The Administrative Appeals Tribunal (AAT) has endorsed and extended ASIC’s original decision to permanently ban former Victorian mortgage broker Rudy Noel Frugtniet from engaging in credit activities.
Mr Frugtniet remains permanently banned from engaging in any credit activities. The AAT also widened Mr Frugtniet’s original banning order to permanently ban him from performing any function involved in engaging in credit activities or controlling another person who engages in credit activities.
The varied orders were made using expanded powers granted to ASIC in 2020 to ban a person from controlling, or performing functions in, a business or company which engages in credit activities.
The AAT noted Mr Frugtniet’s track-record of dishonest behavior and found that he is not a fit and proper person to engage in credit activities. Further, the AAT found that it would be inappropriate to leave open any opportunities for Mr Frugtniet to participate in the credit industry.
ASIC Deputy Chair Sarah Court said, ‘The honesty of mortgage brokers underpins the home loan and credit industry. Individuals with a long history of dishonest behaviour should not be in the industry and ASIC is committed to ensuring they are removed when they are discovered.’
Mr Frugtniet has the right to appeal the AAT’s decision.
