Mortgage broker in alleged $13m dollar real-estate scam

Photo / Kenny Rodger

One of the men allegedly connected to a multi-million dollar real-estate scam is still practicing as a mortgage broker.

The man has interim name suppression and his lawyer said he is a "minor player".

He appeared in the Auckland District Court today with two co-accused who also have interim name suppression.

The three are facing charges brought by the Serious Fraud Office.

The SFO alleges that the trio were involved in a $13m scam where they would apply for mortgages - sometimes through a third party - to deceive banks about the applicant's financial position.

The deception also involved inflating the purchase price of property, thereby increasing the amount of finance the banks would lend.

One former real-estate agent, aged 37, faces three counts of deception and two of using a forged document.

Another former real-estate agent, aged 41, faces three counts of deception and one count of using a forged document and the mortgage broker faces one count of deception.

Defence lawyer Steve Bonner said interim name suppression should continue for his client because he still works as a mortgage and insurance broker.

He said if his client was named in relation to the case then his financial situation could be ruined, as well as that of his wife and a company he receives contract work from.

Mr Bonner said his client contacted the SFO back in 2001 after being concerned he was a victim of a fraud. He said investigators turned up at his client's house with a search warrant "investigating the co-defendants but not him" and he cooperated with the SFO fully.

"Mr [name suppressed] will be defending this charge. He denies absolutely that he is guilty," Mr Bonner said.

SFO prosecutor Mark Woolford opposed the continued name suppression and said the fact that the man is still a mortgage broker and is likely to lose business by being named is no argument for continued name suppression. He said members of the public have a right to know the charge the man is facing if they are paying him for financial advice.

The two other defendants have also argued for name suppression and said if they were named, they would unlikely be able to get a fair trial.

Lawyer Sanjay Patel is representing one of the former real-estate agents. He said his client has been named in previous media articles and that could contaminate a jury pool.

He said his client had been overseas but despite knowing of an SFO investigation, he returned to New Zealand.

Lawyer John Edgar represents the other former real-estate agent and said the publication of his client's name could also influence a fair trial.

He said his client has sought a sentence indication from the SFO.

"That process is done without prejudice but my concern is that is not well understood," Mr Edgar said.

He said publicity of the sentence indication could prejudice a fair trial if his client decides to go to trial.

Mr Woolford said the judiciary has recognised that a degree of embarrassment and financial loss is expected when criminal charges are laid.

He also addressed the possibility of media coverage influencing a jury by saying that any trial would likely take place late next year and the jury would be directed by the judge not to read previous media reports.

Judge Graham Hubble reserved his decision. The three are due back in court next month.