A second defendant in the Serious Fraud Office’s (SFO) investigation into alleged mortgage fraud has been sentenced to nine months home detention at the Auckland District Court.
Gurraj Singh Bhachu, who no longer has name suppression, pleaded guilty in September 2025 to 12 charges relating to four properties involved in the alleged mortgage fraud. His sentence of nine months’ home detention took into account discounts for his guilty plea, remorse and cooperating with the SFO’s investigation. Six months’ standard release conditions were also imposed.
Bhachu made false representations to banks and conveyancing solicitors to obtain bank loans totaling $2,862,650 for three residential properties. He also made false representations to obtain control of residential properties, either for himself or others. The offending included providing false documents relating to business income and cash gifts, who the true borrower was, and deposits paid.
In 2019, Bhachu left New Zealand. When he returned in December 2023, he was arrested and charged by the SFO.
SFO Director, Karen Chang, says deliberately providing false information to a bank to obtain a mortgage undermines the integrity of New Zealand’s lending system.
“The banks were misled in a number of ways, including the financial position of the borrower and the level of risk to the bank. This affects the ability of hard-working New Zealanders to obtain lending for their own homes.”
The SFO has charged six people in this complex mortgage and investment fraud case which alleges they engaged in a scheme to fraudulently obtain credit and properties. In total, they are alleged to have obtained more than $8.6 million in lending and attempted to obtain a further $2.9 million.
Bhachu is the second defendant to be sentenced, after Francis (Frank) Peters who was sentenced in August 2024 to nine months and two weeks’ home detention in relation to four charges of obtaining by deception.
Francis Peters, a lawyer at the time of offending, is no longer able to practice law in New Zealand as he was struck off the roll of barristers and solicitors in April 2025.
Charges have also been filed against Christopher Peters, Robert Peters, Gerard Peters and Serene Peters for obtaining $1.8 million by deception in an alleged investment fraud. Christopher and Robert Peters have also been charged with obtaining those funds by forgery as an alternative charge.
The trial of Christopher Peters and Robert Peters is scheduled for February 2026. A trial date has not yet been set for the remaining defendants, Gerard Peters and Serene Peters.
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