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ASIC has permanently banned two Perth-based finance brokers from engaging in credit activities and providing financial services.
John Larry Pryor and Peter Lachlan McDonald were banned after the regulator found they had, both independently and jointly, engaged in dishonest and misleading conduct. The allegations relate to their brokering of motor vehicle finance for 12 clients between May 2012 and February 2013, while employed by Get Approved Finance.
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ASIC said that despite knowing otherwise, Mr Pryor and Mr McDonald misled vulnerable clients with poor credit histories to believe they would be approved for vehicle finance if their loan applications were supported by guarantors.
“Rather, Mr Pryor and Mr McDonald prepared loan applications solely in the names of the proposed guarantors without those persons’ knowledge or consent,” the regulator said in a statement.
“As a result of Mr Pryor’s and Mr McDonald’s conduct, the lender financed over $315,000 in automotive loans (with interest $470,000) which it otherwise was unlikely to have approved.”
Furthermore, ASIC found that the pair profited from the sale of three vehicles to three clients in circumstances where they had sourced the vehicle, artificially inflated the sale prices and failed to disclose their interests in the transaction.
Mr Pryor and Mr McDonald were also found to have fabricated insurance policies in relation to five loans in order to mislead the lender about the existence of mandatory comprehensive credit policies being in place for those clients.
In permanently banning Mr Pryor and Mr McDonald, the regulator found that both were not fit to engage in credit activities, were likely to contravene credit legislation and likely to contravene the financial services law.
ASIC deputy chairman Peter Kell said the banning highlights the regulator’s strong approach to ensuring that rogue operators are removed from the industry.
“ASIC will not tolerate this type of behaviour. Those who engage in dishonest and misleading conduct will be removed from the industry,” he said.
Mr Pryor and Mr McDonald have the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. ASIC said that its investigation is ongoing.
[Related: ASIC bans broker for breaking credit rules]
