The Australian Banking Control Fraud was accidentally discovered (and buried) in 2005! Economists Lindsay David and Philip Soos of LF Economics still await the publishing of their report by the Senate.
The TAX Dept investigators noticed when carrying out LAF investigations: every employment said "professional investor." In 2005, the tax boys wrote to banker loving ASIC, APRA and the BANK CEO's and said OI OI OI this must be fraud! This Professional Investor customer is on a pension??? Bit suss. Banks told sellers: "Look we know we instructed you all to write employment re Low Docs as being "Professional Investors" but tax boys not happy as they have found thousands............ We NOW suggest as your Banker employers to try and find out our customer's hobby and make the employment look near enough to match OUR CALCULATOR income projection figure (fudged by us) and then make the Loan Application Form (LAF) look good.............there's good chaps. Love and kisses your Happy Banker CEO."
These are the hilarious results which were hidden from customers until they joined BFCSA. Members would email me and say: "You will never guess what I found............"
1. The 77 yr old lady stated as being a Landscape Gardner. What shovelling rocks????
2. What about the guy who was a deck hand written down as ship’s captain?
3. The woman who had art as a hobby and had her occupation written in as a prof artist. She had never sold a painting!
4. The part time canteen Gran written as a SOUS CHEF
5. The part time office worker put down as Accountant
6. A nurse put down as a Matron
7. A pensioner who owned his modest home as a Property Developer
The customers knew none of this until BFCSA!
Brokers and Bank Managers were simply "following orders."
How do I know this? I had a little meeting and chat with those two ATO Senior Investigators after I rang the Commissioner Michael Carmody in 2005 and said: "OI OI, The report you are about to release (interview with Alan Kohler) is flawed! You think it’s the customers fudging details on the LAFs and lying to the ATO re low income? Not True. Their stated income in the interview is the truth! The Bankers are lying. The investigators joked: "ah well denise, if you are right, this is a job for ASIC." My response: "Yes indeed!"
ATO notified ASIC: “ We looked at cross correlation of 800 Tax returns and LAF files and it’s the Banks!” ATO buried the incorrect Report. ASIC covered it up. Yet Lucy (chairman) boasted in the BRW being: “The Enforcer.” Yes well.......ASIC is such A SIC joke!
Bankers running the Control Fraud had taught sellers to write previous nonsense on the LAFs, then taught the second version and then, told the ATO its "our crooked customers at fault." Mr Narev, I have made you my pet project because you followed David Murray!!
I still have the investigators cards from that meeting in Sydney 2005. The ending being: The ATO never released this Report it boasted was then complete and about to be released.
BFCSA is very familiar with hidden bombshell reports!