A lawyer who pleaded guilty for his part in his family’s alleged $8.6 million mortgage fraud scheme has been struck off the roll of barristers and solicitors. Photo / 123rf
A lawyer who pleaded guilty for his part in his family’s alleged $8.6 million mortgage fraud scheme has been struck off the roll of barristers and solicitors. Photo / 123rf
An Auckland lawyer who pleaded guilty for his part in his family’s alleged $8.6 million mortgage fraud scheme has been struck off the roll of barristers and solicitors.
In a penalty hearing at the Lawyers and Conveyancers Disciplinary Tribunal in Auckland this afternoon, chair Judge Dale Clarkson ordered Francis Peters,also known as Frank Peters, struck off.
“We were unanimously of the view that no penalty short of striking off will properly reflect the seriousness of your conduct,” she said.
Last year Francis pleaded guilty in the North Shore District to four charges brought by the Serious Fraud Office (SFO) of obtaining by deception. He was sentenced to nine-and-a-half months home detention.
Judge Paul Murray warned at the time that further consequences for his professional standing were likely to come from the conviction.
“There are professional consequences to follow,” Judge Murray said.
Francis was charged in December 2023, as part of a multi-year investigation by the SFO into a mortgage and investment fraud scheme alleged to have been largely run by his brother Gerard.
The court had heard Francis had sought repayment of a $100,000 loan from Gerard, who had then proposed a mortgage fraud scheme to generate funds for repayment.
Francis Peters told the district court he blamed his brother Gerard, pictured, for involving him in a mortgage fraud scheme that later saw both brothers charged. Photo / Supplied
Francis told the tribunal he took full responsibility for his offending, had fully co-operated with the Law Society penalty process, and was volunteering to give back to the community and rebuild trust.
“I take full responsibility for everything. I’m not here to dispute anything. I’m here to express my regret for actions in the past that have fallen below the standards required of me,” he said.
“It was a strange family dynamic that I come from. I did stupid silly things for my family, due to pressure from my family.”
Those charged in the broader SFO case include five members of the Peters family, and one other individual with name suppression.
Alongside Francis, his brothers Gerard, Chris and Robert, and mother Serene, are also being prosecuted.
The SFO has laid a total of 37 charges, concerning $8.6m in fraud, with the majority naming Gerard and Chris.
The SFO alleges the scheme saw properties recycled through multiple related-party sales to drive up valuations and enable greater mortgage financing. The proceeds were said to be invested offshore to generate regular dividends for the original property owners who would see their properties returned to them after five years.
But the flow of dividends was inconsistent at best, and banks soon initiated mortgagee sales. Several participants lost their family homes.
In addition, Gerard, Chris, Robert and Serene are also charged over obtaining $1.8m from a businessman purportedly to be invested in “private banking facilities” and having provided forged guarantee documents to secure the investment funds.
Gerard left New Zealand in 2019, shortly after police first began investigating. Serene left New Zealand in 2023, shortly before charges were laid against her.
Court registrars said “active arrest warrants” had been issued against the pair.
Peters has been variously said to be in Malaysia, Dubai, the United States or India.
Chris and Robert, and the other defendant with name suppression, have pleaded not guilty and are expected to face trial next year.
The Herald first began investigating these schemes in 2021, largely focusing on late pensioner Sandra Rosolowski who had found her name was not on the title of her home and the property she had purchased with cash was saddled with a $1.1m mortgage.
Judge Clarkson struck Peters from the roll in an oral decision, with written reasons to follow.
Outside the tribunal Francis said of the Tribunal: “I respect their decision, and just want to put it all behind me”.
Matt Nippert is an Auckland-based investigations reporter covering white-collar and transnational crimes and the intersection of politics and business. He has won more than a dozen awards for his journalism – including twice being named Reporter of the Year – and joined the Herald in 2014 after having spent the decade prior reporting from business newspapers and national magazines.
