ASIC warning fails to stop fraudulent loan writer from operating

by Mackenzie McCarty02 Sep 2013

Fraudulent home loan group Mike Morgan Loans was outed by ASIC on Friday, but further investigation by Australian Broker has revealed the con artists are still attempting to do business with Australian consumers.

An email sent to Mike Morgan Loans by Australian Broker editor, Adam Smith, enquiring about the ASIC warning, elicited the following response:

“Hello:

We give all kinds of Loan at 3% interest rate, please visit our website and read more about us and also download the Application form, fill it and send it to us via email, We do hope to build a strong business relationship between this Company and yourself.”

Australian Broker contacted ASIC this morning regarding the email, but a spokesperson for the regulator was unwilling to explain whether there was any way for Australian authorities to have sites like Mike Morgan Loans’ shut down.

“We came out with our warning on Friday…we’d hope that people take those warnings and be cautious when approached with unsolicited offers of financial products.”

Furthermore, sources reveal it took the regulator nearly three months to warn the Australian public about Mike Morgan Loans, though ASIC maintains it acted as efficiently as possible.

"ASIC acted in a timely manner in response to the claims...Prior to issuing a Public Warning Notice, ASIC must take steps to investigate the claims made and to ensure it has sufficient information about which, to warn the public."

COMMENTS

  • by Keith of the West 2/09/2013 9:59:28 AM

    One can only assume this sort of activity has been going on for years & Mr Morgan and co have operated outside guidelines right under ASIC's nose!. Makes a mockery of NCCP and the guidelines we as bona fide licenced brokers' are being governed by

  • by Country Broker 2/09/2013 10:19:14 AM

    This will be a great test for ASIC to see if the move quickly to shut this down.

  • by Denise Brailey BFCSA (Inc) 2/09/2013 10:59:12 AM

    I note it takes three months for ASIC to act upon anything and then hit out with damp lettuce leaf. In my experience with ASIC....sorry folks.....three months is ASIC's "fast track" system which they say is a "timely manner." How many more loans have been written since ASIC was notified?