ASIC bans mortgage broker, Michael Wilkins, for three years

ASIC has banned Michael Wilkins, of Watanobbi, NSW, from engaging in credit activities for three years.

Mr Wilkins was a mortgage broker and helped clients to arrange finance to purchase properties. ASIC found that on five occasions in June and July 2010, Mr Wilkins submitted loan applications on behalf of clients in which he deliberately overstated their savings by between about $130,000 and $179,000.

By submitting these loan applications, ASIC found that Mr Wilkins gave to the bank information or a document that was false or misleading.

Mr Wilkins has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.

Background

Mr Wilkins' banning arises from ASIC's ongoing investigation into a group of companies and people known as ‘the Heritage Group’.  The Heritage Group advised its clients to set up self-managed superannuation funds (SMSF) and buy property with their superannuation.

ASIC has concerns about the way The Heritage Group structured the loans and property ownership within its clients SMSFs.

Investors who obtained advice or finance from people associated with this group should contact their lender and if necessary, obtain independent professional advice to ensure that the loans to their SMSFs and their property ownership have been structured in compliance with the trustees' superannuation law obligations.

ASIC's MoneySmart website has information for consumers about setting up a SMSF to invest in property. MoneySmart also has guidance for consumers on what to do if their financial adviser has been banned.