06/07/2018 - 13:39

Former Perth broker handed prison sentence

06/07/2018 - 13:39

Bookmark

Save articles for future reference.

A former Perth finance broker has been handed a 21-month prison sentence on loan fraud charges following an investigation by the corporate watchdog.

Asic has achieved loan fraud outcomes resulting in 17 convictions for various related offences since 2010.

A former Perth finance broker has been handed a 21-month prison sentence on loan fraud charges following an investigation by the corporate watchdog.

Peter Lachlan McDonald was sentenced in the Perth Magistrates Court, with his sentence suspended for 12 months upon payment of a $5,000 bond.

The sentence came after an investigation by the Australian Securities and Investments Commission into Mr McDonald's brokering of motor vehicle finance contracts while he was an employee of Get Approved Finance.

The decision took into account Mr McDonald’s guilty plea to seven charges of giving false information to Esanda (a business then owned by ANZ) and one fraud charge.

Asic deputy chair Peter Kell said Mr McDonald’s actions abused the trust of his clients.

“Loan fraud, which often involves an intermediary like a finance broker, is a particular focus of Asic. We are actively working to improve standards in the broking industry and warn anyone tempted to deceive lenders or mislead customers that they will be held to account,” he said.

An Asic investigation found that, between January and April in 2013 Mr McDonald, while brokering four motor vehicle finance contracts, provided the lender Esanda with information that falsely represented that persons, who had only agreed to be loan guarantors, were the applicant borrowers who would ultimately own the vehicle to be financed.

Asic 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.

In two other loan applications, Mr McDonald is alleged to have provided information to Esanda that falsely represented that insurance quotes were 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 and submitted that document to Esanda.

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

Since becoming the national regulator of consumer credit in 2010, Asic has achieved loan fraud outcomes resulting in 17 convictions for various related offences.

Over this time, 83 individuals or companies have also been banned from providing credit services or precluded from holding a credit licence.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options