ASIC has banned Ms Shilpa Karandikar, a Melbourne-based mortgage broker, from engaging in credit activities for four years after an ASIC investigation found she submitted false documents to secure a home loan worth $243,000.

ASIC’s investigation found that Ms Karandikar submitted a $243,000 home loan application on behalf of a client in July 2012 that contained false payslips, false employment documents and a false bank statement. The home loan application also contained false information to make the financial position of her client look more favourable than it actually was.

ASIC found that Ms Karandikar knew, or was reckless as to whether, the documents and information contained in the loan application were false or misleading.

Further, ASIC found that Ms Karandikar had been involved in business practices that were not thorough, and which appeared fraudulent, misleading or otherwise improper.

ASIC Deputy Chairman Peter Kell said, ‘Brokers who arrange home loans on behalf of the public must act with honesty, integrity and in the customer’s best interest at all times.

‘Those who do not act in this way will be removed from the industry.’

Background

Ms Karandikar, a former director of Kaar Creations Pty Ltd, was an authorised credit representative from 13 April 2011 to 18 September 2012.

This enforcement outcome shows ASIC’s continued commitment to taking action against those in the credit industry who seek to obtain loans through the use of false documents. Since December 2013, ASIC has taken action against:

• [This MR was redacted on 03/07/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• Kieu Thi-Thanh Huynh (refer: 14-111MR)
• [This MR was redacted on 12/01/2024 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• [This MR was redacted on 12/01/2024 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• Daniel Minh Tuan Nguyen (refer: 13-337MR)
• Chia Min Shen (refer: 13-336MR)
• Wen Yao Hsieh (refer: 13-336MR)
• [This MR was redacted on 25/08/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]