Auckland developer guilty of mortgage fraud
Auckland property developer Malcolm Duncan Mayer has been found guilty of orchestrating a $47 million mortgage fraud after an earlier trial was aborted last year.
In the Auckland District Court this morning, Mayer was convicted of 26 charges laid by the Serious Fraud Office, comprising 16 counts of dishonestly using a document and 10 counts of using forged documents.
Fairfax Media revealed details of Mayer's activities in 2009 in an interview with him.
The champion bridge player had used the names of family members and associates to submit false loan applications to fund management company Trustees Executors (TEL), chaired by former prime minister Jim Bolger.
Trustees Executors owned and administered the $242m Tower Mortgage Plus fund, which was frozen in 2008 with more than 5000 investors left in limbo after Mayer began defaulting on tranches of loans.
Mayer had supported his applications with fake sale and purchase agreements and leases to support property valuations.
His partner for many of the deals was architect Simon Turnbull, who has left the country and whose whereabouts are unknown.
The defence had argued that it was in fact Turnbull who had masterminded the frauds.
An earlier trial was aborted after seven months - costing the taxpayer at least $140,000 - due to Mayer's poor health.
Mayer has been remanded on bail and is scheduled to appear for sentencing on February 18.
SFO director Julie Read said the actions of people like Mayer added costs to borrowers.