Grant Scott in new fraud allegation worth £500,000

It is estimated that around £500,000 in premiums may have gone missing as a result of an alleged fraud involving the Scottish broker Grant Scott.

A Central Scotland police fraud unit source confirmed this week that it was continuing its investigation into the broker in conjunction with the Police Service of Northern Ireland (PSNI).

The PSNI said it was investigating a "Scottish-based fraud involving some 400 victims in Northern Ireland with premium loss estimated at £500,000".

As a consequence, the PSNI said there was a potential uninsured risk of around £150m.

A PSNI statement said: "Anyone who has any doubts over the validity of their insurance cover should check immediately with their broker to make sure that it is valid."

Earlier this year, the Central Scotland fraud unit raided Grant Scott's premises.

In its last accounts filed with Companies House, Grant Scott's profit was £3,571 for the year ended 3 September 2001. Grant Scott is listed as sole director of the company, which ceased to be a member of GISC in April 2002.