ASIC declares open season on dodgy brokers

by 11 Dec 2013
ASIC has permanently banned two Sydney-based brokers and one former mortgage broker while announcing the conviction of another.

Two Sydney-based mortgage brokers have been banned by ASIC after it was found that they had provided false information to credit providers in support of loan applications worth over $3 million.

ASIC has also permanently banned  former mortgage broker Daniel Minh Tuan Nguyen from engaging in any credit activities and providing financial services following his criminal conviction for a range of offences, and convicted another, Hee Seng Lee, of providing false information to banks to secure approvals for home loans totalling almost $7.5 million.

Wen Yao Hsieh (also known as Leon Hsieh and Adrian Hsieh) of Castle Hill and Chia Min Shen of North Parramatta submitted 7 loan applications on behalf of 6 borrowers that contained false information to AMP, Westpac and Bendigo and Adelaide Bank.

An ASIC investigation found from about May to October, 2010 Hsieh gathered tax, employment and income documents in support of the loans before referring the applications on to Ms Shen. She then submitted the applications.

Both Hsieh and Shen had been responsible for arranging the false creation of Notices of Assessment used to support the applications. 

ASIC deemed Hsieh and Shen were not fit and proper persons to engage in credit activities because they knew that the applications contained information which was false as to the income and employment of the borrowers.

ASIC Deputy Chairman Peter Kell said, "By falsifying loan applications Hsieh and Shen put consumers at risk.

"ASIC is actively targeting mortgage brokers and finance brokers who falsify loan documents. Any broker engaged in this sort of misconduct will be removed from of the industry."

In a further move by ASIC today, former broker Daniel Minh Tuan Nguyen, of Panania, has been permanently banned.

Nguyen was convicted of 10 offences including providing false information and documents to banks to secure approvals for home loans totalling more than $3 million over a five-month period. He pled guilty to the charges.

The loans Nguyen was involved in attempting to secure ranged from $112,000 to $536,900.00, with the average being approximately $350,000. Only one loan of $532,000 was approved.

The conviction of Nguyen was the first under new national consumer credit protection legislation.

At the time of the offences Mr Nguyen was the sole director and sole employee of M.A.I Pacific Pty Ltd (trading as MAI Home Loans) in Bankstown.

"Mr Nguyen’s conduct was not inadvertent or the result of a momentary lapse. It was a deliberate, ongoing course of conduct that he knew to be in breach of the law," said Kell.

"The banning of Mr Nguyen continues ASIC's actions to protect the public from the harm associated with falsifying loan documents and loan applications."

Mr Nguyen has the right to lodge an application with the Administrative Appeals Tribunal for a review of ASIC’s decision.

Meanwhile, former broker Hee Seng Lee has been convicted of providing false information to banks to secure approvals for home loans totalling almost $7.5 million.

Seng Lee, 58, of Dural, pleaded guilty to six charges including making false statements and providing false documents.

The loans Mr Lee was involved in attempting to secure ranged from $160,000 to $1.5 million.

Appearing in the Sydney District Court on 6 December 2013, Mr Lee was sentenced to two years imprisonment to be served by way of an Intensive Correction Order.

Kell said, ‘Attempts to falsify loan documents and loan applications will not be tolerated by ASIC. These actions can be significantly detrimental to clients.

"We will continue to shine the spotlight on broker misconduct around loan fraud and false loan applications."

The Commonwealth Director of Public Prosecutions prosecuted the matter.