Watchdog permanently bans WA broker

ASIC has handed a permanent ban to a WA broker over numerous compliance breaches




ASIC has handed a permanent ban to a WA broker.
The regulator announced it had banned credit rep Constantinos Patniotis of East Perth, WA, from engaging in credit activities. ASIC said the permanent ban was delivered due to numerous compliane breaches.
The watchdog has alleged Patniotis :
  • failed to maintain a trust account and deposited lenders and borrowers funds into his personal account
  • undertook mortgage and finance broking activity while not licensed to do so
  • misused lenders funds
  • when in a position of conflict with the receipt of money, failed to obtain written authority from the borrower to repay himself in preference to the lender
  • facilitated loans to borrowers who he knew were poor credit risks, and
  • failed to keep proper records.
Furthermore, ASIC said Patniotis "facilitated persons to lend money to, or through him" to be loaned on short terms at high interest. 
"During this period Mr Patniotis was only permitted to arrange loans from commercial lenders for, or on behalf of, persons as an intermediary," the regulator said in a statement.
ASIC commissioner Peter Kell took a tough stance on the banning, vowing that brokers who "deliberately flout credit laws" would be caught and removed from the industry.

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