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ISCOVER
Staff Reporter
The industry watchdog has permanently banned a Western Australia broker from engaging in credit activities after it was found he had failed to comply with “numerous credit laws”.
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Yesterday, ASIC announced it had officially banned Constantinos Patniotis from the industry.
According to an ASIC investigation which ran between 2008 and 2010, Mr Patniotis was found to have undertaken mortgage and finance broking activity while not licensed to do so; misused lenders' funds; facilitated loans to borrowers whom he knew were poor credit risks; and failed to keep proper records.
In addition, Mr Patniotis failed to maintain a trust account and deposited lenders' and borrowers' funds into his personal account.
Further, ASIC found Mr Patniotis had facilitated persons to lend money to borrowers for short terms at high interest rates.
During this period, Mr Patniotis was only permitted to arrange loans from commercial lenders for, or on behalf of, persons as an intermediary.
As a result of these actions, ASIC found Mr Patniotis was not a fit and proper person to engage in credit activities.
"People who deliberately flout credit laws will be caught and removed from the industry,” ASIC commissioner Peter Kell said.
