New Zealand Law Society - Property developer jailed for mortgage fraud

Property developer jailed for mortgage fraud

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A property developer at the centre of a mortgage fraud scheme involving about 75 properties in Hamilton and Auckland has been sentenced to four years and seven months in prison with a minimum non-parole period of two years and three months for charges brought by the Serious Fraud Office (SFO).

The SFO says Kang (Thomas) Huang, also known as Gang Wang, was sentenced in the Auckland High Court. Mr Huang pleaded guilty to all 10 charges he faced on 21 December 2017, which were eight charges under section 240 Crimes Act 1961 of Obtaining by Deception, one charge under section 3 of the Secret Commissions Act 1910 of Corruptly Giving Consideration to an Agent, and one charge under section 228  of the Crimes Act of Dishonest Use of a Document.

Mr Huang operated a property development business and was charged with providing false documents or information to several banks across multiple home loan applications. He was also charged with bribing a bank employee. Mr Huang dishonestly obtained about $52 million of loans through these activities.

The other defendants in the case, Mr Huang’s wife, Kang Xu (also known as Yan (Jenny) Zhang), lawyer Gang (Richard) Chen and former bank employee Zongliang (Charly) Jiang, are due to appear in the Auckland High Court for trial commencing on 26 February.

“Such use of deception, and bribery in one instance, undermines lenders’ confidence in borrowers in the mortgage market, SFO Director, Julie Read has said in a statement.

“If banks have to introduce additional checks, these costs may be passed on to borrowers increasing the cost of mortgages for all. The sentence imposed today reflects the serious nature of misconduct in this case.”