Developer jailed for $52m mortgage fraud

SFO director Julie Read says the sentence recognises the serious misconduct in the case.

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."


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“If banks have to introduce additional checks, these costs may be passed on to borrowers, increasing the cost of mortgages for all”

I wouldn't be worried about that. What I would be worried about is how widespread this is, as well as interrelated party transfers for the same properties and what dates they traded at, as well as prices paid for the properties. Fraud like this has the potential to push up the entire housing market if the buying is indiscriminate and and then revalued at hugely outrageous prices!

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Sounds like Thomas studied history and learnt from the 1980s paper and property shuffling companies?

Company A buys a property for $5m, sells to B for $10m (booking a nice profit) while B sells a property worth $6m to C for $11m while C in turn sells a property worth $10m to A for $17m. And so on and do forth.

Looks like the banks who got burnt then have not learnt though?

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How lucky is this guy? A sentence of four years, what a joke, he'll be out in a little over two. No doubt to a whole load of hidden away loot. He must be laughing his head off. Where's the deterrent?. We are so soft here, anywhere else and he'd get 20 years. This type of crime will never end here if these are the sentences getting handed out.

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Precedent of soft sentencing already established with the Finance Companies crooks who scammed pensioners and the public of billions of dollars.

4 years is harsh when you compare his sentence to that handed out to the finance company crooks like 2 years 4 months for the Nathan Finance duo - Thomas’s ‘victim’ is a financial institution while the victims of the finance company scams were people, a few of who committed suicide.

You think race and the old boys club have something to do with the lightness of the sentencing with the finance company directors?

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You are very right,they are too soft with crime here.
Concerned dairy owner. owner.

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Unbelievable. Certainly worth doing for a slap on the hand while most of us slave our guts out for being honest. Maybe we shall all change our ways.

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The old boys club, possibly. The business community is very small in NZ, and it's pretty much a given that they all know each other. So there may be some pressure there for lower sentences. With Nathans, one of it's prosecuted directors was only given home detention, and a $100k fine, that he paid by way of a cheque before leaving the courthouse with a smile a mile wide. Oh well I suppose he got over his hectic day by way of a private swim in the swimming pool at the $5 million dollar home that he was sentenced to spend his H/D in. It's almost enough to make you laugh about, if it wasn't so serious.

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SFO director says the sentence reflects the serious misconduct of the case. Really Julie?? You think that sentence was appropriate? Once upon a time a person was sentenced to a lifetime of toil, and sent to the colonies for stealing a loaf of bread. Maybe you think he should be given a knighthood as well.

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possibly a bit unkind Ivan - Read is just sounding nice here rather than being able to speak freely

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Well that's the problem these days. Speaking freely is not pc anymore. Take Bob Jones for example, you can bet your life that many will more than agree with what he says, but they'll never say it in public. They'll say it privately at home to a selected few. Can't be upsetting the freeloading brigade that now seemingly have free-reign over the place.

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Hopefully they’ll all be deported back to Asia after the sentence is over and all assets????!!!!forfeited

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So here's a question.... How and when did they get caught/investigations began?

Where the hell was the due diligence on the banks part?... You don't go from $0 to $52m of lending overnight.

Another question - who picks up the TAB for the $52m worth of mortgage backed securities that the bank would have on-sold that is now worth less?

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And the tax payer will be paying their accommodation in our prison. Where are they hiding their nest egg? Maybe we can locate that and put that towards their accommodation costs.

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