Ex-broker receives 12-month home detention
Natalie Ann Carter, a former mortgage broker from Hawke’s Bay, has been sentenced to 12 months of home detention for multiple offences related to forgery and financial markets legislation, FMA has reported.
The sentencing, delivered by Judge Gordon Matenga in the Napier District Court, comes after Carter’s guilty plea to charges including forgery, obtaining and attempting to obtain credit by deception, and misleading FMA.
Pattern of deceit in financial advice
Carter faced charges for creating fraudulent loan applications and documents to bypass lending criteria, an action condemned by FMA for breaching ethical standards and potentially damaging trust in the financial advice industry.
“Carter’s frauds involved significant planning,” said Margot Gatland, FMA head of enforcement. “She used her role and skills as a financial adviser to create fraudulent loan applications and documents to evade lending criteria that she and her clients did not meet.
“Her behaviour not only breached of the ethical standards expected of financial advisers but may undermine trust in the industry. Trust is essential in financial services and the FMA will take a firm stance against conduct that undermines the integrity of the financial advice industry.”
Consequences and bans enforced by FMA
The conviction automatically disqualifies Carter from directorship roles or participating in company management for five years. Furthermore, Matenga granted an additional ban requested by FMA, prohibiting Carter from providing or contributing to financial advice services for five years. “Banning orders both protect the public from potential future harm and serve as a deterrent against such conduct,” Gatland said.
Carter’s fraudulent activities exposed
Between 2018 and 2020, Carter produced various false documents, including pay slips and employment verification forms, to secure home loans totalling $2.91 million, with $1.334m successfully obtained.
The investigation into Carter’s actions began after her brokerage termination in January 2020, leading to her admissions of mortgage fraud, which she initially downplayed as a “one-off” incident.
In her attempt to join another brokerage in April 2021, Carter made false statements on FMA documents, failing to declare her ongoing investigation for dishonesty and misrepresenting the nature of the FMA’s probe.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
