Sydney broker sentenced for $7m mortgage 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,” the regulator said in May.

“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 commissioner Peter Kell said the reputation of the lending industry depends on mortgage brokers and other credit representatives acting honestly and in compliance with the credit laws.

“ASIC will vigorously pursue offenders involved in falsifying loan documents and other statements for their own financial benefit,” he said.

Mr Sahay was expelled from the MFAA in February last year for “dishonest and fraudulent” conduct.

Since becoming the national regulator of consumer credit in 2010, ASIC has launched criminal proceedings against 11 individuals, resulting in seven convictions for various offences and four defendants currently before the courts.

ASIC has also banned 34 individuals/companies from providing credit services or holding a credit licence, including 18 bans/cancellations.

[Related: MFAA was right to expel me, ex-Aussie broker admits]