Ian Stuart-Smith aka Ian Stuart, an ex-London broker whose name (or assumed names) appeared in many an LMA Market Circular, appeared before Judge Jed Rakoff in the New York Southern District Court on 17 September 2007 for sentencing. Ian Stuart had already entered a guilty plea to one count of wire and mail fraud regarding his sale of non-existent Lloyd’s liability cover to hundreds of bars and restaurants, predominantly in California from 2001-2002. Judge Rakoff sentenced Mr Stuart to 97 months, to be followed by three years of supervised release. He also ordered Mr Stuart to pay restitution of $7,575,488.04. A Lloyd’s representative who attended the hearing reported that, prior to issuing his sentencing order, Judge Rakoff stated that the sentencing guidelines recommended a sentence of between 97 and 121 months. As he was not required to abide by the minimum guideline, the judge stated that given the “utterly despicable fraud” perpetrated by Mr Stuart, a 97-month sentence was appropriate.
In the 1980s, Ian Stuart worked for a London broking house placing business at Lloyd’s and other markets. It was here that he gained an understanding of the insurance market that was to prove invaluable to him in his future career. In the mid 1990s, he emerged in Canada. Since emigrating to Canada, Ian Stuart was found guilty at the Saskatchewan Court of Queens Bench of issuing a forged document contrary to section 368(1)(a) of the Criminal Code of Canada on 13 June 2002. As a result of this court case, Ian Stuart was (amongst other things) prohibited from acting or holding himself out as an insurance agent, broker, general agent or wholesale insurance broker unless he held such valid licences as may be required. Ian Stuart also received two years’ probation. This minor ‘mishap’ did not stop Mr Stuart continuing to issue bogus insurance from Canada. Maybe it was the fact that Mr Stuart was able to continue trade unchallenged in Canada that gave him the confidence to branch out into the United States. Whatever the case may be, it is pleasing to see justice has finally been served.
Apart from Lloyd’s, Mr Smith also falsely claimed to represent Great American Insurance Co, Mount Vernon Fire Insurance Company, Indian Harbor, Colony Insurance, Tower Insurance, Traveler’s Insurance, Houston Casualty, Essex Insurance Company and Markel Insurance.
