A Canadian life insurance agent is currently facing fraud charges, after it was emerged that he was secretly scamming thousands from his clients.

For six years, the Newmarket and Barrie-based life insurer offered some of his customers the chance to invest with him on the side. He told them he was putting their money in the insurance industry and then paid them high returns.

However, police allege that he was in fact running a Ponzi programme and all the money was gone.  The alleged fraud came to light last year, when one of the man's investors tried to pull money out of the investment. The man was hesitant to pay her back, so she contacted police.

Officers followed his corporate records and determined that he hadn't invested any of the money. They found that very little money was left.

Police state that he took money from at least 12 clients and instead of investing it, they accuse him of pocketing it, using money from new clients to pay old ones to make it appear the money was earning interest. Between 2003 and early 2009, he took in nearly $1.5 million.

As a result, the police have charged him with conning three customers out of their money and was this week, charged with nine counts of fraud.