ASIC has permanently banned Mr Constantinos Patniotis, of East Perth, Western Australia, from engaging in credit activities after an investigation found he failed to comply with numerous credit laws.

ASIC's investigation found that between 2008 and 2010, during which time he was engaged by licensed finance brokers to carry out mortgage finance broking, Mr Patniotis:

• failed to maintain a trust account and deposited lenders and borrowers funds into his personal account

• undertook mortgage and finance broking activity while not licensed to do so

• misused lenders funds

• when in a position of conflict with the receipt of money, failed to obtain written authority from the borrower to repay himself in preference to the lender

• facilitated loans to borrowers who he knew were poor credit risks, and

• failed to keep proper records.

Further, ASIC found Mr Patniotis had facilitated persons to lend money to, or through him, to be loaned to borrowers for short terms at high interest rates. During this period Mr Patniotis was only permitted to arrange loans from commercial lenders for, or on behalf of, persons as an intermediary.

As a result of these actions, ASIC found Mr Patniotis is not a fit and proper person to engage in credit activities.

ASIC Commissioner Peter Kell said, ‘People who deliberately flout credit laws will be caught and removed from the industry.’

Mr Patniotis has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.