Former Perth broker facing fraud charge

Former Perth finance broker Peter Lachlan McDonald has pleaded guilty to giving false information and fraud charges following an investigation by the corporate watchdog.

The Australian Securities and Investment Commission alleges that, in 2013, Mr McDonald, who was a broker with Get Approved Finance, provided false information to a lender while brokering motor vehicles.

Asic also claims that Mr McDonald acted fraudulently in a loan application by artificially interposing a third party vendor while representing to his client that the vehicle being purchased on credit was being sourced directly from a car dealership. 

"It is alleged that Mr McDonald had previously advised his clients, who had poor credit histories, that they would be approved for vehicle finance if their loan applications were supported by guarantors," Asic said.

"In two further loan applications, Mr McDonald is alleged to have provided information to Esanda (a business then owned by ANZ) that falsely represented that insurance quotes were in fact issued insurance policies, knowing that Esanda required all financed vehicles to be insured before loans were approved. 

"In one additional application it is alleged that Mr McDonald inserted what purported to be his client's signature on an extended warranty policy and submitted that document to Esanda (the client having agreed to purchase the extended warranty)."

Mr McDonald entered a plea of guilty to the charges and was bailed to appear on in May for sentencing.

The charges carry a maximum penalty of two years' imprisonment and a $24,000 fine.

In July 2015, Asic permanently banned Mr McDonald and a colleague from engaging in credit activities and providing financial services.