The Australian Securities and Investments Commission (ASIC) have permanently banned Constantinos Patniotis from engaging in credit activities after he failed to comply with credit laws.
An investigation by the corporate watchdog found that between 2008 and 2010 Mr Patniotis, who was engaged by licensed finance brokers to carry out mortgage finance broking, failed to comply with a number of credit laws.
ASIC said Mr Patniotis failed to maintain a trust account and deposited lenders and borrowers funds into his personal account.
ASIC also said he misused lenders' funds and undertook mortgage and finance broking activity while not licensed to do so.
The investigation also found that Mr Patniotis failed to obtain written authority from the borrower to repay himself in preference to the lender when in a position of conflict with the receipt of money, facilitated loans to borrowers who he knew were poor credit risk and failed to keep proper records.
"Furthermore, ASIC found Mr Patniotis had facilitated persons to lend money to, or through him, to be loaned to borrowers for short terms at high interest rates," ASIC said in a statement.
"During this period Mr Patniotis was only permitted to arrange loans from commercial lenders for, or on behalf of, persons as an intermediary."
ASIC said that it found that Mr Patniotis was not a fit and proper person to engage in credit activities due to this non-compliance.
Mr Patniotis has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
