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ACT Mortgages faces criminal charges

By johnboy - 13 October 2008 10

[First filed: August 29, 2008 @ 10:12]

The Australian Securities and Investments Commission has put out a media release on their prosecution of one Mr Kelvin Skeers of Queanbeyan in the ACT Magistrates Court.

    Mr Skeers, a former mortgage broker with Tonadale Pty Ltd (trading as ACT Mortgages) faces one charge under s126(2) of the Crimes Act 1900 (ACT) and six charges under s347
    of the Criminal Code 2002 (ACT) following an ASIC investigation into his conduct between December 2003 and September 2005.

    ASIC alleges Mr Skeers knowingly used false accountants’ letters with the intention of inducing a lender to approve low-documentation (low-doc) loans for seven borrowers. Without this false documentation, ASIC alleges these borrowers may not have successfully secured the necessary finance.

UPDATE: BrokerNews reports that he’s plead guilty. Sentencing on 26 November.

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10 Responses to
ACT Mortgages faces criminal charges
poptop 9:52 am 14 Oct 08

NSW did the same thing back in the early ninties with HomeFund. As I recall it was an attempt to get public housing tenants to buy their homes; by the time it all turned to poo something like 35% of subsidised borrowers were in default [about twice the US sub-prime default rate].

It cost the NSW Government and the borrowers $Billions. FANMAC changed it’s name to RESIMAC, moved on and has continued to flourish.

Ralph 8:21 pm 13 Oct 08

mea culpa ‘couldn’t’

Ralph 8:20 pm 13 Oct 08

Indeed.

And Barack Obama as a ‘community advocate’ in Chicago also lobbied Citibank to provide loans to people who could afford to pay them.

johnboy 5:56 pm 13 Oct 08

Clown Killer said :

At what point in history did the most conservative and risk averse breed of capitalist – the banker – suddenly start thinking that it would be a grteat idea to give half million dollar mortgages to people with no income, no assets and no job?

Well in the US Clinton forced them to, because everyone needs to live in a home they own right?

And then the world didn’t immediately end (mostly because real estate values went through the roof with all the new loans and buying) so the rest of the world decided they’d been too cautious.

And now it all comes undone.

Clown Killer 5:48 pm 13 Oct 08

At what point in history did the most conservative and risk averse breed of capitalist – the banker – suddenly start thinking that it would be a grteat idea to give half million dollar mortgages to people with no income, no assets and no job?

On the up side, late Friday was a great time to be buying equities.

jakez 4:57 pm 13 Oct 08

Jazz said :

nationalise the banks? are you sure you want that?

jakez is a hardcore libertarian who has the habit of satirising lefties in a way that only amuses himself.

poptop 4:46 pm 13 Oct 08

How fabulous – Australia is now less Socialist-Left in its behaviour towards banks than the US under a Republican President.

Jazz 3:38 pm 13 Oct 08

nationalise the banks? are you sure you want that?

jakez 3:23 pm 13 Oct 08

It’s this kind of thing that shows exactly why we are facing this liquidity crisis. These greedy fatcats have been let off the leash for too long and it’s time to rein them back in before it’s too late. NATIONALISE THE BANKS!

Holden Caulfield 3:07 pm 13 Oct 08

Gee this credit crunch really bites hard!

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