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A South Australian broker has been handed a four-month suspended sentence and a 12-month good behaviour bond after pleading guilty to providing false information in loan documents.
Daniel Nguyen of Arndale Finance at Woodville North pleaded guilty last week after being charged in late September.
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The Australian Securities and Investments Commission (ASIC) uncovered five instances of Mr Nguyen providing false or misleading information to Westpac in order to secure home loans totalling more than $500,000.
According to an investigation, between October 2011 and February 2012 Mr Nguyen provided false sale contracts and rental appraisal letters.
In handing down the decision, the magistrate said that those in finance must have confidence that information is accurate and that the nature of the conduct is ‘easy to commit and difficult to detect’.
“If credit providers had to enquire into every loan application...the cost of providing loans would increase and would be passed to consumers. Therefore, general deterrence is important.”
However, Mr Nguyen may have got off lightly, with each of the five offences carrying a maximum penalty of two years' imprisonment or a fine of $11,000, or both.
ASIC deputy chairman Peter Kell said credit brokers operate in a position of trust and are often the conduit between the general public and credit providers.
“Brokers must ensure the information and documents they provide are genuine, accurate and true. As this case highlights, we will act to ensure those who do not adhere to their responsibilities are dealt with accordingly,” Mr Kell said.
