ASIC bans unlicensed Sydney director
A Sydney director has been banned permanently by the Australian Securities and Investments Commission (ASIC) for operating a financial services business without an Australian services (AFS) licence.
Erin Watson was a director of Home Equity, and remains a director of Home Mortgages Australia and Credit Limited.
Between March 2007 and February 2008 Watson met with potential investors, dealt with clients and signed agreements entered into by Home Mortgages Australia.
ASIC determined Watson deceived clients by advising them to invest in property and finance US Mortgage Giant and that the investments were ‘watertight’.
She then lodged misleading documents with ASIC that US Mortgage Giant was a legal entity and a significant shareholder of Home Mortgages Australia.
The investigation also found that from September 2006 to March 2008 Watson used clients’ monies to pay her home loan, family members, and other clients of Home Equity and associated companies.
Watson has the right to apply to the Administrative Appeals Tribunal for a review of ASIC’s decision.
AUTHOR
Andrew Tsanadis
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