The Administrative Appeals Tribunal (AAT) has endorsed and extended ob体育鈥檚 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鈥檚 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 ob体育 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鈥檚 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.
ob体育 Deputy Chair Sarah Court said, 鈥楾he 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 ob体育 is committed to ensuring they are removed when they are discovered.鈥�
Mr Frugtniet has the right to appeal the AAT鈥檚 decision.
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Background
ob体育 permanently banned Mr Frugtniet from engaging in credit activities on 26 June 2014, after finding that he provided misleading information in a credit licence application and failed to provide full disclosure (14-163MR).听
On 6 March 2015, the AAT affirmed ob体育's decision to permanently ban Mr Frugtniet from engaging in credit activities (15-049MR).
On 22 August 2016, the Federal Court dismissed Mr Frugtniet's appeal (16-264MR), and, on 12 October 2017, Mr Frugtniet鈥檚 further appeal to the Full Federal Court was dismissed (17-354MR).
On 15 May 2019, the High Court held that the AAT erred by taking into account spent convictions in reviewing ob体育鈥檚 decision to permanently ban Mr Frugtniet from engaging in credit activities (19-116MR). Because of the High Court鈥檚 decision, Mr Frugtniet鈥檚 application for review of ob体育鈥檚 2014 decision was remitted to the AAT and heard between 17 February and 3 August 2020.
Mr Frugtniet鈥檚 permanent ban from engaging in credit activities made on 26 June 2014 remained in effect throughout the above proceedings.
Editor's note:
On 22 March 2022, Mr Frugtniet filed a Notice of Appeal with the Federal Court of Australia in relation to the decision of the AAT.
Editor's note 2:
On 29 November 2022,聽the Full Federal Court heard Mr Frugtniet鈥檚 appeal. The decision has been reserved.
Editor's note 3:
On 17 February 2023, the Full Court of the Federal Court of Australia dismissed Mr Frugtniet's appeal.
Editor's note 4:
On 15 June 2023, the High Court of Australia dismissed an application from Mr Frugniet seeking leave to appeal the decision of the Full Court of the Federal Court made in February 2023.