Director of Lloyd's broker is banned

LLOYD'S OF LONDON yesterday permanently banned a former director of one of its biggest brokers who misled a client for three years by issuing false debits, inflating insurance premiums by a total of $1m.

Michael Radford, who used to head the Marine division of Hoggs Insurance Brokers, had admitted three charges of conducting insurance business with a lack of good faith.

In 1992, 1993 and 1994, Mr Radford was in charge of obtaining insurance for Hellenic Shipyards of Athens. Hoggs offered to rebate a 20 per cent commission on the premiums in full.

But debit notes purporting to show the 20 per cent discount were false. In fact, the gross premium shown on the debit notes had been artificially inflated. Lloyd's Disciplinary Tribunal described the offences as "a gross breach of a broker's duties to its client, sustained over a period of three years".

Mr Radford, now an employee of Robert Fleming Marine, initially appealed against the tribunal's decision, but was turned down.

Hoggs, now owned by Aon, the US broking giant, has paid $600,000 (pounds 360,000) to Hellenic in respect of the 1993 and 1994 years of account. Mr Radford was ordered to pay pounds 26,000 in costs.

Lloyd's conceded Mr Radford did not stand to receive any personal benefit from the deception. It agreed not to fine him because of the pounds 50,000 costs he has run up, the effect the ruling will have on his employment and his financial circumstances.