Sydney broker pleads guilty to $7m fraud

These statements and documents were contained in loan applications submitted by Mr Sahay for his clients to Bankwest and Suncorp Bank, ASIC said.

“ASIC's investigation found that between 14 November 2011 and 6 August 2013, Mr Sahay, whilst a credit representative of Aussie Home Loans, made false statements in loan applications and created and used false bank statements for 17 of his clients to attempt to secure home loans totalling approximately $7 million,” ASIC said.

“Of the $7 million in loans for which Mr Sahay applied, $4.796 million were approved.

“Ask Consultancy Services, a company controlled and owned by Mr Sahay, received over $5,500 in upfront commissions and then ongoing commissions as a result of Mr Sahay's offending.”

ASIC deputy chairman Peter Kell said the credit laws are designed to protect borrowers from loans they cannot afford.

“ASIC will act against dishonest mortgage brokers who flout the law for their own financial gain with little regard for the interests of their clients,” he said.

“ASIC is targeting loan fraud and we will continue to remove brokers and other credit representatives who engage in fraudulent activity from the lending industry.”

Aussie Home Loans told The Adviser in February last year: “Aussie terminated its contract with Mr Sahay in August 2013 as a result of information it became aware of and after conducting its own investigations. Aussie has a strict policy of ensuring it has a compliant broker network and acted swiftly in this matter.”

Mr Sahay next appears in court on 7 July for sentencing.

[Related: Sahay admits that MFAA was right to expel him]