ASIC has permanently banned two Sydney-based mortgage brokers after it was found that they had provided false information to credit providers in support of loan applications worth over $3 million.

Mr Wen Yao Hsieh (also known as Leon Hsieh and Adrian Hsieh) of Castle Hill and Ms Chia Min Shen of North Parramatta submitted 7 loan applications on behalf of 6 borrowers that contained false information to AMP, Westpac and Bendigo and Adelaide Bank.

An ASIC investigation found from about May to October, 2010 Mr Hsieh gathered tax, employment and income documents in support of the loans before referring the applications on to Ms Shen. She then submitted the applications.

Both Mr Hsieh and Ms Shen had been responsible for arranging the false creation of Notices of Assessment used to support the applications.

ASIC deemed Mr Hsieh and Ms Shen were not fit and proper persons to engage in credit activities because they knew that the applications contained information which was false as to the income and employment of the borrowers.

ASIC Deputy Chairman Peter Kell said, ‘By falsifying loan applications Mr Hsieh and Ms Shen put consumers at risk.

‘ASIC is actively targeting mortgage brokers and finance brokers who falsify loan documents. Any broker engaged in this sort of misconduct will be removed from of the industry.’

Background

Mr Hsieh was the director of Grand Avenue Finance Pty Ltd which was registered to engage in credit activities from 30 June 2010 under the Commonwealth credit legislation which came into effect on 1 July 2010.

D & L Australia Pty Ltd was registered to engage in credit activities from 5 April 2010. Although also registered to engage in credit activities as an individual, Ms Shen held accreditation with mortgage aggregator Connective OSN Pty Ltd through D & L Australia enabling her to submit loans on behalf of clients referred to her by Mr Hsieh.

ASIC has more than 20 investigations underway involving falsification of loan documentation and loan applications.

In October 2013 ASIC lodged a second submission to the Senate Economics References Committee inquiry detailing its role and performance in regulating consumer credit, including loan fraud (refer: 13-289MR).

Since taking over national responsibility for credit in 2010, ASIC has taken action over brokers submitting fraudulent loan applications and similar behaviour. Recent cases have seen individuals criminally charged or banned. These include:

• Daniel Minh Tuan Nguyen (refer: 13-337MR)
• [This MR was redacted on 25/08/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• Daniel Duy Anh Nguyen (refer: 13-306MR)
• [This MR was redacted on 22/09/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]
• Eric Ying Ching Chu (refer: 13-179MR)
• [This MR was redacted on 03/07/2023 in accordance with ASIC policy - see INFO 152 Public comment on ASIC's regulatory activities.]