does not appear to be facing any criminal charges.