The Insurance Council of British Columbia (ICoBC) has fined Wai Pan (Raymond) Siu $25,000, the maximum allowable, and barred Siu from registration for five years after the agent was found to have forged records to sell inappropriate policies and lied about client’s circumstances on applications to at least three different insurers.
In one case, the insurer in question is also engaged in legal proceedings against the former licensee seeking to recover more than $1.6-million for collateral shortfalls and interest paid by clients, along with other related expenses. Chargebacks to Siu’s agency for the segregated fund accounts and investment loans in question totalled $520,217.10.
The case against Siu, licensed as a life and accident & sickness insurance agent in August 2017 before his license was cancelled at his request in July 2022, first began when a client complained to the council that she purchased a leveraged investment loan segregated fund and a second leveraged investment loan segregated fund from another insurer, without Siu properly explaining how the products worked. The client had limited understanding of English, low investment knowledge and had no employment at the time she made the application, despite the fact Siu stated that she was a real estate agent for more than 22 years, earning $158,000 annually.
“GC also explained that, to make the interest payments on the investment loan, she had to borrow money from relatives, which made her feel extremely ashamed and guilty,” the intended decision in the case states. “When she raised her concerns to the former licensee in September 2021 about her ability to afford interest payments, instead of offering help, the former licensee warned her of a severe penalty fee.”
The ensuing investigation involved three insurers, two separate third-party mutual fund dealers who confirmed that submitted documentation was fraudulent and compliance personnel from financial companies who verified and advised the insurer about loans that weren’t reported in the applications.
It was discovered that tax or investment information and documentation submitted by Siu was reused in many applications and the majority of clients applying for investment loans under scrutiny were listed as real estate agents. Siu’s own loan application with one insurer also noted that he did not hold an investment loan, which was later proven to be false. Siu also blamed the owner of his agency for manipulating the fraudulent documents.
“ST advised that she did not review the documents submitted by the former licensee as he was not under supervision. Council did not find any evidence to suggest that ST altered any of the documents,” the intended decision states.
It goes on to say that given the magnitude of the discrepancies, council found Siu was improperly providing inaccurate information for his own benefit to sell products and gain commissions. “Council did not accept the former licensee’s implication that the documents were altered after he submitted the documents.” Council also noted that there is an audio recording of Siu providing false information to the insurer related to his own financial circumstances to obtain a loan.
In addition to the $25,000 fine, the council also ordered Siu to pay costs in the amount of $5,500 and complete three ethics courses. He is also barred from being licensed as an agent in the province until June 2031.