The Australian Securities and Investments Commission (ASIC) has banned a Sydney-based mortgage broker and cancelled his credit licence after it was found he engaged in false and misleading conduct.
The corporate regulator has banned Arthur Sperling from engaging in credit activities for five years after it found that he submitted 10 home loan applications to four lenders between October 2010 and November 2011 that contained false or misleading information.
The information regarded the income and employment of the borrowers with the total amount of the loans reaching $4.132 million.
"Failing to verify information submitted in loan applications blatantly disregards the fundamental principles of engaging in credit activities," said ASIC commissioner Peter Kell.
"Those who do not adhere to their obligations will be removed from the industry."
ASIC said that in numerous instances the employment details of borrowers were described as being on a full-time basis when borrowers had either not worked for the nominated employer or worked on a contract or casual basis.
Mr Sperling failed to confirm the income and employment details of the borrowers before submitting the loan applications.
ASIC said that "in doing so, he has been reckless as to whether the income and employment details supplied to the lenders were false or misleading."
During this period, Mr Sperling was the sole director of Tiana Holdings Pty Ltd, which also traded as Statewide Financial Services.
ASIC has banned Mr Sperling on the basis that he is likely to "continue to contravene his obligations as the holder of a credit licence".
