Two men have been found guilty of fraudulently obtaining a large bank loan to build an Auckland inner-city apartment block.

The Serious Fraud Office (SFO) says property developer Leonard John Ross, 51, and company director Michael James Wehipeihana, 46, were convicted at the High Court in Auckland on three charges of ‘Obtaining by deception’ and two representative charges of ‘Using forged documents’ brought by the SFO.

The SFO says Mr Ross and Mr Wehipeihana made false statements and used forged documents in order to obtain a $41 million development loan from the ANZ Bank to allow their company, Emily Projects Ltd, to construct the Waldorf Celestion Apartment Hotel.

“Mr Ross and Mr Wehipeihana misled the bank to ensure that Emily Projects Ltd obtained the loan facility. The SFO is committed to investigating and prosecuting this kind of offending to maintain the integrity of the mortgage market for the benefit of honest borrowers,” says SFO Director, Julie Read.

Mr Ross and Mr Wehipeihana have been remanded on bail to reappear at the High Court in Auckland for sentencing on 26 September.

The two other men involved in the fraudulent scheme are each currently serving sentences of 10 months’ home detention.

Vaughn Stephen Foster, 56, a self-employed consultant, pleaded guilty to one representative charge of ‘Obtaining by deception’ just before the eight-week trial began and was sentenced in June.

Timothy Upton Slack, a lawyer, pleaded guilty to one representative charge of ‘Obtaining by deception’ on 1 September last year and was sentenced later that month.