Emil Savundranayagam, a Ceylonese swindler, made headlines in Britain with his insurance scam.
In 1963, he founded the Fire, Auto and Marine Insurance Company (FAM), which offered low insurance rates to motorists in the United Kingdom. However, FAM’s success was short-lived, as it collapsed in 1966, leaving approximately 400,000 motorists without coverage.
Savundra’s tactics were questionable from the start. He presented fake securities worth £540,000 and £870,000 in blue-chip shares to investors, when in reality, no such securities existed.
He also transferred FAM assets to a bank in Liechtenstein, which were never recovered. When confronted by David Frost on his TV show, Savundra showed no remorse, calling the audience “peasants” and claiming no moral responsibility for his actions.
The collapse of FAM led to Savundra’s downfall. He was arrested, sentenced to eight years in prison, and fined £50,000. Released after six years, Savundra died two years later.
Savundra’s case highlighted concerns about insurance regulation in the UK and led to changes in the industry. His infamous TV interview with David Frost is still remembered as a classic – and helped further sustain the later Sir David Frost’s appeal as a broadcaster. Some may recall that interview as a classic ‘Trial by Television’.
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