ASIC has banned a NSW car loan broker following an investigation that found he recklessly provided false documents to a major car dealer.
Fernando Morais of Carlingford, NSW, been banned from engaging in credit activities for ten years. ASIC has also cancelled the credit licence of Morais' company, Sanfern.
According to the regulator, between August 2011 and November 2011, Morais contravened credit legislation by recklessly providing false documents to BMW Australia Finance, trading as Alphera Financial Services (BMW) in relation to applications for credit he made on behalf of others.
ASIC made these findings on the basis of five applications for consumer credit which involved false documents provided recklessly by Morais to BMW. Morais did not consider that he was under any obligation to make any inquiries or checks into the accuracy of documents forwarded by him to BMW in support of applications for credit to BMW.
ASIC also found that he created false documents in respect of two business purpose car loans he brokered not covered by the Credit Act. This conduct, as well as the provision of false documents to BMW in relation to credit applications for five clients, resulted in ASIC's decision that Morais is not a fit and proper person to engage in credit activities.
ASIC deputy chair
Peter Kell said ASIC's action against Morais' sends a strong message to any broker considering behaving dishonestly or recklessly.
“When we find individuals engaging in such misconduct, ASIC will not hesitate to remove them from the industry.”
Morais has a right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
