Ex-mortgage manager fined over alleged fraud

The man at the centre of an alleged multi-million-dollar mortgage fraud claims he has been set up as the fall guy.

The Employment Relations Authority fined former ANZ mobile mortgage manager Zamir Hussain $54,000 after it ruled he had breached his duty of care in 18 mortgage transactions in mid-2007.

The bank said these mortgages had caused at least $3.5 million in losses.

Hussain, who relocated to Brisbane at the beginning of 2009, told the Herald on Sunday that the bank was pursuing him in order to claim insurance.

"I'm the last man standing. They know I financially can't get the legal representation I need. It's a perfect opportunity to get a conviction against me and claim that insurance," he said.

Craig Moffat, general manager of specialist distribution at ANZ, said while the bank stood to gain if Hussain was convicted, it did not have control over criminal prosecutions: "We don't have any control over what the Serious Fraud Office chooses to pursue."

Hussain was not represented at the authority hearing; he said this was because his lawyer Dylan Marriot died shortly before the hearing and he could not afford a replacement.

Hussain said he was unable to work in the finance industry because of his dispute with ANZ.

Hussain said he was encouraged to lend as much money as possible and during his three years at the bank had pulled in $130m in loans.

He said he was considered a valuable employee by ANZ: "Mate, I was the star."

Hussain said: "We were told: 'Go out, find your own rainmakers'."

Rainmakers were people such as accountants, real estate firms, solicitors or property developers who could provide a steady stream of loan applications.

Two such "rainmakers" recruited by Hussain and party to a number of the transactions in question were made bankrupt in April.

Hussain said many of the mortgages he helped bring in were "low doc" which required a 20 per cent deposit and no evidence of income: "When that policy came in, business was pouring in," Hussain said.

Hussain also said he was only able to approve mortgages up to $350,000, and all the transactions in question had to be signed off by a superior.

Moffat disputed Hussain's comments: "Zamir's playing very fast and loose with the truth on that particular issue."

He said Hussain's responsibility was to ensure the documentation on particular mortgages was correct - and the authority had found many valuations provided on his applications were doctored.

This case is not related to the mortgage-ramping case centred on real estate agent Phillip Cavanagh and in which banks, including ANZ, gave out more than $10m in mortgages.

Asked if there were other unreported fraud losses incurred by ANZ, Moffat said: "Not to the best of my knowledge."

Moffat said changes in policy had been made after Hussain had left, and borrowers and despositors should feel confident their money was safe.

Moffat was reluctant to comment further on the Hussain case because he said Serious Fraud Office investigations into the transactions were ongoing.

Despite repeated requests for comment over the past two weeks, the SFO failed to respond to Herald on Sunday inquiries.