ASIC bans two brokers

An ASIC investigation found that from about May to October, 2010, Mr 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.

According to ASIC, Mr Hsieh and Ms Shen had been responsible for arranging the false creation of Notices of Assessment used to support the applications.

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

ASIC deputy chairman Peter Kell said their actions 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," he said.

At the same time, ASIC has announced that former mortgage broker Hee Send Lee of Dural has been convicted of providing false information to banks to secure approvals for home loans totalling almost $7.5 million.

Mr Lee 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.

ASIC's Peter 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."