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Thursday 26 July 2018

18-219MR ASIC permanently bans former Westpac banker from engaging in credit activities

ASIC has permanently banned former Westpac banker, Marten Pudun of Glenwood, NSW from engaging in credit activities.

An ASIC investigation found that, while employed as a relationship manager in Westpac’s premium banking section, Mr Pudun knowingly or recklessly gave false documents and information to Westpac to help his clients obtain home loans. In relation to 24 loan applications Mr Pudun:

  • helped create false supporting documents including payslips, employment letters and rental estimate letters; or
  • accepted documents he knew were false; or
  • was reckless in not investigating whether they were false.

In one instance, Mr Pudun requested that the employment positions on customers’ employment letters and payslips be changed from Director to Marketing Manager and IT programmer. Mr Pudun said in an email that he did not want the “deal to stuff up” and if the customers were referred to as directors, Westpac may ask for tax returns.

Mr Pudun also asked third parties to create false letters in support of loan applications, which contained weekly rental estimates for various properties. In other instances, Mr Pudun provided example documents to customers so that they could create false documents to support their loan applications.

Mr Pudun also breached Westpac policy in sharing personal client information including internet and telephone banking passwords, customer account opening forms, transaction histories and identification documents with external third parties.

ASIC found that Mr Pudun was repeatedly dishonest in his dealings with his customers, Westpac and external third parties. Therefore, he is not a fit and proper person to engage in credit activities.

ASIC’s investigation is continuing.

Mr Pudun has the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.

Background

Mr Pudun’s permanent banning is effective from 24 July 2018.

ASIC commenced its investigation following a notification of misconduct by Westpac.

Westpac has undertaken the following action with respect to those customers whose personal information had been shared:

  • contacted 161 affected customers and had their banking passwords reset; and
  • reviewed the customers’ files and accounts to determine if there had been any instances of fraud. The review did not show any evidence of identity takeover or unauthorised transactions linked to Mr Pudun’s conduct.

Westpac has also reviewed its policies and controls and implemented new systems, processes and employee training to minimise the misuse of customer information.

Last updated: 26/07/2018 12:00