ASIC bans broker over fake approval letter

by AB18 Jul 2013

A Perth-based mortgage broker has been permanently banned from engaging in credit activities after an ASIC investigation found that he had falsified a letter stating finance approval had been provided for a client.

Eric Ying Ching Chu was formerly employed by Mortgage Specialists Pty Ltd as a trustee for the Janet Smith Family Trust trading as Specialist Mortgage.

ASIC's investigation found that after falsifying the letter, Chu then forwarded that letter to a settlement agent so that CBA would issue a loan in the amount of $256,000.

ASIC banned Chu on the basis that he was not a fit and proper person to engage in credit activities.

‘ASIC takes the role of gatekeepers very seriously. People who do not take their obligations seriously will be removed from the industry,’ said Deputy Chairman Peter Kell.

Chu has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

COMMENTS

  • by ANF 17/07/2013 2:36:24 PM

    Is it just me, or does it seem that a larger portion of the banned brokers are coming out of WA, a state that was "apparently" previously our only regulated state!!!

  • by Broker - 15 Years 17/07/2013 2:48:05 PM

    Permanent Ban from the mortgage industry for falsifying documents ...

    COMMON SENSE HAS PREVAILED !!!

  • by Keith B of the West 17/07/2013 2:57:54 PM

    Another one bits the dust! but while ASIC blows its trumpet, in reality this individual would have been banned by MFAA for life irrespective of whether NCCP legislation was in place or not!.