After conducting a loan fraud investigation, the Australian Securities and Investments Commission has banned Danny Merheb and Ms Samar Merjan (also known as Samar Awad), two former employees of the National Australia Bank, from engaging in credit activities and providing financial services for the rest of their lives.

The bank alerted the regulator to the misconduct of its former employees, alleging that bank staff in the greater western Sydney area were accepting false documents in support of loan applications.

Mr Merheb was found to have given NAB false payslips, letters of employment, bank statements and statutory declarations 'recklessly' in respect of home loan applications. Ms Merjan was found to have given NAB false payslips and letters of employment knowingly and recklessly in respect of applications for personal loans and credit cards. Someone who had no association with NAB provided the pair with most of the false information and false documents that they submitted.

ASIC also says that Merheb falsely stated that a loan had been referred to NAB by an introducer who was a friend of his, with the aim of allowing the friend to receive commissions dishonestly. Ms Merjan allegedly helped the pair's friend to create two false documents, which she subsequently gave to NAB in support of lending applications. The investigation continues.