In a year that has seen ASIC use the full strength of its powers against dishonest operators, the regulator has banned three mortgage brokers and convicted one after investigations found that they had provided false information to clients.
Two Sydney-based mortgage brokers Wen Yao Hsieh of Castle Hill and Chia Min Shen of North Parramatta were permanently banned for providing false information to credit providers in support of loan applications worth over $3 million. The pair submitted seven loan applications on behalf of six borrowers that contained false information to AMP, Westpac and Bendigo and Adelaide Bank.
ASIC has also permanently banned a former mortgage broker who was convicted of ten criminal offences, including providing false information and documents to banks to secure approvals for home loans totalling more than $3 million over a five-month period.
Former mortgage broker Hee Seng Lee has also been convicted of providing false information to banks to secure approvals for home loans totalling almost $7.5 million. Hee Seng Lee pleaded guilty to six charges including making false statements and providing false documents.
ASIC deemed Mr Hsieh and Ms Shen were not fit and proper persons to engage in credit activities because they were aware that the applications contained information which was false as to the income and employment of the borrowers and Peter Kell, the ASIC Deputy Chairman said, “by falsifying loan applications Mr Hsieh and Ms Shen put consumers at risk.
He also warned that, “ASIC is actively targeting mortgage brokers and finance brokers who falsify loan documents. Any broker engaged in this sort of misconduct will be removed from the industry.”