ASIC bans NAB pair over scam

Two former NAB employees caught up in the bank’s introducer scam have been banned from providing financial services.

Two former National Australia Bank employees who were caught up in the bank’s introducer scam have been permanently banned from providing financial services.

ASIC banned Danny Merheb and Samar Merjan, also known as Samar Awad, for life on June 29, but they have a right to lodge an appeal with the Administrative Appeals Tribunal.

Mr Merheb was found to have recklessly given NAB false payslips, letters of employment and statutory declarations in relation to home loan applications.

ASIC also ruled that he falsely attributed a loan as being referred to NAB by an introducer who was a friend, so that the friend received commissions dishonestly.

Ms Merjan was found to have knowingly and recklessly given NAB false payslips and letters of employment to support personal loan and credit card applications.

The false information and documentation submitted by Mr Merheb and Ms Merjan were mainly provided to them by a third person who had no association with NAB.

Ms Merjan helped the third person to create two false documents, which she subsequently provided to the bank in support of lending applications.

She was twice offered cash by the third person to process lending applications.

ASIC said it was continuing its investigation.

All the major banks have introducer programs, which provide commissions for successful lending referrals.

The NAB program featured in the royal commission’s public hearings on consumer lending.

Last November, the bank announced a remediation program for home loan customers after an internal review, which was prompted by reports from whistleblowers that some home loans had not been established in compliance with NAB’s policies.

NAB found that about 2300 home loans since 2013 may have been submitted with inaccurate customer information or documentation, or incorrect information in relation to the introducer program.

About 20 employees have been sacked and 35 were disciplined.

NAB’s introducer program got a bad rap in March.

Under cross-examination, the bank’s executive ­general manager for broker partnerships, Anthony Waldron, told commissioner Kenneth Hayne that controls and processes had broken down.

Mr Hayne said banking was a “human” system.

“One thing I might have to look at is what is the attitude of the industry … to obedience … to the law that ­governs their affairs,” he said.

“There may be a difference ­between a breakdown in controls and an acknowledgment of a breach of laws.”