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ISCOVER
Jessica Darnbrough
ASIC has banned two mortgage brokers after both were found to have engaged in misleading activity.
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Yesterday, the industry watchdog permanently banned Almaza Souzie Boutros, of Merrylands, NSW, from engaging in credit activities and cancelled the Australian credit licence of Dean Mooney Pty Ltd, a Sydney-based finance broking firm.
Ms Boutros’ credit licence was also cancelled on the grounds that Option 1, of which she is a director, is in liquidation.
Ms Boutros' conduct as a director of Option 1 Mortgage resulted in a conviction for fraud in April 2012.
Fairfield Local Court ordered Ms Boutros to pay compensation and placed her on a good behaviour bond for a period of 18 months.
Meanwhile, ASIC cancelled Dean Mooney’s Australian Credit Licence after it found Mr Mooney failed to hold membership of an approved external dispute resolution scheme.
On 17 January 2011, Dean Mooney Pty Ltd was granted a licence to engage in credit activities relating to credit contracts, consumer leases, related mortgages and guarantees, and credit services.
On 12 October 2011, Dean Mooney Pty Ltd's EDR membership was cancelled by the Financial Ombudsman Service Limited (FOS), one of the two EDR schemes approved by ASIC.
The membership was cancelled by FOS due to non-payment of membership fees. Further, Dean Mooney Pty Ltd did not hold membership with the Credit Ombudsman Service Limited, the only other ASIC approved EDR scheme.
Under the National Consumer Credit Protection Act 2009, credit licensees are required to be members of an ASIC-approved EDR scheme. Under the Act, ASIC can suspend or cancel an Australian Credit Licence if the licensee is not a member of an approved EDR scheme.
“EDR schemes provide consumers with alternatives to legal proceedings in respect of resolving complaints with their credit service providers, therefore, when a credit licensee fails to maintain membership in such a scheme, ASIC will act to protect consumers by cancelling the entity’s credit licence,” ASIC Commissioner Peter Kell said.
