Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Three people convicted in $54 million mortgage fraud case

15 June 2018


The three defendants in a Serious Fraud Office trial who worked together to illegally obtain home loans have been convicted. The scheme, which involved 110 separate property transactions in Auckland and Hamilton, was designed to obtain cheaper lending for a commercial property development.

Property developer Kang Xu, who is also known as Yan (Jenny) Zhang, suspended lawyer Gang (Richard) Chen and former bank employee Zongliang (Charly) Jiang were convicted for their respective roles in the fraudulent scheme that obtained about $54 million worth of residential home loans. Another bank employee was also involved in the scheme but left the country in 2015.

Ms Xu was convicted of 22 charges of ‘Obtaining by deception’ under the Crimes Act. Her husband, property developer Kang (Thomas) Huang, pleaded guilty to his part in the scheme prior to the trial. Contrary to Ms Xu’s defence during the three-month trial, the Court found she was aware of and actively involved in the criminal offending.

Mr Chen was convicted of nine charges of ‘Obtaining by deception’, two of which were representative charges. Mr Chen was also convicted of one representative charge of ‘corruptly giving consideration to an agent’ under the Secret Commissions Act. This charge relates to secret commission payments made to the bank employees.

Mr Jiang was convicted of 25 charges of ‘Obtaining by deception’ under the Crimes Act and one representative charge of ‘Acceptance of gifts by agent’ under the Secret Commissions Act in relation to the kickbacks. Mr Jiang received secret commission payments for his role in the scheme.

Mr Huang, who masterminded the offending, was sentenced to four years and seven months of imprisonment in February. Also known as Gang Wang, Mr Huang pleaded guilty to all ten charges he faced in December, which were eight charges of ‘Obtaining by deception’, one charge of ‘Corruptly giving consideration to an agent’, and one charge of ‘Dishonest use of a document’.

SFO Director, Julie Read said, “These crimes, which relied on a high level of calculation and collaboration, undermine lenders’ confidence in borrowers in the mortgage market. The banks were misled in a number of respects including the financial position of the purported borrowers and the level of associated risk. The SFO is committed to investigating and prosecuting this kind of large-scale offending to maintain the integrity of the financial market place.”

Mr Chen and Mr Jiang have been remanded in custody while Ms Xu has been remanded on bail, until their sentencing later this year.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joseph Cederwall: Ten reasons to have hope for a better Media in the future

Last week, I wrote about the news crisis in 2018 and why there is hope for journalism despite of (or perhaps because of) this dire situation. This piece will explore what exactly gives us hope at Scoop and will outline some tangible projects and approaches to dealing with this crisis that Scoop is looking to explore in the coming months - years. From tech innovations such as the blockchain, AI and VR, to increased collaboration between newsrooms and new community ownership models, there is plenty of reason for hope.

So, here are ten reasons to have hope for a better media in 2018 and beyond: More>>

 

Gordon Campbell: On The EU Trade Talks With NZ

In the very unlikely event that all will be smooth sailing in negotiating access to Europe for agricultural products from this part of the world, the EU/NZ negotiations could be wrapped up in about two years – which is relatively fast when it comes to these kind of deals. At best then, we won’t see any concrete benefits until half way through the next term of government. More>>

ALSO:

World Refugee Day: What 7 Former Refugee Kids Love About New Zealand

RASNZ asked 7 members of their specialist youth service (along with two staff members who work with refugee background youth) how they felt about New Zealand – and filmed the responses. More>>

ALSO:

Pay Equity Settlement: Affects 5000 Mental Health Support Workers

Health Minister Dr David Clark is pleased to announce an estimated 5,000 mental health and addiction support workers will soon receive the same pay rates as care and support workers. More>>

ALSO:

DHBs: Nurses Plan Strike Action For Next Month

Nurses across the country have confirmed a notice of a 24-hour strike, starting on 5 July. District Health Boards (DHB) were working on contingency plans following a notice to strike by the New Zealand Nurses Organisation. More>>

ALSO:

Oranga Tamariki: Children's Ministry Shifts Away From Putting Kids In Care

Children's Minister Tracey Martin is signalling a shift away from putting children into care, and towards intensive intervention in a child's home. More>>

ALSO:

But No Way To Tell Why: Significant Drop In HIV Diagnoses

A new report shows that for the first time since 2011, the number of annual HIV diagnoses in New Zealand has fallen. But without funding for a repeat of ongoing surveys to monitor changes in behaviour, testing and attitudes, health workers can’t be sure what’s driving the decrease. More>>

ALSO:

On Her Majesty's Public Service: Inquiry Into Spying Claims Extended To All Govt Agencies

In March, State Services Commissioner Peter Hughes announced an inquiry after it was revealed the firm spied on Canterbury earthquake claimants for Southern Response. The inquiry was furthered widened to include the Ministry of Business, Innovation and Employment, who had been spying on Greenpeace staff. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages