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The financial services regulator has permanently banned a broker after finding that he had given a client a false letter of approval.
The Australian Securities & investments Commission (ASIC) has permanently banned Jeffry Leonard Gordon, a Brisbane-based finance broker, from engaging in credit activities after finding that he had breached his legal obligations.
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Mr Gordon, who had operated a brokerage called Low Cost Homeloans in Brisbane, ceased to operate his business in 2019. His credit licence was cancelled by ASIC in May 2020.
However, the Australian Financial Complaints Authority (AFCA) notified the financial services regulator of alleged “dishonest conduct”, which triggered an ASIC investigation.
According to ASIC, the investigation found that Mr Gordon knowingly or recklessly gave a false letter to a client, stating that they had formally been approved for a home loan with St.George Bank despite there being no such loan lodged on the client’s behalf at that time.
ASIC also found that Mr Gordon failed to comply with his obligations under the National Credit Act by failing to:
- give effect to a determination made by the AFCA, formerly known as the Credit and Investment Ombudsman, that required Mr Gordon to pay an amount to the complainants;
- lodge an annual compliance certificate;
- maintain a trust account; and
- comply with a condition of his licence, by not notifying ASIC of a change in an approved external dispute resolution scheme.
As such, ASIC has permanently banned Mr Gordon and his name has been placed on the Banned and Disqualified Persons Register.
Mr Gordon has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
[Related: AFCA sees limited COVID-19 complaints]
