Following an investigation, ASIC has banned Mr Raghwa Nand Prasad of Chipping Norton, NSW, from providing financial services and from engaging in credit activities for four years.

In September 2014, Mr Prasad’s former wife and broker assistant, Ms Shashi Kanta Prasad, was convicted for creating false loan documents in an attempt to secure home loans totalling more than $3.6 million (refer: 14-234MR).

An ASIC investigation found that between February 2008 and March 2011, Mr Prasad contravened credit legislation and financial services laws, and was involved in Ms Prasad’s contravention of credit legislation and financial services laws. ASIC made these findings on the basis that, in respect of the seven loan applications which involved false documents created by Ms Prasad, Mr Prasad, among other things:

• was familiar with his clients’ financial situation, having acted as their tax agent
• signed off on applications containing false documents without querying whether the application accurately represented his client’s financial situation
• knew the application documents were false,
• directed or allowed Ms Prasad to send the application containing the false documents to the lender.

Background

In May 2015, ASIC banned Ms Prasad for 10 years from engaging in credit activities and from providing financial services following her conviction for loan fraud (refer: 15-115MR).

Since becoming the national regulator of consumer credit in 2010, ASIC has achieved significant loan fraud outcomes, with criminal proceedings being launched against 11 people, resulting in seven convictions for various offences and four defendants currently before the Courts. Forty-five individuals or companies have also been banned from providing credit services or precluded from holding a credit licence (including 20 permanent bans or cancellations).