ASIC scores court win against NAB fraudster
ASIC has scored a court victory after a former National Australia Bank branch manager pleaded guilty to trying to defraud his employer by gaming the bank's notorious introducer program.Matthew Alwan, the former manager of NAB's Lakemba branch in Sydney yesterday confessed in the NSW Local Court to misleading the bank on the origination details of 24 home loans.Over a two year period ending in September 2015 Alwan told the bank that an introducer, who worked under a business name of "Suit Club", had originated the loans even though he knew it was untrue.Alwan never told NAB that the introducer trading as "Suit Club" was his uncle.The fraud resulted in NAB paying Alwan's uncle almost $57,000 in loan commissions.Details of criminal activity in NAB's Sydney branch network surfaced in the early hearings of the Hayne royal commission last year.The royal commission was told that home loans written through the branches were falsified by crime syndicates aiming to rort commission payments from the introducer program.ASIC began investigating the NAB home lending scams in February 2016 after the bank reported that it believed some staff had engaged in fraudulent misconduct.ASIC's investigation found that the mortgage rigging activity involved NAB staff employed across western Sydney acting in concert with dodgy introducers.The criminal indictment of Alwan follows ASIC's decision last October to permanently ban him from providing financial services.Former NAB managing director Andrew Thorburn revealed in 2017 that around 2300 loans originated through the introducer program were submitted "with inaccurate customer information and/or documentation".ASIC has taken enforcement action against three other former NAB staff for their involvement in the introducer rackets.In July last year another branch manager, Rabih Awad, was banned from working in the financial services industry for seven years after ASIC found he forged the payslips of loan applications in order to award himself commission payments under the introducer program.The regulator banned two other staff in June last year for orchestrating fraudulent loan applications.ASIC found that one branch employee, Samar Merjan, assisted an introducer to create false documents that she subsequently submitted to the bank in support of loan applications.Alwan is due to be sentenced by the court in October.