Australian CU Director Removed for Cause

SYDNEY, Australia – John Throwden was removed from his roles as director and senior manager from the Pinnacle Credit Union by The Australian Prudential Regulation Authority. APRA claimed in its removal statement that “Mr. Throwden was not a fit and proper person to hold a senior position within an ADI (Authorized Deposit Institution) after reviewing the credit union and the subsequent transfer of its business into Sydney Credit Union.” APRA said “while 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 AUS$90,000 (US$63,599) 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.” Throwden told a court during debt recovery proceedings that he was an unemployed pensioner without assets or bank accounts. At the same time he allegedly stated on loan applications that he has assets of AUS$500,000 (US$353,200) and a monthly income of AUS$5,000 (US$3,532). Throwden, according to APRA records, had also been a director of a number of companies that became insolvent with outstanding debts of more than AUS$250,000 (US$176,000). APRA made the decision for the removal to protect depositors’ interest, according to APRA Deputy Chairman Ross Jones. APRA, established in July 1998, is the regulator of the Australian financial services industry and is funded by the industries it oversees: banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry which represents assets of AUS$2.2 (US$1.5) trillion. Pinnacle credit union was founded in 1949 under the name St. Jerome’s Co-operative Credit Union Ltd. It merged with two other credit unions. It later took the name Punchbowl and then changed it to Pinnacle in 2003. It is now operating under the auspices of Sydney Credit Union