Powered by MOMENTUM MEDIA
the adviser logo
Growth

Former car finance manager convicted for loan fraud

by James Mitchell4 minute read
Fraud, jail

A Victorian man has been convicted in the Ringwood Magistrates Court after pleading guilty to one charge of dishonestly using his position as a car finance manager with the intention of personal gain.

An ASIC statement released today (15 September) explained that Mr Christopher Robert Con Foo, of Donvale, Victoria, was convicted, fined $2,500 and ordered to pay costs.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Mr Con Foo was employed by South Yarra BMW, a car dealership operated by Bayford Group Pty Ltd. His role was to arrange car finance on behalf of customers. In October 2015, Mr Con Foo falsified two letters from accounting firms that were used in support of car loan applications submitted to BMW Australia Finance Ltd on behalf of two clients. In one case, the accountant's letter was altered to substantially inflate the client's business income without the client's or accountant's knowledge.

"Submitting fake documents so that your client can get a car loan isn't a smart sales tactic — it's illegal," ASIC deputy chairman Peter Kell said.

Advertisement
Advertisement

"Where ASIC becomes aware of such conduct, we will take action. ASIC also expects lenders to ensure [that] their compliance processes capture and prevent these fraudulent applications." 

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

In May 2017, ASIC banned Mr Con Foo from engaging in credit activity and from providing financial services for seven years.

ASIC acknowledges the assistance of the Bayford Group Pty Ltd in the investigation.

ASIC has taken action against a number of other loan-writers, representatives or brokers operating in the car finance market for unscrupulous conduct such as:

 - Falsifying or using false information to get loans for consumers who might not otherwise be eligible for a loan.
 - Obtaining cars for consumers with poor credit histories by arranging for a third party to sign the loan contract as a borrower (when that person thought they were only a guarantor).
 - Arranging for the consumer to buy a car at an inflated sale price, and obtaining a secret profit from the mark-up price.
 - Financing insurance and warranty products without the knowledge or consent of the consumers.

[Related: 'I'd do it': ASIC chairman would place customers in larger loans]

Former car finance manager convicted for loan fraud
fraud jail
TheAdviser logo
fraud jail

James Mitchell

James Mitchell

AUTHOR

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more