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Charges laid in alleged $60m mortgage fraud

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auction.jpgFour people have been charged in relation to alleged mortgage fraud involving home loans worth about $60 million.

The Serious Fraud Office has laid more than 100 charges under the Secret Commissions Act following an investigation into more than 70 home loans allegedly deceptively obtained from two banks.

The home loans ranged in value from $270,000 to $3.4m for properties in Hamilton and Auckland.

Court documents filed at the Auckland District Court show the accused are a banker, lawyer, business director and manager.

The banks involved and those charged have name suppression.

About 40 kickbacks worth $511,303, ranging in value from $5000 to $30,000, were allegedly paid from the lawyer to two bankers for acts including processing and approving loan applications to purchase properties.

The lawyer is also alleged to have used a passport known to be false, as part of two loan applications for Hamilton properties.

The lawyer is facing 51 charges, including 40 of corruption and four of deception.

The banker faces 25 charges for processing and approving a loan application that was known to be a false purchase or was reckless as to whether it was.

The manager faces 34 charges of deceptively obtaining bank loans.

The director faces eight charges of deception and one of corruption.

The charges carry a maximum penalty ofr two years in prison or a $1000 fine.
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