ASIC has banned Melbourne mortgage broker Mr Tony Quach for five years and cancelled the Australian credit licence of his company TQ Smartchoice Pty Ltd after an investigation found failure to comply with credit laws.

ASIC found that between December 2010 and December 2011, Mr Quach, through TQ Smartchoice Pty Ltd, submitted six home-loan applications to two lenders that contained false or misleading information.

In all instances, Mr Quach obtained information and documents from a source other than the applicants and failed to verify that information with the applicants.

During this period, Mr Quach was the sole director of TQ Smartchoice Pty Ltd, which held an Australian credit licence.

ASIC Deputy Chairman Peter Kell said, ‘ASIC takes allegations of loan fraud very seriously. We will continue to remove from the industry those involved in misleading loan applications.’

Mr Quach and TQ Smartchoice Pty Ltd can appeal the decision with the Administrative Appeals Tribunal.

Background

The false and misleading information Mr Quach submitted related to applicants’ income, employment and savings.

Mr Quach also made declarations to lenders that he had met and obtained all information from the applicants.

In some instances, Mr Quach failed to meet the applicant before submitting an application to a lender. In other instances, Mr Quach met the applicant but still submitted applications including information and documents obtained from a person other than the applicant.

ASIC’s investigation into the matter is continuing.

On 24 October 2013 ASIC lodged a second submission to the Senate Economics References Committee inquiry detailing its role and performance in regulating consumer credit, including loan fraud (refer: 13-289MR).

Since taking over national responsibility for credit in 2010, ASIC has taken action over brokers submitting fraudulent loan applications and similar behaviour. Recent cases have seen individuals criminally charged or banned. These include:

• [This MR was redacted on 09/09/2022 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

• [This MR was redacted on 22/09/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

• Eric Ying Ching Chu (refer: 13-179MR)

• [This MR was redacted on 03/07/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

• [This MR was redacted on 09/09/2022 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]

ASIC has a further 20 loan-fraud investigations on foot.

Editor's note 1:

On 4 November 2013 Mr Quach and TQ Smartchoice Pty Ltd lodged an appeal with the Administrative Appeals Tribunal regarding ASIC's banning and cancellation decisions respectively.

Editor's note 2:

On 26 November 2013 Mr Quach and TQ Smartchoice withdrew their appeals to the AAT.