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One of the country's biggest mortgage fraud cases is headed to court after the Serious Fraud Office laid charges against seven people.
They face 84 charges and many of the defendants are accused of using a document with intent to defraud and using forged documents.
Six of the accused each face between five and 22 charges in the case and a seventh defendant has been charged with obstructing the office in its investigations.
All the accused have interim name suppression but a Serious Fraud Office appeal against this is expected to be heard in the High Court at Auckland on Friday.
Executives at the Real Estate Institute have discussed the matter and its implications to their industry but say it is not an issue.
"The matter is currently in the early stages of the criminal pre-trial processes," an institute spokesman said yesterday, adding that it was inappropriate to say anything.
Murray Cleland, the institute's president, said the case was unusual.
The next court appearance for the group after Friday is expected to be on August 24 at Manukau for a pre-depositions hearing when a depositions date is also expected to be set.
The issue of mortgage fraud hit the headlines two years ago when banks and financiers admitted they were the big-time losers.
The institute said the fraud was being committed by groups of people making applications for finance on fraudulent sale and purchase agreements, or on properties where the price quoted was well above the valuation. The banks unwittingly loaned more than 100 per cent on a property.
The institute then urged its members to contact their licensees or branch managers if they suspected a scam.
In most cases, people would have no idea the hoax was being pulled until it was too late, the institute advised, giving a warning to be suspicious of people wanting copies of sale and purchase agreements. People demanding immediate appraisals and suggesting elevated prices should be questioned.
