A second man has been sentenced in a major mortgage fraud case after admitting to dishonestly securing millions of dollars in bank lending through false documents and misleading information.
Gurraj Singh Bhachu was sentenced to nine months’ home detention at the Auckland District Court after pleading guilty to 12 charges linked to four residential properties.
The Serious Fraud Office said Bhachu fabricated documents relating to business income and cash gifts, and provided false details to banks and conveyancing solicitors to obtain loans totalling $2.86 million for three properties. Investigators also found he misrepresented who the true borrower was and the source of property deposits, and made false claims to gain control of properties for himself or others.
As per report, Bhachu left New Zealand in 2019 and was arrested when he returned in December 2023. In addition to home detention, the court imposed six months of standard release conditions.
Karen Chang said deliberately misleading lenders struck at the heart of the financial system.
“Banks were deceived about the borrower’s financial position and the level of risk involved,” she said. “That behaviour undermines confidence in the lending system and ultimately affects the ability of hard-working New Zealanders to secure finance for their own homes.”
Bhachu is the second person to be sentenced in the case. The first, Francis Peters, received nine months and two weeks’ home detention in August 2024 after admitting to four charges of obtaining by deception.
The Serious Fraud Office has charged six people in total, alleging they were involved in a coordinated scheme to fraudulently obtain credit and property. Authorities claim the group secured more than $8.6 million in lending and attempted to obtain a further $2.9 million.
Further charges have been laid against Christopher Peters, Robert Peters, Gerard Peters and Serene Peters in relation to an alleged $1.8 million investment fraud. Christopher and Robert Peters also face alternative forgery charges. Their trial is scheduled for February, while dates for the remaining defendants are yet to be confirmed.
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