BFCSA Blog

ASIC is blowing hot air, yet AGAIN.  20 complaints?  Our members sent ASIC 150 which its officers refuse to investigate.  The evidence presented with the letters shows that fraud is being carried out INTERNAL to the LENDERS.  The LAFs are being altered after the Broker faxes the paperwork to the credit assessors.  ASIC knows this, as I spent 150 mins briefing the Commissioner.  Its not the Brokers.  The evidence shows its THE BANKS.  Otherwise how do we explain 100% LAF Fraud on all loans Low Docs and Full Docs?   ASIC wants Brokers to turn on each other and trick the industry into believing its a few rogue brokers at fault.  That is false.  How do we then explain why 100% of the LAFs we have uncovered have been tampered with, after they were signed and after they were faxed?  That's why we asked all Members to ask for Bank's copy -...

Scrutinising ASIC: Is it a watchdog or a dog with no teeth? Adele Ferguson, Ben Butler, Ruth Williams November 23, 2013   The AGE Under fire: Greg Medcraft and ASIC now facing criticism from a range of quarters. Photo: Arsineh Houspian Investors have lost billions under its watch and the business scandals are many, but opinions are divided on the cause of ASIC's problems. ASIC chief's overseas trips draw criticism It was a busy June day in 2010 when Jan Braund, a Sydney retiree, bundled herself and her frail husband Alan onto a train for their long-awaited shot at justice. A year earlier, the Braunds had been left financially ruined after a Commonwealth Bank financial planner named Don Nguyen switched the couple's life savings from conservative to disastrously risky investments. He did it without their knowledge or permission, allegedly forging their signatures along the way. Now, the Braunds had been summoned by Australia's...

ASIC hamstrung by inexperience and out-of-date regulations 20 November, 2013 Jason Spits  http://www.moneymanagement.com.au/news/financial-services/2013/asic-hamstrung-by-inexperience-out-of-date-regs In a submission (#282) to the Senate Standing Committee on Economics, Niall Coburn, a senior specialist adviser with ASIC’s enforcement directorate from 2009 to 2012, also stated the regulator is hampered by having limited skilled staff capable of handling complex cases.  Coburn, who was also the former principal lawyer in ASIC’s enforcement directorate from 1993 to 2002, stated ASIC was able to tackle investigations of medium complexity but struggled with more complex matters due to limited skilled staff being “able to deliver on these major projects”.  According to Coburn, experienced senior staffing levels at ASIC’s Enforcement Directorate have fallen to the point that there was only a handful of staff “who are capable of handling large complex investigations and who, most importantly, are able to deliver a prosecution result”.  Coburn said many at senior management level were not engaged...

Ever tire of hearing ASIC willbee's?  See how many times ASIC executives answered the Senators questions In Parliament with: "we will be."  Remember ASIC's bleating in 2004 "we will be getting tough with wealth creation spruikers."  Their idea of 'tough' and using Enforceable Undertakings is not the public's idea of getting tough and applying the law.  ASIC have power over criminal law and remedies, so why is it that those tools are rarely if ever used?   What's an EU?  Its a piece of paper signed by the crook and signed by ASIC Executives stating "ASIC agrees to shred the complaint, wipe the slate clean, drop the mention of misleading and deceptive and/or fraud and forgery and all is forgiven.  Criminal agrees to stand in the naughty corner and never transgress in the future."  Problem solved and, the victims can all go home....if they have one to go to.  Everyone happy.  Done...

FIRSTMAC  3 May 2007    BDM to  broker “For LOW DOCS in LVR band 70 to 80%, if declared income is greater than $50,000, the ABN needs to be registered for GST. For NO DOC loan LVR 70% or less: NO GST registration required. For Max True:  100% loans with no LMI payable by the client: $50,000 loans to $1 million. X Value: Splits available Max LVR 97%” FIRSTMAC    17 Sept 2008    BDM to  broker “Invitation to Comm Broker Training”   “Our generous HomeRun08 servicing calculator allows for neg gearing on Lo Doc.” “100% loans – no LMI payable by borrower” “PAYG LoDoc  No Commission reductions.” JUMBO Lo Docs up to $2.5 Million”   GE MONEY   3 May 2006   BDM to all brokers Paid defaults > 2 years ignored.  Under $500 ignored Max Loan size $2.5 million   GE MONEY  7  May 2007   BDM to all brokers Low Doc and No Doc 12...

I have been a little busy this week.  I have just read ASIC's ridiculous Supp Sub 45.1  Omissions are in fact a criminal offence and ASIC excels in omissions.  In fact, if you want a good LAF, this report that took 5 luminaries two weeks to write, is a must read.   My team is busy listing the errors in law, untruths, misleading statements and unsubstantiated claims, and yes, we are listing the glaring omissions.  In fact, the ASIC document is an historical and at times hysterical attempt to cover up one of the greatest banking crimes this country has ever seen.   So if there are only 750 of you (1200 people), why don't the lenders pay you right now and BFCSA has finished its job?  Its because the issues we have raised are TOO BIG.  ASIC has to keep all of the evidence swept under the carpet.  It continues its...

In response to comment on SMH 24 October, 2013  I felt I should explain the "warranted panic, for our Banking Industry."  The fraudulent loans are only a sample of the overall market of $57 Billion worth of Lo Doc loans.  The average loans with buffers and top ups by greedy banks now average out at $600K per loan.  But let us lower it to say half a million dollars per loan.  It means we have uncovered $400 million dollar fraud cases so far and not one clean loan amongst them.  These loans were all processed by Skippy the Computer with credit assessors ticking boxes, phoning no-one, verifying nothing other than an A1 credit rating (ie mostly pensioners and low income families enjoy an A1).  In fact insiders tell us that no loan was rejected as long as the hapless victims had an asset - their only asset - their home: ARIPs.......asset rich and...