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NSW broker guilty on 10 charges: Faces imprisonment

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Australian Broker | 19 Jun 2013, 08:00 AM Agree 0
A former Sydney-based broker has pleaded guilty to 10 charges of providing false loan applications totaling almost $3.8 million
  • Paul | 19 Jun 2013, 09:30 AM Agree 0
    Prosecuted and rightly so. ASIC must have been busy with this one while CBA Financial Planners were running amok.
  • Keith B of the West | 19 Jun 2013, 09:45 AM Agree 0
    What an idiot and contaminates all of us who are left trying to run businesses (and make a profit) on the backdrop of compliance out of control.
  • Long term broker | 19 Jun 2013, 10:30 AM Agree 0
    Well done
    we should be proud, as our industry is being policed and cleaned up from rogues
  • PeterT | 19 Jun 2013, 12:05 PM Agree 0
    How does anyone think they can do this sort of thing and actually believe they'll get away with it? The crime will eventually be discovered and they're serving the evidence up as well the direct link back to themselves.
    People committing these sort of crimes aren't very bright.
  • Denise Brailey BFCSA (Inc) | 19 Jun 2013, 01:17 PM Agree 0
    No-one gets this unfortunately, Brokers led to believe this fellow is guilty.
    Did anyone stop to think why the bank approved such outrageous multiple loans? We have warned in the past the brokers are being set up by the banking sector. The fudged figures come from the bank geared service calculator. Why didn,t ASIC investigate the banks as to why they approved such IMPRUDENT LOANS? S 27 of Code?
  • Tim H | 20 Jun 2013, 12:58 PM Agree 0
    Great to see ASIC pursuing the crooks within the industry and getting a prosecution.
    Denise maybe it is you who don't get this. The guy provided fraudulent documents for 10 separate loans. It doesn't indicate if they were all for the same borrowers or imprudent as you state. He tried this on and got caught.
    I suspect the lenders got suspicious and started investigating and good on them for doing so.
    Rather than bank bashing in this instance I believe the lenders should be applauded for highlighting this crooks fraudulent conduct to ASIC.
    As an honest broker doing the right thing by my clients seeing ASIC and the lenders pursue the crooks in the industry and drive them out gets my praise.
  • Denise Brailey BFCSA (Inc) | 20 Jun 2013, 11:39 PM Agree 0
    The Lenders created the Service Calculator - they are the engineers. They are not reporting the broker to ASIC - never. ASIC are just chalking up a few brownie points. Sadly I am warning the industry you are being set up. I have the evidence. I have no reason to mislead you. Complaint came from one client who did not understand how this could happen. This chap's clients still believe in him. I know why. Yes Paul, you are on the money. ASIC's evidence to Parliament is at odds with mine. One of us has their facts straight.
  • mac | 21 Jun 2013, 09:49 AM Agree 0
    Oh Denise you are so far of the mark with this one, you sound hsyterical. Clearly a case of forged documents produced by the broker for multiple clients to assist them with loans approvals. This has nothing to do with your crusade against unfair lending practices this was straight out old fashioned fraud by the sound of it.
  • Denise Brailey BFCSA (Inc) | 21 Jun 2013, 10:48 AM Agree 0
    Hi Mac. I hope I am off the mark. I hope I am wrong. But let me ask you all this question: Do you use a service calculator to calculate the income that you write on the Loan Application Form? Are you then asked by BDM's to write that figure on the LAF? Have you later asked a client to get the copy (they are entitled) of the Bank's faxed copy of the LAF? See a difference in figure that you wrote?
  • Mac | 21 Jun 2013, 11:30 AM Agree 0
    Yes I use lenders debts servicing calcs and I also do my own calc for my preliminary assessment. Must pass both models for me to submit the application. I don't generally use LAF's at all.All done online with a permenent record of the data input to the lender recorded in applyonline system. No Bdm has ever suggested I put an inflated figure down and regardless self certified loans where this could have happened are really a pre gfc product and on the whole not available anymore (nccp reasonable enquiries and verification).You need to move on.
  • L3nder | 25 Jun 2013, 12:54 PM Agree 0
    Do it with 10 clients and your a criminal, do it with thousands and your only GE money.
  • Mac | 25 Jun 2013, 01:16 PM Agree 0
    So true!
  • Over the Industry Bashing | 25 Jun 2013, 08:10 PM Agree 0
    Hi Denise - Responsible lending guidelines as set down by ASIC under the NCCP require a broker to make their own "independent" enquiries as to the clients ability to service. This is done before the final recommendation to the client. I have looked at your blog/website and most (not all) cases you highlight are pre- NCCP going back to 2006 - 2008. Times have changed within this industry and the regulatory oversight. It may not be perfect but it has taken some pretty big steps towards getting it right
  • Denise Brailey BFCSA (Inc) | 26 Jun 2013, 11:05 AM Agree 0
    I appreciate all of your comments and feedback. I may come from a different angle but I am for improvement of the industry as a whole. I can only bod this by reporting publicly as to what flaws there are - sadly. I would hope there are no more members of BFCSA and I could retire from duty. The new NCCP laws are trying to place the ionus of checking affordability on brokers via the use of the calculator. This has let the Lenders off the hook. The Game plays on as the new victims post 1 July 2010 are coming through now as the defaults occur. ASIC knew and did nothing and continues to do nothing evidenced by the Senators responding the the evidence presented. Submissions from across the nation re Senate Inquiry into ASIC will be horrific. The broker Industry needs to demand the Lenders take full responsibility for approval of loans as legislated for years ago. That's the issue. The issue is imprudent lending and non affordability otehr than by buffer monies padded in. As others comment it really is happening right now. I have spoken to many Brokers who are concerned. Its your industry and you need to understand the Model and the games the lenders are playing with your lives and livelihood. The new NCCP laws are a furphy. Laws to protect consumers from bad lending have been used in courts the past decade. We took Bad Lenders to court, not brokers.
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