Alleged mortgage fraudsters lose name suppression

The case involves 75 properties in Auckland and Hamilton.

Two people charged in a $40 million mortgage fraud case where alleged kickbacks were paid to bank staff can now be named.

Richard Chen (also known as Gang Chen) and Zongliang Jiang (also known as Charly Jiang) have both denied charges for obtaining by deception and breaching the Secret Commissions Act.

Chen, 41, and Jiang, 36, both live in Auckland.

Along with two other co-accused, Chen and Jiang were granted interim name suppression when they first appeared in the Auckland District Court in September.

While the quartet fought to keep their names secret, Judge Philippa Anne Cunningham said last month that none of the four had satisfied the test for continued name suppression.

Two of the group, however, are now challenging that ruling and cannot be identified until at least after their appeals are decided. Chen's and Jiang's name suppression lapsed last week, a District Court staff member confirmed.

All four of the defendants have pleaded not guilty to the charges they face and have elected for a trial by jury. They are due to re-appear in the Auckland District Court in March.

The quartet are defending obtaining by deception charges over information provided to secure mortgage finance on dozens of Auckland and Hamilton properties.

The case, according to the Serious Fraud Office, involves loans of more than $40m.

Not all of the defendants are accused of all of the alleged offending and it is not apparent from available court documents how much of the alleged total relates to each of them.

The SFO alleges, according to court documents, that false salary payments were made as part of the applications for some of the loans in the case.

Banks were also allegedly provided with false income and employment information.

Chen is accused of providing banks with a passport in the name of someone which he knew to be false, the SFO alleges.

Jiang allegedly processed and approved loan applications for the purchase of properties that he knew "were not true purchases, or was reckless as to whether they were", the SFO has alleged in court documents.

Jiang, Chen and one of their co-defendants still with name suppression are also facing charges that allege they breached the little-used Secret Commissions Act.

Those charges allege that payments, ranging from $5000 to more than $30,000, were paid by and to bank staff in return for approving mortgage applications.