CMC boss banned for encouraging bogus holiday sickness cases


Holiday sickness claims: Company misled people it called

The boss of a claims management company (CMC) that encouraged people to bring bogus holiday sickness cases has been disqualified as a director for five years.

Nigel David Stirk, 45, from Preston and now living in Tenerife, was director of Allsure Ltd trading as Chase Alexander, a CMC that also handled road traffic accident claims.

An audit carried out by the now-defunct Claims Management Regulator found that, when the company’s sales agents called people to ask if they had fallen ill while on holiday, they made false or unsubstantiated claims, coached individuals or made misleading statements in every call.

Allsure falsely told people who did not meet the claims criteria that they were nonetheless owed a refund and that hotels had failed hygiene checks, saying 98% of people they had spoken to were sick due to hotel food.

The regulator told Allsure that the script it used encouraged clients to make claims which could have been false, potentially putting them at risk of prosecution and the solicitors who took on the claims in breach of their code of conduct.

As a result, Allsure’s authorisation as a CMC was cancelled in August 2017 and the company entered liquidation, owing more than £130,000.

A subsequent Insolvency Service investigation into Mr Stirk’s conduct found he had not ensured the company was compliant with the rules and had failed to check the company met its statutory obligations.

Part way through his disqualification trial last month, Mr Stirk admitted this and offered an undertaking not to become involved in any way in the promotion, formation or management of a company without the permission of the court.

The five-year ban started on 7 July.

Neil North, chief investigator at the Insolvency Service, said: “We have strong enforcement powers and we will use them to remove dishonest or reckless directors such as Nigel Stirk from the corporate arena.”




Leave a Comment

By clicking Submit you consent to Legal Futures storing your personal data and confirm you have read our Privacy Policy and section 5 of our Terms & Conditions which deals with user-generated content. All comments will be moderated before posting.

Required fields are marked *
Email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog


The hot graphic design trends in the legal sector

As we recover from an unprecedented 19 months within our sector, marketing teams and clerks’ rooms are keener than ever to try out something new in the promotion of their businesses.


What challenges will the Bar face in the next five years?

As we look towards the end of 2021 and at how the Bar has adapted to the harsh realities of the pandemic, the question beckons as to what the future holds.


The rise of cyber-criminal threat for law firms since Covid-19

The global coronavirus pandemic, and the rise in people working from home, has unfortunately provoked a growth in cyber-crime. The UK government estimates that the cost of cyber-crime is £27bn per annum.


Loading animation