Two men have been arrested for allegedly conspiring in a $110 million home loan fraud against a collection of Australia’s biggest banks.
Najam Shah, 55, of Glen Waverley, and Aizaz Hassan, 34, of Truganina, have been charged with one count each of conspiracy to defraud, the Australian Securities and Investments Commission said.
It is alleged the two men operated out of a financial services company in Footscray.
ASIC released a statement on Tuesday said it alleged the two men used fake documents to support hundreds of loan applications on behalf of clients of Myra Financial Services without their knowledge.
The regulator said the alleged conspiracy involved more than 300 loan applications to more than a dozen banks, including the Commonwealth Bank, NAB, ANZ, Westpac, St George, Citibank and Bank of Queensland.
The fake documents included bank statements, payslips, citizenship certificates and statutory declarations, it said.
“These were predominantly used in support of applications for home loans for house and land packages as well as for the purchase or refinance of existing homes,” ASIC said in a statement.
The alleged conspiracy occurred between April 2008 and December 2011. During this period, at least 350 loans valued at approximately $110 million were submitted and approved on behalf of Myra clients, according to ASIC.
The pair face a maximum penalty of 15 years in jail.
Both men appeared at the Melbourne Magistrates’ Court on January 2 and are currently on bail.
Myra Financial Services is no longer trading.
This story first appeared in The Age
