ASIC has permanently banned a former Sydney credit broker from engaging in any credit activities and from providing any financial services after he was convicted of fraud offences.
Trevor William King pleaded guilty to charges of making false documents to obtain financial advantage in December last year. He was sentenced to a 14-month intensive corrections order in February.
King part-owned and operated two credit brokerage businesses, JT King Finance Pty Ltd (JT King) and Australia Enterprises Pty Ltd (Australia Enterprises), which helped clients to obtain home loans, personal loans, credit cards and car loans. The businesses generated income by earning commissions on approved loans referred to lenders.
In a statement, ASIC said that between July 2013 and May 2016, King made 74 false documents (57 false payslips, nine false PAYG payment summaries and eight false real estate documents) with the intention that he or another person would use them to support loan applications for clients of either JT King or Australia Enterprises. King or others would then obtain loan commissions for the approved loans.
The commissions King and others obtained from the approved loans ranged from $643.50 to $6,795.36 in upfront commissions, and $99.67 to $2,470.69 in trail commissions. The total amount of commissions was $81,057.35.
Under the Corporations Act and National Consumer Credit Protection Act, ASIC may permanently ban a person from the financial services and credit industries if they are convicted of fraud. Consequently, on the basis of these convictions, ASIC decided to ban King permanently.
The ban prevents King from:
- providing any financial services or engaging in credit activities;
- controlling an entity that carries on a financial services business or another person who engages in credit activities;
- performing any function involved in the carrying on of a financial services business; and
- performing any function involved in the engaging in of credit activities.
King has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision. King’s ban will also appear on ASIC’s banned and disqualified register.