A Melbourne mortgage broker has been sentenced to 5 years in jail after he admitted to committing mortgage fraud.
58-year-old Najam Shah created false documents to support over 500 loan applications, writing loans totalling $170 million between March 2008 and August 2010.
Mr Shah was arrested in January 2015 and charged with conspiring to defraud financial institutions. In February this year, he pleaded guilty during an appearance at the County Court of Victoria.
The Australian Securities and Investments Commission investigated Myra Financial Services and alleged that Mr Shah falsified documents including bank statements, payslips, citizenship certificates and statutory declarations which he used to support applications for home loans and house and land packages.
In sentencing Mr Shah, Judge Gucciardo noted that mortgage fraud damages the integrity of the lending system and that Mr Shah's well-organised deception enabled such corruption. He said Mr Shah was motivated by greed.
Mr Shah must serve 3 years and 3 months before being eligible for parole.
ASIC Deputy Chair Peter Kell said the sentencing reflects the severity of Mr Shah’s actions.
"ASIC will continue to ensure that mortgage brokers who provide false documentation are held to account.”
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC suggests consumers check its guidance on MoneySmart website and advises
- Always checking ASIC Connect's professional registers to make sure the person or company they're dealing with is licensed
- never signing blank forms or leaving details for the broker to fill in later
- if they suspect misconduct or are unhappy with the product or service they receive.
