ASIC bans broker for three years

by AB05 Feb 2018
ASIC has banned a broker from engaging in credit activities as part of its investigation into a group that advised clients to set up SMSFs and buy property with their superannuation.

NSW mortgage broker Michael Wilkins is barred from doing credit business for three years. 

ASIC said that on five occasions in 2010, Wilkins submitted loan applications in which he deliberately overstated clients’ savings by between about $130,000 and $179,000.

“By submitting these loan applications, ASIC found that Mr Wilkins gave to the bank information or a document that was false or misleading,” said ASIC today.

Wilkins' banning is part of ASIC's ongoing investigation into a group of companies called the Heritage Group. The group advised clients to set up SMSFs and buy property with their superannuation.

ASIC’s investigation has also led to the permanent banning of John Dimitropoulos from providing financial services or engaging in credit activities, and the cancellation of the credit licence of a company formerly called Heritage Financial Solutions and Heritage – Freedom & Security. 

The regulator has also cancelled the credit licence of a company formerly called Sunpac Finance Pty Ltd on its own application, as well as credit licence of Smithson & Baye.
 

COMMENTS

  • by Country Broker 5/02/2018 11:29:33 AM

    I am curious , did the lender not ask for proof of the savings amounts.
    Yes the Broker was wrong and fraudulent , but in my experience the banks I deal with in this space want confirmation of the deposits held.

  • by SWLS 5/02/2018 12:04:45 PM

    From what I read, the broker actually fabricated the document as well. All lenders will ask for proof of savings, especially with an SMSF loan.

  • by SEQ Broker 5/02/2018 1:05:27 PM

    Only 3 Years....
    Recently I have let a couple of deals go because the narrowly miss servicing requirements only for them to be picked up elsewhere...
    The result of committing a purposeful fraud should be expulsion.