Great-West Life has been ordered by a Manitoba court to pay a couple $528,000 after their insurance agent took their life savings, reports CBC.
Gary Palmer pleaded guilty to 15 counts of fraud in 2010 and sentenced to eight years in jail. He spent more than $1.5 million of his clients’ money, CBC reports.
The couple argued that as a Great-West Life agent, the company was liable for Palmer’s actions. The company disagreed.
“This is a rare and unfortunate situation where a single independent advisor was found to have committed fraud,” the company said in a statement reported by the network. It also said it is considering an appeal.
The judge ruled that Palmer’s association with Great-West Life gave him the appearance of authority, and found in favour of the couple.
Read more here.