Prison terms for masterminds behind $8.7m housing loan fraud scheme

The scheme was a deliberate effort to avoid lending restrictions, SFO director says. Photo / 123rf

Two Auckland men have been jailed after obtaining $8.7 million through fraudulent mortgages.

Their partners were sentenced to several months of home detention for participating in the scheme.

The couples moved money between their accounts to pretend they received regular salaries from a company they did not work for.

The Serious Fraud Office said Bryan Martin and Joshua Grant wanted to invest in the Auckland property market but did not have enough income to obtain a loan.

Martin created fake employment agreements for his now former partner Viki Cotter and Grant’s wife, Sian Grant, for his company Momentum Transition Developments.

The group made 14 loan applications between August 2015 and October 2016 claiming they were employees of Martin’s company.

Serious Fraud Office director Karen Chang said the scheme was a deliberate effort to avoid lending restrictions.

“New Zealanders invest heavily in property, and mortgages are a key part of the process. Lending restrictions protect both banks and those who are borrowing, as well as the wider economy,” she said.

“Offending of this nature breaches the trust between bankers, mortgage brokers and customers, which can ultimately impact the ability of future borrowers to secure loans.”

On Wednesday, Martin was sentenced to four years in prison and Joshua Grant was sentenced to 28 months.

Sian Grant pleaded guilty in March and was sentenced to 12 months’ home detention.

Cotter pleaded guilty last year and was sentenced to nine months’ home detention which was to begin last January.