Enforcement: ASIC bans finance broker
Australia's Securities and Investments Commission has imposed the first permanent ban under the National Credit Act.
ASIC has used its authority under the National Consumer Credit Protection Act 2009 (National Credit Act) to permanently ban Mr Yan LI, 30, of Wolli Creek, New South Wales, from engaging in credit activities.
The permanent ban imposed upon Li is the first such ban by ASIC under the National Credit Act.
ASIC has also permanently banned Li from providing financial services (i.e. he is not eligible for an AFS licence). The bans imposed upon Li follow his conviction of serious fraud offences committed in his role as a finance broker.
The fraud offences – which were committed between March 2010 and June 2010 – involved the creation – by Li – of false and misleading income and employment details included in loan applications submitted to Suncorp Bank.
An investigation by Suncorp Financial Crimes Group Investigations and NSW Police resulted in Mr Li being charged with 26 separate offences.
On 15 February 2011, Li was sentenced, in the Downing Centre Local Court, to 12 months imprisonment, but he was released upon entering into a good behaviour bond for a term of 12 months.
The convictions also mean that Li, who was the sole director of Amazon Funding & Realty Group Pty Ltd (Amazon Funding), is also automatically disqualified for a period of five years from participating in the management of any company.
ASIC has cancelled the registration of Amazon Funding, which was registered to engage in credit activities under the credit legislation.
Li and Amazon Funding have the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC's decisions.
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