Accused insurance broker fined in US

A Bay of Islands insurance broker in trouble for an alleged US$3 million ($4.28 million) scam was disciplined by insurance authorities for similar problems 10 years ago.

Geoff Waterhouse, of Opua, and his 36-year-old son Robert, who lives in Georgia in the United States, have been accused by the Georgia Insurance Commissioner of selling US$3 million of insurance to taxi and limousine companies in the state, but failing to pass the premiums on to the insurer.

Geoff Waterhouse has consistently and strenuously denied the allegations. But Robert Waterhouse, who was released last week after about three weeks in custody, appears to be taking his lawyer's advice and not contacting his father.

Geoff Waterhouse said yesterday that reports that he had been fined and placed on probation 10 years ago by the Georgia insurance commissioner for "selling fake auto insurance" were only "half truth".

"They did not prove that it was fake because I fought them all the way. It was not fake."

He said the US$5500 fine and one year's probation were imposed as the result of a compromise arrangement similar to a "plea bargain" between him and the commissioner's office.

"They couldn't prove it and I couldn't afford the lawyers," Geoff Waterhouse said. He said he did not have a criminal record.

He said his son was released from custody last Thursday, New Zealand time.

"I haven't talked to him. His lawyers said I shouldn't talk to him, I don't know why."

He said he was disappointed at not being able to talk to his son after he had been through an obvious ordeal.

He had raised the $US25,000 cash for his son's bail by mortgaging his Opua home. He believed the fact that the bond amount required had started at US$3 million, dropped to US$250,000, and again to US$25,000 showed the charges were less serious than had been first suggested.

"I should get it back as long as he doesn't go anywhere."

Although Georgia insurance authorities have said they want to arrest Geoff Waterhouse, he said yesterday that no charges had been filed against him. But he did not plan to return to Georgia.

"I think I can do more good here than I ever could have there."

Geoff Waterhouse said that since news broke of the alleged insurance scam he had lost business in his New Zealand insurance brokerage and his Bay of Islands shuttle bus business.

- NZPA

June 1 2006 update:
Allegations against the Waterhouses withdrawn