The Australian Securities and Investment Commission has permanently banned Keith Son, director of VIP Fleet Pty Ltd, from engaging in credit activities and providing financial services.
An ASIC investigation found Son engaged in dishonest conduct.
VIP Fleet was a Sydney-based motor vehicle financier and insurance broker.
ASIC’s investigation found that Son helped numerous customers of VIP apply for motor vehicle finance and arranged for the loan proceeds, totalling approximately $150,000, to be paid directly into a bank account operated by VIP.
Son failed to pay the loan funds to the motor vehicle dealerships for which they were intended and instead used the money for his own purposes.
He also arranged insurance policies on some vehicles and collected premium payments from customers but failed to pass on the payments to the insurers.
ASIC deputy chairman Peter Kell says individuals licensed to provide financial services who blatantly disregard their duties are not welcome in the industry.
“ASIC will act to remove you from the industry if you fail to comply with financial services laws and breach consumer trust,” says Kell.
ASIC’s inquiries into this matter are continuing.
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