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15-176MR Sydney man sentenced on charges relating to $7 million home loan fraud
Mr Shiv Prakash Sahay, a former credit representative of AHL Investments Pty Ltd trading as Aussie Home Loans (Aussie) has been convicted and sentenced today in the Downing Centre Local Court on charges relating to a home loan fraud.
Mr Sahay, of Lidcome, NSW, was sentenced to 350 hours of community service work on three charges of making false statements, making false documents and using false documents in home loan applications submitted by Mr Sahay for his clients to Bankwest (a division of the Commonwealth Bank of Australia) and Suncorp Metway Limited.
ASIC Commissioner Peter Kell said, 'The reputation of the lending industry depends on mortgage brokers and other credit representatives acting honestly and in compliance with the credit laws. ASIC will vigorously pursue offenders involved in falsifying loan documents and other statements for their own financial benefit.'
ASIC continues to focus on misconduct involving loan fraud, which often involves mortgage brokers. Since becoming the national regulator of consumer credit in 2010, ASIC has achieved significant loan fraud outcomes, with criminal proceedings being launched against 11 people, resulting in seven convictions for various offences and four defendants currently before the Courts. Thirty-four individuals or companies have also been banned from providing credit services or precluded from holding a credit licence (including 18 permanent bans or cancellations).
The Commonwealth Director of Public Prosecutions prosecuted the matter.
ASIC's investigation found that between 14 November 2011 and 6 August 2013, Mr Sahay, whilst a credit representative of Aussie, made false statements in loan applications and created and used false bank statements for 17 of his clients to attempt to secure home loans totaling 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.
On 26 May 2015, Mr Sahay pleaded guilty to three charges of:
a) making 13 false statements in loan applications submitted by him for his clients to Bankwest and Suncorp; and
b) making 23 false documents, namely bank statements; and then using 26 false documents in loan applications submitted by him for his clients to Bankwest and Suncorp (refer 15-128MR).
Mr Sahay was expelled from the Mortgage & Finance Association of Australia on 1 February 2014.