Aggregation group Finsure has been implicated in allegations relating to suspected mortgage fraud, with The Australian Financial Review reporting that bankers have said ‘people within its network’ may be involved in fraudulent home loan applications.
In an opinion piece published on the Financial Review on Friday (10 April), associate editor Joyce Moullakis reported that the current probe being undertaken by lenders and regulators “has identified the involvement of bankers and mortgage brokers in the Chinese community, alongside money mules, and accountants… there are also suspected connections to Middle Eastern crime gangs”.
She said that two banks had told the column that “Finsure has had people within its network implicated in potential loan fraud”.
In a statement to The Adviser, Finsure CEO Simon Bednar noted that it had “not been directly contacted by any lenders or regulators…
CLICK HERE to read the FULL Major aggregator flagged in mortgage fraud probe – The Adviser article.
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.