Developer jailed for $52m mortgage fraud
A property developer involved in a $52 million mortgage fraud scheme involving about 75 North Island properties has been sentenced to four years and seven months in prison following charges brought by the Serious Fraud Office.
Kang (Thomas) Huang, also known as Gang Wang was sentenced today after pleading guilty in the High Court at Auckland and being convicted.
Late last year Huang pleaded guilty to all 10 charges, 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.
Huang had operated a property development business and was charged with providing false documents or information to several banks across many home loan applications.
The other defendants in the case, Huang’s wife, Kang Xu (also known as Yan (Jenny) Zhang), lawyer Gang (Richard) Chen and former bank employee Zongliang (Charly) Jiang, are due to appear in the High Court at Auckland for a trial starting on February 26.
SFO director Julie Read says the sentence imposed “reflects the serious nature of misconduct in this case.
“Such use of deception, and bribery in one instance, undermines lenders’ confidence in borrowers in the mortgage market.
“If banks have to introduce additional checks, these costs may be passed on to borrowers, increasing the cost of mortgages for all."