The corporate regulator has permanently banned three Victorian-based brokers convicted for conspiring to defraud financial institutions.
The Australian Securities and Investments Commission (ASIC) has announced that it has permanently banned Najam Shah, Mohamed Ahmed and Aizaz Hassan from providing financial services and engaging in credit activities.
Mr Shah, Mr Ahmed and Mr Hassan were each convicted of one charge of conspiring to defraud financial institutions, with all three men playing a role in creating and using false documents to support loan applications, valued at approximately $170 million. The activity took place at former Footscray-based finance broking company Myra Home Loan.
ASIC has determined that as a consequence of their criminal convictions, Mr Shah, Mr Ahmed and Mr Hassan are “not of good fame or character” to provide financial services and are not fit and proper people to engage in credit activities.
Mr Shah is currently serving a sentence of five years jail in relation to the conviction, and a minimum of three years and three months must be served before he is eligible for parole. Mr Shah has appealed against his sentence.
Mr Ahmed and Mr Hassan were each sentenced to a five-year community correction order in relation to the conviction, with special conditions, including 400 hours of community service.
All three men have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decisions.
Former Commonwealth Bank (CBA) employee Andrew Cameron has also been committed to stand trial for his alleged role in the fraud case.
Mr Cameron has been charged with one count of the common law offence of conspiracy to defraud.
ASIC has alleged that Mr Cameron conspired with the brokers to defraud the big four bank by providing false documents and information in support of home loan applications.
ASIC alleges that the conspiracy involved approximately 121 loan applications and resulted in the CBA lending approximately $36.4 million.
The maximum penalty for the offence is 15 years of imprisonment.
The trial will be held in the County Court of Victoria. A date has not yet been fixed, but the next directions hearing is on 26 October 2018.
[Related: Broker jailed for $170m mortgage fraud]
Brokers should be applying new credit card assessment rules to th...
While the federal election result has granted a reprieve for the ...
The Coalition’s surprise victory may have reinstalled certainty...