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Credit union director disqualified

15 Feb 2006
06.08

The Australian Prudential Regulation Authority (APRA) today announced the disqualification of Mr John Throwden from acting as a director or senior manager of an authorised deposit-taking institution (ADI) or the Australian operations of a foreign ADI.
 
Mr Throwden was a former director and chairman of Pinnacle Credit Union (Pinnacle), based in Punchbowl NSW.
 
APRA found that Mr Throwden was not a fit and proper person to hold a senior position within an ADI after reviewing the credit union and the subsequent transfer of its business into Sydney Credit Union.
 
In particular, APRA found that while Mr Throwden was a director and chairman of the board of Pinnacle, he had provided false or misleading information on loan applications about his financial position, including listing as an asset a residential property that he did not own. Mr Throwden was successful in obtaining from Pinnacle between March and August 2005 over $90,000 in loans for his private use. No repayments have been made since October 2005 and the loans are currently subject to recovery action by Sydney Credit Union.
 
Mr Throwden claimed to a court in debt recovery proceedings that he was an unemployed pensioner with no assets and no bank accounts, despite listing assets of more than $500,000 and income of $5,000 a month on loan applications.
 
He told the court he had between five and seven court orders issued against him to pay back debts but he had not done so. Mr Throwden later told Pinnacle that he had never been the subject of legal proceedings.
 
Mr Throwden has also been a director of a number of companies that became insolvent with outstanding debts of more than $250,000.
 
APRA Deputy Chairman, Mr Ross Jones, said APRA's objective in making such a disqualification is to protect the interests of depositors from responsible persons in an ADI who are not fit and proper.
 
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.