MFAA expels fraudulent broker

by 04 Feb 2014

The MFAA has expelled a Sydney broker for submitting fraudulent documents to a lender.

The industry body announced yesterday the immediate expulstion of Shiv Prakash Sahay, following a determination by the MFAA's Disciplinary Tribunal.

The tribunal found Sahay had engaged in acts of a dishonest and fraudulent nature by submitting 10 mortgage applications which included false savings records, to a lender.

The MFAA has passed its ruling on to the Australian Securities and Investment Commission.

MFAA CEO Phil Naylor said the association and its tribunal are "determined to identify and weed out the few brokers who are doing the wrong thing by what is a thriving and ethical industry”.

The expulsion following the tribunal last week releasing its 2013 annual report, which showed that the new matters referred to it last year fell from 30 to 20 matters.

Six members were expelled or suspended during 2013 as a result of the tribunal investigations, while memberships were also cancelled as they no longer met the MFAA’s stricter membership requirement.

Naylor said at the time the association was "delighted" that the number of complaints were at low levels, which he accredited to "stricter controls, educational requirements and disciplinary systems" both from the MFAA and ASIC.

“The vast majority of our members are totally professional in the way they operate and evidence of this is the fact that the mortgage broking industry now provides 46 per cent of the total mortgages provided in Australia.”