Former life agent fined for falsifying documents, taking client funds

A former life accident and sickness agent, Susan Armistead was fined $10,000 by the Alberta Insurance Council, after it was discovered that she falsified policy documents.

“The former agency provided evidence in the form of void cheques to corroborate the claim that the agent deposited the client’s funds into her own personal bank account,” the life insurance council’s decision states. “In the council’s opinion, these materials demonstrate that the agent acted in a dishonest, deceitful, fraudulent and untrustworthy manner.” 

Licensed periodically since February 1996 until she was terminated in August 2021, Armistead became the subject of an investigation after the council received a termination notice and Life Agent Reporting Form (LARF) from her agency. The agency’s investigation began when a client complained about the agent.

In the agency’s investigation it was determined that investment account statements provided by the client were fabrications, constructed when Armistead cut and pasted false account balances into the first five pages. The agency’s internal investigation report stated that “Susan explained that she made up these documents to help her customers better understand their statements because the original statements are not logical for them to understand. She couldn’t explain the incorrect account balances, and she said she puts these statements together to the best of her knowledge.” They add that the fabrication was not known of or approved of by the company in any way, saying none of their advisors have ever had or will ever have the authority to create statements. 

The investigation report also contained the void cheques showing that Armistead deposited the client’s funds into her personal bank account. Among the cited emails, the altered account values showed the client held $97,497.67 when the true market value of the account was only $72,533.76. For another year, the altered account statement indicated the client had $82,447.02 when the true value of the account was $35,082.22. The fabricated documents included charts.

Armistead said personal hardships were the primary reason behind her conduct. “The agent expressed limited remorse.” 

In addition to the fine, the decision states that were the agent presently licensed, the council would also have revoked her certificates of authority.