CCAC busts syndicate that defrauded banks through fake mortgage loans

The Commission Against Corruption (CCAC) has uncovered a case involving several bank workers who colluded with a crime syndicate to fraudulently obtain mortgage loans from banks amounting to MOP770 million, of which the illicit gains totaled to almost MOP220 million.
In a statement yesterday, the corruption watchdog disclosed that a total of nine persons, including the mastermind and the core members of the syndicate and several bank workers, allegedly conspired with over 370 borrowers to falsify documents in order to fraudulently obtain mortgage loans from 2010 to 2020.
The case involves 11 banks that approved 362 fraudulent loan applications.
The CCAC received a report alleging that a scam syndicate, masterminded by a man surnamed Chan, colluded with workers at local banks who were responsible for handling loan applications and others to forge documents and thereby defraud the banks into approving mortgage loan applications.
Following an in-depth investigation, it was found that the team provided personal loans and charged the borrowers high interest. However, when the borrowers were unable to repay the loans, the syndicate requested that they participate in document forgery to facilitate bank mortgage loan applications, which would serve as the repayments for the loans on which they had defaulted. In addition, those borrowers were charged large handling fees.
CCAC explained in the statement that the syndicate also looked for citizens who desperately needed money in casinos through third parties or through newspaper advertisements for “speedy loan approvals” in an attempt to defraud the banks into approving the fraudulent mortgage applications with falsified evidence of income and passbook copies.
The graft buster also added that one bank manager even falsified documents on his own and used them to apply to different banks for loans, which were then invested into the operation of the syndicate and purchase of borrowers’ properties at a price below the market value.
The case has been referred to the Public Prosecutions Office upon completion of the investigation. Following the suggestion of the prosecution office, the judge of the Criminal Investigation Court has ordered that the departure of certain syndicate members be prohibited.