ASIC bans mortgage broker over $1.1 million fraud

Jailed former mortgage broker Mark Booty has been permanently banned by ASIC from providing financial services and engaging in any credit activities following his conviction for defrauding seven clients of more than $1.1 million.

Booty, 41, formerly of Rockingham, Western Australia, was licensed by the WA Department of Commerce as a finance broker when the offences occurred between 2007 and 2009.

He was the director of Prime Property Investment Perth Pty Ltd, a mortgage broking business based in Perth. Mr Booty provided mortgage broking and financial advice to clients of this business

Following an investigation by WA Police, a District Court of Western Australia jury found him guilty on eight counts of gaining a benefit by fraud. In April 2012 he was sentenced to five and a half years in prison with a non-parole period of three and a half years.

Booty set up an investment scheme into which seven clients invested money over an 18-month period that they had accessed by borrowing against their homes. One investor put $250,000 into the scheme reported the ABC at Booty’s trial in April.

Rather than being invested and secured in the manner he had promised, Booty misappropriated the funds for his own purposes in his business and for personal expenses.

Booty became bankrupt in 2009 and the investors in his scheme lost their capital.

ASIC commissioner, Peter Kell said the decision to permanently remove Booty from the financial services and credit industries was done to protect the public.

‘While Mr Booty is currently in prison, it is important that he is prevented from working in the credit and finance industry in the future,’ Kell said.

Booty has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

For advice on navigating hotspots, download our free eBook: Tools for Getting Through the Hotspot Maze. This article first appeared on Property Observer.

Trending

COMMENTS

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments