Two men involved in what is thought to be Australia's biggest home
loan fraud have avoided jail, after a court found they were exploited by
the alleged mastermind of the $170 million scheme.
On Tuesday,
Myra employee Mohamed Ahmed and former colleague and mortgage broker
Aizaz Hassan were sentenced to a five-year community corrections order
over their involvement in the "widespread financial conspiracy".
Both
men pleaded guilty to one charge each of conspiracy to commit fraud,
following an investigation by the Australian Securities and Investments
Commission. Glen Waverley couple Najam Shah and Manija Zayee have also
been charged over their alleged involvement in the scheme.
The
County Court heard Mr Ahmed and Mr Hassan had worked at Myra, where 535
home loans totalling more than $170 million were drafted on behalf of
Myra clients that relied on false documents, including fake pay slips,
citizenship records, employment records and financial statements.
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The home loan fraud is believed to be the biggest in Australian
history, with the court hearing 38 per cent of the home loans are either
in arrears or subject to legal action.
The court heard the
alleged head of the home loan rort, Mr Shah, received a financial
benefit of $6 million from his involvement in the scheme, while Mr Ahmed
received more than $37,000 in wages through his two-year employment at
Myra and Mr Hassan received more than $61,000 in wages over a similar
period.
The sentencing hearing also revealed a key figure alleged
to be involved in the fraud, Giovanni Salvatore ("John") Chiaramonte,
had fled the country and had not been charged.
Judge
Elizabeth Lawson found Mr Ahmed and Mr Hassan had not been aware
initially of the fraud and had joined Myra because both had difficulty
obtaining work in the finance industry after finishing university.
"This
is very serious offending," Judge Lawson said. "You both have no prior
criminal history and there are no matters outstanding."
The judge added both men were employees of Myra and "were under the control of the architect of the scheme, Najam Shah".
Judge Lawson said both men had been "exploited" by Mr Shah.
In
sentencing Mr Hassan, Judge Lawson said: "You present as a naive
individual who was subject to exploitation by the older and more
dominant character of Mr Shah."
Mr Hassan's sentence was also
mitigated by the fact he left Myra before investigations began and Mr
Hassan and had not taken Mr Shah's advice to flee the country.
Judge
Lawson said Mr Ahmed's co-operation with authorities, including
returning to Australia in the knowledge he would be questioned by
authorities, and his very early plea had reduced his sentence.
Two
largest mortgage lenders — State Bank of IndiaBSE 3.16 % and Housing
Development Finance Co. are leading the push. These long duration loans
— above 20 years — are being given to properties valued at more than Rs
1 crore, and for salaried people in the age group of 25-30 who are at
the early stages of careers and at the same time have the potential to
be high earners as they grow.
"We are seeing better traction for home loans this year as younger people are taking loans for long t ..
"We are seeing better traction for home loans this year as younger people are taking loans for long t ..
Banks
have turned active in giving out home loans for as long as 30 years for
the first time since credit crisis days as they attempt to revive
demand in high-end home purchases which has come to a grinding halt in
the top six cities, said two people familiar with the development. This
may turn out to be a life line for struggling real estate developers
saddled with unsold inventories despite throwing freebies such as
registration and other perks such as car park, and gadgets such as
television ..
Banks have turned active in giving out home loans for as long as 30
years for the first time since credit crisis days as they attempt to
revive demand in high-end home purchases which has come to a grinding
halt in the top six cities, said two people familiar with the
development. This may turn out to be a life line for struggling real
estate developers saddled with unsold inventories despite throwing
freebies such as registration and other perks such as car park, and
gadgets such as televisio ..
