Sydney man convicted of $7 million home loan fraud

by Julia Corderoy08 Jul 2015
A former Aussie Home Loans credit representative, Shiv Prakash Sahay was convicted and sentenced yesterday in the Downing Centre Local Court on charges relating to a home loan fraud worth $7 million.

Sahay, from Lidcome NSW, was sentenced to 350 hours of community service work on three charges of making false statements, making false documents and using false documents in home loan applications submitted for his clients to Bankwest and Suncorp.

“The reputation of the lending industry depends on mortgage brokers and other credit representatives acting honestly and in compliance with the credit laws. ASIC will vigorously pursue offenders involved in falsifying loan documents and other statements for their own financial benefit,” ASIC commissioner Peter Kell said.

Kell says ASIC continues to focus on misconduct involving loan fraud, which often involves mortgage brokers. Since becoming the national regulator of consumer credit in 2010, ASIC has achieved brought criminal proceedings against 11 people, resulting in seven convictions for various offences and four defendants currently before the Courts. 

Thirty-four individuals or companies have also been banned from providing credit services or precluded from holding a credit licence, including 18 permanent bans or cancellations.

The Commonwealth Director of Public Prosecutions prosecuted the matter.
 

COMMENTS

  • by Regional Broker 8/07/2015 10:42:05 AM

    2 Questions

    1: why did the Aussie Loan processors not pick this up ? Or maybe they did ?
    2: Why no prison , fraud is fraud ??? Community service ???

  • by AF 8/07/2015 11:00:37 AM

    Weak penalty

  • by Stephen Dinte 8/07/2015 11:11:35 AM

    Unfortunately, like too many stories published, the full details are not provided.
    The main question I have is:- Who identified this occurrence, one of the involved banks or someone at Aussie?