Insurance agent on fraud charge

Press, 7 September 1989, Page 16

Insurance agent on fraud charge

PA Auckland An insurance agent who allegedly, exaggerated his previous earnings to appear as a top salesman defrauded the A.M.P. Society into paying him $500,000, a Court has been told.

The money was an advance on a “golden handcuffs” deal which promised him up to $1.5 million if he worked for the society for five years, the Crown prosecutor, Guyon Foley, said in the District Court at Auckland.

Appearing before a jury was John Turnbull Blakie, aged 34, of Hoon Hay, Christchurch, who has denied one charge of executing a cheque for $500,000 by means of a false pretence and with intent to defraud the

A.M.P. Society. Mr Foley said Blakie answered an advertisement for an insurance agent placed by Champion Associates, Ltd, acting as an agent for the A.M.P. Society. Blakie, who was working for his own company, John Blakie Insurance, Ltd, allegedly told Champion Associates’ managing director that he was a top salesman and earned an annual net income of $750,000. “The managing director was impressed with the accused. This was the type of man they were looking for,” Mr Foley said. Blakie took references and commission statements to a meeting, at which the “golden handcuffs” agreement was reached.

“The commission statements form the crux of the Crown’s case,” Mr Foley said.

“The statements are issued by insurance companies to show how much agents earn, like PAYE forms.”

The A.M.P. Society wanted the commission statements verified and Blakie took them to an accountant, who wrote a letter saying they were authentic.

He was given the advance cheque for $500,000. After more inquiries, the society discovered that Blakie’s earnings had been less than the statements showed and he was dismissed.

The trial before Judge Richardson is expected to end tomorrow.