About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, December 10th, 10:20PM
rss
Latest Headlines

Guilty verdict for mortgage fraud trio

A former BNZ employee, a lawyer and the wife of a property developer have been found guilty of involvement in a $54 million mortgage fraud case.  

Friday, June 15th 2018, 1:47PM

by Miriam Bell

The mortgage fraud scheme, which involved 110 separate property transactions in Auckland and Hamilton and took place between 2011 and 2015, was designed to obtain cheaper lending for a commercial property development.

After a three month trial in the Auckland High Court, which ended last month, Justice Sarah Katz handed down her verdict today.

Ex-BNZ banker Zongliang (Charly) Jiang, lawyer Gang (Richard) Chen, and Yan (Jenny) Zhang (aka Kang Xu), were all convicted for their roles in fraudulently obtaining $54 million worth of residential home loans.

The Serious Fraud Office originally took the three to court, alongside Xu’s husband, property developer Kang (Thomas) Huang, over suspicious mortgages involving 57 loan applications and 110 transactions.

Huang, who was considered the mastermind behind the offending, pleaded guilty to his part in the scheme prior to the trial and was sentenced to four years and seven months in prison in February.

Another banker - former ANZ employee Peter Cheng - was also involved in the scheme but left the country in 2015.

Jiang was convicted of 26 charges, Chen was convicted of 11 charges and Xu of 22 charges. Most of the convictions were for “obtaining by deception” under the Crimes Act.

But Jiang was also convicted on a representative charge of “acceptance of gifts by agent” under the Secret Commissions Act. This was because he received secret commission payments for his role in the scheme.

Chen was also convicted of a representative charge of “corruptly giving consideration to an agent” under the Secret Commissions Act. This was for secret commission payments made to the bank employees.

During the trial, Xu’s defence claimed that she was not aware of what her husband, Huang, was doing in but the judge found she was aware of and actively involved in the criminal offending.

SFO director Julie Read said the crimes, which relied on a high level of calculation and collaboration, undermine lenders’ confidence in borrowers in the mortgage market.

“The banks were misled in a number of respects including the financial position of the purported borrowers and the level of associated risk.

“The SFO is committed to investigating and prosecuting this kind of large-scale offending to maintain the integrity of the financial market place.”

Jiang and Chen have been remanded in custody and Xu has been remanded on bail, until their sentencing later this year.

 

Tags: ANZ BNZ Lending mortgages serious fraud office

« Adviser hits out at commission disclosure proposalsP2P lender cuts rates »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 4.44 4.69 4.89
ASB Bank Special - 3.95 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 4.19 3.95 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - 3.95 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 4.45 4.69 4.99
TSB Special - 3.95 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.50 4.69 4.79

Last updated: 2 December 2018 8:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com