SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Broker banned for overstating borrower savings

Broker banned for overstating borrower savings

Annie Kane Comments 0
Shares 8

A mortgage broker has been banned from engaging in credit activities for three years after submitting false or misleading information on loan applications.

The Australian Securities and Investments Commission (ASIC) has banned mortgage broker Michael Wilkins, from Watanobbi, NSW, from engaging in credit activities for three years after the regulator found that he had “deliberately” filed loans with “false or misleading” information.

An ASIC investigation into several companies and people operating under The Heritage Group found that on five occasions in June and July 2010, Mr Wilkins submitted loan applications on behalf of clients in which he deliberately overstated their savings by between $130,000 and $179,000.

The Heritage Group advised its clients to set up self-managed superannuation funds (SMSF) and buy property with their superannuation. However, concerns were raised about the way The Heritage Group structured the loans and property ownership within its clients’ SMSFs.

The financial services regulator has also:

  • permanently banned Mr John Dimitropoulos from providing financial services or engaging in credit activity (an appeal is pending);
  • cancelled the credit licence of a company formerly called Heritage Financial Solutions Australia Pty Ltd and Heritage – Freedom & Security Pty Ltd;
  • cancelled the credit licence of a company formerly called Sunpac Finance Pty Ltd on its own application; and
  • cancelled the credit licence of Smithson & Baye Pty Ltd. This cancellation is currently subject to a decision on appeal to the AAT.

ASIC has advised that investors who obtained advice or finance from people associated with this group should contact their lender and, if necessary, obtain independent professional advice to ensure that the loans to their SMSFs and their property ownership have been structured in compliance with the trustees’ superannuation law obligations.

[Related: Regulator cancels credit licence of Queensland group]

Broker banned for overstating borrower savings
TheAdviser logo
Shares 8
Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers. As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast. 

Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.

FROM THE WEB
more from the adviser
Brokerage CEO ‘encouraged’ by PC report

The head of a major brokerage is “encouraged” by the revision...

Former MFAA head slams call to remove trail

We need to “heed the lessons” from the United States, Canada,...

Marketplace lender looks to expand into broker channel

Personal loan fintech SocietyOne is looking to strengthen its rel...