Mortgage broker banned for seven years

ASIC has also prohibited Mr Sahai from performing any function involved in the engaging of credit activities, including as an officer, manager, employee, contractor, or in any other capacity within the meaning of the Corporations Act, for seven years.

It has come after ASIC found that Mr Sahai allowed his brother, Shiv Prakash Sahay to engage in credit activities by acting as an intermediary between credit providers and clients under his credit representative authority.

This occurred despite ASIC permanently banning Mr Sahay from engaging in credit activities in September 2015. In June 2020, Mr Sahay was sentenced in the Downing Centre Local Court for two charges of breaching the National Consumer Credit Protection (NCCP) Act.

Earlier this year, the corporate regulatory banned Mascot mortgage broker Astna Shirtika Sahay from engaging in credit activities for five years for allowing her father (Mr Sahay) to engage in credit activities.  

ASIC said it specifically found that Mr Sahai:

• Was involved in seven contraventions of the National Consumer Credit Protection Act by Mr Sahay, by being knowingly concerned in, or party to, the contraventions;
• Was not sufficiently trained or competent to engage in credit activities, where in the event that Mr Sahai had not been aware that he was assisting Mr Sahay to contravene his banning order, he should have made enquiries and carried out due diligence to reveal that he was dealing with Mr Sahay, and be aware of the banning order made against Mr Sahay;
• Does not have attributes of diligence, judgement, honesty and integrity required to carry out duties and obligations set out in the credit legislation, and is not a fit and proper person to engage in credit activities; and
• Is likely to continue contravening the National Consumer Credit Protection Act.

Mr Sahai has appealed to the Administrative Appeals Tribunal for a review of ASIC’s decision. His banning has been recorded on ASIC’s Banned and Disqualified Persons Register.

[Related: Sydney broker pleads guilty to $7m fraud]