A former Westpac home finance manager has been sentenced to three years’ imprisonment after pleading guilty to dishonest use of his position.
Following an ASIC investigation, David St Pierre, a former Westpac home finance manager, has been sentenced in the Southport District Court to three years' imprisonment, to be released after six months on a recognisance order.
An ASIC statement explains that on 2 November 2016, Mr St Pierre pleaded guilty to three counts of dishonest use of his position, with the intention of directly or indirectly gaining an advantage for himself or others.
ASIC alleged that between July 2008 and June 2010, Mr St Pierre dishonestly used his position and submitted loan applications for approval when he knew they contained false information and false documents.
Mr St Pierre obtained over $2.5 million for Westpac customers, that they invested with a now failed Tasmanian property development scheme, operated by Capital Growth International Club All About Property Developments Pty Ltd.
In delivering the sentence, Judge Kent QC remarked that Mr St Pierre's behaviour was described accurately in his opinion by the Crown as calculated, elaborate, determined and not a fleeting mistake.
ASIC Commissioner Peter Kell said Mr St Pierre's actions betrayed the trust of his clients and caused them significant financial harm.
“This sentence showed such behaviour will not be tolerated,” he said.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Mr St Pierre's recognisance is in the sum of $1,000, conditioned that he be of good behaviour for a period of three years.
ASIC's investigation found that the customers to whom the loan applications related were elderly and vulnerable and with limited financial means, yet in spite of this, Mr St Pierre encouraged them to borrow against their homes, some of which were unencumbered, to invest with CGIC and AAPD, which promised returns of 12–20 per cent per annum.
The customers received monthly interest payments from CGIC and AAPD after they invested, however the interest payments stopped shortly before a liquidator was appointed on 28 February 2011. This left customers without sufficient income with which to repay their loans to Westpac.
Westpac has compensated customers who obtained loans from Westpac through Mr St Pierre in relation to amounts they invested in CGIC. Westpac has also compensated investors who did not borrow funds from Westpac but claimed to have had some direct contact with Mr St Pierre before making their investment in CGIC.
ASIC acknowledges Westpac's commitment to achieving a resolution for the benefit of CGIC investors.
In March 2014, ASIC permanently banned Mr St Pierre from engaging in credit activities and providing financial services.
ASIC's investigations into CGIC, AAPD and its officers are ongoing.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
The non-bank lender has revealed it will expand its product and c...
The major bank saw a 45 per cent increase in mortgage application...
The non-major bank has reduced variable rates by up to 20 basis p...