The Financial Services Commission of Ontario has issued a warning notice concerning possible unlicensed insurance activity.

A notice from FSCO reports that Ian Stuart a.k.a. “Ian Stuart-Smith”, a.k.a. “John Harris”, a.k.a. “John Harrington” was arrested on May 5, and is now facing extradition to the United States in connection with an alleged insurance fraud scheme.

FSCO says that the indictment alleges that Stuart induced various entities throughout the United States and Canada to purchase over $7 million of fraudulent commercial liability insurance policies through their insurance agents. The indictment also alleges that Stuart presented himself to New York insurance brokers as a wholesale insurance broker able to place insurance coverage without being registered as required under New York law.

According to the indictment, he collected premium payments for himself for commercial liability insurance policies purportedly placed with various insurance companies and entities, and it claims that he created fictitious documents purporting to confirm the existence of insurance coverage. None of these allegations have been proven.

The Superintendent of Financial Services issued a cease and desist order against Ian Stuart-Smith and Heritage International Inc. carrying on business as “Surplus Lines” in April 2005, banning them from operating within Ontario.