2 Apr 2014

Home detention for mortgage fraudster

11:23 am on 2 April 2014

A woman who admitted charges relating to a $3.9 million mortgage ramping scheme has been sentenced to a year's home detention and community work.

Ramni Kumar admitted charges relating to 10 properties that were bought at low prices by companies associated with her.

Judge Russell Collins told the Auckland District Court that the prices were bumped up and then sold - mainly to first home buyers.

But Kumar used false documents in order to secure bank mortgages for the buyers.

The buyers were left with mortgages on properties whose values had been over-inflated.

Judge Collins said Kumar received $163,000 for her part in the fraud.

He said two of the 10 families have not been able to keep up with payments and have lost thousands of dollars.

Judge Collins said the other eight are paying more than they should be.