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Broker banned for $3.6m fraud

by Reporter4 minute read

ASIC has punished a Sydney broker with a 10-year ban after she was convicted of loan fraud.

The regulator announced yesterday that it had banned Shashi Kanta Prasad of Chipping Norton from engaging in credit activities and from providing financial services.

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ASIC deputy chairman Peter Kell said removing such “unscrupulous operators” from the industry would protect consumers and help borrowers have confidence in the lending sector.

Following an ASIC investigation last year, Ms Prasad was charged with creating false loan documents for seven clients in an attempt to secure home loans totalling more than $3.6 million.

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Ms Prasad was convicted by the NSW District Court and was required to enter into a good behaviour bond for 18 months.

“Judge Maiden noted Mrs Prasad's full cooperation with ASIC throughout the investigation, [and that] was a significant factor in the final judgment,” according to the regulator.

ASIC said the illegal conduct delivered Ms Prasad upfront and ongoing commission payments of more than $11,000.

The regulator’s investigation led to Ms Prasad pleading guilty to four charges of fraud in July 2014.

“She also pleaded guilty to producing 41 fake documents and instruments and using those statements, documents and instruments with the intention to obtain a financial advantage for her employer in the form of commissions,” ASIC said.

ASIC said that Ms Prasad committed her offences between 2008 and 2011 while she was employed by Premium Financial & Retirement Solutions.

ASIC has banned 29 individuals or companies since becoming the national regulator of consumer credit in 2010, with 15 of those bans being for life.

[Related: ASIC bans broker for breaking credit rules]

Broker banned for $3.6m fraud
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