A FORMER insurance firm director who carried out a near £11 million fraud has been ordered to hand over £200,000 crime profits.
John "Jack" Walker perpetrated one of Scotland's largest financial crimes after thousands of insurance policies were sold through his firm which were not underwritten.
A judge jailed Walker, 59, for four years and 10 months in 2006 for the "extens
ive and deliberate fraud".
The Crown raised confiscation proceedings against him seeking to recover proceeds of crime.
A two-day hearing in the action was due to begin at the High Court in Edinburgh today when it was announced a settlement had been reached.
Simon Gilbride, counsel for Walker, told the court: "I am pleased to say the matter has been found to be capable of resolution."
He said Walker's realisable asset was a half-share in a house in Biggar Road, Penicuik, in Midlothian, and it was agreed that a confiscation order for £200,000 should be made.
He said Walker was currently in Noranside open prison in Angus and the money should be paid to the sheriff clerk at Forfar within six months.
Advocate depute Barry Divers asked the court to record the proceeds of Walker's general criminal conduct at £205,936.
Lord Brodie said after a brief hearing that he would grant authority to the agreement reached between the Crown and Walker.
Walker set up Tribune Risk and Insurance Services, which specialised in building and contents cover, after many years in the world of insurance.
The main underwriters decided to pull out of that market in December 2001 at relatively short notice. Walker decided to continue to accept business without having anyone underwriting the policies.
Lord Carloway told him when he earlier jailed him: "The concern of the court is that you took from thousands of ordinary people premiums for house insurance that you did not obtain."
The judge said each of them was exposed to "the risk of financial ruin" if Tribune could not pay out over a legitimate claim. He said: "This was fraud on a very large scale."
Tribune, based at Eskbank, in Midlothian, employed a 100-strong staff but went into liquidation. The Financial Services Authority launched an investigation after a string of complaints.
Victims lost at least £225,000 through claims that were never met after the firm folded. Liquidators assessed its assets at just over £50,000 and its liabilities at £2.5 million.
Walker, formerly of Marchwell House, in Penicuik, admitted committing a £10,945,000 fraud.
Lord Carloway told Walker that he would have jailed him for six years for the offence, but the sentence would be reduced because of his guilty plea.
