SFO warns fake income claims impacted genuine homebuyers
A man who used fake documents to obtain nearly $3 million in home loans has been sentenced to nine months’ home detention, in a case the Serious Fraud Office (SFO) says undermines the integrity of New Zealand’s lending system, RNZ and Stuff reported.
Gurraj Singh Bhachu pleaded guilty in the Auckland District Court last September to 12 charges relating to four properties. SFO said he faked documents relating to business income and cash gifts, and gave false information to banks and property lawyers to obtain bank loans totalling $2,862,650 for three residential properties.
“He also made false representations to obtain control of residential properties, either for himself or others,” it said.
Bhachu left New Zealand in 2019, and was arrested and charged when he returned in December 2023.
SFO: Misleading banks hits genuine borrowers
Serious Fraud Office Director Karen Chang said deliberately providing false information to banks for a mortgage damages confidence in the system and ultimately affects genuine borrowers.
“The banks were misled in a number of ways, including the financial position of the borrower and the level of risk to the bank. This affects the ability of hardworking New Zealanders to obtain lending for their own homes,” Chang said.
Wider scheme alleged to exceed $8.6m
SFO has charged six others in the same case, alleging they were part of a scheme to fraudulently obtain credit and properties.
Bhachu is the second to be sentenced, following lawyer Francis (Frank) Peters, who in August 2024 received nine months and two weeks’ home detention for four charges of obtaining by deception.
The group is alleged to have obtained more than $8.6 million in lending and attempted to secure a further $2.9 million.
Charges have also been filed against Christopher Peters, Robert Peters, Gerard Peters, and Serene Peters for obtaining $1.8 million by deception in an alleged investment fraud, SFO said.
“Christopher and Robert Peters have also been charged with obtaining those funds by forgery as an alternative charge,” it said.
Those two were expected to face trial in February, while trial dates for the other defendants had not yet been set.
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