ASIC has banned a Perth-based finance broker for three years after an investigation found he falsified documents to support the loan applications of his clients.
Mathew David Schmelzkopf, of Kelmscott, Western Australia, has been banned from engaging in credit activities until June 27, 2016.
ASIC’s investigation found that, between November 2010 to September 2011, 13 loan applications Schmelzkopf submitted to a lender contained tax invoices that he created, without authority from the suppliers of the goods to do so. The loan applications predominately sought to secure approvals for motor vehicle finance totalling almost $366,000.
Based on his conduct of knowingly giving falsified documents to the lender, ASIC believed that Schmelzkopf may not be a fit and proper person to engage in credit activities.
ASIC deputy chairman, Peter Kell, says the banning highlights ASIC’s 'strong approach to ensuring that rogue operators are removed from the industry'.
"ASIC will not tolerate this type of behaviour. Those who engage in dishonest, deceitful conduct will be removed from the industry."
Schmelzkopf has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
As a result of its investigation, ASIC also placed conditions on the Australian credit licence of the entity through which Schmelzkopf operated. These conditions include a requirement that an external compliance consultant be engaged to undertake reviews of the licensee’s and its representatives' compliance with the credit legislation and to make regular reports to ASIC. This entity has subsequently been taken over by new owners.