Powered by MOMENTUM MEDIA
the adviser logo
Broker

Broker jailed for $170m mortgage fraud

by Reporter4 minute read

A Victoria-based broker has been sentenced to five years' jail after pleading guilty to one charge of conspiring to defraud financial institutions, totalling $170 million.

Mr Najam Shah, 58, formerly of Footscray-based finance broking company Myra Home Loans Pty Ltd, which traded as Myra Financial Services (Myra), was first arrested and charged in January 2015

However, Mr Shah was only sentenced this month.

According to an ASIC investigation, Mr Shah was involved in the creation and use of false documents to support loan applications valued at a total of approximately $170 million between March 2008 and August 2010.

Advertisement
Advertisement

The misconduct involved the submission of false documents for more than 500 loan applications valued at approximately $170 million to numerous banks and financial institutions, including: Commonwealth Bank of Australia, Westpac Banking Corporation, St George Bank, Bankwest, Adelaide Bank, Bank of Queensland, Choice Home Loans, Citibank, National Australia Bank, Pepper Homeloans and Suncorp Bank.

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.

On 13 February 2017, Mr Shah entered a guilty plea for conspiring to defraud financial institutions during an appearance at the County Court of Victoria.

Hehas now been given a five-year jail sentence, and must serve three years and three months before being eligible for parole.

In sentencing, Judge Gucciardo noted that mortgage fraud of this nature damages the integrity of the lending system and that Mr Shah's well organised deception enabled such corruption. He further noted that he was motivated by greed.

ASIC deputy chair Peter Kell said: "ASIC will continue to ensure that mortgage brokers who provide false documentation are held to account. Today's sentencing reflects both the severity of Mr Shah's actions and the consequences facing those who do not abide by the law."

ASIC's investigation is continuing.

[Related: Melbourne men sentenced over multimillion-dollar mortgage fraud]

 

handcuffs

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Nathan dal Bol

Expanded Home Guarantee Scheme launches

More places have become available under the expanded Home Guarantee Scheme. The scheme currently comprises the First...

READ MORE
Murray Cowan

BMM expands SMSF loan product

Better Mortgage Management (BMM) has confirmed that it has expanded its Aspire Self Managed Super Fund (SMSF) loan...

READ MORE
Clayton Howes  CEO MME

MoneyMe completes inaugural term securitisation transaction

According to MoneyMe, the $200 million term securitisation was a private placement with “three major Australian...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more