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15-128MR Sydney man pleads guilty to home loan fraud
Mr Shiv Prakash Sahay, a former credit representative of AHL Investments Pty Ltd trading as Aussie Home Loans, has pleaded guilty in the Downing Centre Local Court to three fraud-related charges brought by ASIC.
Mr Sahay, of Lidcombe in NSW, was charged with making false statements, making false documents and using false documents. These statements and documents were contained in loan applications submitted by Mr Sahay for his clients to Bankwest (a division of Commonwealth Bank of Australia) and Suncorp Metway Limited.
ASIC's investigation found that between 14 November 2011 and 6 August 2013, Mr Sahay, whilst a credit representative of Aussie Home Loans, made false statements in loan applications and created and used false bank statements for 17 of his clients to attempt to secure home loans totalling approximately $7 million.
Of the $7 million in loans for which Mr Sahay applied, $4.796 million were approved. Ask Consultancy Services Pty Ltd, a company controlled and owned by Mr Sahay, received over $5,500 in upfront commissions and then ongoing commissions as a result of Mr Sahay's offending.
ASIC Deputy Chairman Peter Kell said, 'The credit laws are designed to protect borrowers from loans they cannot afford. ASIC will act against dishonest mortgage brokers who flout the law for their own financial gain with little regard for the interests of their clients.
'ASIC is targeting loan fraud and we will continue to remove brokers and other credit representatives who engage in fraudulent activity from the lending industry,' Mr Kell said.
Mr Sahay next appears in court on 7 July 2015 for sentencing.
The Commonwealth Director of Public Prosecutions is prosecuting the matter.
Mr Sahay, pleaded guilty to three charges related to:
- making 13 false statements, namely information contained in the application notes of loan applications to Bankwest and Suncorp, which carries a maximum penalty of five years imprisonment;
- making 23 false documents, namely bank statements, in support of those false statements, which carries a maximum penalty of ten years imprisonment; and
- using 26 false documents, namely bank statements, in support of those false statements, which carries a maximum penalty of ten years imprisonment.
On 1 February 2014, Mr Sahay was expelled from the Mortgage & Finance Association of Australia.
ASIC has been active in dealing with loan fraud which often involves mortgage brokers. Since becoming the national regulator of consumer credit in 2010, ASIC has achieved significant loan fraud outcomes including the banning of 31 individuals or companies (including 15 permanent bans). ASIC has also obtained convictions in six criminal actions, with four defendants currently before the Courts.