Franchise responds to broker banning

by Julia Corderoy07 Oct 2015
Aussie Home Loans has responded to the news of a former Sydney-based Aussie broker being permanently banned by ASIC, saying the franchise fully cooperated in the investigation and no customers were disadvantaged.

In a statement released to media yesterday, Aussie Home Loans said Shiv Prakash Sahay was immediately terminated in 2013 after the franchise investigated discrepancies. The major franchise also said it helped ASIC prosecute Sahay, who was convicted of home loan fraud worth $7 million.

“[Aussie] also informed the Mortgage and Finance Association of Australia, who subsequently terminated his membership of the Association. We fully cooperated with ASIC in its investigation, and provided supporting documentation and other evidence to assist ASIC in his prosecution,” the statement read.

According to Aussie, no customers were disadvantaged as a result of Sahay’s home loan fraud.

“We understand that all the loans subject to the discrepancies were eventually approved and no customers were disadvantaged financially as a result of Mr Sahay’s actions.

Aussie has strict standards of conduct and will not tolerate any infringement of them, as seen from our action regarding this matter.”


  • by Kenneth 7/10/2015 9:51:14 AM

    Hey Aussie, will you be donating the fraudulent upfront commission and trail commission to charity?

  • by Jess 7/10/2015 8:19:43 PM

    I've read for many years that Aussie Jon has donated millions to charities, so am not sure your comment is relevant in this case Kenneth. Besides, the lender would've stopped payment on any trail fee's paid if the broker was proven fraudulent as you probably know.