A former broker has been sentenced after pleading guilty to charges of fraud and giving false information.
Former Perth finance broker Eric-John Larry Pryor has been sentenced in the Perth Magistrates Court after pleading guilty to two charges of fraud and one charge of giving false information.
An investigation by the Australian Securities and Investments Commission (ASIC) found that when Mr Pryor brokered three motor vehicle finance contracts as an employee of Get Approved Finance, he provided the lender Esanda with false information.
These contracts stated that the person who had agreed to be the loan guarantor was the applicant and therefore would own the vehicle.
Mr Pryor had advised his clients that they would be approved for vehicle finance if their loan applications were supported by guarantors.
Mr Pryor obtained a $28,000 pecuniary advantage for himself and others by fraudulently brokering two of the loans for an amount well above the purchase price of the financed vehicle.
Mr Pryor was sentenced to 22 months’ imprisonment, released on a recognisance order for 12 months, taking into account his guilty plea.
This matter has concluded a series of enforcement actions by ASIC, including permanently banning Mr Pryor and a colleague from engaging in credit activities and providing financial services, and other bans of Get Approved Finance brokers.
The Commonwealth Director of Public Prosecutions prosecuted the matter after a brief and referral from ASIC.
Esanda was previously owned by ANZ. In October 2015, ANZ agreed to compensate more than 70 borrowers for car loans organised by Get Approved Finance.
ANZ car loans, including those provided by Esanda, was a case study at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
At the time of the conduct, Get Approved Finance was the trading name and operated under the Australian credit ;icence of West Australian-based finance broker Jeremy (WA) Pty Ltd.
The company was deregistered in September 2017.
Ex-broker charged with making false statement
Former NSW mortgage broker, Shiwei He has been charged with making a false statement in a credit licence annual compliance certificate lodged with ASIC.
Mr He, a director of N V I Lending Pty Ltd lodged a certificate with ASIC in February 2019.
ASIC has alleged that Mr He certified that none of the fit and proper people under his Australian credit licence had had their accreditation suspended or cancelled by a lender, or their membership with an aggregator terminated.
However, ASIC has alleged that Mr He’s accreditations with the Commonwealth Bank of Australia (CBA), ANZ, National Australia Bank (NAB), Suncorp, and Westpac were suspended or cancelled between 2016 and 2018.
ASIC has further alleged that Mr He, who was accredited to act as an introducer for the Loankit broker aggregator service, also had his introducer agreement terminated by LoanKit in 2018.
ASIC has alleged that the false statement submitted by Mr He is a breach of the National Consumer Credit Protection Act.
He could face a maximum penalty of 12 months’ imprisonment or a $12,600 penalty if found guilty.
ACL holders are required to identify the people involved in the management of their credit businesses, known as fit and proper people. Holders must also lodge an annual compliance certificate with the corporate regulator to maintain the licence.
ASIC said that true and accurate compliance reporting is a critical obligation for credit licensees, and ensures that consumers retain confidence in their credit service providers.
The matter has been listed for a reply to service of the brief before the Downing Centre Local Court on 2 November 2021.
The Commonwealth Director of Public Prosecutions is prosecuting the matter after a referral from ASIC.
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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