Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

ASIC bans broking director

banned  x banned  x
Huntley Mitchell 4 minute read

ASIC has banned a director of two companies from engaging in credit activities and managing corporations for four years.

Craig Eric Lynch of Sydney was the director of Paramount Financial Services (PFS) and Paramount Finance & Investment Services (PFIS), which were authorised to act as mortgage brokers.

An ASIC investigation found that Mr Lynch had breached his duties as a director of PFS and PFIS in his treatment of personal loan accounts held with those companies and in managing the taxation affairs of PFS.

The regulator found that Mr Lynch engaged in conduct that resulted in PFS submitting to a credit provider a loan application containing misleading income details of the applicant and a falsified supporting payslip.

Advertisement
Advertisement

According to ASIC, Mr Lynch was also aware of a practice at PFS and PFIS that clients were instructed to sign blank application forms, and had breached his duties as a director of PFS and PFIS in relation to the dealings on his personal loan accounts with those companies.

ASIC’s investigation also found that Mr Lynch diverted $1.6 million of company funds (a 10-year advance on his salary) to pay out a debt he personally owed to PFS, which went into liquidation seven months later, in November 2011.

Between approximately July 2011 and September 2011, Mr Lynch recorded $705,200 received from a third party as a reduction to his personal loan account with PFIS. ASIC noted that this money was supposed to be paid to PFIS as commission for property sales.

In both instances, ASIC found that Mr Lynch had misused his position as a director to gain an advantage for himself or cause detriment to the company.

PFS and PFIS were authorised to provide credit assistance by Australian credit licensee Paramount Lending Services (PLS). ASIC cancelled PLS’ Australian credit licence on 23 January 2014 at the request of Mr Lynch, the director of PLS.

PROMOTED CONTENT


Both PFS and PFIS are no longer trading.

ASIC bans broking director
banned  x
TheAdviser logo
banned  x

 

more from the adviser
Peter White Proposed separation of ASIC/APRA oversight a ‘problem’: FBAA

The broker association has voiced “serious concerns” of split...

Sam White Expanded Loan Market focusing on tech, CRM

The newly expanded group is setting its sights on technology, inc...

handshake 2 Finsure adds Islamic loan product to offering

The aggregator is the first to add Islamic financial products an...

FROM THE WEB