The Serious Fraud Office says a second man has been sentenced for mortgage fraud.

Gurraj Singh Bhachu last year admitted 12 charges relating to four properties involved in the alleged mortgage fraud.

“Bhachu made false representations to banks and conveyancing solicitors to obtain bank loans totalling $2,862,650 for three residential properties,” the Serious Fraud Office (SFO) said today.

“He also made false representations to obtain control of residential properties, either for himself or others.”

The SFO said Bhachu was sentenced to nine months’ home detention after showing remorse and co-operating with the investigation.

The SFO said Bhachu’s offending included providing false documents relating to business income and cash gifts, to who the true borrower was, and to deposits paid.

It said Bhachu left New Zealand in 2019 but returned in 2023, when he was arrested and charged.

SFO director Karen Chang said giving false information to a bank to obtain a mortgage undermined the integrity of New Zealand’s lending system.

“The banks were misled in a number of ways, including the financial position of the borrower and the level of risk to the bank,” she said.

“This affects the ability of hard-working New Zealanders to obtain lending for their own homes.”

The SFO said it had charged six people in the “complex mortgage and investment fraud case”.

Those charged were accused of obtaining more than $8.6 million in lending and attempting to obtain another $2.9m.

Last August, former lawyer Francis (Frank) Peters was sentenced to nine months and two weeks’ home detention in relation to four charges of obtaining by deception.

Peters was no longer able to practise law in New Zealand.

At a Lawyers and Conveyancers Disciplinary Tribunal penalty hearing last April, he was struck off the roll of barristers and solicitors.

Another four people were charged with obtaining $1.8m by deception in the alleged investment fraud.

The SFO said Christopher Peters, Robert Peters, Gerard Peters and Serene Peters had been charged with obtaining $1.8m by deception.

“Christopher and Robert Peters have also been charged with obtaining those funds by forgery as an alternative charge,” the SFO added.

Christopher and Robert Peters were set to go on trial next month.