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ASIC -12-237MR Former mortgage broker pleads guilty to first charges laid under the National Credit Act

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Tuesday 25 September 2012



A former NSW-based mortgage broker today pleaded guilty to 10 charges including providing false information to banks to secure approvals for home loans of more than $3 million over a five month period.

The charges laid against Daniel Nguyen, 45, of Panania, are the first criminal charges brought by ASIC under the National Consumer Credit Protection Act 2009 (National Credit Act).

Mr Nguyen appeared before Sydney’s Downing Centre Local Court and pleaded guilty to 10 charges. He has admitted to:

  • nine offences against section 33(2) of the National Credit Act for providing false documents to banks for nine home loans totalling more than $3 million between 29 July 2010 and 7 January 2011, and
  • one offence against section 11.2(1) of the Commonwealth Criminal Code and section 123(6) of the National Credit Act for assisting three clients to apply for credit contracts that were unsuitable for them between 28 September 2010 and 7 January 2011.


At the time of the offences Mr Nguyen was the sole director and sole employee of M.A.I Pacific Pty Ltd (trading as MAI Home Loans) in Bankstown.

Mr Nguyen faces a maximum penalty of 2 years imprisonment, a fine of up to $11,000 or both, for each charge.

Mr Nguyen was committed to the District Court for sentence on 5 October 2012. Mr Nguyen was granted unconditional bail.

The Commonwealth Director of Public Prosecutions is prosecuting this matter.


Background


MAI Home Loans was authorised to provide credit services between 9 April 2010 and 14 October 2011 when its Australian credit licence was cancelled as a result of ASIC’s investigation.

The National Credit Act requires credit licensees to meet responsible lending conduct obligations.

The key responsible lending obligation is that credit licensees must not suggest, assist with or provide a credit product that is unsuitable for a consumer. Before a credit licensee suggests, assists with, or provides a new credit contract or lease to a consumer, the credit licensee must:

  • make reasonable inquiries of the consumer about their requirements and objectives in relation to the credit contract
  • take reasonable steps to verify the consumer’s financial situation
  • based upon these inquiries, assess whether the credit product is unsuitable for the consumer and only proceed if the credit product is not unsuitable, and
  • give the consumer a copy of the assessment if requested.


A contract will be unsuitable if the consumer would be unable to repay it without substantial hardship or it will not meet the consumer’s requirements or objectives. The requirements also apply where the credit limit on an existing contract is being increased.

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Comments

  • doyla66
    doyla66 Tuesday, 25 September 2012

    WOW. what about pre 2009? Our broker should now be VERY WORRIED....

  • doyla66
    doyla66 Tuesday, 25 September 2012

    Daniel Nguyen is the second broker such charged. Many more brokers are being lined up to appear before the courts. Better still, a fly on a wall got a lot of info on what is being planned re certain bankers.

    EDITOR: I will believe action against Banks when I see it. Not holding my breath. ASIC is full of "goinna's"

  • doyla66
    doyla66 Tuesday, 25 September 2012

    So are these genuine broker misconduct cases or are they the fall guys for the lenders?
    Are any of the charged brokers going to talk about what the banks told them to do by way of a defense?

  • doyla66
    doyla66 Tuesday, 25 September 2012

    If the Broker is founf guilty where does it leave the comsumer who has ended up with a mortgage they cannot afford?

  • doyla66
    doyla66 Tuesday, 25 September 2012

    Bigger question is Why did the banks accept the applications? did they check what the broker provided?Who was the credit assessor that gave the loan the tick of approval?Did he call the borrower,to check his credentials,and affordability?
    This is still Imprudent Lending.the credit assessor of the bank should also be held accountable.
    That's the way I see it.Where are the morals? You can't just single out brokers
    It takes two to tango.

  • doyla66
    doyla66 Tuesday, 25 September 2012

    BROKERS - I SUGGEST THAT YOU CONTACT DENISE @ BFCSA URGENTLY & TELL HER WHAT THE BANKS MADE YOU DO!

    GREAT NEWS. THE LEGAL PRECEDENT HAS BEEN SET.
    BUT - WHY WAS THE BANK NOT CHARGED? This is the important bit that needs legal clarification:
    "The key responsible lending obligation is that 'credit licensees' must not suggest, assist with or provide a credit product that is unsuitable for a consumer."

    As far as I am aware, The Bank holds the credit licence. The brokers that did our loans were un-licenced.

  • doyla66
    doyla66 Wednesday, 26 September 2012

    This is great news.
    Now, the two brokers that fudged the LAFs in my case are very cocky and keep on telling me that my loans were not regulated by the National credit Act as they obtained from me a Business Declaration form and therefore they cannot be scrutinised by ASIC in the same way as when assisting a customer to obtain a home loan. In other words they are saying "we are covered by this Business Declaration you provided the lender". The question is: how come they can provide fraudulent figures on the LAFs deliberately (without my knowledge or authority) so the loans stack up and get away with it just because it was a commercial loan. The credit mananger working for the lender knew exactly what he was doing as he coached one of the brokers how to make sure the assets and liabilities are right so when "the powers to be" check them the deal goes through (I have this conversation between the credit manager and the boker in writing as they have somehow forwarded me the e-mail, I beleive by mistake). All brokers should be investigated and if they were put up to this, whoever did put them up to it should be prosecuted. Mind blowing stuff!

  • doyla66
    doyla66 Wednesday, 26 September 2012

    Hi Maria, the cocky brokers may have got you to sign a Business Declaration but they cannot hide behind that - fraud is still fraud - even IF it may have been a commercial loan!
    (They are just trying to trick you into believing them - I bet they are $#!tt!^g their pants.)
    It may actually work in your favour, as ASIC oversee the Corporations act and therefore should be scrutinised by ASIC even further.

  • doyla66
    doyla66 Wednesday, 26 September 2012

    Marie, maybe broker blew whistle on CM(sent u email)& you never 'knowingly' waived your 'consumer rights' & bank can't contract out of 'your' consumer rights thru deception/fraud - amongst other things (et al).

  • doyla66
    doyla66 Wednesday, 26 September 2012

    Good news. But - the BANKS MUST BE PROSECUTED. BANKS PLANNED TO BLAME THE BROKERS ALL ALONG!

    NOTE : This also applies to BANKS in the Banking Code of Conduct:
    The key responsible lending obligation is that THE LENDER must not suggest, assist with or provide a credit product that is unsuitable for a consumer. Before THE LENDER suggests, assists with, or provides a new credit contract or lease to a consumer, THE LENDER MUST:
    make reasonable inquiries of the consumer about their requirements and objectives in relation to the credit contract
    take reasonable steps to verify the consumer’s financial situation
    based upon these inquiries, assess whether the credit product is unsuitable for the consumer and only proceed if the credit product is not unsuitable, and
    give the consumer a copy of the assessment if requested.

    A contract will be unsuitable if the consumer would be unable to repay it without substantial hardship or it will not meet the consumer’s requirements or objectives. The requirements also apply where the credit limit on an existing contract is being increased.

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