(CNS Business): In the wake of news that a former manager at a Cayman registered insurance firm is facing some 18 charges in connection with fraud, theft and deception the local Insurance Managers Association has claimed the crime was exposed because of the local regulatory system. David Self is accused of stealing more than US $1million and has been charged with a variety of financial crimes which allegedly led to the collapse of Monkton Insurance. The IMAC said Wednesday that news of the crime was not welcome it illustrated that the regulatory environment had performed in exactly the way it should in bringing the alleged fraud to the attention of the authorities.

“While this is a story we never like to see emanating from our industry, it is important to note that it was through the safety net of the Cayman Islands Monetary Authority’s regulatory system that this issue was brought to light.  The sound regulatory principles that have attracted 728 captive companies holding more than $11.8 billion in premiums to this jurisdiction have been tested and prove that the system has performed in exactly the way that it should, which provides certainty for current Cayman captive companies and those considering domiciling here. 
The association offered its support to CIMA in taking decisive and appropriate action serving in the best interests of the Cayman Islands. “We garner a sense of comfort that the regulatory structure works effectively and efficiently,” the insurance body added.

Self, who is currently trying to get legal aid for his representation, has not yet entered a plea in relation to the mounting charges against him and has been remanded in custody to HMP Northward. He is due to appear in Grand Court later this month in order to answer to the list of charges that relate to misappropriation of the insurance firm and its clients’ money.

Gordon MacRae and Gwynn Hopkins of Zolfo Cooper (Cayman) Limited, the liquidators of the company, claim Self had wrongfully diverted cash from the insurance firm and its clients, which he used for unauthorized investments and personal expenditure.

Monkton Insurance Services was incorporated in Cayman in 1997 and is regulated by CIMA, which appointed the controllers in February stating that Self "was not a fit and proper person to hold the office of director," according to court documents.