Sun Life official 'lied over funds'
Tuesday 02 June 1998
Donald Stewart, who became the company's chief executive at the beginning of April - replacing John McNeil, who resigned - and is in charge of steering it to a multi-billion pound flotation next year, signed actuarial certificates in 1996 confirming the veracity of the company's finances in the previous year.
In an unprecedented ruling, a Canadian judge confirmed that Robert J Sharkey, one of Mr Stewart's senior colleagues, had lied to a court when he referred to three funds in a case brought against the company by an aggrieved policyholder.
In an Ontario appeal court, Mr Justice Maurice Cullity found that Mr Sharkey, who resigned from the company a month ago, had given fraudulent testimony when he referred to three funds worth pounds 540m as consisting of long-term assets.
The long-term nature of the funds was used as evidence in a 1995 claim by Joel Vale, a Toronto-based landlord who had been refused permission to redeem three mortgages early. The company claimed the mortgages could not be redeemed because they were held in a long-term fund backing long- term obligations to policyholders.
After Mr Vale investigated, he discovered that in one fund alone, 50 per cent of the fund's value consisted of short-term mortgages with terms of less than 10 years. His findings were supported in a sworn affidavit by an independent actuary, Ian Baker. While Sun Life of Canada won the case, Mr Sharkey was found to have misled the court.
Mr Stewart was chief actuary of Sun Life of Canada at the time the evidence was given, however, there is no suggestion that he was involved in giving fraudulent evidence. He is a director of Sun Life Holdings, the main branch of Sun Life of Canada in the UK. Sun Life of Canada has been operating in the UK since the beginning of the century. It is entirely seperate distinct from the Bristol based, French-owned insurer, Axa Sun Life.
As chief actuary in 1995, Mr Stewart also signed actuarial returns to the Department of Trade and Industry relating to UK business. In 1996 it admitted it had understated liabilities in these DTI returns by pounds 124.4m.
- 1 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 3 Germanwings plane crash: I have depression. That doesn't make me a psychopath
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...