The Serious Fraud Office says three people have been convicted over a $54m mortgage fraud scheme in Auckland.
Source: 1 NEWS
Developer Kang Xu, aka Yan (Jenny) Zhang, suspended lawyer Gang (Richard) Chen and former bank employee Zongliang (Charly) Jiang were all convicted for playing a part in the scheme.
Another bank employee was also involved, but managed to leave the country in 2015.
The scheme involved 110 separate property transactions in Auckland and Hamilton, with the end goal being to obtain cheaper lending for a commercial property development.
Xu's husband Kang (Thomas) Huang also pleaded guilty to his part in the scheme before the three-month trial, and was sentenced to four years and seven months imprisonment in February.
SFO Director Julie Read said the scheme required "a high level of calculation and collaboration".
"The banks were misled in a number of respects including the financial position of the purported borrowers and the level of associated risk," she said.
Chen and Jiang have been remanded in custody while Xu has been remanded on bail - they will be sentenced later this year.