ASIC has permanently banned two Perth-based finance brokers for committing motor vehicle finance fraud worth over $315,000.
Eric-John Larry Pryor and Peter Lachlan McDonald of Bertram, Western Australia, were banned after ASIC found that they had, independently and jointly, engaged in dishonest and misleading conduct when brokering motor vehicle financing for twelve clients between May 2012 and February 2013 whilst employed as finance brokers for Get Approved Finance of Victoria Park.
Pryor and McDonald misled vulnerable clients with poor credit histories to believe they would be approved for vehicle finance if their loan applications were supported by guarantors. The pair then prepared loan applications solely in the names of the proposed guarantors without those persons' knowledge or consent. As a result of this conduct, the lender financed over $315,000 in automotive loans (with interest $470,000) which it otherwise was unlikely to have approved.
ASIC also found that Pryor and McDonald personally profited from the sale of vehicles to three clients in circumstances where they had sourced the vehicle, artificially inflated the sales price and failed to disclose their interests in the transaction.
The pair have also been convicted of fabricating insurance policies in relation to five loans so as to mislead the lender about the existence of mandatory comprehensive insurance policies being in place for those clients.
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 and misleading conduct will be removed from the industry."
Pryor and McDonald have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision. ASIC's investigation is ongoing.