Fraudulent PI cover used Travelers’ name
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. Hesketh headed up Lakeland Technologies, which traded as Pinnacle Insurance Services, based in Market Street, Bury.
A Greater Manchester Police spokesman said they were tipped off about the fraud on 30 June and a 47-year-old man 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 it had “never had a business association with the broker in question. Travelers became aware of potential fraudulent activity by a broker following contact from the Solicitors Regulation Authority and is co-operating 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 them to find permanent cover, he added.
An SRA spokesman said: “The SRA has co-operated fully with the FSA and Bury Police and it is understood that the FSA is dealing with any compensation claims arising.”
The FSA declined to comment.