Mortgage Fraud

by Tim O’Dwyer M.A., LL.B Queensland Solicitor & Consumer Advocate watchdog@argonautlegal.com.au

A while back I was interviewed on the Drive Programmes for Brisbane radio station 4BC and Canberra radio 2CC, as well as on ABC – TV news. The subject was mortgage fraud – where agents, finance/mortgage brokers, solicitors, buyers and sellers can be parties to criminally defrauding banks, building societies and other lenders.

I told how a crooked Queensland agent lost his licence for this, how another agent and his whole sales staff were jailed and how a fraudulent mortgage broker and her accomplices also copped jail sentences. One conveyancing solicitor involved with one of the agents soon joined his mates in jail.

The warnings are obvious for all in real estate. Particularly for any professional corruptly tempted by “an important source of work to his practice” – to quote the solicitor’s barrister who told the court this foolish lawyer apparently “couldn’t say no to an important client.”

Property buyers should be wary of sellers’ agents keen to help with their finance and conveyancing. Sellers should also ensure that their agents focus on selling their property rather than servicing buyers. See your own independent solicitor or conveyancer before you sign anything.

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