Multi-million dollar mortgage fraud alleged
Seven people have been charged in connection with a multi-million dollar mortgage fraud involving properties in Christchurch and Auckland.
The Serious Fraud Office today laid 48 charges against the group after an investigation into the "complex" crime.
Eli Devoy, 44, now known as Ellie Stone, faces 26 charges in connection with the fraud, which is estimated at $9.2 million.
The Serious Fraud Office believed Devoy conducted a series of property sales and purchases between July 2007 and December 2010 which deceived various banks into approving mortgage applications.
The applications were based on false documents or information supplied to the banks.
Six other people related to, or associated with Devoy have also been charged.
They are Mehrdad Ghorbani, 46, also known as Mohammad Ghorbani Sarsangi, Mehran Ghorbani, 35, also known as Massoud Ghorbani and Ken Williams, Nasrin Kardani, 33, Mehrzad Ghorbani, 41, also known as Mehdi Ghorbani, Hassan Salarpour, 35, and Javad Toraby, 42.
They are alleged to have participated in her scheme.
Serious Fraud Office acting chief executive Simon McArley said: "Financial crime in lending markets increases the cost of credit to all borrowers and has a direct impact on economic growth. SFO is keen to work with lenders to reduce offending in this area and augment the deterrent effects of SFO's prosecution functions with improved lending practices and procedures."
The complaint about Devoy and her associates was originally received in November 2011 and an investigation commenced a month later.
- © Fairfax NZ News
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