PHOTO: The SFO said the false representations were used to gain control of properties. PROPERTY NOISE
🏠 Fraudulent Mortgages Rock Auckland Property Market
An Auckland man has been sentenced to nine months’ home detention after fraudulently obtaining more than $2 million in mortgage lending, in a case that highlights growing scrutiny of lending practices in New Zealand’s property sector.
Gurraj Singh Bhachu pleaded guilty in the Auckland District Court to 12 fraud-related charges linked to four separate property transactions.
📄 How the Mortgage Fraud Was Carried Out
According to the Serious Fraud Office (SFO), Bhachu deliberately falsified financial documents to secure bank lending he was not entitled to.
Investigators found he:
Fabricated business income records
Created false documentation relating to cash gifts
Supplied misleading information to banks and property lawyers
Obtained loans totalling $2,862,650 for three residential properties
The SFO said the false representations were used to gain control of properties either for Bhachu himself or on behalf of others.
✈️ Left the Country, Arrested on Return
Bhachu departed New Zealand in 2019 and remained offshore until returning in December 2023, when he was arrested and formally charged.
His guilty plea was entered in September last year, leading to sentencing this week.
⚖️ Serious Fraud Office: Lending Integrity Undermined
SFO Director Karen Chang said mortgage fraud strikes at the heart of the financial system.
“Deliberately providing false information to banks undermines the integrity of the lending system,” she said.
“Banks were misled about the borrower’s true financial position and the level of risk involved.”
She added that such offending impacts ordinary New Zealanders, making it harder for legitimate buyers to access home loans.
👥 Wider Alleged Mortgage & Investment Fraud Scheme
Bhachu is not the only defendant linked to the investigation.
The Serious Fraud Office has charged six other individuals, alleging they were part of a coordinated scheme to fraudulently obtain property lending.
The group is accused of:
Obtaining more than $8.6 million in mortgage lending
Attempting to secure a further $2.9 million
⏳ Earlier Sentencing in the Same Case
Bhachu is the second person sentenced in relation to the matter.
In August 2024, Francis Peters received nine months and two weeks’ home detention after pleading guilty to four charges of obtaining by deception.
🔍 Additional Charges Still Before the Courts
Further charges have been laid against:
Christopher Peters
Robert Peters
Gerard Peters
Serene Peters
They are accused of obtaining $1.8 million by deception in an alleged investment fraud, with forgery charges also filed against Christopher and Robert Peters as alternative counts.
Trial proceedings for some defendants were scheduled to begin in February, with others still awaiting trial dates.
🧠 Why This Case Matters for the Property Market
This prosecution reinforces several key realities:
Mortgage fraud remains a top enforcement priority
Banks are increasingly reliant on document verification
Property lawyers and advisers face higher compliance expectations
Fraudulent lending inflates risk across the entire housing system
As enforcement tightens, authorities are signalling zero tolerance for false representations in property finance.
SOURCE: RNZ