After collecting insurance premiums from its customers, an insurance broker drew four cheques payable to the insurer or bearer for the premiums and sent the cheques to another insurance intermediary which purported to be acting as agent for the insurer. The intermediary fraudulently endorsed two of the cheques for payment to a third party and fraudulently deposited all of them at another branch of the paying bank for collection by the third party. The bank credited the proceeds to the third party's account. The intermediary also induced the broker to use another cheque intended to pay for premiums to procure a telegraphic transfer of funds into the account of the third party with the bank rather than of the named insurer. A sixth cheque was subsequently drawn by the broker in favour of the intermediary in payment of premiums for insurance purportedly arranged by the intermediary with the insurer. The proceeds of this cheque were misappropriated through the intermediary.