Between 2008 and 2010, Stephen Goodwin, a former partner of Goodwin Best, and his now deceased business partner misappropriated £303,846, paying insurance premiums into their business account rather than to the relevant insurer or intermediary to arrange the policy.
Their actions led to at least three clients suffering financial losses, with one making a claim, only to find they were uninsured, and two other clients having to pay the same premium twice to ensure their policies remained in force
Goodwin’s fine consists of the disgorgement of benefit of £303,846 and an additional £168,000 punitive element.
He was declared bankrupt in April 2011 in relation to debts incurred by his firm and his bankruptcy was discharged in April 2012.
With his firm now no longer operating, the client losses are being dealt with by the Financial Services Compensation Scheme.
Having agreed to settle at an early stage of the FSA’s investigation, Goodwin qualified for a 30% on the punitive element of the fine, which would have been £240,000.
Tracey McDermott, the FSA’s acting director of enforcement and financial crime, said: “Although the diversion of premiums did not lead to the majority of clients being left uninsured, this does not detract from the seriousness of the misconduct.
“Goodwin posed a risk to consumers and the financial system more widely and now he is paying a very heavy price.”
