NCJ Number
122654
Date Published
1989
Length
13 pages
Annotation
The way in which Andrew Stathis stripped the Bishopsgate Insurance Australia Ltd of its assets shows the need for greater regulation of the insurance industry in Australia, but reforms are unlikely in the current atmosphere of deregulation.
Abstract
Stathis made a fortune in real estate and purchased Bishopsgate in 1982. During the first 6 months of 1983, Stathis quietly and progressively shifted $12 million of Bishopsgate's assets from Australia to overseas account. In August 1983, Stathis quietly left Australia and disappeared. The company was placed in liquidation, with lost funds amounting to more than $19 million. His activities were unnoticed as a result of the relatively lenient insurance regulations in Australia. Needed reforms are unlikely, however, because the insurance industry and the government both favor deregulation. However, Andrew Stathis was arrested for heroin possession in Greece in 1987 and will probably remain a prisoner in Greece for many years. 8 reference notes.