Determination - 5 December 2013

Key issue:
Finance broker misappropriated the complainant’s funds | Counterclaim against the consumer for any of the funds

Summary of Determination

  1. I find that the FSP, in its capacity as the complainant’s agent, misappropriated money the complainant had paid to it for a particular purpose. Specifically, the FSP used money the complainant paid to it for the purpose of procuring a third party valuation as payment of its own professional fees and expenses instead.
  2. Consequently, I order the FSP to pay the complainant the sum of $12,768 in compensation for financial loss caused by the FSP’s conduct.

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