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Wednesday 24 March 2021

21-057MR Former mortgage broker sentenced to a 12-month good behaviour bond for failing to take reasonable steps to ensure that he did not make a false statement to ASIC

Mr Henan Gao of Ryde, New South Wales, director of Shinning Crown International Pty Ltd (SCI), has been sentenced in the NSW Downing Centre Local Court to a 12 month good behaviour bond for failing to take reasonable steps to ensure that he did not make a statement that was false or misleading in a material particular, in a credit licence annual compliance certificate (compliance certificate) lodged with ASIC.

SCI held an Australian credit licence and operated a mortgage brokerage business in Sydney.  Mr Gao was the sole fit and proper person and responsible manager of SCI’s credit licence.  Mr Gao was also the sole mortgage broker for SCI’s business.

In April 2016, Mr Gao had his lender accreditation with ANZ suspended.  On 15 May 2017, Mr Gao, on behalf of SCI, completed and lodged a compliance certificate with ASIC, in which he stated that none of SCI’s fit and proper people had accreditation cancelled or suspended by a lender.  The statement was false or misleading in a material particular because Mr Gao, as SCI’s only fit and proper person, had his accreditation with ANZ suspended.

The offending is contrary to section 225(6) of the National Consumer Credit Protection Act 2009 (the Act).

Mr Gao pleaded guilty to one count of breaching the Act on 2 March 2021 (21-039MR).  A conviction has not been recorded.

The Commonwealth Director of Public Prosecutions prosecuted the matter after a referral from ASIC.

Background

Australian credit licence holders are required to identify the people involved in the management of their credit businesses, known as fit and proper people. 

Credit licence holders are also required to annually lodge an Australian credit licence compliance certificate with ASIC, in which licensees are required to certify that they are complying with their credit licence obligations. 

SCI’s Australian credit licence was cancelled by ASIC under section 54 of the National Consumer Credit Protection Act 2009 on 9 November 2018.

Last updated: 30/03/2021 09:22