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An Adelaide broker has been blacklisted by the corporate watchdog over providing fraudulent information to five lenders.
According to ASIC, the Adelaide-based mortgage broker Domenico Schiafone, also known as Domenic Schiafone, was “knowingly or recklessly involved” in the provision of false payslips and false bank statements between May 2018 and March 2020.
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Further, the watchdog said that these incorrect documents were supplied to five lenders over this near two-year period to support 11 home loan applications lodged on behalf of his customers.
For his actions, Mr Schiafone has been permanently banned from engaging in credit activities and from providing any financial services.
ASIC has also said that, due to Mr Schiafone’s actions, it has cancelled the credit licence of Erahon Pty Ltd.
Mr Schiafone was the sole director of the company.
As highlighted by ASIC, Erahon Pty Ltd operated as Ora Lending Solutions (Ora Finance) between September 2011 and October 2020.
However, according to archives of Ora Finance’s website, which is currently no longer active, the outfit was first established in 2002 by Mr Schiafone.
It assisted first home buyers, business owners, and property investors with purchasing, refinancing, and leasing requirements.
The brokerage had two office locations — one in Adelaide, and the other in Melbourne.
ASIC has said that Mr Schiafone has the right to seek a review of ASIC’s decision by the Administrative Appeals Tribunal.
Last month, the watchdog confirmed that it had banned a former broker and former ANZ employee for five years from engaging in credit activities over their failure to undertake appropriate verification checks over home loan applications.
According to ASIC, between 2018 and 2018, the former broker failed to meet with home loan applicants, accepted payslips and financial statements “from third parties instead of the applicants themselves”, and failed to take steps to verify the accuracy of those documents in contravention of credit legislation.
In April, ASIC banned a former Finsure broker for six years after he was found to be “reckless” in providing supporting home loan documents that were “false” or “materially misleading.”
This followed the 10-year ban of the former financial adviser and broker Mark Babbage, who was blacklisted from engaging in credit activities by ASIC.
ASIC’s decision came after Mr Babbage was jailed for breaking COVID-19 border protocols to attend the 2021 AFL Grand Final in Perth.
Mr Babbage’s ban began on 11 March.
[Related: Former ANZ employee banned for 5 years]
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