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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: ASIC at last admit FRAUD but whack brokers again: Its the Banksters stupid! Corrupted Regulators

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ASIC ADMIT FRAUD. OMG Wakey Wakey at last!!! ASIC is admitting the "F" word exists but they are still blaming brokers.  IT'S THE BANKSTERS you useless dunderheads.  KPMG agree - oh yes auditors for Westpoint....and a few other dodgy collapses.  MFAA know its the Banksters (only three brokers per year prosecuted). MFAA Members know it’s the Banksters and ZIPPY SKIPPY .  Naylor states its a “rare fraud" ...... Philip just try and mouth: "a whopping $120 Billion in dirty loans and you would be closer to the mark!"

The HIGH COURT agreed its the BANKSTERS:   22 June 2012.  It's only taken ASIC 2001 - 2013 to wake up from their 12 year slumber job and they are still blaming brokers.  One prosecution last year under 2009 NCCP laws.  WOW a milestone for ASIC.....took lots of effort there chaps.  330 Investigative staff to squash one broker like a bug!    Please Prime Minister, please dismantle ASIC immediately.     This email address is being protected from spambots. You need JavaScript enabled to view it.

Fraud a 'continuing' trend in broking: ASIC

    Australian Broker News
by Mackenzie McCarty | 11 Feb 2013
 

Fraudsters cost Australia a whopping $372.7 million last year alone - and ASIC says the issue is a serious one within the mortgage broking industry.

ASIC spokesperson, Daniel Wright, says the organisation is seeing a ‘continuing’ trend of fraud within the mortgage broking industry and says it’s the category of misconduct involving brokers that is, in fact, most regularly reported to ASIC.

“ASIC is particularly concerned with instances where persons have engaged in fraud or other misconduct relating to information provided in loan applications. Since the commencement of the NCCP, ASIC has banned six persons from engaging in credit activities for such conduct and has 18 other current investigations. ASIC has also secured criminal charges against one finance broker under the responsible lending provisions of the NCCP.”

But MFAA CEO, Phil Naylor, argues that fraud remains a relative rarity in the mortgage broking industry, accouning for less than a handful of finance industry cases.

“From MFAA’s experience lending fraud occurs, but based on our expulsions – 3 last year - it is clearly not a major issue for brokers. All lenders, aggregators and good brokers have systems and checks and balances to mitigate against fraud.”

Yet, a report released by KPMG last week - the very same week that ASIC clamped down on two rogue brokers - brings the issue to a head.

Finance, perhaps unsurprisingly, boasts the highest fraud rate of any industry in Australia, according to KPMG’s 2013 Survey of Fraud, Bribery and Corruption in Australia and New Zealand. The report found that the financial services industry accounted for 86% of all fraud in Australia and New Zealand in 2012. Twenty-five per cent of fraudsters came from outside the company they victimised.

But who are these dodgy dealers? And what needs to be done to stop them ruining the industry’s reputation?

The answer to the first questions is simple – sort of. According to KPMG, the typical fraudster is male (men are three times more likely to commit a fraud than women), earns less than $100,000p/a (though this is slowly starting to change, with a 92% increase in the number of offenders earning between $100-200,000) and holds a non-managerial position within his/her company.

Furthermore, the KPMG report shows most have a clean criminal background, proving that due diligence, including insolvency, track record and integrity checks, needs to be robust.

“Organisations need to reconsider broadening their integrity screening processes from not only of applicants but also to include agents, suppliers and other business partners, particularly given tightening anti-bribery and corruption legislation around the world.”

KPMG also says the nature of the individual fraudster and the underlying causes driving their illegal activities constantly alters.

“Just as fraud is an ever-evolving phenomenon, the fraudster is like a chameleon, displaying changing characteristics as the environment around them changes…External parties continue to be the bane of the financial services…responsible for the majority of overall fraud by value and by number of incidents.”

The continuing prevalence of third party fraud generates real questions about the application of fraud controls, perhaps suggesting more robust internal frameworks at the cost of less scrutiny outside the front door.

“This strongly reinforces the need for better due diligence around third parties. The trend is less evident in major fraud situations, where internal perpetrators are most likely to defraud organisations. The 2012 survey indicated more respondent organisations were experiencing major fraud by insiders.”

KPMG reinforces the importance of prevention when it comes to dealing with fraudulent activity, saying that staff-screening, developing a corporate code of ethics, renewing/improving internal controls and conducting fraud awareness training are the most popular methods used to nip the problem in the bud.

“The focus on fraud awareness training is particularly encouraging, given the high rate of respondent organisations reporting a low awareness of fraud reporting services internally and externally.”

COMMENT

Mike C on 11/02/2013 11:11:34 AM

" Finance, perhaps unsurprisingly, boasts the highest fraud rate of any industry in Australia, according to KPMG’s 2013 Survey of Fraud, Bribery and Corruption in Australia and New Zealand. The report found that the financial services industry accounted for 86% of all fraud in Australia and New Zealand in 2012. Twenty-five per cent of fraudsters came from outside the company they victimised." 

So do we then assume that 75% is 'internal' by nature? Having spent 34 years in this industry I can assure you that incidents of fraud are not just solely related to the 'brokers' . I would like to see the current incidents occurring from within the actual lending institutions. A strong sales & target focussed environment/culture could also lead to higher rates of fraud. Fraud or even 'loose' lending practices may not just be initially committed by officers of financial lending institutions for upfront personal monetary gain, it may be to simply ensure unrealistic targets are met?

 

Wishful Thinking on 11/02/2013 9:03:12 AM

There is a lot more fraud in the finance industry then the MFAA is aware of. It is a fact that the funders do not make this information readily available, and prosecutions are limited due to the time and expense involved. Everyone needs to stop dancing around this issue and report all such matters to ASIC, who are the governing body, NOT the MFAA.

 

Yes indeed ask brokers to write to ASIC "wishful" and then send all stupid ASIC response letters to me please and we will deal with them.  This email address is being protected from spambots. You need JavaScript enabled to view it.

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  • doyla66
    doyla66 Monday, 11 February 2013

    Duped

    ASIC is now showing exactly how bent they are, and still trying to protect their Bankster buddies. It's now coming out in the open and I don't know how far they can back peddle, but surely they are about to crash. Get on the phone to your bank buddies now and tell them times up, come clean, and do it before the Government is forced to sack the lot of you. While you are about it get on the phone to Julia C/- Government House and tell her it looks like you are all screwed.

  • doyla66
    doyla66 Monday, 11 February 2013

    EXACTLY.. "Come clean and do it before the Government is forced to sack the lot of you!"

  • doyla66
    doyla66 Monday, 11 February 2013

    Asic may be blaming the brokers but they know very well who the culprit is and are playing dum - after all why would they dob in their mates when they have a good thing going!!

  • doyla66
    doyla66 Monday, 11 February 2013

    asic strikes again

    dear members
    before imformation on low doc-no doc loans came to light,we thought our bank was ok(what gullible fools we were)26.3.07 asic stated if we transferred from the original land and property developement scheme and met minimum subscription numbers and the minimum amount of money to trade they would not wind us up.27.6.07 vision capitol management advised us shares are now being issued after meeting asic's criteria.three weeks later ernst&young advised us they have been court appointed liquidators. in three weeks asic took us from financial security to financial ruin,no consultation with investors what so ever.wayne swan stated asic only acted on our behalf.light speed! how can anyone get to high court in brisbane (most investors newcastle-sydney area), get an outcome to asic's favour,get liquidators appointed and finally have the liquidators notify the sixty nine mum&dad investors in less than three weeks.during many calls to canberra -high court,ombudsman and a.a.t. i was told by a public servant not to waste my time and effort. asic are a law unto themselves and are untouchable (common knowledge among canberra beaurocats).unfortunately this has been proven time and time again.both polital parties will not say or do anything against asic.in our case a certain ian donald(former qld police) was out to make a name for himself at asic and its career path ladder.greed takes many forms not just money but personal reputation and gain.its one thing to lose money but being old fashioned and taking people at face value,when trust and values are broken thats hard to reconcile but since joining bfcsa i'm heartened to see there are still good and honest people out there who are not motivated by personel greed. thanks again neil

  • doyla66
    doyla66 Monday, 11 February 2013

    Excellent posts Neil. By the way..."ASIC a law unto themselves..." Metcalf and his bent buddies didn't recon they had to deal with Denise, who has it all over them. Just a matter of time for real justice to be kicked out of some inflated heads.

  • doyla66
    doyla66 Monday, 11 February 2013

    EXACTLY, well said all. Just posted request for Royal Commission to Prime Minister, Treasurer, Tony Abbott and MP Truss... and ASIC. We will be listening to Senate estimates this Wed night too.

  • doyla66
    doyla66 Monday, 11 February 2013

    ASIC are a totally corrupt organisation that MUST be investigated for their corruption. These scumbags have had too many backhanders from their Bankster buddies and are a disgrace to decent Australian people.

  • doyla66
    doyla66 Monday, 11 February 2013

    Asic are fully aware that they are committing a crime by covering for the bank's dodgy loans thus thousands are being evicted and Asic don't give a damn.

    They are controlled by the banks and follow their instructions for their benefit only.
    What an appalling situation and our so called leaders are behaving as if there is no problem - it's all an act - they know there is a huge problem but have been instructed from above to ignore it.

    WAKE UP POLITICIANS.

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