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Banker, lawyer and wife of a guilty property developer sentenced over $54m mortgage fraud
3 Aug, 2018 11:40am
5 minutes to read
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Kang Xu, Gang Chen and Zongliang Jiang pictured at the start of their trial. Photo / Michael Craig
By: Sam Hurley
New Zealand Herald court reporter.
[email protected]@SamuelPHurley
A former banker, lawyer, and wife of a property developer have been jailed and sentenced to home detention for their involvement in a $54 million mortgage fraud scheme in Auckland and Hamilton.
Lawyer Gang (Richard) Chen, Kang Xu, also known as Yan (Jenny) Zhang, and former BNZ banker Zongliang (Charly) Jiang appeared for sentencing today in the High Court at Auckland before Justice Sarah Katz.
After a three-month trial, which began in February, Justice Katz delivered her verdicts in June.
The judge's verdicts were contained in more than 200 pages, released to the Herald, after she considered 1500 pages of notes evidence and thousands more pages of documentary evidence from the trial.
Today, Justice Katz sentenced Chen to a total of six years' imprisonment, Jiang to four years and nine months' behind bars, and Xu to 12 months' home detention for their "premeditated and prolonged" fraud.
Justice Katz also imposed a minimum period of imprisonment of 50 per cent for Chen and Jiang.
The trio were part of a quartet charged by the Serious Fraud Office (SFO) over 76 Auckland and Hamilton properties and suspicious mortgages, involving 57 loan applications and 110 transactions.
The scheme involved loans of more than $54m and bribes of $7000 per transaction to the two bankers, Jiang and former ANZ banker Peter Cheng, who approved the loans.
Jiang processed and approved about $18 million in loan applications in exchange for cash bribes.
Justice Katz said Jiang was motivated by greed.
3 Aug, 2018 11:40am
5 minutes to read
Kang Xu, Gang Chen and Zongliang Jiang pictured at the start of their trial. Photo / Michael Craig
By: Sam Hurley
New Zealand Herald court reporter.
[email protected]@SamuelPHurley
A former banker, lawyer, and wife of a property developer have been jailed and sentenced to home detention for their involvement in a $54 million mortgage fraud scheme in Auckland and Hamilton.
Lawyer Gang (Richard) Chen, Kang Xu, also known as Yan (Jenny) Zhang, and former BNZ banker Zongliang (Charly) Jiang appeared for sentencing today in the High Court at Auckland before Justice Sarah Katz.
After a three-month trial, which began in February, Justice Katz delivered her verdicts in June.
The judge's verdicts were contained in more than 200 pages, released to the Herald, after she considered 1500 pages of notes evidence and thousands more pages of documentary evidence from the trial.
Today, Justice Katz sentenced Chen to a total of six years' imprisonment, Jiang to four years and nine months' behind bars, and Xu to 12 months' home detention for their "premeditated and prolonged" fraud.
Justice Katz also imposed a minimum period of imprisonment of 50 per cent for Chen and Jiang.
The trio were part of a quartet charged by the Serious Fraud Office (SFO) over 76 Auckland and Hamilton properties and suspicious mortgages, involving 57 loan applications and 110 transactions.
The scheme involved loans of more than $54m and bribes of $7000 per transaction to the two bankers, Jiang and former ANZ banker Peter Cheng, who approved the loans.
Jiang processed and approved about $18 million in loan applications in exchange for cash bribes.
Justice Katz said Jiang was motivated by greed.
