Mortgage brokers banned for loan fraud

by Rebecca Pike30 Apr 2018

Three mortgage brokers have been permanently banned by the Australian Securities and Investments Commission (ASIC).

Xiaoyi (Jeff) Zhao, Jun (Leo) Ma and Liang (Victor) Zhang were found to be knowingly or recklessly involved in the provision of false employer letters and/or pay slips to Westpac Banking Corporation.

Zhao and Ma were mortgage brokers and directors of Sydney Global Investment Pty Ltd, which formerly operated a finance brokerage business in Sydney that traded as X Finance Group.  Zhang was also a mortgage broker and lending manager at X Finance Group.

ASIC found that between July 2015 and February 2016 the group provided the false documentation to support 21 home loan applications lodged on behalf of customers of X Finance Group. 

ASIC found that the companies nominated in the letters and payslips were based in China, that the customers concerned were not employed by these companies and that pay slips provided income figures that were much greater than the customers' actual incomes.

As a result of that conduct, Westpac financed over $17m in home loans in reliance on false documentation.

Zhao, Ma and Zhang have the right to seek a review of ASIC's decision to the Administrative Appeals Tribunal.