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ASIC blasts 'inaccurate' criticism over fraud case

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Australian Broker | 12 Jan 2015, 08:51 AM Agree 0
ASIC has hit back at recent criticism over its handling of an alleged $110m home loan fraud case, saying the criticisms are “inaccurate and speculative”
  • John | 12 Jan 2015, 09:30 AM Agree 0
    Why does a polly Sam Dastyari need to jump on his high horse? I agree with ASIC, people have jumped the gun on this one
  • The Sage | 12 Jan 2015, 09:55 AM Agree 0
    Good question John, and the answer is simple!

    The alleged fraud occurred under Labour's watch, so Dastyari is doing what all good politicians do and deflecting attention by blaming someone else !!
  • marty | 12 Jan 2015, 09:58 AM Agree 0
    yes exactly. We don't know the extent of the fraud yet ie is it just fraudulent documents used to secure loans or is it more such as made up /stolen identities, inflated values, money laundering etc etc
  • Old Broker | 12 Jan 2015, 10:01 AM Agree 0
    Sam Dastyari would not know his Head from his a#@e
    this guy is one to watch...
  • Goodo | 12 Jan 2015, 10:07 AM Agree 0
    I also agree that ASIC has received the wrong criticism here!

    If you want to be critical of ASIC, then lets point the finger were the criticism belongs!

    1. Why is / has ASIC not investigated the lenders that allowed a systemic failure of the system to occur for 3 years totalling $110M.

    2. Why is ASIC not forcing these lenders to address their failures

    3. Are any of the lenders or their staff complicate in this matter?

    4. What damages have been caused to the clients & what redress do they have for the systemic failures of the lenders compliance checking

    As per normal, ASIC stops it investigation too short and is just after the sensational headline to justify its own existence!
  • No Bite | 12 Jan 2015, 10:21 AM Agree 0
    ASIC is owned by the banks and has been asleep at its post for years. It's a complete farce and should be dismantled for its selective way it does its job. ASIC completely refuses to administer the NCCP Act which it is paid handsomely by tax payers to do.

    Dastyari was right! More politicians should follow his lead and find out what ASIC has not been doing that it should. ASIC's lack of regulation and prosecution has allowed Australia to become a haven for white collar crime as fraud goes unpunished. ASIC's 'no action' policy is the fundamental reason that there is no consumer or business confidence in the credit market anymore. If any of you brokers out there are wondering why so few people and businesses are borrowing, it's because so many have been burnt and ASIC has done nothing to lock up the offenders. People just don't trust the lending industry at all. And worst of all, because of this, the only people buying up property and farms in Australia now are the Chinese, so look forward to being a tenant in your own country soon, working for a bowl of rice a day.

    And, why is it that since ASIC got belted around at the Senate Committee Inquiry, now ASIC is happy to bust brokers all of a sudden, but still won't bust a banker? How much do banks pay ASIC to leave them alone?

  • Johnno | 12 Jan 2015, 11:11 AM Agree 0
    ASIC did the wrong thing in the first place by not stomping on Low Doc & No Doc Loans when they first raised their ugly heads.

    This is just the first firm that they have been able to name and quantify the size of the fraud.

    It is these frauds which continue to feed the lust for Property and the exponential rise is the cost of housing. If house prices continue up then there won't be any problems and most of the fraudulent activity will go un-noticed. If they fall, it will just be another Ponzi Scheme that the Banks will be bailed out from.
  • The Sage | 12 Jan 2015, 11:20 AM Agree 0
    Johnno, WTF ??

    How did you manage to draw a long bow and link this article to no-doc/low-doc lending ??

    Do you know something the rest of us don't?
  • Johnno | 12 Jan 2015, 02:37 PM Agree 0
    Dear Sage

    The bulk of the $110mil fraud involving Myra is based around the issuance of Loans for Lo Doc and No Doc lending. What "Doc's" were provided, were altered and not followed up or checked by the credit providers. (Damn shame that). Something I had to do "ad nauseum" throughout the late '90's and early 2000's.

    The Consumer Credit Code never allowed for the issuance of Lo Doc or No Doc loans and they should have been nipped in the bud by ASIC at the time that they appeared in accordance with the CCC.

  • The Sage | 12 Jan 2015, 02:51 PM Agree 0
    Johnno, you're obviously privy to far more detailed knowledge of this than has been portrayed in the media. Do tell.

  • Incognito | 12 Jan 2015, 04:00 PM Agree 0
    ASIC should employ brokers to help weed out the shonks.We seem to have plenty of advice for them..

    ASIC had its funding cut by $120m (over 5 years) in the last budget which seems illogical IMO
  • disgusted-ASIC | 12 Jan 2015, 04:00 PM Agree 0
    I'm absolutely disgusted at ASIC and its conduct over loan origination fraud. In my opinion Kell and Metcraft should be charged with aiding and abetting crimes!

    In 2014, I personally made a complaint to my State, Major Fraud Squad regarding a Mortgage Manager who I discovered had falsified my loan application form after I signed it.

    I had requested a copy of the loan application form from my 'lender' in 2012, after I read the Tonto / First Mac case. It was like trying to squeeze blood out of a stone. Excuse after excuse as to why my 'lender' (now being Pepper Australia) was not 'obliged' to provide me with a copy of the document.

    After 6 months I FINALLY received a copy of the loan application form via email. When I opened it I literally fell out of my chair. This was NOT a copy of what I submitted to the Mortgage Manager. It was no longer in my hand writing and had so many fraudulent misrepresentations I wasn't sure if Pepper had sent me the correct document.

    Names of employers were listed, for companies we had not worked for
    Our income was increased by over 3500%
    Our superannuation was increased by 5000%
    There were other assets listed that we did not have ….

    And … to top it all off … We were approved for a FULL DOCS LOAN which was fully insured with Genworth Financial. We were just first home buyers … what the hell was going on??

    So after receiving this document, I made a complaint with the fraud squad, surely the police would be able to help me!

    Lucky for me, I had faxed my original loan application form to the Mortgage Manager, so I retained a copy of the original wet-ink copy – which did NOT include the B.S statements which where on the document that I received back from Pepper.

    So, here I have the before and after picture. The original WET-INK loan application form with my signatures and a false document that the Mortgage Manager created by lifting my signatures from my original document.

    At the suggestion of the fraud squad I also contacted ASIC and made a complaint.


    Long story short … what happened was that an ASIC lawyer from Melbourne contacted my State major fraud squad and told them NOT TO INVESTIGATE my complaint!

    So here we have ASIC interfering with a possible crime by a Mortgage Manager (as agent of the lender) and a police investigation!

    They seem to be happy going you brokers … but won't touch any of the Mortgage Managers or lenders themselves. Why? What / who are they protecting?

    To me it seems that ASIC will go you guys because the courts are ruling that brokers are agents of borrowers, but won't touch the Mortgage Managers as 'agents' of the banks. Bloody disgusting!

    And yes, I have made these accusations directly to ASIC (yes Francis Hardingham, you know who I am) and who have failed to deny that this is what they did. They simply refuse to answer my question.

    They should be stripped of all their powers and a new body set up with a steel set of nads who will prosecute to the extent of the law – WITHOUT FEAR or FAVOUR!

    Metcraft seems to have gotten it right the first time. Australia is a haven for white collar criminals and they are all protected by ASIC.
  • martyX | 12 Jan 2015, 05:05 PM Agree 0
    @ disgusted. If you would like please email both copies to me. I would like to see the extent of this and why they didn't act. Also are you / were you disadvantaged by this loan being approved?
    marty@ (with no space)
  • Incognito | 13 Jan 2015, 12:31 PM Agree 0
    ASIC should employ brokers to help weed out the shonks. We seem to have plenty of advice for them.

    ASIC had its funding cut by $120m (over 5 years) in the last budget which seems illogical IMO
  • Bottom Line | 19 Jan 2015, 11:14 AM Agree 0
    ASIC seem to have taken the responsible course. We don't need a regulator jumping at shadows. Far better they take their time, and get it right...which seems to be the case here.
  • CharlieX | 20 Jan 2015, 09:07 PM Agree 0
    government regulators such as ASIC and ACCC do not protect the consumers. I have known and seen consumers lost over $100k to franchisors, advisors, and so. once reported to these gov't regulators, their people come around to file some paperwork saying they will investigate then you never hear from them again. Australia is a land good for the criminals to prey on the hard working consumers, while the government regulators watch as entertainment.
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