A man has pleaded guilty for his part in an alleged $8.6 million mortgage fraud scheme.
The plea comes after a Serious Fraud Office (SFO) launched an investigation in 2020, where the man and five others allegedly made false claims on home loan applications.
The man, whose name was currently suppressed, was charged alongside Gerard Peters, Robert Peters, and three others yet to be named.
On April 5, he pleaded guilty to four charges of obtaining by deception in relation to a mortgage fraud scheme. He is due to be sentenced on August 14 this year.
The group faced a total of 41 charges, including obtaining by deception, attempting to obtain by deception and forgery.
The SFO alleged the group "engaged in a scheme to obtain credit and properties by making false claims on home loan applications and to conveyancing solicitors, often supported by falsified documents".
Through the scheme, the SFO claimed the six obtained more than $8.6 million and attempted to defraud a further $3 million.
"The defendant has admitted providing misleading information to their bank as part of a 2018 loan application," an SFO spokesperson said.
The SFO said the misleading information included the true purchase price of the property; payment of the deposit for the property made through a cash gift certificate; and failure to disclose an existing bank loan.
"The guilty pleas mark a pivotal step in the investigation, which underscores the SFO's commitment to combating serious and complex fraud across all sectors and industries," SFO director Karen Chang said.
"Mortgage and investment fraud schemes of this nature can have a devastating impact on the lives of ordinary New Zealanders who want to invest, as well as corrode trust in our financial institutions."
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