Britroc Investments v PT [2015] NSWSC 524

Last month, we reported on the sentencing appeal of the notorious mortgage fraudster Gabriel Werden

Werden advertised in the newspaper claiming to be a broker and brazenly asked his victims for their identification.

In this case, something similar occured. The fraudster advertised custodial services for self managed superannuation funds wanting to buy property. The fraudster issued an elaborate and professionally written information memorandum offering to fill the role of custodian (owner) of the property, and to arrange the loans necessary. To completely eliminate any suspicion by the victims, the fraudster claimed to have an arrangement with Perpetual Trustee, and to be putting the property (and did in fact put the property) in the name of Perpetual Trustee.

The transfer purported to be signed by two actual officers of Perpetual Trustee. But they did not sign and the document was a forgery.

The lender was remiss in not taking steps to verify they were dealing with the real Perpetual Trustee and to check the bona fides of the loan introducer. 

All lenders should be alert to fraudulent intermediaries, such as brokers or custodians. 

In order to discover how to identify these frauds very early we recommend you read Avoiding Mortgage Fraud in Australia (2015) LexisNexis Butterworths.

Click here to read the full judgment

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