Fidelity Cover - Do not rely on it

You cannot rely on that Fidelity Guarantee policy

A huge corporate collapse from an electrical retailer and on investigation, it turns out a former senior accountant has now pleaded guilty to stealing nearly $20 million from collapsed firm Clive Peeters. Thirty-nine-year-old Sonya Causer, from Lilydale, bought 44 properties, luxury cars and $17,000 worth of jewellery over an 18-month spending spree. The court heard she falsified payroll records over a two-year period while working as a senior accountant for the whitegoods firm. The Crown argued the fraud was a contributing factor to Clive Peeters' collapse in May.

The company's administrators have managed to recoup about $16 million of the stolen money. Causer's lawyer told the court she was totally overwhelmed and terrified by her own actions. The lawyer said Causer was mortified when she learnt the total amount she had stolen. He argued she started stealing to escape the pressures of looking after two autistic children and a "virtually unemployable" husband. The court heard she became obsessed with buying and selling real estate and always thought she would make enough money to pay Clive Peeters back. She has pleaded guilty to 24 counts of theft.


If I owned shares in that business, I would have lost everything, so I would be suing the Directors for a breach of fiduciary duty and a breach of their duty of care owed to me as a part owner of the business wholly reliant on their good governance which has lead to this collapse.

You need good systems in place to prevent this unauthorised access to the company funds. We find it hard to get a company to take out a $500,000 Fidelity cover let alone could you envisage an insurer willing to provide a $20,000,000 cover?

Watch this space.

Latest News

Finalists again in 2020

CPR Insurance Services was very pleased to be nominated again for this year's Insurance Business Magazine awards. Unfortunately the Awards night has been postponed until later due to COVID19, we very much appreciate the accolades this brings us. We have been nominated three years in a row now and won the the award the past two years. It was always going to be very hard to win three in a row.

read more

CPR Insurance Services Awarded Authorised Representative Insurance Business of the Year for 2019

Mandy and Robert Cooper were proud to receive the inaugural Authorised Representative Business of the Year from ANZIIF in the Australian Insurance Industry Awards for 2019.

We share this award with all our staff, Lauren, Guy and Sarah and thank them for their dedication in providing the best possible customer service. We also thank our clients who have made our business what it is today. We thank you all so much.

read more