The Insurance Council of British Columbia has prohibited Alvinder Singh Gill from applying for an insurance license for eight years, after Gill admitted to defrauding clients who believed they were investing in products offered by an insurance company. In addition, Gill is being fined $10,000, the maximum allowable in the case, and has been assessed both hearing costs and investigation costs – totalling $10,911.72 and $2,625 respectively.
In October 2020, the insurance council took the unusual step of suspending Gill’s license ahead of its investigation into his conduct.
Fraudulent investment scheme
“In or around 2020, the former licensee received hundreds of thousands of dollars from two clients who believed, based on representations and promises made by the former licensee, they were investing in certain products offered by an insurance company,” the reasons for decision states. “He had not purchased any insurance investments on their behalf. The investment scheme was a fraud. The former licensee took advantage of his clients and misappropriated their money. It remains unclear what the former licensee did with the money.”
Clients commenced a civil proceeding
According to the reasons for decision, the clients lost approximately $450,000 and immediately commenced a civil proceeding against Gill once they realized the investment account statements that Gill had provided to them were fraudulent. “As of the date of the (insurance council) hearing, the former licensee had not paid any of the money back.” This, despite a $450,000 civil judgement against Gill being confirmed in August 2021.
In addition to the suspension, fine and costs, the insurance council also ruled that Gill is prohibited from being a controlling shareholder, partner, officer or director of any licensed agency in British Columbia for eight years.
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