Calgary, Alberta — The Alberta Insurance Council has issued a fine of $26,000 against a former insurance agent found to have issued fraudulent insurance certificates to clients— the majority of which were automobile insurance certficates.
The Alberta Insurance Council (AIC) found that insurance agent, Hakan Bahadir, on 52 occasions, “created fraudulent insurance certificates which were not in place not in force, and did so knowingly, recklessly, or by willful omission, which exposed his various clients to undue risk or actual loss.”
Of the 52 insurance certificates “issued,” 44 were pink cards or automobile insurance certificates.
The AIC’s investigation commenced in response to a Notice of Termination received from agent’s former employer, which was not named in the report, indicating the agent was terminated for cause.
“We have knowledge that you have been committing fraud by providing fake certificates of Insurance to commercial clients, knowing full well there is no coverage in place,” the former agency said in Bahadir’s termination letter.
The former agency alleged that 26 insurance clients, both commercial and private, were affected by Bahadir’s activities. On two occasions, certificates of liability were entered by an alleged employee of the agency named ‘Johny White’ but no one of that name existed.
In a written submission to the AIC, Bahadir said in part: “I have given my best performance during my employment by learning the broker management system on my own and there may be some mistakes on the way, client docs may have been uploaded to some other clients codes.”
Adding that he never intended to commit fraud and his clients were not harmed by his actions.
“I think there is no harm on my clients at any level. It is just not right to be accused by these types of complaints by the [former employer],” said Bahadir.
The council dismissed Mr. Bahadir’s pleas that his indiscretions were due to bad judgement or errors.
“The council rejects the agent’s position, as his complete utter disregard of his duties as an insurance agent fall far beyond an administrative oversight, and results in willful blindness,” the council wrote.
“Insurers who issue policies and consumers who purchase them expect that insurance agents will act in utmost good faith while carrying out their work. Honesty and integrity are the hallmarks of a good insurance agent. The Agent has brought the insurance industry into disrepute and as a result, the Council finds the Agent guilty of dishonesty, deceitfulness, untrustworthiness, and fraud.”
