Supreme Court injunction demands ‘return to status quo’
Collapsed sub-aggregator Hai Money has brought an injunction against parent aggregator Finsure before the Supreme Court, demanding “a return to the status quo as it was before the service of the termination date.”
Hai Money ceased operations in April following the termination of its contract by Finsure amid ongoing fraud investigations. The collapse was triggered by the arrest in December 2025 of Andrew W. Hu, a former National Australia Bank (NAB) and Commonwealth Bank of Australia (CBA) banker who had been operating as a broker under Hai Money's credit licence and was alleged to be the ringleader of the ‘Penthouse Syndicate’ criminal network.
Hu’s arrest prompted an internal investigation into Hai Money 14 brokers, who were subsequently removed from the Hai Money network.
Finsure proceeded sever ties with Hai Money, leaving more than 200 brokers immediately out of work. Hai Money called the decision "hasty, disproportionate and grossly unfair”.
Lawyers from both sides met on Wednesday morning in Sydney's Supreme Court to discuss the ongoing dispute.
Hai Money's lawyers argued that the terminated agreement was "not lawful," repeatedly describing Finsure’s conduct as “unconscionable” and disproportionately favourable to Finsure over Hai Money.
"There had been no allegations against Hai Money personally; they were all against the brokers," Hai Money's lawyers claimed. They alleged that Hai Money has therefore been unfairly treated by having its contract terminated.
The legal team also claimed that Finsure failed to provide Hai Money with the required 30 days’ notice of a contract termination. "A number of loans, you would suspect, would be ongoing," said Hai Money's lawyers. "So that causes very significant damage to, certainly, the reputation of Hai Money if the tap is turned off in an instant without notice."
Hai Money’s legal team also referenced April emails sent by Finsure chief executive Simon Bednar to Hai Money Founder Bruce Li, which stated: “The compliance team [at Finsure] has now determined which brokers are high risk. You will shortly receive a letter confirming their termination from the Finsure. In total, we have identified 97 brokers which we are uncomfortable to continue working with, and we will move to voluntarily terminate with 30 days notice.”
In later emails to Li, Bednar wrote: “These brokers will be voluntarily terminated by Finsure, not Hai Money. So your legal position will be protected. While we will not keep them as members of Finsure, you can certainly decide internally if you want to keep them as Hai Money members.”
Hai Money’s lawyers argued that these exchanges showed both parties were aligned in mid-April on identifying and removing high-risk brokers.
"Instead, the next correspondence is the termination letter," said Hai Money's lawyers. "[Bednar] appears to have gone from a position of, 'let's work together,' to a position of 'I'm concerned about guilt by association; guilt by association of brokers whose accreditation had been provoked.' Nothing explains that apparent change of heart, change of mind that leads to the termination."
Hai Money's legal team claimed the matter "appears to be an apparent dishonesty at the broker level. Hai Money was in no way involved in any wrongdoing."
Finsure's legal team shot back, noting "systemic failures within Hai Money. Failure to have systems in place to make sure this sort of thing doesn't happen.” Hai Money lawyers, however, noted that Wu was originally operating under Finsure’s credit licence before moving onto Hai Money’s.
"My client faced a risk of effectively having its business shut down and acted accordingly," Finsure's lawyers said.
Li attended the hearing but declined to comment. Representatives for Finsure were not present.
It remains unclear what happens from here.
Even if Finsure reinstalls its contract with Hai Money, many Hai Money brokers have had their accreditations removed by the major banks, meaning they will be unable to provide full-scope service to borrowers under the Best Interests Duty (BID).
The case remains ongoing.
The personal toll of Hai Money’s collapse has been severe. Former Hai Money brokers have been rejected by every major aggregator, and the big banks have refused to transfer their accreditations – effectively leaving their careers in a state of limbo.
Many affected brokers and staff say they are genuinely unsure how they will make ends meet, with the fallout damaging mental health, family stability and professional reputations.
“At the moment, brokers impacted by the Finsure and Hai Money situation are still largely in the dark,” former Hai Money broker Johnny La told MPA. “Not a single aggregator has been willing to onboard affected brokers, leaving many of us effectively unable to operate.”
A Finsure spokesperson said: “As this matter is ongoing, it would be inappropriate to comment at this time.”
This article was written in collaboration with sister publication AustralianBroker.
