Lawyer joined $3m scam, says SFO

Secret deals to inflate the purchase prices of 10 units on four sites in Riccarton fooled banks into unwittingly giving 100 per cent mortgages, the depositions hearing was told. SFO prosecutor Nicholas Till said the sale prices for the 10 properties failed to include the secret discounts, credits, rebates and refunds that overstated the true price by up to 50 per cent.

"The SFO says these reductions were all planned," he said. "The purchasers needed them to make sure they could buy the properties. The vendors needed them to ensure the properties would sell by ensuring loans to buyers who would not otherwise have qualified for them."

Once the fraud was uncovered, several of those who took part made deals with the SFO to give evidence in return for immunity from prosecution, the court heard.

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