Mortgage broker franchise Aussie Home Loans
has responded to the news of former Aussie broker, Madhvan Nair, admitting to 18 counts of fraud totalling over $5 million, saying it welcomes the charges brought by ASIC.
In a statement released to the media, Aussie said Nair’s contract was suspended on 24 June 2014 and then terminated on 7 July 2014 after a detailed investigation uncovered discrepancies and false documents in loan applications made by Nair.
“Aussie fully cooperated with ASIC in its investigation, including providing ASIC with results of the internal investigation as well as loan files, supporting documentation and other evidence to assist ASIC in its prosecution,” the statement said.
“Aussie strictly prohibits its brokers from receiving any direct payment from any lender, referral partner or customer and was not aware of cash payments made by customers to Mr Nair.”
Yesterday, Australian Broker
reported that ASIC's investigation found that between September 2012 and June 2014, Nair submitted 18 loan applications totalling $5,594,559 containing false borrower employment documents. Of the 18 loan applications, 12 were approved and disbursed, totalling $3,721,684.
Nair admitted to the charges through his solicitor and will next appear in court on 30 August 2016 for sentencing.
“Aussie has a zero tolerance policy to any infringements and believes it has some of the most stringent compliance processes in the industry. Aussie proactively and voluntarily reports any terminated brokers to ASIC and to lenders as part of its governance activity,” Aussie said.