The Financial Services Regulatory Authority of Ontario (FSRA) has imposed an administrative penalty in the amount of $100,000 on a Manitoba insurance adjuster, Ulrich Fabrice Avognon and ordered Avognon to cease all insurance-related business in Ontario.
Licensed under two licenses in Manitoba using a different address and birthday for each license, Avognon operated in Ontario under a letter of authority issued by FSRA which allowed him to carry on “preliminary duties” related to Ontario insurance claims while he applied for an Ontario adjuster’s license under that province’s Insurance Act.
The insurance adjuster was employed in Manitoba with two different companies until one informed the other about Avognon’s dual employment.
99 fraudulent claim payments
Following his termination it was discovered that between Feb. 9 and May 25, 2023 Avognon made 99 fraudulent claim payments by inputting charges for towing, car storage and rental car services that were not required. He created false payees using his own banking information and input false invoice numbers before issuing the payments to his own personal accounts.
The adjusting company has since reimbursed the Ontario insurer $250,115 for the fraudulent claim payments. Avognon received $221,543.02 to bank accounts he controlled and according to FSRA’s notice of proposal, has not taken any steps to repay the adjuster company.
In addition to the administrative penalty, FSRA’s order in the case requires that Avognon cease acting as an insurance adjuster in Ontario, cease working on any Ontario insurance claims, cease acting in any capacity which requires a license under Ontario’s Insurance Act and cease engaging in the business of insurance in Ontario.
