Another ban for “tombstoning” life insurance scammer

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A shamed former Sydney financial adviser who used the names of top international cricketers in a ‘tombstoning’ scam has just been permanently banned from engaging in credit activities.

The ban comes after Pavan Vyas was convicted for dishonest conduct last month, and was banned from working in the finance industry for life in July 2013.

He is currently serving a two year sentence of imprisonment by way of an intensive correction order.

An investigation by ASIC last year uncovered that Vyas had submitted applications for life insurance policies in the names of people that did not exist, as well as in the names of friends without their knowledge.

But it didn’t stop there: In August 2013, Wealth Professional reported that among the names of the beneficiaries was New Zealand batsman Martin Guptill, and England all-rounder Tim Bresnan. Former state treasurer Michael Costa was also an unwitting beneficiary, according to News Ltd.

In total, Vyas submitted 15 false insurance applications between June 2012 and March 2013 to earn $243,433 in commissions, according to ASIC.

He also falsified 21 other documents to hide his conduct.

He was an authorised representative of Lionsgate and later, HNW Planning, where he worked for just over a month before the company discovered his illegal behaviour, according to HNW principal Robert Cumming.

At the time Cumming said the case highlighted major issues for the life insurance industry surrounding money laundering and its internal data checking and duplicate detection.
Vyas now has a right to appeal this latest banning to the Administrative Appeals Tribunal.

SEE MORE:

Tombstoning’ adviser targeted cricketers

Tombstoning’ case has massive ramifications

Adviser banned for inappropriate advice

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