ASIC announced today that two Melbourne men have been arrested after carrying out an alleged mortgage fraud.
The regulator said that 55-year-old Najam Shah of Glen Waverley and 34-year-old Aizaz Hassan of Truganina have been charged following an ASIC investigation into the use of false documents in support of loan applications valued at approximately $110 million.
Mr Shah and Mr Hassan have been charged with one count each of common law conspiracy to defraud, which carries a maximum penalty of 15 years imprisonment.
ASIC said that the charges relate to the men’s roles at Footscray company Myra Home Loan Pty Ltd, which was trading as Myra Financial Services, but is no longer trading.
“It is alleged that between April 2008 and December 2011, Mr Shah and Mr Hassan conspired to defraud banks and other financial institutions by creating and using false documents to support loan applications submitted on behalf of Myra clients,” ASIC said.
“The false documents included bank statements, payslips, citizenship certificates and statutory declarations.
“These were predominantly used in support of applications for home loans for house and land packages, as well as for the purchase or refinance of existing homes.
“During the period in which it is alleged the conspiracy occurred, at least 350 loans valued at approximately $110 million were submitted and approved on behalf of Myra clients.
“The alleged conspiracy involves submission of false documents for more than 300 loan applications to numerous banks and financial institutions, including the Commonwealth Bank of Australia, Westpac Banking Corporation, St George Bank, Bankwest, Adelaide Bank, ANZ, Bank of Queensland, Choice Home Loans, Citibank, National Australia Bank, Pepper Homeloans and Suncorp Bank.”
Mr Shah appeared at the Melbourne Magistrates’ Court and Mr Hassan before a bail justice on January 2. Both men are to reappear at the Melbourne Magistrates’ Court on April 17.
Mr Shah and Mr Hassan were bailed on conditions including that they report to police twice a week, surrender valid passports and not leave Australia, ASIC said.
Manija Zayee, Mr Shah’s partner and former Myra director, has also been charged on summons in connection with this matter, with one charge of obtaining a financial advantage by deception, ASIC said.
“It is alleged that Ms Zayee submitted false documents in support of a loan application for a home loan, in her own name, in September 2009,” ASIC said.
Ms Zayee is to appear at the Melbourne Magistrates’ Court on January 27.
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