Mr Neilson was sentenced to 15 months imprisonment, to be released after serving ten months upon entering into a recognisance in the sum of $2,000, and to be of good behaviour for two years from the date of his release.
Mr Neilson was a director of P.R. Consultants Pty Ltd, an insurance agency based in Launceston.
ASIC alleged that between February 1998 and September 1998, whilst a director of P.R. Consultants, Mr Neilson received insurance premiums totalling $115,788.74 from clients under contracts of insurance, but did not pass these funds on to the insurance companies within the required 37 days.
An amount of approximately $54,000 still remains outstanding to one of the insurance companies involved.
This is the first time that ASIC has laid charges under the Insurance Agent and Brokers Act in Tasmania.
The Commonwealth Director of Public Prosecutions prosecuted the matter.