Former Sydney mortgage brokers permanently banned for loan fraud

Reason:
Fraudulent
Content of Penalty:

ASIC has permanently banned mortgage brokers Xiaoyi (Jeff) Zhao, Jun (Leo) Ma and Liang (Victor) Zhang from engaging in credit activities.

Messrs Zhao and Ma were mortgage brokers and directors of Sydney Global Investment Pty Ltd, which formerly operated a finance brokerage business in Sydney that traded as X Finance Group.  Mr Zhang was also a mortgage broker and lending manager at X Finance Group.

ASIC found that between July 2015 and February 2016 Messrs Zhao, Ma and Zhang were knowingly or recklessly involved in the provision of false employer letters and/or pay slips to Westpac Banking Corporation to support 21 home loan applications lodged on behalf of customers of X Finance Group. 

  • ASIC found that the companies nominated in the letters and payslips were based in China;
  • customers concerned were not employed by these companies; and
  • pay slips provided income figures that were much greater than the customers' actual incomes.

As a result of that conduct, Westpac financed over $17M in home loans in reliance on false documentation.

Messrs Zhao, Ma and Zhang have the right to seek a review of ASIC's decision to the Administrative Appeals Tribunal.

Date: 30/04/2018
Link: http://asic.gov.au/about-asic/media-centre/find-a-media-release/2018-releases/18-118mr-former-sydney-mortgage-brokers-permanently-banned-for-loan-fraud/