A Sydney home loan broker has appeared in the Downing Centre Local Court charged with promoting interest free home loans following an investigation by the Australian Securities and Investments Commission.
Trevor Cohen, of Balmoral, New South Wales, was charged with engaging in misleading conduct in relation to financial services, obtaining money by deception and four counts of falsifying documents.
ASIC’s investigation found that Cohen offered to provide an ‘Interest Free Home Loan’ product through two non-listed companies, Derivex Limited and Derivex Asset Management Limited.
Furthermore, Cohen aimed to create and sell distribution licences to interested parties who would be authorised to sell the established loan products. Cohen was a director of both companies.
ASIC alleged no person, having received a letter of offer from Derivex Asset Management Limited, received a loan.
Cohen is alleged to have obtained money from one client as a deposit or ‘conduit payment’ but failed to proceed with providing the full loan amount to the client or return the ‘conduit payment’ to his client upon failure to proceed with the loan.
According to ASIC, Cohen also falsified the signature of a co-director of Derivex and Derivex Asset Management Limited on various company documents.
Cohen is required to reappear in the Downing Centre Local Court on March 13, 2007 for a mention hearing.
Australian Property Journal
