Massive fraud allegations see Melbourne brokers arrested

by Adam Smith07 Jan 2015
Two Melbourne brokers at the centre of a massive fraud investigation have been arrested.

Najam Shah and Aizaz Hassan of Footscray Company Myra Home Loan Pty Ltd have been arrested and charged with conspiracy to defraud, ASIC has revealed. The charges came following an ASIC investigation into the use of false documents to support around $110m in loan applications.

The regulator has alleged that between April 2008 and December 2011, Shah and Hassan conspired to defraud banks by creatng and using false documents in support of home loans and house and land packages. ASIC said the alleged conspiracy involved false documents for more than 300 loan applications to lenders including Commonwealth Bank, Westpac, St George, Bankwest, Adelaide Bank, ANZ, Bank of Queensland, Choice Home Loans, Citibank, NAB, Pepper and Suncorp.

If convicted, the men face a maximum of 15 years imprisonment.

COMMENTS

  • by Clarke Kent 7/01/2015 9:18:55 AM

    $110,000.000 of fraudulent loans before detected?

    Just goes to show all the checking and cross matching that goes on with the banks', took quite some time before some alarm bells were sounded.

    Thanks to individuals like this, we as redible brokers' will face even more secrutiny on bona fide transactions

  • by Chris 7/01/2015 9:26:39 AM

    Whilst I enjoy reading articles like this I'm also sick of reading articles like this.

    I'm sick of certain Brokers like this giving the rest of us a bad name. It's damaging to our industry.

    I genuinely hope that the authorities treat these 2 criminals harshly which will send a message and hopefully stop crimes like this happenning again.

  • by Vic Regional Broker 7/01/2015 10:31:58 AM

    It it just me or are we seeing a trend here with ASIC taking a long time to act? Also how slack are the abnks in accepting 350 loan applications with fraud , why did it take them so long?