Bankrupt Auckland property developer Mayer sentenced to 6 years' prison for $47M mortgage fraud

Bankrupt Auckland property developer Malcolm Mayer was today sentenced in the Auckland District Court to six years' prison for orchestrating a $47 million mortgage fraud.

The sentence follows a prosecution by the Serious Fraud Office which resulted in Mayer being found guilty in December of 16 charges of dishonestly using a document and 10 charges of using forged documents.

Mayer submitted false loan applications to Trustees Executors Ltd, chaired by former Prime Minister Jim Bolger, to buy 26 properties around Auckland between 2003 and 2007. Mayer used relatives' and associates' names to secure loan funds, allowing him to avoid individual loan limits, used false sale and purchase agreements and false leases to support valuations and made false statements about deposits.

"Mayer's sentencing should give those seeking mortgage funding some confidence that criminals who use dishonest means in attempts to beat the system and subsequently pass on the costs to honest borrowers, will be caught and held to account," SFO director Julie Read said in a statement.

BusinessDesk.co.nz

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