ASIC sinks Melbourne mortgage broker

by Ben Abbott20 Dec 2011

ASIC has scrapped the credit licence of Melbourne-based brokerage Star Aliiance Financial Services, and permanently banned its director, mortgage broker Prasanna Wijesekara.

Following an investigation into Wijesekara, ASIC has barred him from ever engaging in credit activities, after he was found to have made false and misleading statements on his ACL application.

Based in South Morang on the outskirts of Melbourne, ASIC found Star Alliance's application was false and misleading because it did not state AMP Bank had cancelled his accreditation as a broker in 2010.

In addition, ASIC said it had reason to believe Wijesekara had provided falsified documents and false and misleading information to AMP Bank in support of a loan application in 2010.

ASIC said Wijesekara also knew, or was reckless as to whether his credit licence application details were false and misleading.

ASIC commissioner Peter Kell used Wijesekara's permanent banning as an opportunity to warn brokers against falling afoul of the regulator and recently introduced NCCP legislation.

"These outcomes demonstrate ASIC’s ongoing commitment to ensuring that only those who meet requisite standards of honesty and integrity are permitted to participate in the consumer credit industry," he said.

Wijesekara and Star Alliance have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.

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  • by WhistleBlower 20/12/2011 10:05:20 AM

    Pity ASIC can't do things like this to Banks - A chap I was talking with Friday was advised by his bank, to pay his stamp-duty costs via credit card.... on a mortgage with a 97% LVR (LMI Inc)

    Banks, ya gotta love the power they have.

  • by JTFP 20/12/2011 10:17:50 AM

    I also had an experience where a banker suggested to a borrower that they had no children..when one ran in the room calling Mummy mummy..OMG!!!!

  • by Wayne 20/12/2011 10:20:57 AM

    Seems this guy got what he deserved. As for Whistleblower's comment - can't agree more. When Aussie Banks secretly borrow billions from the US Fed bail out fund back in 2008 and never alerted ASIc, ASX, APRA or their shareholders it just goes to prove they are a law until themselves. And when the Fed was finally foprced by Congress to name the banks they put up $7 trillion for, lo and behold, our big AAA rated banks were among them. But hey their safe as houses - yep.....