Property developer admits $5m scam

A self-styled property developer has admitted his part in running a $5 million home-loan scam, with the help of a dishonest real estate agent and mortgage manager, targeting inexperienced property buyers in Auckland.

Stephen D'Villiers pleaded guilty in the Manukau District Court this week to charges laid by the Serious Fraud Office, but evidence against his partner Boni Roy were withdrawn as part of a plea bargain.

D'Villiers - who has previous fraud convictions under the name Steve De Mounii - and his niece Jennifer Lacurtz took advantage of the housing boom in 2004 and 2005 to buy, then on-sell properties at higher prices.

Using forged documents, the pair deceived banks to lend to home buyers, who could often not afford to pay a deposit of 10 to 20 per cent.

The loan applications prepared by D'Villiers and Lacurtz would refer to an inflated purchase price, matching the amount on a forged sale and purchase agreement.

"Key to the success of the fraud was that the final loan application submitted to the lender would paint a misleading picture as to the price to be paid for the property and the assets of the purchaser," court documents say.

Westpac mortgage manager Amar Singh knew the applications were forged but approved the mortgages, as the inside man for the scam.

Typically, the properties would be bought by D'Villiers and then on-sold at a substantial profit the same day to buyers arranged by real estate agent Ranjeet Prasad.

Prasad would find potential home buyers and introduce them to the properties owned by D'Villiers, or companies he controlled.

The real estate agent told them not to worry about the mortgage as he "would take care of everything".

Singh and Prasad have also pleaded guilty to their part in the scam. Singh was sentenced to 18 months in prison and Prasad received eight months' home detention.

Mortgages of $5.11 million were dishonestly obtained for 19 properties between December 2004 and July 2005. Westpac, BNZ, Superbank (now part of GE Money), ASB, ANZ and National Bank all lent money.

In one case, D'Villiers bought a house for $255,000, which was sold the same day for $340,000, although the bank was told the sale price was $378,000 and that the purchaser had a deposit of $38,000.

In fact, the buyer had contributed only $200.

Over eight months, D'Villiers made a profit of $396,000, Lacurtz $105,000, and Prasad $44,000 on top of his real estate commissions.

Another accused, Sattar Mohammed, who bought and sold properties through his company SMG Greens Investments, made $327,000. He has left the country.

In contrast, unwitting victims were left with mortgages of hundreds of thousands of dollars which they could not afford. Some have lost their houses, others declared bankruptcy.

D'Villiers was remanded in custody and will be sentenced with Lacurtz in the Manukau District Court on August 28.