Australian Securities and Investments Commission investigating mortgage broker fraud

Make sure your mortgage is legitimate ... ASIC is investigating brokers who are involved in fraudulent activites. Picture: Th...

Make sure your mortgage is legitimate ... ASIC is investigating brokers who are involved in fraudulent activites. Picture: Thinkstock Source: News Limited

BORROWERS have been warned about a disturbing rise in fraud by mortgage brokers who are pushing up incomes and falsifying other information on the promise that it will help clients secure a dream home otherwise out of reach.

The corporate cops will today announce they have rubbed out two brokers - one from Sydney and another from Melbourne - bringing to eight the number banned in the past three months. The total the eight have sought - using dodgy tax assessments, fake pay slips and other fictitious documents - is $15 million.

News Corp Australia understands that as part of an ongoing "crackdown", the Australian Securities and Investments Commission has a further 15 investigations underway, one of which involves hundreds of suspect loans valued at several tens of millions of dollars.

ASIC has received tip-offs from the public, rival brokers and lenders, plus information from the Federal Government's Australian Transaction Reports and Analysis Centre, or Austrac, which monitors large movements of cash through the economy.

It's understood that in multiple cases on ASIC's radar, the borrowers knew the numbers on their application didn't add up.

"We do want to send a message that if any stage you are tempted or encouraged to go for more than your income actually justifies then don't go into that territory," ASIC deputy chairman Peter Kell told News Corp Australia. While no clients have faced action, ASIC is not ruling that out in the future.




Today: Hyuk Hwang of Dural NSW banned from engaging in credit activities for three years after an investigation found he was involved in the submission of false documents to secure a loan worth $250,000. Mr Hwang included a letter of employment from another business he owned which falsely represented the borrower was employed by, and received an income from, that business


Today: Anthony Bergin, manager of Equity Financial Management in Melbourne, banned for three years after submitting seven home loan applications worth $3.2 million that contained false or misleading information, including false pay slips


Dec. 11: Wen Yao Hsieh of Castle Hill NSW and Chia Min Shen of North Parramatta NSW submitted seven loan applications on behalf of six borrowers that contained false information. Mr Hsieh gathered tax, employment and income documents in support of the loans before referring the applications on to Ms Shen. She then submitted the applications. Both Mr Hsieh and Ms Shen had been responsible for arranging the false creation of tax assessments used to support the applications. Both have been permanently banned from being brokers


Dec. 11: Daniel Minh Tuan Nguyen, of Panania NSW, owner of MAI Home Loans, was convicted of 10 offences including providing false information and documents to banks to secure approvals for home loans totalling more than $3 million. Permanently banned


Dec. 6: Hee Seng Lee, 58, of Dural NSW pleaded guilty to six charges including making false statements and providing false documents. The loans Mr Lee was involved in attempting to secure ranged from $160,000 to $1.5 million. Given two years' prison but serving the sentence in the community


Nov. 8: Daniel Duy Anh Nguyen of Woodville North SA convicted in the Adelaide Magistrates Court after pleading guilty to five charges of giving false or misleading information to Westpac. Received a four month suspended sentence and released on "a recognisance that he be of good behaviour for 12 months". Mr Nguyen's Arndale Finance provided false or misleading information relating to a sale contract and rental appraisal letters on five loans worth $500,000


Nov. 7: Tony Quach of Melbourne banned for five years and credit licence of his company TQ Smartchoice cancelled after ASIC found six home-loan applications to two lenders contained false or misleading information


Aug. 21: Edward Richard George of Mudgee NSW, permanently banned from providing financial services and engaging in credit activities after ASIC found his Quest Home Loans falsified and submitted eight documents for four deposit guarantees and one home loan. The applications were for himself and four clients. The false documents included loan approval letters, employment letters and pay slips


Jul. 17: Eric Ying Ching Chu of Perth falsified a letter stating finance approval had been provided for a client. Mr Chu then forwarded that letter to a settlement agent so that the Commonwealth Bank would issue a loan in the amount of $256,000. He was permanently banned