A former insurance broker has been sentenced to more than five years in prison after he diverted over £133,000 in client funds into his personal account, leaving individuals and businesses without valid insurance cover.
Leon Price, 45, from Sittingbourne, Kent, abused his position as a commercial insurance manager to deceive customers, falsify documents, and misdirect payments intended for legitimate policies. His fraudulent actions resulted in homeowners, vehicle owners, and business owners being left exposed to substantial risk due to non-existent insurance cover.
At Inner London Crown Court on November 20, 2023, Price was sentenced to five years and three months in prison for his crimes.
A Deceptive Scheme
Price exploited his role by manipulating insurance systems and falsifying documents. He generated policy documents for clients without requiring payment during the initial cooling-off period, while redirecting customer payments into his personal account. In many instances, he cancelled policies before the cooling-off period expired, only to reinstate them with another insurer, creating the illusion of valid insurance cover while leaving clients uninsured.
His scheme also involved issuing motor insurance cover notes directly to clients and moving private vehicles onto trade policies without their consent. These actions allowed drivers to avoid police seizure of vehicles but left them uninsured. Price further exploited his position by impersonating policyholders to pursue fraudulent claims and divert claim payments into his own bank account.
Investigators Uncover Scale of Fraud
Price’s fraudulent activities were uncovered after LV= General Insurance (part of Allianz) flagged a suspicious motor insurance policy. Further investigation revealed that several policies Price had arranged were false, with policyholders unaware of the coverage or claims being made in their names.
Matt Crabtree, head of financial crime intelligence at Allianz, praised the efforts of the Special Investigations Team and IFED for uncovering the full extent of Price’s crimes. “This case highlights the importance of vigilance within the insurance industry. While insider fraud cases are rare, we will continue to ensure those who abuse their position are brought to justice,” Crabtree said.
Victims Left Exposed
Price’s fraud spanned multiple sectors, with a range of victims affected by his actions:
- A family-owned business paid over £18,000 to Price over several years, believing they had valid commercial insurance, only to find they were left uninsured.
- One individual, who paid thousands for motor, trade, and property insurance, was stopped by police twice for driving uninsured and later received a fraudulent payout from Price’s personal account after his burger van was stolen.
- A landlord who repeatedly paid for insurance was left uninsured, with no coverage in place for his properties, including a property damaged by a cannabis factory.
In total, Price’s fraud left many clients exposed to significant financial loss and personal risk. Some victims had trusted him for over a decade with their insurance needs, only to discover their premiums had been diverted into his personal account.
Future Proceedings and Compensation
Following his conviction, IFED will seek confiscation proceedings under the Proceeds of Crime Act (POCA), with the intention of using the funds to compensate the victims he defrauded.
Conclusion
This case highlights the devastating consequences of insider fraud in the insurance industry. Price’s abuse of trust not only caused financial damage but also exposed vulnerable individuals and businesses to significant risks. The cooperation between insurers and the Insurance Fraud Enforcement Department (IFED) was crucial in uncovering the full scale of the fraud and securing Price’s conviction.