Mortgage fraudster gets home detention

A second defendant in the Serious Fraud Office’s (SFO) investigation into alleged mortgage fraud has been sentenced to nine months home detention at the Auckland District Court.

Gurraj Singh Bhachu, who no longer has name suppression, pleaded guilty in September 2025 to 12 charges relating to four properties involved in the alleged mortgage fraud. His sentence of nine months’ home detention took into account discounts for his guilty plea, remorse and cooperating with the SFO’s investigation.  Six months’ standard release conditions were also imposed.

Bhachu made false representations to banks and conveyancing solicitors to obtain bank loans totaling $2,862,650 for three residential properties. He also made false representations to obtain control of residential properties, either for himself or others. The offending included providing false documents relating to business income and cash gifts, who the true borrower was, and deposits paid.

In 2019, Bhachu left New Zealand. When he returned in December 2023, he was arrested and charged by the SFO.