A Sydney man has faced the Downing Centre Local Court on charges relating to the promotion of false interest free home loans.
Following an investigation by the Australian Securities and Investments Commission (ASIC), Trevor Douglas Cohen of Balmoral, New South Wales, was charged with engaging in misleading conduct in relation to financial services, obtaining money by deception and four counts of falsifying documents.
The investigation found Cohen offered to provide an ‘interest free home loan’ product through two non-listed companies, Derivex Limited and Derivex Asset Management Limited.
It also found Cohen aimed to create and sell distribution licences to interested parties who would be authorised to sell the established loan products. Cohen was a director of both companies.
It is alleged no person, after receiving a letter of offer from Derivex Asset Management Limited, received a loan. Cohen is alleged to have obtained money from one client as a deposit or ‘conduit payment’ but failed to proceed with providing the full loan amount to the client or return the ‘conduit payment’ to his client upon failure to proceed with the loan.
It is also alleged Cohen falsified the signature of a co-director of Derivex and Derivex Asset Management Limited on various company documents.
Cohen was released on bail on the condition that he reside at a certain address and if planning to travel, provide ASIC with the details. Cohen is required to reappear in the Downing Centre Local Court on March 13, 2007, for a mention hearing.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
