A former home loan manager from
Westpac is now facing prison after fraudulently lending more than $2.5 million.
Facing Judge David Kent QC in the Southbank District Court on Wednesday (8 February), David St Pierre was sentenced to three years in prison. However, he will be released in six months after paying a $1,000 bond and will be placed on a good behaviour bond for three years after that.
St Pierre was
banned by the Australian Securities & Investments Commission (ASIC) in March 2014 for encouraging 12 customers to borrow against their homes despite having limited financial means.
He convinced clients to invest the money into a property development scheme involving the firms All About Property Developments and Capital Growth International Club.
Between August 2008 and July 2013, St Pierre received cash bonuses for the scheme and promised customers returns of between 15% and 25% per annum.
The scheme collapsed in February 2011 when liquidators were appointed to both companies involved and customers were unable to make scheduled repayments to the bank.
St Pierre also falsified documents to make it seem as though the clients involved could service their loans, ASIC found.
After
being charged with seven counts of fraud in June 2015, this was later downgraded to three charges in November with St Pierre pleading guilty to all of them.
Defence barrister Chris Wilson said that after being fired by Westpac and banned by ASIC, St Pierre had gone bankrupt, been publicly shamed and was now working as a car salesman.
Related stories:
ASIC deals ban to former banker
Former major bank home loan manager faces fraud charges
Banned mortgage broker loses appeal
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