ASIC bans convicted broker

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 deputy chair Peter Kell said the regulator’s action against Mr Sahay shows just how serious it is about tackling loan fraud.

“We won't hesitate to take strong action to remove dishonest brokers who falsify loan documents to the detriment of their clients from the industry,” he said.

Aussie Home Loans said in July that it immediately terminated Mr Sahay’s contract in August 2013 after the group’s investigation found “discrepancies and false statements in loan applications”.

“We also informed the Mortgage and Finance Association of Australia, who subsequently terminated his membership of the association,” the statement said.

“We fully cooperated with ASIC in its investigation, and provided supporting documentation and other evidence to assist ASIC in his prosecution.”

Aussie said it understands that all of the loans subject to the discrepancies were eventually approved and no customers were disadvantaged financially as a result of Mr Sahay’s actions.

“Aussie has strict standards of conduct and will not tolerate any infringement of them, as seen from our action regarding this matter,” it said.

[Related: ASIC imposes licence conditions on national brokerage]