Property developer jailed

Tuesday 18 February 2014

A property developer was today sentenced to six years in prison for a $47 million mortgage fraud.

By The Landlord

Malcolm Duncan Mayer was found guilty in December of 16 charges of dishonestly using a document and 10 charges of using forged documents.


Mayer had used false loan applications and submitted them to fund management company Trustees Executors Limited for 26 properties in and around the Auckland region, between December 2003 and August 2007.

He used a variety of means to mislead TEL into lending the money, including dishonestly using relatives’ and associates’ names to secure the loan funds, using false sale and purchase agreements and false leases to support valuations, and making false statements about the supposed applicant's deposit or contribution to the purchase.

The Serious Fraud Office brought the case against him.

Director Julie Read said: “Mayer’s sentencing should give those seeking mortgage funding some confidence that criminals who use dishonest means in attempts to beat the system and subsequently pass on the costs to honest borrowers, will be caught and held to account.”

Comments from our readers

No comments yet

Sign In / Register to add your comment

House Prices

Regions lead the price growth pack

Provincial markets stole the asking price spotlight from the main centres in January, according to the latest Trade Me Property Price Index.

Commercial

Headwinds for the commercial market

Tightening credit conditions could impact on New Zealand’s booming commercial property market, according to the Property Council’s chief executive.

Mortgages

Heartland launches reverse mortgages for investors

Heartland has expanded its reverse mortgage business and will now lend against investment properties and second homes, as the product becomes more popular in New Zealand.

Site by PHP Developer