Developer pleads guilty in $50m mortgage fraud case

Kang Huang was one of a quartet charged by the Serious Fraud Office in a case involving more than 70 Auckland and Hamilton properties - and mortgages of about $50m.

An Auckland property developer has admitted to his part in a $50 million mortgage fraud case.

Kang Huang, 49, pleaded guilty to 10 criminal charges in the High Court at Auckland before Christmas, the Herald can reveal.

He was one of a quartet charged by the Serious Fraud Office in a case involving more than 70 Auckland and Hamilton properties - and mortgages of about $50m.

The SFO alleges the accused provided false information or documents, or withheld information from either the BNZ or ANZ to obtain loans to purchase properties between December 2011 and October 2015.

The SFO alleges, according to court documents, that false salary payments were made as part of the applications for some of the loans.

Banks were also allegedly provided with false income and employment information.

Huang had pleaded guilty to all charged he faced, including eight for obtaining by deception, one for dishonest use of a document and one for corruptly giving consideration to an agent, the SFO confirmed.

Two sets of the charges carry a maximum prison term of seven years and Huang is due to be sentenced next month.

Huang's co-accused have pleaded not guilty and are due to go on trial - heard by a judge without a jury - in Auckland next month.

Those defending the case include Huang's wife, Yan (Jenny) Zhang.

Zhang, who is also known as Kang Xu, is facing charges for obtaining by deception.

Lawyer Gang (Richard) Chen is also facing charges for obtaining by deception.

The third defendant heading to trial is former bank worker Zongliang (Charly) Jiang.
Jiang is facing a Secret Commissions Act charge of accepting gifts and charges for obtaining by deception.