Three former mortgage brokers have been banned and one former mortgage broker convicted for providing false information as a result of actions initiated by the Australian Securities and Investments Commission (ASIC).
Hee Seng Lee, 58, of Dural pleaded guilty in Sydney District Court to six charges including making false statements and providing false documents to secure approvals for home loans totalling almost $7.5 million.
The case was prosecuted by the Commonwealth Director of Public Prosecutions, with Lee sentenced to two years imprisonment to be served by way of an Intensive Correction Order.
ASIC also stated that it had permanently banned three mortgage brokers, also for providing false information in support of loan applications.
According to ASIC, two Sydney-based mortgage brokers, Wen Yao Hsieh of Castle Hill and Chia Min Shen of North Parramatta, submitted seven loan applications on behalf of six borrowers that contained false information to AMP, Westpac and Bendigo and Adelaide Bank.
An ASIC investigation found that Hsieh gathered tax, employment and income documents in support of the loans before referring the applications on to Shen, who submitted the applications. Both were also responsible for arranging the false creation of Notices of Assessment used to support the applications.
ASIC stated that Hsieh and Shen were not fit and proper persons to engage in credit activities since they knew the applications contained false information.
In the third case ASIC permanently banned Daniel Minh Tuan Nguyen, of Panania, from engaging in any credit activities and providing financial services following his criminal conviction in relation to 10 offences including providing false information and documents to banks to secure approvals for home loans.
Nguyen, who was convicted in January 2013, pled guilty to the charges, with ASIC stating his conduct was not inadvertent but deliberate.
ASIC Deputy Chairman Peter Kell said the regulator was actively targeting mortgage brokers and finance brokers who falsify loan documents. The actions follow claims ASIC was lagging behind in its oversight of the mortgage broking sector compared with that of financial planning.
