A Sydney based property adviser has been banned from managing corporations and engaging in credit activities for four years.
An investigation by the Australian Securities & Investment Commission (ASIC) alleges that Craig Eric Lynch had breached his duties as a director of Paramount Financial Services Pty Ltd (PFS) and Paramount Finance & Investment Services Pty Ltd (PFIS)
Both PFS and PFIS were authorised to act as mortgage brokers.
The investigation by ASIC alleges that in or about April 2011, Mr Lynch diverted $1.6 million of company funds (a 10-year advance on his salary) to payout a debt he personally owed to PFS. PFS went into liquidation seven months later in November 2011.
ASIC also allege that between about July 2011 and September 2011, Mr Lynch recorded $705,200 received from a third party as a reduction to his personal loan account with PFIS.
That sum was supposed to be paid to PFIS as commission for property sales.
In both instances ASIC’s investigation alleges that Mr Lynch had misused his position as a director to gain an advantage for himself or cause detriment to the company.
ASIC also allege that Mr Lynch was not a fit and proper person to engage in credit activities, as he had allegedly engaged in conduct that resulted in PFS submitting to a credit provider a loan application containing misleading income details of the applicant and a falsified supporting payslip; was allegedly aware of a practice at PFS and PFIS that clients were instructed to sign blank application forms; and had allegedly breached his duties as a director of PFS and PFIS in relation to the dealings on his personal loan accounts with those companies.
ASIC deputy chairman Peter Kell said the regulator expects company directors to meet the responsibilities their positions come with.
“The position of company director comes with certain responsibilities and when those responsibilities are breached, ASIC will take steps to remove directors from managing companies,” Kell said.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out