Judge tells companies 'tighten up’

Press, 29 September 1988, Page 12

Judge tells companies 'tighten up’

PA Tauranga District Court Judge Cullinane has criticised insurance companies for their lack of internal auditing. Judge Cullinane, sitting in the District Court at Tauranga, said insurance companies needed appropriate internal-auditing systems and checks to detect fraud by employees. The Judge dealt with two defendants who, as employees of insurance companies, misappropriated premium payments for their own use. He called on companies to “tighten up” accounting practices. A Te Puke man, Leslie John Lake, aged 22, was sentenced to eight months’ periodic detention for theft by misappropriation of $32,000 from his employer, Farmers Mutual Group Insurance Co. Lake, now an unemployed insurance inspector, admitted 13 charges of theft. “Without minimising

your part in this shameful episode, it seems to me the insurance company should institute appropriate internal-auditing systems and checks which will readily detect this sort of conduct and protect other clientele,” Judge Cullinane said. A former client officer with the Sun Alliance Insurance Company also appeared before Judge Cullinane for stealing clients’ premium money. Sharee Louise Bryan, aged 25, admitted 23 charges of theft by misappropriation. Police prosecutor Sergeant Wayne McKinnon said Bryan had been taking money intended for her employer since July, 1987. Her actions, which meant a loss of $5766 to her employers, were discovered when a client was billed for a policy premium he had already paid. Bryan was remanded to October 18 for a probation officer’s report and sentence.