Auckland property developer & investor Malcolm Duncan Mayer (57) was found guilty in the Auckland District Court on Friday of orchestrating a $47 million mortgage fraud. He was remanded on bail and is scheduled to appear for sentence on 18 February.
Mr Mayer was convicted after a 6-week trial on 26 charges under the Crimes Act laid by the Serious Fraud Office – 16 of dishonestly using a document and 10 of using forged documents.
The charges related to false loan applications Mr Mayer submitted to fund management company Trustees Executors Ltd for 26 properties between December 2003-August 2007.
Mr Mayer was found to have used a variety of means to mislead Trustees Executors into lending the money, including dishonestly using relatives’ & associates’ names to secure the loan funds, using false sale & purchase agreements and false leases to support valuations, and making false statements about the supposed applicant’s deposit or contribution to the purchase.
Mr Mayer was adjudicated bankrupt on 12 April 2011. His company, Sagecorp Ltd, went into voluntary liquidation in March 2010 with debts of $1.95 million and assets estimated at $1 million – 2 apartments in Peace Tower, 2 St Martins Lane, sold at mortgagee auction by Westpac (NZ) Ltd and another 2 at 82 Symonds St mortgaged to Rice Craig Solicitors Nominee Co Ltd. Mr Mayer’s MDM Holdings Ltd was wound up in October 2009, a month after a receiver of income was appointed for 6 of its properties – 5 at Peace Tower and one at 6 Glenside Crescent. Mr Mayer was also a director of APB 2006 Ltd, Artizanz Ltd, Champion Apartments Ltd (in liquidation May 2010), Mountain Watch Properties Ltd (in receivership August 2009) & North Star Holdings Ltd, and a former director of Malkev Properties Ltd & Sage Holdings (Ak) Ltd.
Attribution: SFO release.